Document of The World Bank FOR OFFICIAL USE ONLY Report No: 75184-BF INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 33.4 MILLION (US$50 MILLION EQUIVALENT) TO THE GOVERNMENT OF BURKINA FASO FOR A YOUTH EMPLOYMENT & SKILLS DEVELOPMENT PROJECT April 29, 2013 Human Development Sector West and Central Africa 1 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2013) Currency Unit = CFA 512 CFA = US$1 US$1 = SDR 0.66702241 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ABAP Annual Budget Action Plan AFD Agence Franqaise de Dveloppement ALMP Active Labor Market Programs ANPE Agence nationale pour l'Emploi BAP Budget Action Plan CCI-BF Chambre de Commerce et de l'Industrie du Burkina Faso CBRD Community Based Rural Development CCT-BF Chamber of Crafts and Trade of Burkina Faso CQP Certificat de Qualification Professionnelle EFTP Enseignement et Formation Technique et Professionnel EMP Environmental Management Plan ESMF Environmental and Social Management Framework ESW Economic and Sector Work FEIA Full Environmental Impact Assessment FM Financial Management FNABF Fiddration Nationale des Artisans du Burkina Faso FY Fiscal Year GDP Gross Domestic Product GNI Gross National Income HDI Human Development Index ICB International Competitive Bidding IDA International Development Association IGA Income-generating activity ILO International Labor Organization IPR Independent Procurement Review LEIA Limited Environmental Impact Assessment LICUS Low-income countries under stress LIPW Labor Intensive Public Works MDG Millennium Development Goal MIT Ministry of Infrastructure and Transport NCB National Competitive Bidding NGO Non-govemmental organization ii ME Maison de l'Entreprise MJFPE Ministre de la Jeunesse, la Formation professionnelle et de l'Emploi ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAPS / EFTP Programme d'Appui a la Politique sectorielle d'Enseignement et de Formation techniques et professionnels PCN Project Concept Note PDO Project Development Objective PDSEB Programme de Dveloppement Stratigique de l'Education de Base 2012-2020 PCU Project Coordination Unit PIM Project Implementation Manual PPR Post Procurement Review PPTD Programme Pays pour le Travail D&ent PRONAA Programme National pour /'Accildration de l'Alphabtisation PRSP Poverty Reduction Strategy Paper PSCE/JF Programme Sp&ial de Crdation d'Emploi pour les Jeunes et les Femmes PTR-HIMO Projet de Travaux Routiers-Haute Intensit6 de Main d'(Euvre QAG Quality Assurance Group RPF Resettlement Policy Framework RFP Standard Request For Proposal SCADD Stratigie de Croissance Accildrie et de Dveloppement Durable 2012-2016 SC Steering Committee SSA Sub-Saharan Africa SP-CNC National Commission of certification TA Technical Assistance TFGA Trust Fund Grant Agreement TVET Technical and Vocational Education and Training UNDP United Nations Development Program VDC Village Development Committee WAEMU West African Economic and Monetary Union Regional Vice President: MakhtarDiop Country Director: Madani M. Tall Sector Director: Ritva S. Reinikka Country Manager: Mercy Tembon Sector Manager: Peter N. Materu Task Team Leader: Hamoud Abdel Wedoud Kamil 111  BURKINA FASO YOUTH EMPLOYMENT & SKILLS DEVELOPMENT PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ......................................................... 1 B. Sectoral and Institutional Context. .................................... 3 C. Higher Level Objectives to which the Project Contributes ................... 8 II. PROJECT DEVELOPMENT OBJECTIVES ...........................................................9 A. PDO........................................................ 9 Project Beneficiaries .......................................... ..... 9 PDO Level Results Indicators.............................................. 9 III. PROJECT DESCRIPTION ............................................................................................10 A. Project Components ..................................... ....... 10 B. Project Financing ......................................... ..... 12 Lending Instrument ...................... .................. 12 Project Cost and Financing .......................................... 13 C. Lessons Learned and Reflected in the Project Design..................... 13 IV. IM PLEM ENTATION .................................................................................................. 14 A. Institutional and Implementation Arrangements .................... ..... 14 B. Results Monitoring and Evaluation (M&E).............. .............. 16 C. Sustainability................... ............................. 17 V. KEY RISKS AND MITIGATION MEASURES......................................................18 A. Risk Ratings Summary Table ...................................... 19 B. Overall Risk Rating Explanation .............................. ...... 19 VI. APPRAISAL SUM M ARY ......................................................................................... 19 A. Economic and Financial Analyses .......................... ......... 19 B. Technical .................................................... 21 C. Financial Management..................................... ...... 22 D. Procurement ........................................... ....... 23 iv E. Social (including Safeguards) ...................................... 24 F. Environment (including Safeguards) .................................. 24 Annex 1: Results Framework and Monitoring ....................................................................26 Annex 2: Detailed Project Description...................................................................................32 Annex 3: Summary of Estimated Cost ..................................................................................57 Annex 4: Implementation Arrangements .............................................................................58 Annex 5: Operational Risk Assessment Framework (ORAF).............................................67 Annex 6: Financial Management and Disbursement Arrangements..................................72 Annex 7: Procurement Arrangements ..................................................................................79 Annex 8: Project Preparation and Appraisal Team Members............................................81 Annex 9: Economic and Financial Analysis .........................................................................82 Annex 10: Lessons Learned Reflected in the Project Design..............................................91 Annex 11: Documents in Project Files ..................................................................................92 A nnex 12: M aps............................................................................................................................ 93 V PAD DATA SHEET Burkina Faso BF-Youth Employment & Skills Development (P130735) PROJECT APPRAISAL DOCUMENT AFRICA AFTEW Report No.: PAD494 Basic Information Project ID Lending Instrument EA Category Team Leader P130735 Investment Project B - Partial Assessment Hamoud Abdel Wedoud Financing Kamil Project Implementation Start Date Project Implementation End Date 23-May-2013 15-Dec-2018 Expected Effectiveness Date Expected Closing Date 01-Sep-2013 15-Dec-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Peter Nicolas Materu Ritva S. Reinikka Madani M. Tall Makhtar Diop Borrower: Ministry of Economy and Finance Responsible Agency: Ministry of Youth, Professional Training, and Employment Contact: Moussa BELLO Title: Secretary General Telephone 22650307740 Email: belomoussa@yahoo.fr No.: Project Financing Data(in USD Million) ] Loan [ ] Grant [ ] Other [X] Credit [ ] Guarantee Total Project Cost: 50.00 Total Bank Financing: 50.00 Total Cofinancing: Financing Gap: 0.00 vi Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 50.00 Total 50.00 Expected Disbursements (in USD Million) Fiscal 2013 2014 2015 2016 2017 2018 2019 0000 0000 Year Annual 0.00 5.00 10.00 15.00 15.00 5.00 0.00 0.00 0.00 Cumulati 0.00 5.00 15.00 30.00 45.00 50.00 50.00 0.00 0.00 ve Institutional Data Sector Board Education Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Education Vocational training 60 Education Adult literacy/non- 30 formal education Health and other social services Other social services 10 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 % must equal 100) Major theme Theme % Public sector governance Managing for development results 20 Human development Education for the knowledge economy 80 Total 100 Project Development Objective(s) vii Proposed Development Objective(s) The project development objective (PDO) is to increase access to temporary employment and skills development opportunities for out-of- school youth. Components Component Name Cost (USD Millions) Component 1: Labor Intensive Public Works 25.00 Component 2: Skills development 20.00 Component 3: Institutional Capacity Strengthening and 5.00 Project Management Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [X] respects? Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [X] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Explanation: 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 viii Legal Covenants Name Recurrent Due Date Frequency Project Implementation Manual 01-Dec-2013 Description of Covenant The Recipient shall within three (3) months of the Effective Date finalize and adopt a Project Implementation Manual. Name Recurrent Due Date Frequency Management Contract and Service 01-Dec-2013 Agreement Description of Covenant The PCU, shall, no later than three months of the Effective Date, enter into: (a) a Management Contract with each of CCI-BF, ANPE and the Maison de l'Entreprise du Burkina Faso; (b) a Service Agreement with MIT; and (c) shall cause MIT to enter into a Service Agreement with each of the communes referred to under Part 1 of the Project. Conditions Name Type Steering Committee Effectiveness Description of Condition The Recipient has established the Steering Committee. Name Type Project Coordination Unit Effectiveness Description of Condition The Recipient has established and staffed the Project Coordination Unit. Team Composition Bank Staff Name Title Specialization Unit Azedine Ouerghi Sector Leader Sector Leader AFTHD Bintou Sogodogo Program Assistant Program Assistant AFMBF Lucienne M. M'Baipor Senior Social Senior Social AFTCS Development Specialist Development Specialist Laura S. McDonald E T Consultant E T Consultant AFTEW Tshela Rose-Claire Program Assistant Program Assistant AFTEW Pakabomba 1x Roch Levesque Senior Counsel Senior Counsel LEGAM Hamoud Abdel Wedoud Senior Education Team Lead AFTEW Kamil Specialist Aissatou Diallo Senior Finance Officer Senior Finance Officer CTRLA Africa Eshogba Olojoba Senior Environmental Senior Environmental MNSEN Specialist Specialist Saidou Diop Sr Financial Sr Financial AFTMW Management Specialist Management Specialist Adama Ouedraogo Senior Education Senior Education AFTEW Specialist Specialist Juliana C. Victor- Senior Monitoring & Senior Monitoring & AFTDE Ahuchogu Evaluation Specialist Evaluation Specialist Maurice Adoni Senior Procurement Senior Procurement AFTPW Specialist Specialist Mamata Tiendrebeogo Senior Procurement Senior Procurement AFTPW Specialist Specialist Ryoko Tomita Education Economist Education Economist AFTEW Edith Atioumoutio E T Consultant E T Consultant AFTMW Zannou Tchoko Non Bank Staff Name Title Office Phone City Jean-Paul Chausse Rural Development 53313473 Abidjan Advisor Sandra Beemer Education Consultant Washington DC Ali Sanaa Consultant (216-71) 801 615 1TUNIS Locations Country First Location Planned Actual Comments Administrative Division x  I. STRATEGIC CONTEXT A. Country Context 1. Burkina Faso is a low-income country with an undiversified economic structure. A land-locked West African country, Burkina Faso had a gross national income (GNI) per capita of US$550 in 2010 and is among one of the poorest countries in the world. The economy remains undiversified, with agriculture accounting for one-third of output and four-fifths of employment. The rapidly expanding population of 16 million inhabitants (2010) relies upon a very narrow natural resource base, with cotton as the only major existing export commodity until recently, when gold emerged as another significant product. A series of recent exogenous shocks caused economic growth to contract to 3.2 percent in 2009. Though growth is picking up again and forecasts are positive, the economy remains highly vulnerable to external shocks such as adverse weather, fuel and food crises, fluctuating commodity prices as well as the global financial crisis. This high level of vulnerability to shocks is partly due to the economy's narrow resource base and substantial dependence on cotton exports. 2. Government has set up ambitious economic and social development objectives based on three principles: solidarity, progress and respect on the international level. In the "Burkina 2025" strategyl the Government has indicated that these principles will be essential in moving the country forward. On the economic front, the objective is to set up an inclusive growth of ten percent annually over the next five years in which private sector will lead the investments and enhancement in household's revenues and consumption will help in alleviating poverty. Various sectors (including agriculture, livestock, trade and manufacturing) will contribute to achieving this goal. In addition, the Government's vision for the social sectors is to reduce migration and to improve the health and ensure food self-sufficiency for all by 2025. This vision also includes quantitative and qualitative improvements in the educational system; access for all to clean drinking water, significant reduction, or even the elimination, of poverty and unemployment; decent housing for all, and promotion of equal rights for women and men. To achieve this vision, the following strategies are proposed. - Creation of a sustainable and attractive environment for trade and business through: macroeconomic stability, legal and judiciary functional framework, roads and a regular supply of electricity, access to financing and capacity building for human resources are key to develop private sector investment. - Reduction in migration by promoting the employment of young people and reducing poverty by building dams to improve the crop season, providing the youth with equipment for agriculture and livestock, encourage young people to return to the earth, letting the people live in the communities of their choice and accelerating the integration process. Conseil National de Prospective et de Planification Strategique. Etude nationale prospective << Burkina 2025 >> Rapport General. Avril 2005 1 - Other strategies have been proposed and that included the reform of the school system by integrating the trades, increasing literacy and the urbanization of some localities in Burkina Faso. 3. Although West Africa has recently experienced international and political crises, Burkina Faso has opportunities for improved economic growth particularly related to the mining sector. Burkina Faso is currently considered one of the best mining jurisdictions in West Africa due to favorable investment laws, good geology, and political stability. Yet, availability of jobs in the nine mining companies currently operating in Burkina is limited for the local population due to low skills capacity. Moreover, the cotton sector, which is the backbone of the rural economy and accounts for more than two million jobs, needs capacity building by the key stakeholders to sustain economic growth. While there has been improved economic growth over the last ten years, youth unemployment is still high due to a formalization of the economy and limited capacity of potential employees to fill positions in the new economy. This is particularly worrisome for the two main cities of Ouagadougou and Bobo-Dioulasso where the unemployment rate is approximately 20 percent. Thus, 'Burkina 2025' places a high priority on the future of youth and children in Burkina. 4. In spite of this sustained growth, the economy has failed to produce the kind of jobs needed to pull large numbers of people out of poverty. According to the 2006 census, 46.4 percent of the population was under 15 years of age and 59.1 percent under 20 years of age. The country's youth are a resource for potential innovation and progress for the medium and long- term but only if the country invests in them. Between 2003 and 2009, the poverty incidence fell from 51 to 46 percent. Though this is a significant reduction, still almost -half the population lives in poverty and human development indicators (HDI) are still low compared to the average in Sub-Saharan Africa (SSA)2. Burkina Faso will not achieve the Millennium Development Goal 1 (MDGl) poverty rate of 35 percent by 2015. This slow pace in poverty reduction is in large part due to a high annual population growth rate (3.4 percent) and a non-inclusive pattern of growth.3 Lack of demand for labor because of a static economic structure is likely to constitute the most important constraint to job opportunities in Burkina Faso. Economic growth has been volatile and largely dependent on agriculture (cotton) and mining (gold) including commodities prices, neither of which is likely to form the basis for a growing number of jobs. 5. General and growing discontent over increasing prices and the perceived lack of sufficient social progress and economic opportunities, in particular for the youth, led to widespread social unrest in the spring of 2011. Following consultations with socio-political groups, in the spring of 2011 the Government quickly enacted measures to meet popular demands including containing the price of food staples, reducing salary taxes, eliminating some communal taxes and paying for some housing allowances. These measures have mainly benefited the poorest and young. It also quickly prepared an emergency program to support job creation among youth.4 2 The 2012 Human Development Report of the UNDP ranks Burkina 183st out of 186 countries, with social indicators pointing to the enormous challenges even in comparison with most other low income countries: World Bank. Burkina Faso: Employment and Skills Development, June 18, 2012. 4Special Program for Job Creation for Youth and Women (Programme Special de Creation d'Emploi pour les Jeunes et les Femmes - PSCE/JF) 2 6. Although relative socio-political stability has returned, Burkina Faso faces a critical challenge in improving the population's living standards and ensuring widespread gains from economic growth in the short- and long-term. Given the growing population and the labor force growth, Burkina Faso will need to create some 400,000 new jobs per year between now and 2030, a majority of them for youth (15-34 years of age) in order to prevent social unrest as occurred in 2011. The continued high levels of employment in low productivity subsistence agriculture work highlights the urgent need to accelerate the pace of structural transformation of the economy to permit a much faster shift from the labor force into more productive economic activities. This will require: (i) a sustained, high and diversified economic growth that benefits all segments of society, by improving the investment climate by creating demand for labor in sectors and occupations that offer higher earnings; and (ii) raising earnings on low productivity jobs in agriculture and the non-farm informal sector. This will require a major improvement in skills among the labor force which can be achieved through a strengthened education and training system that aligns workers' skills with the requirements of a competitive economy. 7. Currently, the skill level of the workforce is too low to support diversification and competitiveness of the economy and the national skills development system faces major structural constraints. The formal (public and private) education and training capacity within the system is weak and needs to be strengthened. Further, the curriculum does not prepare youth for a working life as an adult. As skills-building is a long-term process which reveals its full impact usually after many years, it is critical to start addressing these structural constraints immediately in order to see improvements over the medium- and long-term. 8. In both the short- and medium-term, the immediate needs of both the economy and the stock of unschooled/unskilled workers, in particular the youth, will require the following: (i) implementation of programs that can help labor market insertion or offset the short and long term consequences of temporary income shortfalls for specific vulnerable groups; (ii) improvements in the quality of the main skills development systems for youth - traditional apprenticeships, literacy and numeracy training programs - so that they can provide skills recognized and needed by employers and open opportunities for further education; and (iii) providing second chance programs that reinsert out-of-school youth into the formal education system. B. Sectoral and Institutional Context Sectoral Context 9. The large portion of the population in Burkina Faso is young and the labor force is made up of predominantly young people living in rural areas. Burkina Faso's population is largely rural with only an estimated 20 percent living in urban areas. About 46 percent of the total population is under 15 years of age and 59 percent under 20 years of age. This young population represents a strong potential for future economic growth if it can be harnessed and its productivity improved through sustained and widespread skills development. Currently employment in Burkina Faso is mostly within the informal sector (93 percent of the economically active population) with only 7 percent in formal salaried employment (amounting to approximately 200,000 jobs with 80 percent of these in the country's main cities: 3 Ouagadougou and Bobo-Dioulasso). Of this 7 percent, more than one-half (4 percent) are employed in the public sector while 3 percent are employed in the formal private sector. The high poverty levels and high dependency ratios imply that nearly everybody has to work. Thus, virtually all adult men and women, urban and rural residents are employed in Burkina Faso with a majority of children and elderly also working. Formal unemployment is thus marginal at less than 2 percent of the labor force (i.e., a little over 100,000 people) compared to an (adult) employed population of about 6.4 million. Poverty remains high because most people are employed in low productivity, low earning, and highly vulnerable jobs. Thus, for the large majority of the work force, the main problem is not job creation per se but rather the type of jobs that are available. 10. In contrast, those vulnerable to unemployment are primarily non-poor, educated, and urban youth. Unemployment mostly affects the urban, non-poor and those with at least some education with youth ages 15 to 34 making up 84 percent of the unemployed. The actual number of unemployed with a university education is only 8,000 people, who live primarily in the two main cities (Ouagadougou and Bobo-Dioulasso)5 and they are primarily new entrants into the labor market who have never held a job. Nonetheless, the concentration of unemployed among articulate urban youth constitutes a major political challenge for the Government. Providing these youth with a good and rewarding first job is critical for social peace. 11. While addressing structural issues which characterize the country's national education and vocational training system, as soon as possible it is necessary to: (i) provide immediate job opportunities to educated urban youth (i.e., facilitating their entry into the labor market); and to (ii) rapidly improve the employability and productivity of the workers in the informal farm and non-farm sector through skills development activities. Both of these will be key to economic growth, employment creation and poverty alleviation in the short- and long- term. 12. Improving productivity in the agricultural sector offers the greatest medium-term potential for poverty alleviation and should be given high priority. Agriculture continues to provide employment (in the informal sector) and income to over two-thirds of the economically active population while contributing only 32 percent of the country's GDP, reflecting the poor productivity of the sector. The majority of households is still engaged in the food crop sub-sector and depends on rainfed farming and a single cropping season. They are, therefore, highly vulnerable to poverty and food insecurity due to adverse market and weather conditions. Hence, in addition to measures and programs focusing on improving agricultural productivity (irrigation, access to input and output markets, extension), safety net programs are needed to address food insecurity and counter the effects of climatic shocks and/or participation in only seasonal inactivity. For those who can do physical labor, it would be particularly important to promote more labor-intensive approaches in public investments/works to provide temporary income support to vulnerable people. 5Of the 8,000 university graduates unemployed in the country, 88 percent live in Ouagadougou. Of the 70,000 unemployed with primary, post-primary, or secondary levels of education, almost 70 percent live in Ouagadougou. 4 13. Rural areas offer few opportunities for work outside the agriculture sector and those informal sector jobs outside agriculture are in urban areas. In rural areas, less than 9 percent of the population is engaged in non-farm activities as a primary activity. One-half of informal sector workers are engaged in trade, hotels, and food preparation; 20 percent are engaged in manufacturing. About 70 percent of those working in the informal sector are self- employed (mostly); 10 percent are contributing family workers; and 20 percent are wage workers, interns, or apprentices in the informal sector. 14. In order to reduce poverty and improve productivity and earnings skills development activities are needed. Burkina Faso has made very important progress on increasing children's access to education. The number of children in primary school increased from under 1 million to over 2 million between 2000 and 2010, a net increase of over 100,000 children each year. At the same time, only 13 percent of the adult Burkinabe population age 15 and above has completed primary or higher education, another 12 percent have not completed 6 primary education and three-quarters of the adult population has no education at all. As a result, about 80 percent of the working-age population cannot read or write, which makes Burkina Faso one of the countries with the lowest literacy rates in the world. 15. Although education levels are slowly improving, youth are only marginally better equipped than older workers. The youth literacy rate is still very low, at 29 percent, compared to 70 percent for the SSA as a whole. The illiteracy level is especially high among women (86 percent) and in rural areas (91 percent). Less than one-third of youth (ages 15 to 34) capable of working have received any education at all, and less than one-fifth have completed primary education (or higher). In total, there are over three million youth in the labor market without a primary education and the pool of semi-skilled and skilled active youth - those with at least primary education (or six years of schooling) - is limited to 600,000 people in the entire country. 16. The education and training system in Burkina Faso is weak and faces major challenges. In addition to low rates of completion (even for primary level), there are pervasive disparities in access and outcomes across regions, genders, and poor vs. non-poor groups. Despite rising enrollment at all levels, high attrition during early years of schooling means that a majority of children older than 10 years of age and a large number of youth (ages 15 to 24) have dropped out of formal schooling, for a number of possible reasons including: (i) they are required to work; (ii) they cannot afford schooling, and (iii) and their parents may not see education as beneficial since it does not increase their employability or earnings (because of its low quality). The only way that they might be able to obtain and/or strengthen their skills is by acquiring them through a traditional apprenticeship or learning on-the-job. 17. The strong disconnect between the requirements of the labor market and the skills supplied by the national education and training system is a major constraint to widespread and shared economic growth. Currently, the lack of skilled workers in disciplines pertinent to 6Access to secondary school remains very low. Gross enrollment in junior secondary school has doubled since 2000, but the gross enrollment rate (GER) remained at 28 percent in 2010, with upper secondary at only 10 percent. Access to higher education is highly restricted, with GER at 4.5 percent for men and 2.1 percent for women. In 2010, there were less than 10,000 university graduates. 5 key economic sectors experiencing or expected to experience growth and limited basic literacy and professional skills is a major concern to enterprises and a powerful determinant of low domestic and foreign investment in Burkina Faso. The quality of the formal (public and private) education and training system is low and the curriculum does not prepare youth for working life. Major structural reforms are needed to address these limitations. These efforts should specifically focus on: (i) ensuring that children are enrolled in basic education and complete their studies to acquire basic skills; (ii) addressing quality and equity issues in primary education while preparing for increasing demand for post-primary education; and (iii) ensuring that the education and training system provides youth with skills matching labor market demand, including through a much more efficient traditional apprenticeships, which are the primary source of skills development in Burkina Faso. Institutional Context 18. Job creation is taking center stage in Burkina Faso's economic and political discourse and the Government has placed a high level of importance on these issues - specifically economic growth and job creation in its recent poverty reduction strategy (Stratigie de Croissance Accildrde et de Diveloppement Durable 2012-2016 - SCADD).The Government recognizes the role of job creation, productivity, and income growth for improving the living standards of the population and ensuring widespread gains from economic growth. The SCADD prioritizes investment in human resource development as one of the key levers for sustainable economic growth. It focuses on three strategic areas: (i) the promotion of growth poles (regions with many features that together increase the likelihood of economic growth in these areas) to reduce economic vulnerability; (ii) investment in human capital to provide the economy with the relevant skills, and (iii) strengthening governance. The social unrest observed in 2011 has led the Government to place even more urgency on addressing the issue of job creation, particularly for youth. 19. The Government has developed several important initiatives in the education and training sector including: (i) a new Strategic Development Program for Basic Education (Programme de Diveloppement Stratigique de l'Education de Base 2012-2021 - PDSEB) to: (a) ensure access to basic education for all children, and (b) provide literacy and training programs for youth and adults alike who are unschooled, dropouts, and graduates from the formal or non- formal systems; (ii) an Action Plan for the National Technical and Vocational Education and Training (TVET) Policy (Plan d'Action de la Politique Nationale de l'Enseignement et Formation Technique et Professionelle, 2010, to harmonize the system and attract more youth into different TVET programs, by increasing the linkages between TVET and different forms of education, as well as through accreditation and equivalence systems that recognize achievements and competencies irrespective of where these were acquired; and (iii) an accelerated literacy program (Programme National pour lAccildration de l'AlphabMtisation - PRONAA) with the goal of helping one million people become literate through the non-formal system. 20. Burkina Faso has also many Active Labor Market Programs (ALMPs), but most of them are small in size, overlapping in terms of target and approach. Additionally, they are costly and less accessible for vulnerable groups including women and poor people. The set of ALMPs adopted in Burkina Faso is typical of many developed and developing countries: 6 micro-credit and different training interventions to boost productivity in self-employment, training to increase employability, and wage subsidies for educated youth. Globally, the evidence suggests that these programs focus more on typical constraints for middle and high income countries including skills mismatches and/or information gaps, but are not necessarily well- suited for addressing the key challenges of low labor demand and high poverty facing Burkina Faso. 21. As an emergency response to the 2011 unrest, the Government has quickly developed a Special Program for Job Creation for Youth and Women (Programme Spicial de Criation d'Emploi pour les Jeunes et les Femmes - PSCE/JF) covering the 2012-2014 period at an estimated annual cost of US$22 million. The program is coordinated by the Ministry of Youth, Professional Training, and Employment (Ministere de la Jeunesse de la Formation Professionelle et de l'Emploi). It aims to create 54,000 new jobs and train 45,000 youth per year. It focuses on four areas: (i) promoting access to employment for young graduates through internship programs; (ii) promoting access to employment for out-of-school youth and youth with no schooling, through labor intensive public works (LIPWs), apprenticeships and support to self-employment/income-generating activities (IGAs); (iii) strengthening the productivity of rural youth, by extension programs; and (iv) facilitating rural women's access to transformation technologies. Partnership 22. The main partners involved in the field of skills development and employment are Austria, French Development Cooperation (Agence Francaise de developpement - AFD), Luxembourg, AfDB, Denmark, Swiss Cooperation, United Nations Development Program and International Labor Organization. They operate in different regions and cover various themes. Austria, Luxembourg and AFD are supporting the implementation of the Government TVET program with a total of £17 million for the period of 2011-2016. The Swiss Cooperation and Taiwan, China are expected to join these donors in their contribution to the sector program. 23. Austria, Denmark and Swiss Cooperation are financing an education and training project in national languages in the sector of agro-forestry-pastoral (livestock, agriculture, wood product processing, beekeeping, etc.). This project covers two regions of the country: the Sahel and the Cascades. for the period of 2006-2016 and is being implemented in partnership with the Ministry in charge of Basic Education and Non formal Education (Ministere de 'Enseignement de Base et de l'Education non formelle and is in the amount of US$20 million (CFA 10 billion equivalent). 24. Austria also has two additional operations totaling C1.8 million which are: (i) Support to the operationalization of TVET National Policy Action Plan (2012-2016). The objective of this operation is to support on-the-job training through the training Fund (FAPCA) based on companies demand in the 13 regions; and (ii) "Education and Training for Endogenous Development" implemented through the NGO Training for Development (2013-2016). The project objective is to provide youth from 9 - 15 years of age an education which allows them to create "environmentally responsible enterprises" based on their regions' economic potential. The project operates in two regions: the Sahel and the Cascades. 7 25. AfDB, UNDP and ILO interventions are more focused on youth employment. Since the creation of the Ministry in charge of youth and employment in 2006, ILO has supported the institutional development of the Ministry through various activities related to the sector policy preparation and the integration of youth employment issue into the national development strategy (SCADD). Since 2010, ILO's support in Burkina focused mainly on the program of decent work (Programme Pays pour le Travail Decent - PPTD) which was formalized in November 2012. The entire program is estimated at US$9.9 million. 26. In January 2012, UNDP supported a program entitled "Increasing Incomes and Promoting Decent Employment for Youth and Women," covering the period from 2012 to 2015. The objective of this program is to: (i) strengthen the capacity of organizations working to promote employment, (ii) improve access of vulnerable populations, particularly women and youth, to employment, to credit and to profitable income-generating activities. The total program cost is approximately US$3.03 million. (UNDP US$2.8 million and Government approximately US$230,000). 27. Since 2010, AfDB has launched an extensive program called the "Joint Initiative for Youth Employment in Africa, in collaboration with the African Union Commission, the United Nations Economic Commission for Africa and ILO. The main objective of this initiative is to increase and improve youth employment in Africa, identify problems related to youth employment and propose solutions to strengthen the impact of different ongoing activities, and/or promote new interventions. For the moment, financing of this initiative is not available. C. Higher Level Objectives to which the Project Contributes 28. The proposed project would support Government's poverty reduction strategy (SCADD), notably the second axis, human resources development through the development of higher education and technical and professional training. It would also be fully in line with the Bank's assistance strategy to Burkina Faso as detailed in its 2010-2012 and 2013-16 Country Assistance Strategies (CAS), which focus on: (i) minimizing economic vulnerability and promoting growth through economic transformation by increasing productivity; and (ii) promoting shared growth through effective social service delivery, in particular in education and training and health. Lastly, the project, by building fostering employment opportunities for youth, would be in line with the World Bank's Africa Strategy. 7 Africa's Future and the World Bank's Support to it, March 2011 8 II. PROJECT DEVELOPMENT OBJECTIVES A. PDO 29. The project development objective (PDO) is to increase access to temporary employment and skills development opportunities for out-of-school youth. Project Beneficiaries 30. The primary beneficiaries of the proposed project will be approximately 46,800 out- of-school youth between the ages of 16 to 35 with diverse education and skills levels of which at least 30 percent will be women. This group will consist of: (i) participants of LIPWs programs; and (ii) participants in skills development (apprenticeship, training, literacy) and entrepreneurship programs. The World Bank report entitled, "Burkina Faso: Employment and Skills Development" shows the importance of providing this key population group with improved skills and employment opportunities so as to increase their opportunity for future employment and to begin to address issues of political stability. Intermediate beneficiaries are the training institutes, and other agencies engaged in skills development activities. Indirect beneficiaries are the employers/firms of designated economic sectors in the formal and informal sector that will benefit from the improved skills base of the labor force, higher earnings, and improved productivity. In the medium to long-term, the project will also benefit a larger group of economic actors through better access to modern training and skills development services as an outcome of an improved institutional structure. 31. The project areas will cover Ouagadougou and Bobo-Dioulasso, which are the regions with the largest concentration of unemployed/underemployed youth in the country. The project will also cover two or three growth poles centered on regional capitals with high growth potential including both urban and rural areas. These regions are the main economic poles of the country where gaps in skills are the most constraining. PDO Level Results Indicators Objective Indicator (all indicators will be disaggregated by gender) The project development * Direct beneficiaries (number), of which female objective (PDO) is to (percentage) increase access to * youth who completed training programs temporary employment offered by the project (percentage) and skills development * Proportion of youth trained who are employed opportunities for out-of- or self-employed (one year after completion of school youth. training) * Number of man days in Labor Intensive Public Works created 9 III. PROJECT DESCRIPTION A. Project Components Component 1: Labor Intensive Public Works (US$25 million). 32. Operational Objective. The short-term objective of this component will be to provide immediate employment for youth with no or little education through LIPW. It will promote the participation of women by selecting activities that are supportive of women employment and reserving a percentage of the LIPW jobs specifically for women. Because LIPW Programs should be playing a major role in employment creation in Burkina Faso for many years to come, the component will also (with Component 3) support the mainstreaming of LIPWs into national policies, strategies and procedures and the establishment of a permanent capacity for LIPWs in the country. 33. Component target group. The target beneficiaries will be youth (defined as 16-35years of age) in priority urban, peri-urban and rural areas. Over the project period, it is estimated that about 31,000 young men and women will be enrolled in the program, of which about 16,000 in urban areas and 15,000 in rural areas. At least 30 percent of the beneficiaries will be women. 34. Cost of the component. The total cost of the component would be approximately US$25.0 million, of which US$15 million for urban Public Works and US$10 million for rural public works (detailed cost table can be found in Annex 1). The component will finance: (i) sensitization and communications campaigns; (ii) participants' wages and insurance against work-related accidents; (iii) tools and small equipment; (iv) training costs; (v) the non-salary costs of rural investments; (vi) consultants; and (vii) the administrative costs of program coordination. About US$13.0 million will finance beneficiaries' salaries and employability enhancing activities. 35. Results of the component. It is estimated that, over the project period, the component will: * Employ about 31,000 youth and create about 3.9 million man-days of labor (2.4 million in urban areas and 1.5 million in rural areas) and distribute CFA 6.0 billion (US$12.0 million) in wages to beneficiaries (US$7.4 million in urban areas and US$4.6 million in rural areas), which will also benefit from CFA 1.0 billion (US$2.0 million) of training activities; * Permit the establishment and/or regular maintenance of critical infrastructure (maintenance of about 60 km of urban streets/roads; rehabilitation and maintenance of about 240 km of rural roads; 16 small ponds/dug-outs, and about 2,400 ha of reforestation/ community woodlots. Component 2: Skills development (US$20.0 million) 36. The component aims to improve youth employability by offering youth with different skills levels within their first training experience. This will be achieved through three sub-components: (i) Development of initial vocational training through a dual training 10 approach for economic sectors with strong growth and employment creation potential, and establishment of a demand-driven training system and provision of training; (ii) Dual apprenticeships programs; and (iii) Entrepreneurship training and follow up support. Sub-component 2-1: Development of initial vocational training through a dual training approach for economic sectors (Sub-component 2-1 A) and establishment of a demand- driven training system and provision of training (Sub-component 2-1 B). 37. Sub-component 2-1 (A): Establishment of the two Training Centers. The CCI-BF will finance the construction of the two training centers and the dual training of about 1,800 young people from 16 to 24 years of age with a minimum of completion of primary education, including at least 30 percent of girls. Therefore, activities under this sub-component will focus on the institutional set up for the two training centers. The project will support (i) studies on the design and dimensioning of these two centers, (ii) the necessary equipment of centers' laboratories and workshops, (iii) training of trainers, (iv) the development of specific curricula, (v) the external technical assistance required for the start-up of these two centers as well as for the establishment of a dual training system and a management and guidance approach, and (vi) the development of the surveys for the tracer study of trained youth. 38. Sub-component 2-1 (B): Establishment of an On-demand Training System and Provision of Training. A total of 2,000 youth between the ages of 16 to 35 will be trained under the sub-component. The project will support (i) technical assistance (TA) for the establishment of the on-demand training system and the preparation of a detailed manual of procedures, (ii) the implementation of an information campaign (iii) the training of training counselors; (iv) the funding of training contracts negotiated with selected training providers, (v) logistic support, operating costs and equipment; and (vi) training costs of 2,000 youth including monthly allowances. Sub-component 2-2: Apprenticeship Program 39. About 4,000 jobless and uneducated urban and rural youth between the ages of 16 and 20 (in agriculture, livestock and drafts, the age will be extended to 25) will benefit under this Sub- component. It will support: (i) a communications campaign to promote the new approach to apprenticeships to youth and employers; (ii) consultations with private sector organizations; (iii) capacity building of the ANPE and the Chamber of Crafts and Trade of Burkina Faso (CCT-BF) (Chambre des Metiers de l'Artisanat du Burkina-Faso); (iv) equipment/tools and pedagogical materials for training; (v) identification and training of participating master-craftsmen; (vi) training of ANPE's staff participating in the program and complementary equipment for its centers; (vii) the provision of allowances(CFA 20,000 per month) and toolkits to apprentices; (viii) the development of professional qualification standards for 10 trades; (ix) basic skills entrepreneurship training and follow up support to apprentices after the completion of their apprenticeship; (x) the monitoring and evaluation of the sub-component; (xi) the funding of training contracts negotiated with selected training providers and (xii) TA for the review of the national regulatory framework for apprenticeships(including the use of the apprenticeship tax). Sub-component 2.3: Entrepreneurship training and provision of follow up support to entrepreneurs 11 40. A total of about 8,000 youth (at least 30 percent of whom will be girls), ages 16 to 35, will benefit from the sub-component entrepreneurship training interventions. The sub-component will support: (i) an entrepreneurship promotion campaign; (ii) the design/ adaptation of suitable entrepreneurship training modules; (iii) the training/retraining of 50 trainers in entrepreneurship, among Maison de l'entreprise (ME) staff and its accredited service providers (iv) the selection of participating youth, recruitment of external trainers and the organization of training and coaching sessions; (v) the costs of training and coaching of the participating youth, (vi) capacity building activities for the ME and other structures supporting the creation of enterprises; and (vii) the cost of the sub-component M&E system. Component 3: Institutional Capacity Strengthening and Project Management (US$5.0 million) 41. The purpose of this component is to (a) strengthen the capacity of private and public sector institutions to engage in an informed policy dialogue on skills and employment on a regular basis, e.g. through technical capacity strengthening and the creation of a mechanism for consultations and collaboration; and (b) improve the knowledge base on employment and youth. In order to achieve these objectives, the component will fund: (i) the Project Coordination Unit (PCU); and activities in (ii) capacity-building; and (iii) M&E. B. Project Financing Lending Instrument 42. The lending instrument for the proposed project would be a five-year (2013-2018) Investment Project Financing (IPF) through a US$50 million IDA credit to support the Government's efforts in employment and skills development in response to Burkina Faso's request to provide just-in-time support to a specific sub-sector. This instrument was found to be the most appropriate tool to use to support the Government of Burkina Faso at this stage, since a programmatic approach would only be suitable if all government youth employment and skills development related interventions could be coherently included in one employment strategy and/or skills strategy, which is one of the objectives of the proposed project. 43. The operation will be financed with an IDA Credit denominated in Special Drawing Rights (SDR) and repayable over a period of 40 years including 10 years of grace period. A service charge of three quarters of a percent (3/4 of 1 percent) will be charged on the amount disbursed and outstanding amount. 12 Project Cost and Financing Project cost Project Components (US c m on) IDA Financing % Financing (US$ million) 1. Component 1: Labor Intensive US$25.0 US$25.0 100% Public Works 2. Component 2: Skills Development US$20.0 US$20.0 100% 3. Component 3: Institutional Capacity Strengthening and Project Management US$5.0 US$5.0 100% Total Baseline Costs Physical contingencies Price contingencies Total Project Costs Total Financing Required US$50.0 US$50.0 100% C. Lessons Learned and Reflected in the Project Design 44. The project design integrates best practices from relevant International Development Association (IDA) projects in the region. These include youth employment and skills projects in Cote d'Ivoire, Egypt, Yemen, Sierra Leone, Kenya, Liberia as well as private sector projects in post-conflict environments, such as South Sudan. It incorporates in particular lessons learned from the recently closed and on-going IDA operations in C6te d'Ivoire, such as the LICUS Youth Employment Pilot Program, the Post-Conflict Assistance Project and the Young Entrepreneurs and Urban Job Creation Project (TF094234). The project design is also based on analysis and recommendations of several pieces of Economic and Sector Work (ESW) jointly undertaken by IDA and the Government, as well as other sector studies prepared by development partners, and local and international researchers. Some of these studies/reports include: (i) the Diagnostic Trade Integration Study, The Challenge of Export Diversification for a Landlocked Country (2007); (ii) the Country Economic Memorandum (CEM), Promouvoir la croissance, la comptitivit et la diversification (2010); (iii) Creating Better Jobs for Poverty Reduction (2006); (iv) the Poverty Assessment, Reducing Poverty through Sustained Equitable Growth (2005);(v) the Country Education Status Report (CSR) (2010); (vi) Burkina Faso: Employment and Skills Development (June 19, 2012); (vii) the draft skills study, Renforcer les liens entre l'dducation, le ddveloppement des competences et l'emploi dans les secteursformel et informel (2011); (viii) a draft of the AFD study Etude d'opportunit pour l'analyse des besoins en matiere de qualification des resources humaines dans le secteur agro-alimentaire (2010). 45. Project design was also based on and is consistent with the main conclusions and recommendations of the recently completed report entitled Burkina Faso: Employment and Skills Development (June 19, 2012). Two of the most salient recommendations reflected in the project design include: (i) moving away from inefficient supply-driven programs targeted at 13 youth who have spent many years in the education system and move toward training programs self-targeted youth who would not have other opportunities and are combining life skills and with skills that can clearly lead to salaried or self-employment given that most jobs in Burkina Faso are not in the formal sector; and (ii) strengthening/improving the existing public works (PW) programs, an area in which Burkina Faso has already had significant experience, to address income vulnerability among youth and adults, combining them with training in basic life skills and technical training for selected workers to help them find better earning jobs in the future. IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 46. The Project will be under the auspices of MJFPE which has the mandate to draft and implement the government's youth employment and skills development policies, and coordinates all other ministries involved in the youth employment. During the project preparation period, the team conducted a full assessment of the Ministry and various implementation units the assessment indicates a weak capacity within the Ministry. The team and the Government agreed to establish under the authority of the MJFPE a new PCU that will be responsible for day-to-day project implementation. The PCU will include the following core staff: procurement specialist(s); FM specialists; internal auditor; M&E specialist; part-time social and environmental consultant, as needed; and any additional administrative support as necessary. The PCU will include a fiduciary unit among others. 47. Although the PCU has the full responsibility of the project implementation, the team and the Government agreed that the implementation of each component will be as follows. 48. Labor Intensive Public Works (Component 1), the responsibility of the implementation of this component will be given to the special LIPWs unit (Projet de Travaux Routiers-Haute Intensite de Main d'Oeuvre (PTR-HIMO) of the Ministry of Infrastructure and Transport (MIT) under a delegated management contract signed with the PCU. In accordance with Burkina's decentralization strategy and the subsidiary principle, local governments (communes), which play a key role in local youth insertion initiatives, will be responsible for the actual implementation of component's activities, if they have the necessary technical and fiduciary capacities. This will ensure the ownership and sustainability of component's activities at the end of the project. The selected urban communes have a long and successful experience in implementing LIPWs activities (e.g. brigades vertes and other associations undertaking general service activities) and good technical and administrative capacities. Each of the three communes will sign a specific contract with the PCU and the MIT and establish a specific project coordination unit in its General Secretary's office. Appropriate measures will be taken to ensure that these units have all necessary technical and fiduciary capacity. 49. Rural communes have only limited management and implementation capacities. They will be responsible for selecting component's activities out of their local development plans and for supervising implementation with the technical support of the relevant technical ministries (Infrastructure and Transport, Agriculture). Specific implementation responsibilities will be defined through a contract (convention cadre) between the PCU, the PTR-HIMO and each of the participating rural communes. They will be as follows: (i) Rural road rehabilitation will be 14 undertaken by the PTR-HIMO on behalf of the concerned rural communes, through competitively contracted private contractors; (ii) Other rural works will be implemented through private contractors or non-governmental organizations recruited on a competitive basis by the rural communes themselves (their planning and implementation capacity has been significantly improved through the first two phases of the CBRD program). 50. Skills Development (Component 2) this component will be implemented as follow: development of initial vocational training through a dual training approach for economic sectors (Sub-component 2-1 A) and establishment of a demand-driven training system and provision of training (Sub-component 2-1 B) will be implemented by the CCI-BF. The CCI-BF will be responsible for the coordination of the sub-component, under a delegated management contract (Maitrise d' ouvrage d6ligude - MOD) with the Project's overall PCU. The CCI will establish a specific Unit to be responsible for the implementation of the sub-component, with the human resources and equipment necessary to guarantee efficient implementation and full fiduciary accountability. 51. Apprenticeship program (Sub-component 2-2) will be implemented by the ANPE in close collaboration with the CCT-BF and CCI-BF, under a delegated management contract (maitrise d'ouvrage) with the PCU. The ANPE will establish a specific unit, adequately staffed, to coordinate and supervise activities under the sub-component. In each of its regional centers, it will appoint referents specifically devoted to project activities. 52. Entrepreneurship (Sub-component 2-3) will be implemented by the Maison de l'Entreprise (Sub-component 2-3) under a delegated management contract (maitrise d'ouvrage dliguee) with the PCU. The Maison de l'Entreprise is an autonomous subsidiary of the CCI-BF. It has extensive experience in business and entrepreneurship promotion, including in the management of donor-funded projects (Danish Cooperation and World Bank). It has extensive network of regional offices and a well-qualified staff. 53. Institutional Capacity Strengthening and Project Management (Component 3), as stated above, the PCU will have the responsibility for overall project management, capacity strengthening as well as the fiduciary aspects of the project. 54. Steering Committee (SC). Project oversight will be the responsibility of a SC that will be set up within the MJFPE to ensure that project activities are relevant to different sectors and in line with the Government's priorities and the private sector's needs. A number of ministries will be represented in the SC. Specifically, the SC will provide overall guidance to the PCU for project implementation and will review and approve the overall the annual budgeted action plan (ABAP) prepared by the PCU, ensuring agreed performance targets and timelines for proposed activities under the different components and smooth project implementation addressing any bottlenecks/issues. 55. After each entity prepares and submits the ABAP for the component that it is responsible for implementing (PTR-HIMO for Component 1, CCI-BF for Sub-component 2-1, ANPE for 2- 2, and ME for 2-3), the PCU will collect and analyze the overall ABAPs, to ensure that each ABAP adheres to the established guidelines and facilitate the timely achievement of project 15 objectives and completion of activities. The ABAP therefore will serve as the Project's main implementation planning and monitoring tool. The PCU will also produce quarterly project implementation reports which will include accounting and financial information and that related to procurement activities and progress made on each of the Project's respective indicators. An M&E unit will be established during the first year of the Project within the PCU. The PCU will be responsible for producing progress reports and for consolidating the project indicators to produce reports for annual project reviews. The PCU staff will receive training and will be provided with necessary equipment to undertake these responsibilities. A project implementation manual will be prepared and will include detailed financial arrangements. See Annex 4 for overall project implementation arrangements. B. Results Monitoring and Evaluation (M&E) 56. The M&E system will be based on the agreed Results Framework (Annex 1) and implementation arrangements (Annex 4). The project coordination unit will be responsible for conducting M&E activities. Baseline data collection for the agreed indicators will be initiated by the PCU in close collaboration with public and private implementing agencies of the project. Implementing agencies will be responsible for data collection and reporting of their respective activities. Overall the PCU will be responsible for consolidating, analyzing all periodic data and output indicator. In addition, the PCU will be required to produce reports to the steering committee and to the Bank. To this end the PCU will recruit M&E Coordinator for monitoring activities of the project. To support the technical quality of program reports, an international, independent M&E firm will be hired using the Quality and Cost Procurement method. This firm will assist the PCU to design the M&E system for the project, establishing an annual lessons learned/technical audit report process, develop monitoring and quality checklists, to ensure objective assessment of progress Lessons learned through the assessment of progress will be utilized for on-going program refinement. The project will also finance rigorous evaluation studies to complement routine program monitoring: (i) a rigorous impact evaluation to demonstrate the effects of the project compared to non-beneficiary group; and (ii) a tracer survey to monitor the employment status of program participants following completion of the training. 57. Annual reviews. During the first year of implementation, the Technical Secretariat to the SC, the PCU, will organize two annual reviews, the first to review interim progress, the second to approve ABAPs. Based on the ABAP evaluation, the SC will approve activities to be financed for the subsequent year. In year two, the Annual Review meeting will also evaluate progress made in the previous year and take into account lessons learnt and proposed corrective measures. To facilitate and harmonize this review process, one of the two Bank project implementation support missions would be organized to coincide with the Annual Review. 58. The subsector enjoys the full support of the development partners, each of whom contributes to the program in its special area of interest and comparative advantage. The Government and the major donors, including UNDP, AFD, IDA, Lux Development, Austria, Swiss Cooperation (Swiss Contact), and Taiwan, China, have decided to include their interventions within the employment strategy framework. Donors mainly provide support to the strategy through individual projects but all interventions are being harmonized within the framework. 16 59. Donor coordination through joint reviews will ensure that implementation of each donor "project" is consistent with the Government Youth Employment & Skills Development Strategy. Each year, two joint donor/government annual reviews will take place to: (i) assess the extent to which program objectives are being achieved; (ii) identify, through qualitative and quantitative measures, those aspects of the program that are behind or ahead of schedule and recommend adjustments according to annual regional and central implementation plans; (iii) identify reasons for any shortfalls in meeting targets and suggest possible strategies for action; (iv) review performance indicators and assess the functioning of the monitoring and evaluation system; and (v) review expenditure for the previous year, and draft action plans and budgets for the coming year. C. Sustainability 60. Overall Sustainability. The Borrower's ownership of the Project and relevant policies is clear from the strong recognition of the need for youth employment and skills development project. Job creation is taking center stage in Burkina Faso's economic and political debate and the government has placed high importance on the issues of economic growth and job creation in its recent poverty reduction strategy (SCADD). The Government recognizes the role of job creation, productivity, and income growth for improving the living standards of the population and ensuring widespread gains from economic growth. The SCADD prioritizes investment in human resource development as one of the key levers for sustainable economic growth. It focuses on three strategic areas: (i) the promotion of growth poles to reduce economic vulnerability; (ii) investment in human capital to provide the economy with the relevant skills, and (iii) strengthening governance. The social unrest of 2011 has given even more urgency to addressing the issue of job creation, in particular for youth. All project components are well- aligned with the relevant existing government strategies and policies as well as the SCAD and the Special Program for Job Creation for Youth and Women (Programme Special de Creation d'Emploi pour les Jeunes et les Femmes: PSCE/JF) covering the 2012-2014 period. Furthermore, the government's commitment to youth employment and skills development is clear from substantial efforts that have been made recently to develop the Special Program for Job Creation for Youth and Women and the considerable increase in public resources that have been made available to support the employment agenda. Core project activities are expected to continue to be funded beyond the project's duration by the government. 61. Sustainability of LIPW. An LIPW approach is expected to be included in the national road rehabilitation strategy. Municipalities have shown a keen interest and commitment to these types of interventions and have been or are planning to commit a share of their budget to LIPW, conditional on their improved fiscal position. PTR-HIMO is a service provider to communities and its funding depends on the National Roads Fund of the MIT and on the municipal levels. 62. Sustainability of skills development activities. Regarding the skills development component, there is a clear sense of importance among both, key government representatives and development partners of the need to provide youth with a combination of technical and non- cognitive skills to improve their productivity and employability. The Investment Climate Assessment (ICA) indicates that management training to entrepreneurs may help them to expand their businesses, increase productivity and over the medium to long term, perhaps even create employment. The project therefore includes entrepreneurship training and business development 17 support services program as part of the skills development activities. The project addresses this issue in several ways, by providing: (i) on-the-job training for unskilled or low skilled youth through apprenticeships with master craftsmen/microenterprises; (ii) short and midterm professional training programs in economic growth sectors, which contain a practical element; (v) entrepreneurship training and business development support for skilled and unskilled youth; and (iii) basic life skills and entrepreneurship training as part of the labor intensive public works. The private sector is involved and will contribute to the training through the Chamber of Commerce and Maison de 'Entreprise. V. KEY RISKS AND MITIGATION MEASURES 63. The overall risk has been rated substantial which leads to the development of strong risk-mitigating policies and arrangement. 64. The project's success will depend on the extent to which the various ministries involved in the project make necessary and quick decision in project implementation of activities. To mitigate this risks the National Council of Employment and financial and technical partners shall meet regularly to review progress and makes corrections as needed. 65. Failure to implement this project successfully in view of the participation of the private sector would make the achievement of the PDO challenging, since private sector engagement is essential for developing labor-market relevant skills. The private sector have been informed and consulted extensively during project preparation; sound activities will be implemented by private sector institutions such as the Maison de 'Entreprise and considerable private institutions are represented in the project led steering committee. 66. Political instability in the country and in the region (instability and conflict in Mali) may delay implementation; the Bank in close collaboration with others is monitoring the country's environment on the ground. In addition, increased security cooperation with regional and international partners and the design and implementation of a plan for development and security in the Sahelo-Saharian zone of the country are being devised. The Bank will continually monitor security in the project areas and adjust program as necessary. 67. It is expected that political pressure in the selection of participants in the LIPW by either including non-eligible individuals or excluding eligible ones. The project will develop an appropriate and transparent targeting mechanism and selection process of beneficiaries. 18 A. Risk Ratings Summary Table Risk Category Rating Stakeholder Risk Substantial Implementing Agency Risk - Capacity Substantial - Governance Moderate Project Risk - Design Moderate - Social and Environmental Moderate - Program and Donor N/A - Delivery Monitoring and Sustainability Substantial Overall Implementation Risk Substantial B. Overall Risk Rating Explanation 68. The proposed operation is a substantial risk operation. The team's assessment is that the potential benefits of the proposed Project outweigh any potential risks. Inaction on the critical issue of youth employment in Burkina Faso may pose a substantial risk to political stability and therefore needs immediate attention. The key risks for this project are: (i) delays in decisions making and implementation of activities because several ministries will be involved in the project; (ii) weak participation by the private sector would make the achievement of the PDO challenging, since private sector engagement is essential for developing labor-market relevant skill; (iii) political instability in the country and in the region may delay implementation; and (iv) weak institutional capacity in job creation schemes is a risk to achieving the project objectives. The Project will include activities to mitigate these risks through building on existing projects and initiatives, selectivity of project design during project preparation and during implementation through capacity strengthening activities. VI. APPRAISAL SUMMARY A. Economic and Financial Analyses 69. Economic analysis. The detailed economic analysis is presented at Annex 10 for the three components separately. The economic benefits of project are represented by: (i) improvements in youth incomes, increased livelihood/food security, and in their future productivity through training and (human and productive) asset accumulation; (ii), improved public infrastructure permitting an improved well-being for concerned populations through a better access to social services and market, and (iii), short and long-term skills development program to generate skills human paper for the labor market. 19 70. The cost-benefit analysis is based on the fact that in Burkina Faso, as in many other developing countries, wages/eamings increase with the education level8. For component 1, the incremental benefit-cost analysis is estimated using three scenarios: (i) pessimistic -- estimated as the difference in annual earning between no education and some primary education categories; ii) realistic- estimated as the difference in annual earning between no education category and the average of some primary education and TVET annual earnings, and (iii) optimistic - difference in annual earning between no education and TVET categories. For component 2, estimated based on earnings difference between primary and TVET categories under three different rates of post-intervention employment opportunities. 71. The table below summarizes the results of the analysis for the overall project (realistic assumption used of component 1). Combination of realist Present Present Net Increment Internal Rate assunption of component 1 Probability of Value of Value of Present al Benefit of Return and component 2 employment Total Cost Benefits benefit /Cost ratio (IRR) Tangible cost benefit analysis (excludes costs and benefits of none tangible investment) High probability of employment Project target $39.1 $97.2 $58.1 2.5 28% Moderate probability of employment 10% less than target $39.1 $80.3 $41.1 2.1 23% Less probability of employment 20% less than target $39.1 $64.4 $25.2 1.6 18% Overall cost benefits analysis result (includes tangible costs but net benefit) High probability of employment Project target $46.3 $97.2 $51.0 2.1 23% Moderate probability of employment 10% less than target $46.3 $80.3 $34.0 1.7 19% Less probability of employment 20% less than target $46.3 $64.4 $18.1 1.4 15% 72. The table shows the cost and benefit streams, internal rates of return and net present values under different scenarios for the project's components and for the project as a whole. Based on a discount rate of 10 percent, the present discounted value of benefits for the of the overall project is estimated to be US$64.4 million while the present discounted value of costs is estimated to be US$46.3 million, with a net present value (NPV) of US$18.1 million from the lower bound. The cross ponding overall internal rate of return (IRR) is 15 percent. The sensitivity analysis shows that the IRR may range from 14 percent at the low end (worst case) to 54 percent at the high end. Therefore, the analysis strongly supports investing in the project. 73. Component 1 has the highest estimated IRR. Under the three scenarios of post intervention entry wage categories (pessimistic, realistic, and optimistic) and three different probabilities of employment, only two scenarios provide an IRR of less than 10 percent. Given the skill shortage and return to education in Burkina Faso, the results strongly support investment in the component. Although, not as quantifiable as component 1, the benefits of component 2 are stronger than due the prolife youth targeted and the longer run version of the intervention with 8Based on a regression analysis using EICVM 2009/2010, workers with some primary education earned 10 percent more than those with no education. Similarly, those with some lower secondary earned 70 percent more than those with some primary; those with some TVET earned 31 percent more than those with some lower secondary; those with some upper secondary earned 36 percent more than those with TVET; and those with some higher education earned 10 percent more than those with some upper secondary. 20 IRR of 17 percent from the lower spectrum. Component 3 purely targets on capacity building and standard cost-benefit analysis could not be performed. However, since the component aims to improve the general framework for skill development and employment it is likely that it will have tangible value added for the future. 74. An ex-ante economic and financial analysis of the investments to be undertaken in rural areas under Component 1 is not possible to fully calculate because of the specific public works projects are not identified in advance but will depend on local governments and communities' choices, therefore, the estimated cost-benefits analysis assumed the bottom scenario. There is however a large body of evidence showing the positive impact of this type of rural infrastructure on rural livelihoods. Rural roads decrease transport costs and permit populations access to social services and markets, thus improving their productivity. Soil conservation projects reduce soil losses and improve soil fertility and water retention, thus increasing productivity in particular in low rainfall years. Small water retention structures permit dry season irrigation, provide water for livestock and reduce the distance women and children travel to fetch water. Investments to be undertaken by rural communes are similar to those undertaken under the First and Second Community Based Rural Development Projects (CBRDP 1 and 2) and an ex-post economic and financial evaluation of sub-projects financed under the Second Phase of CBRD-2 carried out during the preparation of the third phase of the Program found very high rate of returns (74 percent overall for the mix of sub-projects) and positive benefit-to-cost ratios (ranging from 3.7 for water supply and small multipurpose water works to 1.8 for soil and water conservation) and health infrastructure. 75. Financial analysis and sustainability. The sustainability of project's activities will depend on Government's willingness to devote sufficient priority and resources for their continuation after the project period. Job creation has taken center stage in Burkina Faso's economic and political debate and the government has placed high importance on the issues of job creation in its recent poverty reduction strategy (SCADD). The social unrest of 2011 has given even more urgency to addressing the issue of job creation for the youth. Government is fully aware that youth employment and increasing the productivity of the labor force will be key structural issues for many years to come and, although fiscal space is limited, it is committed to support skill development and job creation over the long term. B. Technical 76. The project design integrates best practices from relevant IDA projects in the region. These include youth employment and skills projects in Egypt, Yemen, Sierra Leone, Kenya, Liberia and Cote d'Ivoire. It also builds on best practices from Bank-financed and other LIPW interventions in other countries (Madagascar, Ethiopia, Kenya, Rwanda, Liberia, and Cote d'Ivoire). Finally, it also incorporates lessons learned from on-going or recently closed IDA operations in Burkina Faso, in particular, the Competitiveness and Enterprise Development Project, the Bagre Growth Pole Project, as well as from the recently closed IDA operations in C6te d'Ivoire, in particular the Post-Conflict Assistance Project, the recently closed Young Entrepreneurs and Urban Job Creation Project, the Small and Medium Enterprises Revitalization and Governance Project and the Emergency Urban Infrastructure Project (see Annex 10 for lessons learned and integrated in the project design). 21 77. Labor Intensive Public Works under Component 1 are accompanied by the following measures to increase participants' employability and improve the sustainability of employment beyond the six months provided by the project: (i) basic skills development both in "soft" skills (e.g. Technical, Health, Environment) and in business related skills (e.g. functional literacy and numeracy, basic accounting, business planning). 78. Burkina Faso has a long tradition in LIPW programs in urban and rural areas. LIPWs were initiated in Burkina Faso in the 1980s by ILO with funding from the Netherlands and UNDP. The Special LIPWs Program (1982-87) financed small transport, productive and social infrastructure such as rural roads, bottomland development, schools and health centers (as well as the paving of streets in Ouagadougou). The MIT has been entrusted with the general oversight of all LIPWs in the country, including those under the PSCE/JF. 79. The Skills Development activities in Component 2 are being developed and will be implemented by, or in close collaboration with, the private sector. Since employers are best positioned to define and anticipate skill needs, they will have a central role in determining areas of concentration, the dosage of theory and practice, and the ideal duration of the training packages proposed, as well as in assessing training suitability. Private sector engagement will ensure that programs are completely demand driven, started at the needs assessment phase and will be maintained throughout project implementation through regular consultations. 80. Component 3: Institutional Capacity Strengthening and Project Management will focus on the establishment of robust M&E systems across project activities to ensure effective implementation of the interventions. Given the pilot nature of many of the activities and approaches to be pursued, impact evaluations of activities under component 1 and 2 will be carried out to distill lessons and inform future efforts for skills development and employment support during the next phase of the activities. Financial and Procurement Management 81. To cope with the significant increase in non-salary recurrent resources made available to the MJFPE. A fiduciary unit will be created under the new PCU for: (i) the purchase of educational goods and services and (ii) FM. The fiduciary unit will be run by a qualified fiduciary staff that would have strong knowledge and experience in Bank fiduciary procedures. C. Financial Management 82. In accordance with the Financial Management Manual for World Bank-Financed Investment Operations that became effective on March 1, 2010, the Financial Management arrangements of the Youth Employment & Skills Development Project have been reviewed to determine whether it is acceptable to the Bank. At the present time, the project coordination unit is not yet implemented. According concept note of project, the project will be classified as a "B" type project under the Burkinabe national law regulating project implementation. This implies that the project will be as much as possible administrated and managed by permanent government bodies. It is critical that appointment of project financial team meet requirements of the Bank. 22 83. The overall FM risk at preparation is considered as substantial. The proposed FM arrangements including the mitigation measures for this project are considered adequate to meet the Bank's minimum fiduciary requirements under OP/BP10.00. 84. As a result of the FM capacity constraints, the dated covenants for this project are: the Project Implementation Manual will be finalized and adopted within three months of project effectiveness, the appointment of FM staff (composed of a financial Management Specialist, eight accountants, an internal auditor) with adequate and relevant experience and all, familiar with Bank FM procedures by effectiveness, the amendment of the terms of reference and the contract of the external auditor by the supreme audit court within three months after effectiveness. 85. It is also recommended to train the FM staff within two months after effectiveness, and to purchase accounting software with all modules (general accounting, cost accounting, monitoring and evaluation, fixed assets management, preparation of withdrawal applications interim financial reports and annual financial statements) two months after effectiveness. FM arrangements are described in Annex 6. D. Procurement 86. Procurement would be carried out in accordance with the World Bank's "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 "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011, and in accordance with any additional provisions stipulated in the Financing Agreement. A general description of various items under the various expenditure categories is described below. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, including the need for prequalification, assessment of estimated costs, prior reviews, and time frames for processing contracts will be agreed upon between the Government and the Bank and included in the Procurement Plan. The Procurement Plan will be updated annually or as required to reflect actual project implementation needs and changes in institutional capacity. 87. All procuring entities, as well as bidders, suppliers and contractors shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with the 'World Bank Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants' dated October 15, 2006 and revised in January 2011. Procurement Implementation Arrangements 88. Procurement for acquisition of goods and services will also be handled by the fiduciary unit of the PCU, through the Departmental Tender Board. The procurement arrangement is described in Annex 7. 23 Procurement Plan 89. A procurement plan for the first 18 months of project implementation was prepared during appraisal. The plan was transmitted to IDA and approved during negotiations. During implementation the PP will be updated in agreement with the project team as required - at least annually - to reflect actual project implementation needs and improvements in institutional capacity. A summary of the procurement capacity assessment and project procurement arrangements is provided in Annex 3. Frequency of Procurement Supervision 90. In addition to the required prior reviews performed by the World Bank field-office procurement specialist, at least one post-review mission of procurement actions will be carried out annually. E. Social (including Safeguards) 91. The project is classified as Environmental Category B since potential adverse environmental and social impacts associated with LIPW are generally less adverse, small- scale and site specific; thus, manageable to an accepted level. The social impact of the project is expected to be positive, as the intervention seeks to generate employment and income for unemployed or underemployed youth in urban and rural areas and improve their human capital through training in basic life skills and other skills which will increase their employability and productivity. Employment conditions will meet all the requirements of the national legal and regulatory framework. Participants will be paid the official minimum wage and benefit from a work-related accidental insurance coverage. The income generated through participation in LIPWs is expected to help beneficiaries improve food security; access to basic social services as well as invests in productive assets. Training in life skills will cover areas such as civic education, citizenship national cohesion and democratic values, the rights and responsibilities of workers, HIV/AIDS prevention and other public health issues. Selected LIPWs will target maintenance/rehabilitation of key community infrastructure benefitting the entire community and thus improve general well-being including street cleaning, filling potholes, cleaning of culverts and drainage networks, maintenance of markets, open spaces and gardens, rehabilitation/maintenance of rural roads, and establishment of small water structures and other activities. The project is not expected to entail land take or restriction of access to assets or sources of livelihood, for due diligence a Resettlement Policy Framework is prepared according to guidelines of OP 4.12 and this is reviewed, approved and disclosed in-country and at the Infoshop. F. Environment (including Safeguards) 92. Under Component 1, the Project will finance demand-driven activities which will be identified on the basis of a participatory strategic planning process. Based on experience with similar projects, the component's activities should provide a net benefit with respect to environmental impact. However, potential limited negative impacts may include loss of vegetation (linked to the rehabilitation of rural roads) and an increase in solid waste (linked to 24 street and drainage systems cleaning). Component design includes satisfactory measures to deal with the management of all products generated by the activities of the urban work brigades (street sweeping, pruning and felling of trees, cleaning ditches and culverts) or the environmental impact of the rehabilitation of rural roads. These activities will be carried out in accordance with environmental procedures acceptable to IDA. 93. Three World Bank safeguard policies are triggered under Component 1: OP.BP 4.01 on environmental assessments; OP/BP 4.04 on Natural Habitats; and OP/BP 4.12 on Involuntary Resettlement. Since the location of future component's activities were not known at appraisal, the government prepared the appropriate safeguards instruments: an Environmental and Social Management Framework (ESMF) that outlines an environmental and social screening process for component's activities (which includes: Guidelines for an Environmental Management Plan (EMP); Environmental Guidelines for Contractors; and a summary of the World Bank's safeguard policies) and a Resettlement Policy Framework (RPF) to address potential land acquisition or loss of economic activity on the part of individuals or groups of individuals in project intervention zones. have been prepared, in full compliance with World Bank and national safeguard policies, including a broad consultation framework involving all relevant stakeholder groups, both public and private, as well as civil society. 94. The ESMF formulates standards, methods, and procedures specifying how future activities s whose location, number, and scale are unknown will systematically address environmental and social issues. It includes: (i) a systematic environmental and social impact assessment for all activities before selection and implementation; (ii) procedures for conducting activity-specific EIAs, Limited Environmental Impact Assessment (LEIA) or Full Environmental Impact Assessment (FEIA); (iii) capacity strengthening and awareness raising campaigns targeted at relevant stakeholder groups for better implementation and monitoring of project safeguard measures; and (iv) establishment and implementation of a consultation framework for the environmental control and monitoring. The RPF looks into the policy, legal and regulatory mechanisms for addressing potential cases of land acquisition/loss of economic activities on the part of individual or communities as a result of project activities. It provides a coherent framework, eligibility criteria and asset valuation methods for compensation and/or resettlement of affected people, as well as grievance mechanisms of affected persons, in case of unsatisfactory arrangements. 95. The project triggers two safeguards policies: OP/BP 4.01 on Environmental Assessment and OP/BP 4.12 on Involuntary Resettlement. An Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) had been prepared, reviewed, approved and disclosed in-country on April 8, 2013 and at the InfoShop on April 9, 2013. These instruments will apply to this project. 25 Annex 1: Results Framework and Monitoring BURKINA FASO: Youth Employment & Skills Development Project Project Development Objectives PDO Statement The project development objective (PDO) is to increase access to temporary employment and skills development opportunities for out-of- school youth. These results are at Project Level Project Development Objective Indicators .Data Responsibility Cumulative Target Values Dore fo Source/ for Unit of .End Methodolog Data Collection Indicator Name Core Measure Baseline YR1 YR2 YR3 YR4 Et Frequency Measure Target y Direct project XProject Dicre Number 0.00 7300 18300 31400 43200 46800 Annual Administrat PCU beneficiarnes iv.Dt ive Data Percentage Female beneficiaries Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 Supplemental Youth who completed Project ANPE, Maison training programs a n.d s de l'entreprise offered by the Project Percentage 0.00 0.00 50.00 70.00 85.00 100.00 Semi-annual The data will be (disaggregated by ye data aggregated by program and gender) (MIS) the PCU Youth trained who E] are employed or self- ANPE, employed one year M&E ANPE,MJFPE( after completion of Percentage 0.00 20.00 35.00 60.00 80.00 100.00 Annual system, LM training (overall and Tracer Observatory) by sector, in project Survey areas) Number of man days M&E and MID-HIMO, iN. bor Intens. l Number 0.00 600000 1650000 3000000 4350000 4800000 Semi-annual Tra TH Illb in Labor Intensive Tracer The data will be 26 Public Works created Survey aggregated by the PCU Intermediate Results Indicators .Data Responsibility Cumulative Target Values Dote fo Source/ for Unit of .End Methodolog Data Collection Indicator Name Core Measure Baseline YR1 YR2 YR3 YR4 Et Frequency Measure Target y Roads Li Project MID-HIMO, maintained/rehabilitat Kilometers 0.00 30.00 90.00 150.00 210.00 240.00 Annual administrati The data will be ed (rural) ve data aggregated by (MIS) the PCU Roads ELI Kilometers Project MID-HIMO, maintained/rehabilitat Sub-Type 0.00 10.00 20.00 40.00 50.00 60.00 Annual administrati The data will be ed (urban) Supplemental ve data aggregated by (MIS) the PCU Project MID-HIMO, Community woodlots admnitrtiHeedaaarleb Sub-Type 0.00 300.00 800.00 1800.00 2100.00 2400.00 Annual administrati The data will be maintained ve data aggregated by Supplemental (MIS) the PCU Number of youth MID-HIMO, lo youth The data will be employed through Number 0.00 4000 11000 20000 29000 31000 Annualagratdb LIPW aggregated by the PCU Li MID-HIMO, Percentage .I 'MO Proportion of female PecnaeThe data will be Poprtian of feme Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 Annual agegated b participants of LIPW Supeetlaggregated by Supplemental the PCU Out of school youth E] Project ANPE, The data enrolled in skills Number 0.00 1500 7300 11900 15200 15800 Annual administrati will be development ve data aggregated by programs (MIS) the PCU Out of school youth E Number enrolled in Sub-Type 0.00 300 800 1900 3200 3800 professional training Breakdown 27 Of which female (out of school youth who Percentage completed in skills Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 development Supplemental programs) Out of school youth Number enrolled in Sub-Type 0.00 1000 2500 4000 apprenticeships Breakdown Of which female (out Percentage of school youth who Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 completed in apprenticeship) Out of school youth enrolled in Number entrepreneurship Sub-Type 0.00 200 4000 6000 8000 training and business Breakdown development Of which female (out of school youth who Percentage completed in colenteen Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 entrepreneurship Splmna training and business development) Out of school youth EProject ANPE, The data who completed in Percentage 0.00 Annual administrati will be : 60.00 75.00 85.00 95.00 100.00 ve data aggregated by professional training:(MS thPU (MIS) the PCU of which female (Out Percentage of school youth who Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 completed in professional training) Out of school youth EProject ANPE, The data who completed in Percentage 0.00 30.00 50.00 60.00 80.00 100.00 Annual administrati will be ve data aggregated by apprenticeships (MIS) the PCU 28 of which female (out Percentage of school youth who oscooml i Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 completed in Splmna apprenticeships) Out of school youth Project ANPE, The data who completed in amnsrt ilb .se develon Percentage 0.00 30.00 50.00 70.00 100.00 Annual administrati will be busmness development ve data aggregated by programs (MIS) the PCU Of which female (Out of school youth who completed Percentage entrepreneurship Sub-Type 0.00 30.00 30.00 30.00 30.00 30.00 /business Supplemental development programs) Number of youth enrolled in the two new training institutions supported Number 0.00 600 1200 1800 by the project in key economic growth sectors Proportion of female (youth enrolled in the two new training Percentage Project administrati institutions supported Sub-Type 0.00 30.00 30.00 30.00 Annual ve data CCI-BF by the project in key Supplemental (MIS) economic growth sectors) Impact EvaluationEvrtw SmactuEs onted Yes/No No No No Yes No Yes EveryMFJPE, PCU Studies Conducted years Beneficiary surveys Project completed to support Yes/No No No No Yes No Yes Every two administrati MFJPE, ONEF on-going training years ve data and CCIBF improvement (MIS) 29 BURKINA FASO: Youth Employment & Skills Development Project Results Framework: Description Project Development Objective Indicators Indicator Name Description (indicator definition etc.) Direct project beneficiaries Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; families that have a new piped water connection). Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. Female beneficiaries Based on the assessment and definition of direct project beneficiaries, specify what percentage of the beneficiaries are female. Youth who completed training programs offered by the Numerator: Number of youth who completed training, apprenticeship, and Project (disaggregated by program and gender) entrepreneurship programs supported by the project Denominator: Total number of youth who enrolled in training, apprenticeship and entrepreneurship programs supported by the project Youth trained who are employed or self-employed one Numerator: Total number of youth employed (1 year after completion) year after completion of training (overall and by sector, Denominator: Total Number of youth who completed on demand training supported in project areas) by project Number of man days in Labor Intensive Public Works Number of man-days of labor (number of day working per 6 months cycle multiplied created by number of participant. Intermediate Results Indicators Indicator Name Description (indicator definition etc.) Roads maintained/rehabilitated (rural) Kilometer of road maintained in rural area. For Roads maintained/rehabilitated (urban): Kilometer of roads maintained in urban areas. For Community woodlots maintained: Hectares of community woodlot maintained/or reforested. 30 Roads maintained/rehabilitated (urban) No description provided. Number of youth employed through LIPW Total number of youth employed though LIPW Proportion of female participants of LIPW No description provided. Out of school youth enrolled in skills development Total number of all youth enrolled in training programs (disaggregated by type of programs training and gender). Out of school youth enrolled in professional training No description provided. Of which female (out of school youth who completed in No description provided. skills development programs) Out of school youth who completed in professional Percentage of all youth completed professional training program. training of which female (Out of school youth who completed in Female % of youth who completed in professional training professional training) Out of school youth who completed in apprenticeships Percentage of all youth completed apprenticeships program. of which female (out of school youth who completed in Female % of out of school youth who completed in apprenticeships program. apprenticeships) Out of school youth who completed in business Percentage of all youth completed the business development program. development programs Of which female (Out of school youth who completed Female % of out of school youth who completed entrepreneurship /business entrepreneurship /business development programs) development programs Number of youth enrolled in the two new training No description provided. institutions supported by the project in key economic growth sectors Proportion of female (youth enrolled in the two new No description provided. training institutions supported by the project in key economic growth sectors) Impact Evaluation Studies Conducted No description provided. Beneficiary surveys completed to support on-going No description provided. training improvement 31 Annex 2: Detailed Project Description COUNTRY: BURKINA FASO BURKINA FASO: Youth Employment & Skills Development Project Context and Approach. 1. The proposed project is in the amount of US$50 million and would be implemented over a period of five years, from 2013-2018. It is intended to support the Government's poverty reduction strategy (Stratigie de CroissanceAccildrdeet de Diveloppement Durable 2012-2016: SCADD) which puts job creation at the center of its economic and social development strategy. The SCADD prioritizes investment in human resource development as one of the key levers for sustainable economic growth. It focuses on three strategic areas: (i) the promotion of growth poles to reduce economic vulnerability; (ii) investment in human capital to provide the economy with the relevant skills, and (iii) strengthening governance. 2. The social unrest of 2011 has given even more urgency to addressing the issue of job creation for youth. As an emergency response, the Government quickly developed a Special Program for Job Creation for Youth and Women (Programme Special de Creation d'Emploi pour les Jeunes et les Femmes: PSCE/JF) covering the 2012-2014 period, with an estimated annual cost of US$22 million. The program is coordinated by the MJFPE. It aims at creating 54,000 new jobs and training 45,000 youth per year. It focuses on four areas: (i) promoting access to employment for young graduates through internship programs; (ii) promoting access to employment for out-of-school youth and youth with no schooling, through LIPWs, apprenticeships and support to self-employment/IGAs; (iii) strengthening the productivity of rural youth, by extension programs; and (iv) facilitating rural women's access to transformation technologies. 3. The Youth Employment and Skills Development Project will support the Government's poverty reduction strategy (SCADD), notably the second axis, human resources development through the development of higher education and technical and professional training. It will give specific focus to priority programs under the PSCE/JF, in particular those programs that are benefitting the most vulnerable groups of youth and are not benefitting from the support of other development partners. Its objective is not to address deep-seated issues of promoting the structural transformation of the economy necessary to foster economic growth and employment creation, or reforming the national education and training system, which is a long term process. Instead, it will focus on providing a quick and tangible response to offering job opportunities and improving the employability of unemployed youth in priority urban and rural areas. To do so, the project will support a mix of supply (LIPW) and demand-driven (apprenticeships, entrepreneurship/self-employment) instruments. 4. Although prioritizing quick results and impact on employment and livelihoods, the project also aims at building the capacity of key institutions and supporting the sustainability of key activities (for example, by supporting the mainstreaming, where possible and suitable, of labor intensive approaches in public investments even where the objective is infrastructure 32 development) and building public-private partnerships. Finally, the project also introduces/pilots promising approaches such as combining LIPWs with basic skills and technical training to facilitate permanent insertion of LIPWs participants in the job market. 5. Finally, to ensure effectiveness, the project focuses on "concentration poles", geographic (the main urban centers and their catchment area) and/or activity-based, selected because of their high concentration of unemployed youth and their potential for growth and job creation in the short-to-medium term (civil works and building sector, hotel and food preparation, mechanic, craft, agricultural activities). Project Objective, Beneficiaries and Components 6. The project development objective (PDO) is to increase access to temporary employment and skills development opportunities for out-of-school youth. 7. This will be achieved by: (a) creating temporary employment opportunities for youth relatively quickly through LIPW, combined with basic life skills and entrepreneurship training, to increase their employability to facilitate more permanent labor market insertion; and (b) providing youth with training and/or a first work experience in economic growth sectors through apprenticeships, short term professional training programs, entrepreneurship training and business development support. 8. Project beneficiaries will be youth from 16 to 35 years of age, with diverse education and skills levels, of which 30 percent will be female. More specifically, project beneficiaries will consist of the following: (i) participants of LIPW programs and (ii) participants in skills development (apprenticeship, training literacy) and entrepreneurship programs. 9. The project includes the following three components: (i) LIPWs; (ii) skills development; and (iii) reinforcing institutional capacity and project management. Component 1: Labor Intensive Public Works (approximately US$25 million). A. Background 10. Operational Objective. The short-term objective of this component will be to provide immediate employment for youth with no or little education through LIPWs. It will promote the participation of women by selecting activities that are supportive of women employment and reserving a percentage of the LIPW jobs specifically for women. Because LIPW programs should be playing a major role in employment creation in Burkina Faso in many years ahead, the component will also (with Component 3) support the mainstreaming LIPWs into national policies, strategies and procedures and the establishment of a permanent capacity for LIPWs in the country. 11. Benefits from LIPWs. LIPWs programs can bring several benefits: the creation of a large volume of self-targeting employment and income opportunities for vulnerable groups is generally the central objective. They are also useful in alleviating covariate and idiosyncratic 33 shocks because they can be launched/scaled up quickly to provide immediate income opportunities to (able-bodied) individuals. In rural areas, they are used as a safety net to address food insecurity and counter the effects of climatic shocks, or seasonal inactivity. Finally, LIPW programs also permit to deliver public goods/infrastructure for the community, which may in turn lead to secondary employment/income benefits. They can be implemented in a variety of geographic and social settings, require a relatively low level of organization, and produce fast and visible results. Although they provide largely temporary employment, they also offer the possibility of turning some of these jobs into permanent employment (e.g., creation of small road maintenance contractors). 12. Burkina Faso has a long experience in LIPWs. The component builds on best practices from Bank-financed and other labour intensive public works interventions in other countries (Madagascar, Ethiopia, Kenya, Rwanda, Liberia, Cote d'Ivoire) as well as on Burkina Faso's own long tradition in LIPW programs in urban and rural areas. LIPWs were initiated in Burkina Faso in the 1980s by ILO with funding from the Netherlands and UNDP. The Special LIPWs Program (1982-87) financed small transport, productive and social infrastructure such as rural roads, bottomland development, schools and health centers (as well as the paving of streets in Ouagadougou). The Public Works for Employment Creation was initiated in 1991 to address unemployment in urban areas. Financed by the World Bank and other donors, it was implemented by an agency created for this purpose: Faso Bara. As indicated by the table below, several projects have since used Faso Bara to establish public infrastructures through labor intensive methods. The Commune of Ouagadougou has itself a long experience with LIPW Programs, including the "brigades vertes" and more recently the reinstallation of populations affected by the 2010 floods in Ouagadougou (implemented by HELVETAS). Finally the new Transport Sector Project (Additional Financing, 2010) includes the rehabilitation and periodic maintenance of about 35 kilometers of key rural roads using labor-based maintenance techniques. 13. The Government has also recently launched (mid-2012) as mentioned above a Special Program for Job Creation for Youth and Women (PSCE/JF) covering the 2012-2014 period at an estimated annual cost of US$22 million. The program is coordinated by the MJFPE and includes a component for promoting access to employment for out-of-school youth and youth with no schooling, through LIPWs, apprenticeships and support to self-employment/IGAs. 34 Burkina Faso Experience in LIPVs Program cost Distributed salaries number of workng (DSS'000) Pi SS'000) days created LIPNNs Pilot Projects in unavailable 1975-19S0 NA N/A N,A Koupela and Fada N-Gourma regtous LIPHNs Special program 19S2-197 4500 1400 00 00 (PSTPHIMO) Development program For average 1992-1997 NA N/A NA cties (PDVWf Pilot project for KAYA urban 1994-1999 479 (Technical support 105.75 18000 Infrastructures construction included) Faso B-g Agency 1991-2008 350.300 46500 14250000 Improvement of urban living 1996-2002 37000 (IDA Credit) NA N,A conditions Project (PACVL) including Comunity contribution: 1900 and 90 4OBB9 UNDPTA:600 Rural road development with Labor 2001-2005 5317 2039 1250000 Intensive works Investment funds for Local 2005-2010 11,573 (For rural roads and 3472 1309000 governments (FICOD) anti-erosion fitting on a total initial allowance) East Rural Roads Program 2002-2011 2980 3000 0d (Estimate based on a labor force rate of 30%) NA: Not available B. Design of the Component 14. Component target group. The target beneficiaries will be youth (defined as individuals 16- to 35 years of age) not in school or training (whether formal or informal) and without a regular and legal source of income, in priority urban, peri-urban and rural areas. Over the project period, it is estimated that about 31,000 young men and women will be enrolled in the program, of which about 16,000 will be in urban areas and 15,000 in rural areas. At least 30 percent of the beneficiaries will be women. 15. Component target areas. The component will include two subcomponents: (i) Urban LIPWs implemented in Ouagadougou and Bobo-Dioulasso, which represent the largest concentration of unemployed/underemployed youth. Works will include street rehabilitation and maintenance (including filling of potholes), drainage and sanitation, the rehabilitation or maintenance of existing local economic infrastructure such as gardens and green spaces or local markets. Activities will also include support service-type of LIPW (e.g. school crossing guards or promoting community awareness on environmental, and hygiene, nutrition and health issues such as HIV/AIDS, family planning, bed nets; and, 35 (ii) Mixed Urban/rural LIPWs implemented in one/two growth poles centered on regional capitals with high growth potential and their hinterland. In this case, the LIPWs will involve urban public works (see above) as well as rural public works such as the rehabilitation of rural roads and development of bottomlands. LIPWs in rural areas, implemented during the non-agricultural period, would have a direct and indirect impact on rural incomes, agricultural productivity and food security. 16. Priority areas have been selected because of their high concentration of unemployed, low-qualified youth: (i) the two main urban areas of Ouagadougou and Bobo- Dioulasso, and (ii) the Center Region - the region's capital Ouahigouya and four rural communes. Ouagadougou and Bobo-Dioulasso together account for about 20 percent of the country's total population. They represent ca1 - Cente the largest concentration of 2 - Centre-Sud Plateamu-central unemployed youth (about 1.5 million) who are also often cut off from their traditional Re35oaNordest Cosonmsonamovenneavordmires.precunefote.estagntion social safety nets and thus are R*rCerag,. Co ftak, ep1la, plqwmI very vulnerable. Rural areas represent about 3/4 of the CapitaleRionS.d,-ount Consennadon ieve , vorseleves.p=cam ihneet prors total population and rural poverty is high (43 percent in 2007 compared to 14 percent in urban areas). Rural populations and rural youth are generally employed, although underemployed largely in low productivity agriculture. The regional dimensions of poverty show that the Center Region houses over half of the poor in Burkina Faso (share of population) and also has the highest poverty gap. 36 11anenr ~Potrt13t,ed on Food Vllarablin Pw et A-els or 11ealth (Inabi ity to SattI Food Need, 2001 2001 2105 2007 2003 2001 2007 NATIONAL 464 463 404 38.5 49.1 65.4 382 Areas ofTresidence Ruril 52-3 52.2 45.5 43,9 50,7 69.2 394 Urbin 19.9 19.9 163 13.0 41.5 47.4 321 Northeast Regions Sahl 372 62-7 83.7 67-1 30,2 86.8 525 Center North 34.0 64.0 55.4 50.5 45.0 90.6 42.4 East 40.9 76.6 631 732 453 72.0 34.7 Center Region North 68.6 43.8 37.7 23.6 70.9 72.1 23.7 Boucle du Mouhoun 60.5 513 42.5 35.8 46.4 52.5 29.0 CenterWest 41 3 447 40,2 39.4 61.3 64.9 45.8 Center Plateau 58.6 37.5 27.1 36.4 71.3 64.9 38.3 Center South 66.1 45.1 29.6 26.4 54.9 65.7 43.5 Center ast 55,I 402 40.7 384 43.6 73.7 489 Soutnvest 56.6 693 63.5 60.2 58.6 75.5 66.9 Capital South Regions Center 22. 3 10.5 7.1 7.8 41.7 -50.6 3L.9 Hauts Bassins 34.8 287 21.8 17.0 27.0 44.0 22.7 Cascades 39.1 54.2 23.4 47.4 34.9 39.6 47.7 Source: Nouve et al unpublished 2009; based on te QUIBB of 2003, 2005, and 2007 sureys of INSD 17. Enhancing employability at the end of LIPW employment. As recommended by the recent Employment and Skills Development Study, the LIPWs would be accompanied by activities for increasing participants' employability at the end of their employment (six months). These graduation activities will include: (i) Training in basic skills development both in life skills and in technical and business related skills; (ii) A voluntary savings program to help participants put aside a part of their wages as start- up capital initiating post-LIPWs activities such as apprenticeships or IGAs; and, (iii) A job counseling and search mechanism to assist participants in seeking more permanent employment or employment enhancing opportunities at the end of their LIPWs employment. 18. The Component's post-LIPWs graduation strategy will aim at: (i) giving participants non-cognitive life learning skills to promote good work and social habits; (ii) preparing them for a possible direct insertion in the local labor market since the skills and experience they will gain will be relevant to the labor demand9; and (iii) preparing them for meeting the basic requirements for post-LIPWs formal training, including under Component 2 of the project. The impact of these activities will be closely monitored and evaluated. C. Cost and Results of the Component 19. Cost of the component. The total cost of the component would be approximately US$25 million, of which US$15 million for urban LIPWs and US$10 million for rural public works (detailed cost table can be found in Annex 1). The component will finance: (i) sensitization and 9At first, however, it is likely that a small proportion will find permanent employment following the program. In the Cote d'Ivoire program, about 30% of participants did find a permanent employment at the end of their contract, most in self-employment/IGAs. 37 communications campaigns; (ii) participants' wages and insurance against work-related accidents; (iii) tools and small equipment; (iv) training costs; (v) the non-salary costs of rural investments; (vi) consultants; and (vii) the administrative costs of program coordination. About US$13.0 million (35 percent) will finance beneficiaries' salaries and employability enhancing activities. 20. Results of the component. It is estimated that, over the project period, the component will: * Employ about 31,000 youth (16,000 in urban areas and 15,000 in rural areas), of which at least 30 percent will be women; * Create about 3.9 million man-days of labor (2.4 million in urban areas and 1.5 million in rural areas) and distribute FCFA 6.0 billion (US$12.0 million) in wages to beneficiaries (US$7.4 million in urban areas and 4.6 million in rural areas), which will also benefit from FCFA 1.0 billion (US$2.0 million) of training activities; * Permit the establishment and/or regular maintenance of critical infrastructure (maintenance of about 60 km of urban streets/roads; rehabilitation and maintenance of about 240 km of rural roads; about 16 dug-outs/ponds; and about 2,400 ha of reforestation/ community woodlots. 21. The component's design has been adopted by the PSCE (youth selection, organization of brigades, contractual arrangements, inclusion of additional activities to improve the post-LIPWs employability of participants). The approaches are now fully harmonized, permitting the integration of the two programs at Commune level. D. Implementation Arrangements 22. Institutional Arrangements. The PCU established in the MJFPE to be responsible for the overall coordination of the component. However, the responsibility for its implementation (maitrise d'ouvrage) will be given to the special LIPWs unit (PTR-HIMO) of the MIT under a service agreement signed with the PCU. The MIT has been entrusted with the general oversight of all LIPWs in the country, including those under the SPEC. The recently created PTR-HIMO unit is headed by a Coordinator and includes three mid-level technical staff. A detailed review of this unit's technical and management (fiduciary) capacities has been undertaken during preparation. On the basis of this review, a comprehensive plan has been agreed upon to ensure that the PTR-HIMO will have all necessary capacities to carry out its responsibilities under the project: * At the central level, the Unit will be strengthened by two additional technical staff of suitable qualification seconded by the MIT and working fulltime for the component (one for urban and one for rural LIPWs). In addition, the Unit will recruit, on a competitive basis and with project financing: (i) one administrative/financial specialist; (ii) one procurement specialist; (iii) one training specialist; (iv) one monitoring and evaluation specialist; and (v) administrative and support staff. 38 * The Unit will establish specific operational units within MIT's Regional Directorates in each of the component's three other target areas (Bobo-Dioulasso, Ouahigouya and Manga), staffed with one technical staff of suitable level seconded by the MIT and working fulltime on component's activities. * Finally, the project will finance the establishment of a suitable financial and accounting system at Unit's central (PTR-HIMO) and decentralized levels, as well as the initial training of its staff on (i) LIPWS technical aspects; and (ii) IDA fiduciary requirements/procedures. 23. In accordance with Burkina's decentralization strategy and the subsidiary principle, local governments (communes), which play a key role in local youth insertion initiatives, will be responsible for the actual implementation of component's activities, if they have the necessary technical and fiduciary capacities. This will ensure the ownership and sustainability of component's activities at the end of the project. COM ITE DE PlLOTAG E Unat6 de Coordmatin du Projet Minste de aJen desdaF mmtion COMPOSANTE 1 PTR-HWO MW%st we dest nfrastructues,duR I - et M T :Urg~ e de ra Maitrise ouvrage dAgIe MO=PTR-IND1 MO PIlR-IMO MO DAk-ule 24. The urban communes of Ouagadougou, Bobo-Dioulasso and Ouahigouya have a long and successful experience in implementing LIPWs activities (e.g. brigades vertes and other associations undertaking general service activities) and good technical and administrative capacities. Component's activities will thus be undertaken by the communes' relevant technical departments. Each of the three communes will sign a specific contract (maitrise d'ouvrage 39 dMligude) with the PCU and the MIT to this effect, and establish a specific project coordination unit in its General Secretary's office. 25. A detailed review of the Communes' current management capacities has been carried out during preparation and appropriate measures agreed upon to ensure that these project units will have all necessary technical and fiduciary capacity. Each project unit (i) will be headed by a full- time coordinator seconded the Commune's own staff on the basis of terms of reference and qualifications acceptable to IDA; (ii) will recruit, on a competitive basis: one accountant/financial manager, one procurement specialist and a limited number of administrative/support staff; and (iii) will establish and maintain a suitable financial and accounting system. The project will finance the externally recruited staff, the establishment and maintenance of the financial/accounting system and the operating cost of the PCU. 26. The commune of Manga doesn't have the necessary minimum technical and managerial capacities. In this case, the Commune will be responsible for the planning of annual work programs and supervise their implementation. However, component's activities will be undertaken, on behalf of the commune, by the PTR-HIMO. 27. Rural communes have only limited management and implementation capacities. Component's activities will be selected by the communes out of their local development plans, in coordination with the Regional Council's (Cadre de Concertation Rfgional - CCR) and the technical staff of the MIT. This will (i) ensure that the works selected correspond to communities' priorities and (ii) build local governments' ownership of the LIPWs as well as their capacity to plan and manage such programs at the end of the project, thus creating the basis for a long term sustainability of the LIPW approach at the local level. Specific implementation responsibilities will be defined through a contract (convention cadre) between the PCU, the PTR-HIMO and each of the participating rural communes, and be as follows: * Rural road rehabilitation will be undertaken by the PTR-HIMO on behalf of the concerned rural communes. The latter do not yet have the necessary technical capacities to be responsible for such large works and there is also a need to ensure that road rehabilitation under the project is fully integrated with MIT national strategy and programs for rural road rehabilitation and maintenance. The PTR-HIMO will implement activities through competitively contracted private contractors, and be responsible for the management of project funds. Supervision and final approval will be carried out jointly by PTR-HIMO and rural communes; * Other rural works will be implemented by the rural communes themselves. Their planning and implementation capacity has been significantly improved through the first two phases of the Community Based Rural Development (CBRD) program, which covered all of the country's 302 rural communes, as is currently doing the CBRD Program's third phase. Component's activities will be implemented through the CBRD Program's procedures to avoid conflict and overlap in the planning and implementation of rural communes' local development plans. Works will be carried through private contractors or NGOs recruited on a competitive basis by the Communes. The financing of contractors will be done, after Communes' approval, by the PCU. For the contracting/procurement process and the 40 supervision of the works, rural communes will benefit from CBRD Program's assistance and the technical backstopping from the relevant deconcentrated sectoral ministries (agriculture, environment, etc.) with which they will enter into delegated management contracts for this purpose. 28. LIPWs in Urban Areas (US$16.0 million). Urban LIPWs will include the cleaning and maintenance of street (including filling of potholes) and of drainage and sanitation networks, the rehabilitation or maintenance of public gardens and green spaces or local markets, as well as road traffic assistants (school crossing guards). These public works are critical in terms of their impact on economic activity and public health (the latter in the case of drainage and sanitation works). In addition, the component will explore the opportunity to support other service-type activities such as promoting community awareness on environmental, hygiene, public health and nutrition issues (such as HIV/AIDS, family planning, bed nets, garbage selective sorting and disposal), which are more attractive to women applicants. 29. LIPWs will be performed by work brigades consisting each of about 20-25 youth, each brigade supervised by a team leader. The selection of beneficiaries for the different work brigades will be directly carried out by the (Ouagadougou, Bobo-Dioulasso and Ouahigouya) commune 10 according to the following process: (i) communications campaign via the appropriate media outlets (e.g. radio, advertisement on public notice boards) to inform interested young people in the community of LIPW temporary employment opportunities, the type of contract, the number of slots, the selection criteria; and the date and time for the selection; and (ii) randomized selection of the beneficiaries (through a number drawing process). Brigade leaders (who must be literate) will be recruited by the communes on a competitive basis. To ensure the transparent, objective and equitable selection of beneficiaries, regular beneficiary surveys will be performed by an independent consulting firm. 30. It is expected that 2,000 youth will be recruited each six-month period as follows, for a total of 16,000 youth over the project period: Numbr ofTotal number of NO Technical Departments bias ST Number youth to be recruited 1 Environment Department (DP) 32 5 800 2 Open Plan Developments Department 4 1 100 (DAP) 3 Town Council Police Department 6 0 150 4 20 50 Bangr-Weogo Urban Parks Department 10 Experience indicates that it is difficult for the work brigades to be managed by private contractors. If they have to be accountable, they then have to recruit the youth themselves and the conditions of work are often not conducive to achieving the objectives of the project which are not only to carry our infrastructure related work but to manage youth in a way that optimize their successful reinsertion into a permanent productive life. 41 Ouagadougou sub-total 44 6 1 100 1 Technical Services Department 16 2 400 2 Town Council Police Department 4 0 100 Bobo-Dioulasso sub-total 20 2 500 1 Technical Services Department 10 1 250 2 Town Council Police Department 2 0 50 Ouahigouya sub-total 12 1 300 1 Technical Department 4 1 100 2 Manga sub-total 4 1 100 TOTAL 80 10 2000 31. Brigade members will receive a six months contract. They will receive a daily wage at the minimum wage level as prescribed by national policy. They will also be provided with the necessary work-related accident coverage. Wages will be deposited into a bank account opened by the beneficiary with project assistance at an acceptable local financial institution of his/her choice (this will represent for many beneficiaries their first direct interaction with a financial institution). 32. As mentioned above, brigade members will benefit during their employment from activities that will enhance their opportunity for permanent employment at the end of their LIPWs contract. * Two days of mandatory training will be included during each work week, paid at the same wage as a working day. Training will cover basic life skills (e.g. civic values, communication, conflict management, assertiveness, HIV/AIDS awareness) and in technical and business related skills (e.g. functional literacy and numeracy, understanding their economic environment, accounting, business planning). Technical training will be linked to beneficiaries' chosen future field of employment. Training will be carried out by specialized private contractors selected on a competitive basis by the communes on the basis of a training content/curricula prepared and agreed upon with the PTR-HIMO. Upon training completion, trainees will receive a certificate; and 42 * A voluntary savings program will be proposed to help participants put aside a part of their wages directly into a savings account, as start-up capital initiating post-LIPWs * * 11 activities such as apprenticeship or income generating activities". 33. As it is likely that more than half of the participants will be illiterate a particular attention will be given to training in functional literacy. Literacy is critical to the future employability and productivity of youth and functional literacy programs will therefore organized for the benefit of participants. It is anticipated that the first tier of a standard literacy program (100 hours out of a total of 400 hours) can be delivered during LIPWs employment while the additional 300 hours will be made available, on a voluntary basis and with project financing under Component 2 as a post-THIMO activity, centered on the specific technical subject selected by the beneficiary. 34. In each commune, a Job Counseling Center (JCC) will be established or strengthened to assist participants in identifying permanent employment or employment enhancing opportunities at the end of their LIPWs contract, such as IGAs or vocational/apprenticeship programs (with a direct link to activities under Component 2). In Ouagadougou, the existing Youth Center (Centre d'Information des Jeunes et des Femmes) will be expanded to the 4 other main parts (arrondissements) of the commune. In Bobo-Dioulasso, Ouahigouya and Manga, a JCC will be created in the Department of Youth and Social Affairs. For each JCC, the project will finance the necessary infrastructure rehabilitation works, equipment and the salaries of two professional staff recruited on a competitive basis to receive, profile and advise youth. 35. Environmental management. The management of all products generated by the activities of the work brigades (street sweeping, pruning and felling of trees, cleaning ditches and culverts) will be carried out in accordance with environmental procedures acceptable to IDA. Materials will be collected and transported to suitable collection points at the expense of the project, sorted out and suitably re-used if possible. The disposal of remaining debris will be carried out only at sites pre-identified and which can ensure that there will be no negative social and environmental impact. 36. Additional Equipment. The project will finance the equipment necessary for the execution of the work of the brigades and for the transport of the incremental volume of materials generated by the cleaning of streets and gutters to suitable treatment points. While part of this equipment may be rented, the Communes' technical departments will still need to acquire part of it to strengthen its own capacity for safety and emergency reasons. A rent/buy analysis will be carried out to see what combination of options will be the most appropriate. 37. LIPWs in rural areas (US$10.0 million). Activities will be selected out of the communes' local development plans on the basis of communities' priorities and their suitability for a Labor Intensive approach. They will include rural road rehabilitation, bottomland development, the establishment/rehabilitation of small water and soil conservation works and afforestation. Other activities, on a negative list, may also be considered if their labor is higher " In a similar program in Cote d'Ivoire, about 70 percent of brigade members participated in the voluntary savings program with average savings of about CFAF 10,000/month. These activities have significantly improved the rate of successful insertion of LIPWs participants in permanent employment. 43 than 60 percent of total cost. Works will be undertaken only during the agricultural off season to avoid interfering with the demand for agricultural labor. 38. The PTR-HIMO will have the responsibility for implementing the works related to rural roads on behalf of rural communes, which will be carried out by private contractors selected on a competitive basis. Communes will be for responsible for implementing the other works at village level, in close coordination with Village Development Committees (VDCs). They will recruit qualified private contractors or NGOs (such as Helvetas) on a competitive basis. They will benefit from the assistance of the CBRD program and the technical backstopping from Regional staff of the relevant technical department for the contracting process and the supervision of the works. 39. As for rural road contractors, contractors/NGOs will be responsible for providing site managers and qualified workers and required to recruit the non-qualified labor force among local communities. Workers will be recruited on a daily basis and be paid the equivalent of the minimum wage, on a daily or a task basis. The mobilization of the local work force will be done through a community-based process (with the participation of Village councils/community leaders) to ensure that available jobs are allocated equitably among the community's households. Contractors will recruit a facilitator among the community to mobilize the community, participate in the selection of the local labor force and mitigate possible disputes. 40. Each participating Rural Commune will receive an annual allocation of around CFAF 250.0 million (US$500,000) of which CFAF 150.0 million will be allocated to rural road works and CFAF 100.0 million to other priority activities. The annual allocation for road works will be directly transferred by the project to the PTR-HIMO for financing private contractors. The annual allocation for other works will be transferred by the project to the Rural Communes (local development fund -- LDF) as and when needed, on the basis of the signed contracts. 41. It is expected that over the project period: (i) about 1.3 million days of unskilled work will be created; (ii) about CFAF 2.0 billion will be distributed to local households; and (iii) 240 km of rural roads will be rehabilitated and about 2,400 ha of reforestation/community woodlots will be established. 42. Although it may be more difficult to organize and implement, an effort will be made, to pay workers, on a demand basis, through a direct deposit into a bank account. The project will explore the possibility, where feasible, of mobilizing a partner local bank to do so, including through mobile units. Also, as in the case of urban LIPWs programs, the project will also support the training programs to be delivered by qualified service providers - NGOs, private providers and/or staff of technical ministries. Training activities will center on technical skills relevant o agricultural and other rural activities, on the basis of the assessed demand from LIPWs participants and local populations. They may have to be organized at the central rural commune itself, which may be far from the communes' individual village communities. 44 E. Specific implementation features 43. Targeting and wage level. A first, national level of targeting has been done on a geographic basis by prioritizing areas with large numbers of unemployed and youth with little or no qualifications and/or the country's poorest region. It is, however, mandatory in Burkina Faso to pay workers the official minimum wage (CFAF 1,500/day). It will therefore not be possible to use a wage level lower than this official minimum wage as a self-targeting instrument for selecting the poorer unemployed youth. It may thus be that potential candidates exceed the number jobs offered under the activity. In this case, the selection will include (i) a transparent lottery process (in urban areas), with if need be a separate lottery for men and women; or (ii) a community-based approach for sharing available jobs equitably among households (in rural areas). 44. Gender aspects. The nature of the work, often with physically demanding tasks, although an effective targeting instrument, may also lead to discrimination with regard to women. Particular care will therefore be taken to include tasks which are more suited to their abilities, less exacting tasks and/or service-type of LIPWs (police assistants, social work). Also, work may be paid on a piece rate basis to facilitate women attending their other obligations. Work sites will have amenities catering to the specific constraints faced by women, including arrangements to organize local child care facilities run by senior women experienced in child care. F. Capacity-building and Sustainability 45. As mentioned in the recently completed Burkina Faso: Employment and Skills Development (June 19, 2012), LIPWs, targeted at youth who would not have other opportunities or at poor rural populations as a counter-cyclical employment and IGAs, should be playing a major role in employment creation in Burkina Faso for many years to come. LIPWs should, therefore, be mainstreamed into national policies, strategies and procedures, and a permanent capacity for LIPWs should be established in the country. 46. Capacity-building. As mentioned above, the project will (i) establish/strengthen the capacity of the PTR-HIMO and the communes (Ouagadougou, Bobo-Dioulasso Ouahigouya and selected rural communes) for planning and implementing LIPWs. In addition, the Component will strengthen the capacity (currently limited) of private enterprises to carry out LI rural road rehabilitation by organizing during the first year of the project three "Chantiers -ecoles" to re- establish an adequate pool of medium-size contractors technically competent in LIPWs. Each Chantier-ecole will permit on-the-job training for small contractors while implementing the actual rehabilitation of (3 km) rural roads under the guidance of specialized experts. The trained contractors will then certified by the PTR-HIMO. Finally, in the case of rural LIPWs, contractors will be required to provide on-the-job training to a number of participants, on a demand basis, for such kills as masonry or the maintenance. 47. Sustainability. Core project activities are expected to continue to be funded by the government beyond the project duration. Although fiscal space is limited, Government and 45 municipalities, which are on the front-line of youth issues, have shown a keen interest and commitment to this type of LIPWs programs as they offer the double benefit of not only creating/maintaining critical infrastructure and deliver other public services, but also of providing employment opportunities to youth and other vulnerable groups. Providing adequate social services and contributing to job creation will remain a key priority for the Government and for the municipalities for many years to come. In addition, the component's public works interventions are expected to be cost-effective. Indeed, experience across countries indicates that the cost of investments in infrastructure (such as rural road rehabilitation) through a LIPWs approach is equal and in general or lower than the cost with a traditional, capital intensive approach. 48. The sustainability of LIPWs as a safety net instrument will also depend on the sustainability and predictability in the offer of LIPWs over the medium to long term. The project will thus support a detailed review (under Component 3) of past and ongoing experiences with public works programs, to make recommendations for addressing the main constraints to LIPWS and mainstreaming, where possible and suitable, more labor intensive approaches in public investments. The project will also support measures for improving the capacity of national institutions and private operators to plan and implement LIPWs. To this effect, it will strengthen: (i) the capacity of the PTR-HIMO and of the participating Communes for planning and implementing LIPWs; and (ii) the capacity of private enterprises to carry out LIPWs (through Chantiers -ecoles). 49. Finally, particular attention will be given to the maintenance of the infrastructure created/rehabilitated under the project: (i) the MIT will systematically include the rural roads financed under the component in its national road maintenance program; (ii) for the other types of rural infrastructure, the skills necessary for the maintenance will be developed during the investment phase, by training local youth (as part of the contracts) and local committees will be established for their maintenance, supported by the relevant technical ministries. Although there will be no contribution of the local population to the investment cost of the infrastructure, beneficiary communes will be requested to set aside on their own resources 5 percent of the total cost of the infrastructure created under the project (excluding rural roads) in a special account devoted to their routine maintenance (i.e., CFAF 5.0 million per year; US$10,000). 50. Monitoring and evaluation. A detailed Monitoring and Evaluation (M&E) system will be established at the start of the component to: (i) provide feedback during the life of the component to help improve its effectiveness and make timely adjustments and/or corrections to prevent distortions or negative impacts; and (ii) gather information that substantiates achievements and justify the allocation and use of resources. The project will provide the funding for recruiting external assistance for establishing the system. The M&E system will be established within the PCU with relays within the PRT-HIMO and the participating communes. Quarterly progress reports will be collected from works sites and aggregated as semi-annual reports for submission to the PCU. An impact evaluation and regular beneficiary surveys will be conducted. Technical audits will be performed regularly to assure the quality of the sub-projects. M&E indicators will be closely related to program objectives as defined by its logical framework: 46 * Inputs: Quantity and quality of the human, material and financial resources; * Activities: Actions take to convert specific inputs into outputs; * Efficiency: Information on overall program effectiveness. * Outputs: What is being produced/ how inputs are being transformed/services delivered * Intermediate outcomes: Intermediate effects created by the program; * Outcomes: Program impact on beneficiaries, reflecting its overall objectives. Component 2: Skills development (US$20.0 million) 51. This Component aims to improve youth employability by offering youth with different skills levels within their first training experience. This will be achieved through three sub- components: (i) Development of initial vocational training through a dual training approach for economic sectors with strong growth and employment creation potential and establishment of a demand-driven training system; (ii) Dual apprenticeships programs; and (iii) Entrepreneurship training and follow up support. 52. It will be implemented by the CCI-BF (sub-component 2-1); the ANPE (sub-component 2-2) and the Maison de 'Entreprise (sub-component 2-3) under delegated management contracts (conventions de maitrise d'ouvrage) signed with the PCU. A comprehensive M&E system will be established to track the implementation and impact of the sub-component. A specific Steering Committee will be created to provide guidance and supervision for the implementation of the component, which will include representatives of MJFPE, of the Ministries in charge of technical education, mining, energy, agriculture and livestock, and of the CCI-BF, CCT-BF, and other national professional associations. 47 / PROJECT COORDRINTION UNIT I Component TechItal Steering Conwierceommittee Sub-component 2-1: Development of initial vocational training through a dual training approach for economic sectors with strong growth and employment creation potential and establishment of a demand-driven training system. 53. Background. Available analysis of the vocational training system in Burkina Faso, including the 2008 report on the national policy for technical education and vocational training, underlines the various weaknesses of the country's TVET system. The main weaknesses relate to the lack of flexibility between the system's various streams, the lack of involvement of the private sector in the guidance and management of the training institutions, the poor alignment of the training curricula with the needs of the productive sectors, the low level of qualification of the personnel in charge of the training and the constraints linked to the low level of resources dedicated to the financing of TVET activities. 54. The second axis of the recent National Strategy for Accelerated Growth and Sustainable Development (SCADD) focuses on the challenges related to the development of human resources. In this context, the Government has adopted an action plan for supporting TVET during the 2012-2016 period (PAPS-PN-EFTP)12, with a total cost of CFAF 432 billion (US$864 million). 12 Programme d'appui A la Politique d'Enseignement et de Formation Technique et Professionnelle (PAPS-EFT), 23 avril 2012, Minist&re de la Jeunesse, de la Formation Professionnelle et de l'Emploi (MJFPE). 48 55. The analyses conducted in the framework of the action plan indicate that the sectors that show large skills deficits include agriculture, livestock, public works and construction, tourism- hotel management and commerce. The public works and construction sector alone includes approximately 5,500 enterprises and represents 78 percent of all enterprises in the secondary sector. Its future development, buoyed by large public investments and the development of the mining sector, requires that important efforts be made immediately to develop the necessary skills. Also, a study recently completed for CCI-BF13 shows that the demand for skilled personnel will amount to more than 8,000 people over the next five years, in the fields of masonry (3,400), painting (1,500), welding (760), plumbing (760) and tiling (760). 56. Against this demand, the available training system is inadequate: training is provided by polyvalent centers offering general training in masonry and sometime in plumbing and residential electricity. ANPE's own training centers only offer training courses leading to the Professional Qualification Certificate (CQP), but the training offered is mainly classroom training and on-the-job practical training in enterprises is not sufficiently developed. 57. The Tourism and Hotel sector has a significant growth potential over the coming years. A study14 on employment and training conducted for CCI-BF indicates that the number of entries of tourists/visitors will increase from 400,000/year currently to nearly 1.5 million by 2020. The study thus recommends that significant efforts be made to develop human resources in this area, with the quality standards required to meet the future needs of the sector (which is composed of more than 300 tourist accommodation units, gourmet restaurants, tea rooms and travel agencies. Today, the national initial training system is limited only to the training in accommodation management offered by CCI-BF's > and to the training (of unknown quality) offered by a few small private training providers. The training is residential, without any on-the-job training in enterprises, and with very limited involvement of the sector's private operators. 58. Taking into account the specific needs of the two priority sectors of construction and civil works and tourism, and to respond also to the needs of other important sectors of the economy, the MJFPE, in partnership with the CCI-BF, is proposing to (i) create two new training institutions specialized in construction/civil works and tourism hospitality (ii) establish a demand-driven training mechanism to meet the needs expressed by the other sectors. 59. In the construction/civil works center, the priority training needs include a very large number of specialties: masonry, steel reinforcement, painting, plastering, tiling and siding, welding, housing electricity, plumbing, wood and metal carpentry, cooling and air conditioning. For the tourism/hotel center, training would focus on reception, accommodation, catering, cooking, bakery, pastry, hotel management, tourism and travel management. The needs of the meat processing/conditioning sector are also taken into account. CCI-BF has already prepared a feasibility study for the establishment of a training center for construction/civil works. It is in the process of selecting an international assistance for the preparation of a feasibility study for the establishment of a training center for tourism/hotel management " Etude de faisabilite du centre BTP. CCI-BF 2012. 14 Etude Emploi-Formation dans le secteur du Tourisme au Burkina Faso CCI-BF 2008 49 60. Activities under Sub-component 2-1. Sub-component 2-1 will provide support to: (A) establish an efficient training capacity in the two priority sub-sectors of construction/civil works and tourism/hotel management; and to (B) develop a demand-driven training mechanism and provide training to address the short term needs of other sub-sectors of the economy. 61. Sub-component 2-1 (A): Establishment of the two Training Centers. The CCI-BF will finance the construction of the two training centers. Therefore, the project will focus on the institutional set up of the two training centers. This includes (i) studies on the design of the two centers to define in detail the demand (number, types and levels of qualifications) of employers in the sectors of the construction and tourism/hotel management, the need in terms of equipment, teachers/trainers and managers for the centers, (ii) provision of equipment for the centers, (iii) development of curriculum, and (iv) training of the trainers, etc. 62. The training of the centers' teachers/trainers and the mobilization of the necessary external TA (national and international) will be done through a competitive bidding process. Twinning arrangements with suitable specialized foreign institutions will be encouraged, as well as the identification of opportunities offered by bilateral cooperation. 63. The teachers/trainers selected for the centers should have a minimum Brevet de Technicien Superieur (BTS) level in the relevant specialties. The duration of their initial training/retraining will depend on the needs of each specialty. The training will be done in qualified foreign training institutions in the target sectors and providing a dual training approach allowing practical training in suitable enterprises of the sector. Additional pedagogical training will also be delivered to future teachers/trainers. The initial training of managers of these two centers will include training not only in general management training but also in demand-driven mechanisms and in a governance approach based on a partnership with the sectors' professionals and annual or multi-year performance contracts with the MJFPE. 64. After the establishment of the two centers, which will be supported by the project, the CCI-BF will finance the dual training of about 1,800 young people from 16 to 35 years of age (with at least 30 percent of these girls) with a minimum of completion of primary education,. The dual training program consists of the training in the centers and on the job training in firms. There is a training system developed by the Government, which provides long term formal training based on the education level and background. These two centers will provide training according to this system, which will not be financed under the proposed project. 65. Sub-component 2-1 (B): Establishment of an On-demand Training System and Provision of Training. This Sub-component will support the Establishment of an On-demand Training System and Provision of Training Including, inter alia: development of a pilot demand- oriented training mechanism and provision of Training focused on the needs of various economic sectors. The mechanism aims at creating a capacity to offer customized training programs to operators in various sectors framework of a partnership between the enterprises and the public or private training structures. 50 66. The training will target mostly unemployed youth but also employed youth from 16 to 35 years of age and cover all qualification levels. Targeted youth are literate with some level of education. Requests of all training of youth must come from firms. Youth who successfully complete their training will receive certificates proving their professional qualifications. The proposed training will concern priority sectors where needs in skills are clearly identified, such as the mining, transport, construction/civil works, tourism/hotel, electricity, water, agriculture and livestock sectors. It is estimated that about 2,000 youth will be trained under the sub- component, of which at least 30 percent of girls and that at least 60 percent of the trainees will find an employment at the end of their training. This will be achievable because the enterprises that request training of youth will guarantee to hire a certain number of youth who have acquired the required skills after the training. The length of training will vary depending on needs of the enterprises but will not go beyond 12 months. Youth will receive an allowance of CFAF 20,000 per month. 67. Implementation Arrangements. The CCI-BF will be responsible for the coordination of the sub-component, under a specific agreement (Maitrise d'ouvrage) with the Project's overall PCU. It will establish a Specific Unit to be responsible for the implementation of the sub- component, with the human resources and equipment necessary to guarantee efficient implementation and full fiduciary accountability. 68. Sub-component 2-1 (A): Establishment of the two Training Centers: The CCI-BF will be the owner and manager of the two training centers to be established under the sub- component. It will implement all project activities concerning the design, establishment, start-up and operations of the Centers. The sub-component financing will be done under a specific partnership agreement between the CCI-BF and the Government specifying the terms and conditions of project/government support to the centers. The Centers will be established with statutes, operational policies and internal management procedures (acceptable to IDA and Government) allowing for both managerial and financial autonomy and full accountability to their shareholders. 69. The centers' governance bodies will include representatives of (i) the private operators in the concerned sectors of activity and (ii) of Government. This will allow both parties to provide guidance and inputs for the targeting and content of the training as well as the management and financing of the centers. The centers will enter into a specific performance contract with the PCU for training of the 1,800 youth under this sub-component, detailing the objective of the program, the number and gender of trainees, the training approach, the professional certification delivered, and the cost per participant, etc.). 70. Sub-component 2-1 (B): Establishment of an On-demand Training System and Provision of Training. The CCI-BF will be responsible for establishing and operating the pilot on-demand training program from enterprises. Under the guidance of the sub-component's Steering Committee, it will be responsible for: (i) developing, with the necessary technical assistance, the pilot's operational policies and detailed manual of procedures, which specify the terms of identification and formulation of needs, selection of youth participants, conclusion of contracts with enterprises, selection of public or private training , supervision of operations; (ii) recruiting, on a competitive basis, the team of training advisors/counselors responsible for 51 assisting enterprises in formulating their skills needs; (iii) negotiating agreements with these enterprises for designing and delivering the agreed upon training/employment program; (iv) identifying and mobilizing suitable training providers; (v) supervising the training programs; and (vi) monitoring the insertion of the trained youth into permanent employment. 71. Component Support. Sub-component 2-1 (A) will finance (i) studies on the design and dimensioning of these two centers, (ii) the necessary equipment of centers' laboratories and workshops, (iii) training of trainers, (iv) the development of specific curricula, (v) the external technical assistance required for the start-up of these two centers as well as for the establishment of a dual training system and a management and guidance approach based on the involvement of the sectors private operators, managerial and financial autonomy and performance-based contractual arrangements, and (vi) the development of the surveys for the tracer study of trained youth. 72. Sub-component 2-1 (B) will finance: (i) TA for the establishment of the on-demand training system and the preparation of a detailed manual of procedures; (ii) the implementation of an information campaign; (iii) the training of training counselors; (iv) the funding of training contracts negotiated with selected training providers, (v) logistic support and equipment; and (vi) the payment of operating costs including monthly allowances. Sub-component 2-2: Apprenticeship Program 73. Background. The labor market includes more than 3 million youth the majority of whom have less than primary school education (with only 600,000 having completed primary school). Only 140,000 have secondary or higher education. The EICVM survey (2009-2010) estimated that 76 percent of the unemployed 16 to 35 years of age in the urban areas of Ouagadougou and the central region have lower than a secondary education. The very low level or no education of most of these youth does not allow them to have access to the vocational training delivered through the formal training system. 74. A pilot project based on the dual training approach (apprentissage par alternance) is currently being implemented in cooperation between GIZ and the National Association of Craftsmen (Federation Nationale des Artisans du Burkina Faso - FNABF). It includes classroom training for up to one-third of the total learning time, with the remaining time (two-thirds) being devoted to on-the-job learning with master craftsmen and small enterprises. This German and FNABF program supports more than 500 youth through apprenticeships in hair styling dressmaking, carpentry, metal construction and auto-mechanics in Ouagadougou and other regions of the country. The proposed dual approach is an improved version of the wide-spread informal apprenticeship, providing a mix of formal teaching including a literacy and numeracy program, and on-the job training with a skills certification valued by employers, proving to be well suited to both the existing socio-economic environment and youth conditions. 75. Activities under the Sub-component. The aim of the sub-component is to provide training opportunities to youth with no or very little basis education. Modeled on the successful pilot project implemented by the FNABF (National Association of Craftsmen), it will offer dual training opportunities to about 4,000 jobless and uneducated urban and rural youth between the ages of 16 and 20 (in agriculture, livestock and drafts, the age will be extended to 25), of which 52 at least 30 percent will be girls. The overall duration of the apprenticeship duration will vary according to the occupation, from very short durations for agricultural activities/technologies up to 24 months for some secondary sector, service type occupations (the average duration would be 18 months). At completion of their training, youth will receive the Certificat de Qualification Professionnelle (CQP). The participants of the LIPW program supported under the project's component I will also be able to participate in this training. Training will be provided for priority to the sectors with skills deficits and providing good employment opportunities for youth. The specific training areas will be determined on the basis of consultations with both youth and employers and may vary according to geographical locations. 76. Implementation arrangements. Sub-component 2-2 will be implemented by the ANPE, in close collaboration with the CCT-BF and CCI-BF and Industry, under a delegated management contract (maitrise d'ouvrage). ANPE has a network of regional offices which provide orientation, job placement services. It also has 20 regional and training centers which prepare youth for the CQP. Nine of these training centers have recently been renovated with the assistance of Taiwan, China. For training in specialties not covered by ANPE, ANPE will appeal external operators under contract to provide service on a competitive basis. A specific steering committee will be established to provide guidance and supervision of the sub-component, comprised of representatives of MJFPE, the Chambre des Metiers, the CCI-BF, professional associations and the concerned technical ministries. 77. ANPE will establish a specific unit, adequately staffed, to coordinate and supervise activities under the sub-component. In each of its regional centers, it will appoint referents specifically devoted to project activities: youth and enterprises information, reception, orientation and placement of youth in the enterprises and monitoring their training. The ANPE staff involved in component's activities - staff of the project central unit, referents in regional centers and staff in training centers - will receive initial training in the dual training method. Enterprises/craftsmen selected to provide training to youth will also receive initial training. 78. During their training, youth will receive a subsistence allowance (CFAF 20,000 per month) and toolkits. They will receive CQP certification and the project will also support the establishment of bridges toward CAP level training and even higher. They will be encouraged to attend complementary training in entrepreneurship/IGA management at the end of their apprenticeship. To do so, they will be directed toward CCI-BF's Maison de 'Entreprise which will also be able to help them with their business plans and facilitate their contacts with appropriate financing institutions (specific Funds and financial institutions). 79. Component Support. The sub-component will finance: (i) a communications campaign to promote the new approach to apprenticeships to youth and employers; (ii) consultations with private sector organizations; (iii) capacity building of the ANPE and the Chamber of Crafts and Trade; (iv) equipment/tools and pedagogical materials for training; (v) identification and training of participating master-craftsmen; (vi) training of ANPE's staff participating in the program and complementary equipment for its centers; (vii) the provision of allowances (CFAF 20,000 per month) and toolkits to apprentices; (viii) the development of professional qualification standards for 10 trades; (ix) basic skills entrepreneurship training and follow up support to apprentices after the completion of their apprenticeship; (x) the monitoring and evaluation of the sub-component; 53 (xi) the funding of training contracts negotiated with selected training providers; (xii) technical assistance for the review of the national regulatory framework for apprenticeships; and (xiii) the training use of the tax. Sub-component 2.3: Entrepreneurship training and provision of follow up support to entrepreneurs 80. Activities under the sub-component. The objective of this sub-component is to develop entrepreneurship capacity among youth and promote the emergence of a new generation of sustainable microenterprises creators. The sub-component will intervene in both rural and urban areas and will target activities in key economic sectors which offer clear opportunities for the creation of IGAs. The project will concentrate mainly in Ouagadougou and in the Central, Plateau Central, Center-West and Hauts Bassins Regions. A program funded by Denmark and managed by the Maison de l'Entreprise already covers the other Regions of the country (Sahel, North, Center-East, East and part of the Center-West) as well as five agricultural sub-sectors. 81. This sub-component will conduct entrepreneurship training programs using a program called the Tri-Cree Germe developed by ILO. The program uses a specific tool that allows illiterate people to understand it. 82. A total of about 8,000 youth (at least 30 percent of whom will be girls), ages 16 to 35 years, will benefit from the sub-component entrepreneurship training interventions. Various youth groups are targeted in this sub component, including youth without any schooling and early school dropouts, apprentices, graduates as well as participants in the LIPWs programs under Component 1. It is projected that participants will include: 4,000 youth without any schooling and early school dropouts (including those coming from LIPWs), 2,000 youth who have completed their apprenticeship program under sub-component 2-2 (above) and 2,000 school graduates. It is further expected that, out of the 8,000 participants: (i) about 5,000 youth will benefit from follow-up support and coaching for the preparation of their business plans; and (ii) 2,500 youth whose project proposals are particularly promising will be further supported by the Maison de l'Entreprise for accessing financial institution support and start-up activities. 83. Implementation Arrangements. The sub-component will be implemented by the Maison de P'Entreprise (ME), under a delegated management contract (maitrise d'ouvrage) with the PCU and the guidance and supervision of the Component Steering Committee. Maison de l'Entreprise is an autonomous subsidiary of the CCI-BF. It has extensive experience in business and entrepreneurship promotion, including in the management of donor-funded projects (Danish Cooperation and World Bank). It has an extensive network of regional offices and a well- qualified staff. It is the primary provider of support to businesses for assisting with the legal registration/formalization of businesses (which can be done in three days); training and business development services; and facilitating access to credit institutions. 84. The Maison de l'Entreprise will deliver the required training either with its own staff or through its roster of well qualified accredited external service providers (on the basis of a competitive selection). Training and other support activities will be delivered in ME's training centers, in Ouagadougou and in the provincial capitals. Training modules (content and delivery 54 mechanism) will be adapted to the various target populations, including the non-literate. Training duration will vary between 3 days and 2 weeks and will include sensitization on the entrepreneurial spirit, market analysis, micro enterprise management and preparation of business plans. 85. The sub-component will also support the introduction of << entrepreneurship and enterprise creation >> modules in the selected technical or vocational education institutions and in two higher education universities/institutions. 86. A comprehensive monitoring and evaluation mechanism will be put in place to assess the relevance and quality of the training/assistance provided as well as evaluate its impact on the capacity of participating youth to analyze market opportunities, prepare sound business plans and successfully launch IGA/micro enterprises. 87. Component Support. This sub-component will support (i) an entrepreneurship promotion campaign; (ii) the design/ adaptation of suitable entrepreneurship training modules; (iii) the training/retraining of 50 trainers in entrepreneurship, among ME staff and its accredited service providers (iv) the selection of participating youth, recruitment of external trainers and the organization of training and coaching sessions; (v) the costs of training and coaching of the participating youth, (vi) capacity building activities for the Maison de l'Entreprise and other structures supporting the creation of enterprises; and (vii) the cost of the sub-component M&E system. Component 3: Institutional Capacity Strengthening and Project Management (US$5.0) million) 88. The purpose of this component is to (a) strengthen the capacity of private and public sector institutions to engage in an informed policy dialogue on skills and employment on a regular basis, e.g. through technical capacity strengthening and the creation of a mechanism for consultations and collaboration; and (b) improve the knowledge base on employment and youth. In order to achieve these objectives, the component will fund the following activities: (i) project coordination unit, (ii) capacity building and (iii) monitoring and evaluation. 89. Project Coordination Unit: The main objective of these activities is to support the effective implementation of the Project and its implementation arrangements, by establishing a PCU embedded within MJFPE and reporting to the Secretary-General as well as the Project Steering Committee. The PCU will consist of small group of dedicated staff assisting MJFPE and all participating agencies in effective coordination and M&E, as well as the implementation of an information and communications strategy. The proposed component will fund key staff to be hired for the implementation of the proposed project. This will include an Executive Director, Procurement Officer, FM Officer, M&E Officer, IT Specialist and consultants in different areas of expertise. The PCU will hire a firm that will put in place a strategy of communications to increase awareness of the Project activities amongst youth and other key stakeholders. 90. Capacity Building: The Component will also fund institutional strengthening activities for MJFPE (General Direction of Vocational Training and Employment Observatory), CCI-BF, the MIT, the ANPE, and the Maison de l'Entreprise. In addition, the project will support the 55 reinforcement of the Employment Observatory through: (i) the establishment of a data collection device on employment and qualification for employment analysis and qualification requirements, (ii) the creation of a list of companies to be used for finding qualification needs, and (iii) training of staff. The Project will provide support to the National Commission of certification (SP-CNC) through MJFPE to improve the mechanisms of recognition of skills acquired formally or non- formally through the validation of acquired experience (VAE). This support will contribute to linking the acquisition of degrees and diplomas in five levels of training qualification established by the Decree 2012 to career development. The project will complement the support provided by the Programme d'Appui a la Politique sectorielle d'Enseignement et de Formation techniques et professionnels (PAPS / EFTP) project funded by Lux Dev, Austrian cooperation and AFD for a total amount of euros 200,000. 91. Monitoring and Evaluation: The development of an M&E system is an essential part of the project, and activities to set up the system, train staff, and data collection and analysis have been included in the project. In addition to the M&E person in the PCU, international, independent M&E firm will be hired using the Quality and cost procurement method. This Firm will assist the PCU to design the M&E system for the project, establishing an annual lessons learned/technical audit report and ensure an objective assessment of progress is made. Data will be collected at different levels. The recruited M&E firm will work under the direction of the M&E specialist and in close collaboration with the Employment Observatory. The design of the M&E system is managed by the M&E person within the PCU (financed by the project). The M&E person will ensure the recruitment of a firm, appropriate M&E design, which is developed with the participation of all relevant stakeholders, system validation and roll-out. The project will also finance: (i) an impact evaluation that will help to demonstrate rigorously the effects of the project compared to non-beneficiary group; and (ii) a tracer survey to apprehend the youth situation in terms of employment and unemployment after obtaining the training. 92. Component 3 will finance goods, works, consultants' and non-consulting services, training and workshops for public and private sector entities and operating costs. 56 Annex 3: Summary of Estimated Cost BURKINA FASO: Youth Employment & Skills Development Project IDA-financed Project Financing Plan (in US$): Amount of the Percentage of Amount of the Credit Allocated Expenditures to be Credit Allocated (expressed in Financed (inclusive Category (expressed in US$) SDR) of Taxes) Component 1 : Labor Intensive Public Works Goods, works, non-consulting 25,000,000 100% services, and consultants' services Component 2 : Skills development Goods, non-consulting services, 20,000,000 100% consultants' services and training Component 3 Institutional Capacity Strengthening and Project Management Goods, works, non-consulting services, 5,000,000 100% consultants' services, operating costs and training Total Amount 50,000,000 100% Projected IDA Disbursement per Year FY14-FY18 Implementation Schedule IDA Support FY14 FY15 FY16 FY17 FY18 FY19 Disbursements 5 10 15 15 5 0 Cumulative Disum entv 5 15 30 45 50 50 Disbursements 57 Annex 4: Implementation Arrangements Burkina Faso: Youth Employment & Skills Development Project Implementation Arrangements 1. Given the priority placed on job creation and the multi-sectoral nature of the project, the Government and IDA agreed that the best strategy for the project coordination would be the creation of a Project Coordination Unit (PCU) under the authority of the Ministry of Youth, Professional Training, and Employment (MJFPE); with an oversight by a Steering Committee (SC) with representation of the key project stakeholders of the relevant public and private sector entities. This proposed institutional set up is considered as the most appropriate and efficient arrangement to ensure effective implementation of the project. The figure below provides an overview of the implementation arrangements: Steering Committee (SC) (Public , private sector V.4: Minister or General Secretary stakeholders, districts/municipalities) Project Coordination Unit (PCU) (Coordination, FM, Procurement, M&E) Component 3 Component 2 Institutional Capacity Skills Development Strengthening and 850 : L Project Basic life Apprenticesh Professional Entreprene PT-HM skills & ips training ur-ship entrepreneur training ship for LIPW participants 58 2. Composition of Steering Committee (SC): The project will be overseen by a Technical Steering Committee (SC) to ensure that project activities are relevant to the different sectors and in line with the government's priorities and private sector needs. Therefore, the SC will be chaired by Secretary General of MJFPE or his Designate. The other members of the SC will include representative from Public and private sector, stakeholders, districts/municipalities. The legal text establishing the SC will be approved prior to effectiveness. 3. The role and Responsibility of the SC: The SC will: (i) provide overall policy and strategic guidance to the PCU for the project implementation; (ii) review and approve the overall Annual Budgeted Action Plan prepared by the PCU and ensure that agreed performance targets and timelines for proposed activities under the different components are met; and (iii) ensure effective project implementation by proactively addressing critical issues that could hinder implementation. The SC will meet quarterly to review the progress and activity report of the project prepared by the PCU and discuss its findings with the relevant stakeholders (e.g. public and private sector agencies, NGOs, other donors etc.). In addition, the SC is a standing committee i.e. that at any time, one of its members can call a meeting. The SC members will receive regular progress reports on each component, bi-annual audit reports and coordinate the bi-annual supervision missions. Project Coordination Unit (PCU) 4. To ensure day-to-day management and supervision of project, a PCU will be set up under the auspices of the MJFPE. The PCU will be headed by a Coordinator who will serve as the link between the SC and MJFPE. Specifically, the PCU will: (i) coordinate and monitor the day-to-day implementation of the project; (ii) play the role of technical secretariat to the SC; (iii) manage all fiduciary/monitoring and evaluation aspects of the project and prepare consolidated technical and financial reports; and (iv) support, through Component 3, institutional capacity strengthening activities. 5. As mentioned above, the PCU would also be in charge of data collection and analysis of the Budget Action Plans (BAP) prepared and submitted by the various entities in charge of implementing the project's sub-component activities (LIPW, and Skills Development and Employment Support). The PCU would thus support the implementing entities, in the preparation of their respective Budget Action Plan (BAP) to ensure that they include the following elements: (i) specific activities to be financed and associated costs; (ii) proposed implementation timetable; (iii) respective roles and responsibilities of the different parties involved; and (iv) targets for monitoring progress. The PCU will consolidate the individual BAPs into an Annual Budgeted Action Plan (ABAP), which will be transmitted to the SC and provide a comprehensive overview of project intervention progress and ensure coherence of the different project activities. The ABAP thus serves as the project's implementation planning and monitoring tool and ensures that: (i) each entity manager reviews the previous BAP and submits an updated version to the PCU, taking stock of progress made and provide explanations in case of implementation delays/difficulties; (ii) the PCU has a global overview of 1Entities with which the PCU will sign a Delegated Management Contract (Ma itrise d'Ouvrage Deleguee) would be e.g. Ministry of Infrastructure or specific training service providers; and contracts with agencies like ANPE, Maison de l'Entreprise and Chamber of Commerce. 59 the project's performance; and (iii) the SC can make an informed assessment of progress made to validate or adjust the ABAP for the following year. 6. In addition, quarterly project implementation reports carried out by the PCU will provide accounting and financial information on the project, including procurement activities and physical progress on the basis of the project respective indicators. It is in charge of the design and implementation of project activities as well as data collection and analysis. In order to avoid any disruption in the production of the project progress reports during the life of the project, an M&E arrangements system will put in place at the PCU during the first year of the project. This will allow the PCU to produce project progress reports, as well as serve as the responsible entity for the consolidation of the project indicators (supplied by the different implementation agencies) to produce reports of the Annual Reviews. PCU will require capacity building and acquisition of the necessary equipment and staff to take charge of analyzing and monitoring the project as a whole, which includes monitoring the implementation of the project. 7. PCU staffing: Given the volume of activities of the PCU and in order to effectively carry out its mandate, the PCU will be staffed with the relevant experts to support the coordinator manage fiduciary, monitoring and evaluation (M&E), budgeting and planning activities, as well as technical proposal evaluation. The core team of the PCU will be comprised of the following staff: (i) project coordinator; (ii) procurement specialist(s), (iii) financial management specialist(s), (vi) internal auditor, (v) M&E specialist(s), (vi) part- time social and environmental expert, and (vii) additional administrative support. The project would also hire an independent M&E consulting firm to work closely with the project's M&E specialist(s). The consulting firm will assist with the production of an annual lessons learned/technical audit report and ensure a sound assessment of progress made. It was also agreed that all PCU staff would be recruited locally and on a competitive basis.. 8. Financial arrangements will be detailed in the project implementation manual. A fiduciary unit will be established as part of the PCU. The PCU has not yet established, however, the Government agreed to put in place the PCU as soon as possible. Details of the fiduciary arrangements can be found in Annex 6. 9. The financial management unit will prepare quarterly and annual financial statements which will include the project's consolidated financial statements. The quarterly IFRs will be sent to the Bank 45 days after closing of each quarter. Financial audits will be conducted yearly and annual audits will be conducted by independent auditors acceptable to the Bank and in accordance with international auditing standards. Audit reports will be submitted to IDA within six months after the end of the audit period. Financial Management and Disbursement arrangements' are set in Annex 6. Environmental and Social (including safeguards) 10. Social safeguards The project is classified as Environmental Category B since potential adverse environmental and social impacts associated with LIPW are generally less adverse, small-scale and site specific; thus, manageable to an accepted level. The social impact of the project is expected to be positive, as the intervention seeks to generate employment and income 60 for unemployed or underemployed youth in urban and rural areas and improve their human capital through training in basic life skills and other skills which will increase their employability and productivity. Employment conditions will meet all the requirements of the national legal and regulatory framework. Participants will be paid the official minimum wage and benefit from a work-related accidental insurance coverage. The income generated through participation in LIPWs is expected to help beneficiaries improve food security; access to basic social services as well as invests in productive assets. Training in life skills will cover areas such as civic education, citizenship national cohesion and democratic values, the rights and responsibilities of workers, HIV/AIDS prevention and other public health issues. Selected LIPWs will target maintenance/rehabilitation of key community infrastructure benefitting the entire community and thus improve general well-being including street cleaning, filling potholes, cleaning of culverts and drainage networks, maintenance of markets, open spaces and gardens, rehabilitation/maintenance of rural roads, and establishment of small water structures and other activities. 11. Environment. Under Component 1, the Project will finance demand-driven activities which will be identified on the basis of a participatory strategic planning process. Based on experience with similar projects, the component's activities should provide a net benefit with respect to environmental impact. However, potential limited negative impacts may include loss of vegetation (linked to the rehabilitation of rural roads) and an increase in solid waste (linked to street and drainage systems cleaning). Component design includes satisfactory measures to deal with the management of all products generated by the activities of the urban work brigades (street sweeping, pruning and felling of trees, cleaning ditches and culverts) or the environmental impact of the rehabilitation of rural roads. These activities will be carried out in accordance with environmental procedures acceptable to IDA. 12. Two World Bank safeguard policies 4.01 on environmental assessments) and Involuntary Resettlement (OP.BP 4.12) are triggered under Component 1. Since the location of future component's activities were not known at appraisal, the government prepared the appropriate safeguards instruments: an Environmental and Social Management Framework (ESMF) that outlines an environmental and social screening process for component's activities (which includes: Guidelines for an Environmental Management Plan (EMP); Environmental Guidelines for Contractors; and a summary of the World Bank's safeguard policies) and a Resettlement Policy Framework (RPF) to address potential land acquisition or loss of economic activity on the part of individuals or groups of individuals in project intervention zones. have been prepared, in full compliance with World Bank and national safeguard policies, including a broad consultation framework involving all relevant stakeholder groups, both public and private, as well as civil society. 13. The ESMF formulates standards, methods, and procedures specifying how future activities s whose location, number, and scale are unknown will systematically address environmental and social issues. It includes: (i) a systematic environmental and social impact assessment for all activities before selection and implementation; (ii) procedures for conducting activity-specific EIAs, Limited Environmental Impact Assessment (LEIA) or Full Environmental Impact Assessment (FEIA); (iii) capacity strengthening and awareness raising campaigns targeted at relevant stakeholder groups for better implementation and monitoring of project 61 safeguard measures; and (iv) establishment and implementation of a consultation framework for the environmental control and monitoring. The RPF looks into the policy, legal and regulatory mechanisms for addressing potential cases of land acquisition/loss of economic activities on the part of individual or communities as a result of project activities. It provides a coherent framework, eligibility criteria and asset valuation methods for compensation and/or resettlement of affected people, as well as grievance mechanisms of affected persons, in case of unsatisfactory arrangements. 14. Social and Environmental management. As part of the capacity-building to be provided for implementation of the proposed operations, the PCU will recruit an environmental and social consultant for periodic support as needed, who will be responsible for the following up safeguards issues and concerns; and in particular work with the PTR-HIMO environmental and social specialist in applying the screening checklists to various sub-projects. To assist in this capacity building, and to provide subsequent guidance and review of the ESSAF's application, the World Bank environmental and social safeguard specialists in the project task team will provide guidance to both the PCU and Ministry of Infrastructure. During supervision of these operations, IDA will assess the implementation of the ESSAF, and recommend additional strengthening, if required. Responsibility for the technical implementation of the three project components will be as follows: Component 1: Labor Intensive Public Works 15. In order to capitalize on the experience of other Bank-financed projects, the PCU will enter into delegated management contract with existing entities to implement this component. The component would be coordinated by the PCU established in MJFPE. The responsibility for its implementation (maitrise d'ouvrage) would be given to the special LIPWs unit of the Ministry of Infrastructure (PTR-HIMO) under a delegated management contract. The ministry has been entrusted with the coordination/oversight of all LIPWs in the country, including those under the special program. A detailed review of this unit technical and management (financial) capacities would be undertaken during preparation and appropriate steps would be taken to strengthen it to the required level: with technical staff seconded by the PTR- HIMO, and with the necessary financial/accounting systems and staff (including procurement staff) funded under the project to ensure accountability and full fiduciary compliance. The PTR- HIMO will establish specific operational units in each of the commune/region where it will operate. 16. To ensure coherence with the priorities of the decentralized government structures, i.e. districts and municipalities, PTR-HIMO will be required to consult the Mayors' Associations of Burkina Faso (AMBF) and obtain their agreement to the proposed public works. Component activities would be planned in full coordination with the concerned local governments (Communes and regional bodies), which play a key role in local youth insertion initiatives, and technical ministries (agriculture). To this effect, the PTR-HIMO would enter into a contract (Convention cadre) with each of the participating local governments defining the objectives of the program and the responsibilities of each of the parties. This would (i) ensure 62 that the public works identified and undertaken correspond to community priorities and (ii) permit building local governments' ownership of the LIPWs approach as well as their capacity to plan and manage such programs at the end of the project, thus creating the basis for a long term sustainability of the LIPW approach at the local level. The PTR-HIMO would implement activities on behalf of the local governments either: (i) through competitively contracted service providers -- NGOs (such as HELVETAS or Faso Bara) and/or private contractors, or (ii) under force account for the establishment and management of the urban work brigades. 17. To ensure compliance with social and environmental safeguards, PTR-HIMO will have an environmental and social specialist. Further, he/she will be responsible for following up on the safeguard screening and mitigation requirements for each sub-project and would work in collaboration with the part-time environmental and social specialist (consultant) attached to the PCU. 18. PTR-HIMO will prepare its respective Budgeted Action Plans (BAP) and submit it to the PCU for review, comments and approval. Once the PCU has endorsed the proposed BAP, the delegated implementation agency is authorized to proceed with the work. Although the AMBF is consulted, the ultimate responsibility of implementation quality rests with PTR-HIMO under the supervision of the PCU. 19. Monitoring component 1: PTR-HIMO will be responsible for program monitoring. Monthly progress reports will be collected from public works sites and aggregated as quarterly reports for submission to the PCU. Beneficiary surveys and an evaluation of the LIPWs programs will be performed. Component 2: Skills Development 20. The project will provide support to skills development and employment support through apprenticeships, providing training of youth in economic sectors with growth potential and employment as well as short term professional training; and entrepreneurship training, e.g. in construction, hotelier sector - tourism, agriculture-livestock, electricity and other sectors with substantial employment potential. 21. Project activities would be implemented through a contract by different institutions based on their expertise and experience in the relevant area. The PCU will be in charge of ensuring quality outputs in close collaboration with the respective institutions. The selected institutions will be categorized by activity, namely: (i) apprenticeships; and (ii) providing training in priority in sector with high potential employment, (iii) professional training programs as requested by any other sector;(iv) entrepreneurship training and business development support services; within youth involved in PTR-HIMO. (i) Apprenticeships 22. The PCU will enter into a delegated management contract (Contract de Maitrise d'Ouvrage diliguie) with the ANPE, the National Agency for Employment, for the implementation of the apprenticeship program. ANPE has an existing apprenticeship 63 program through its 20 regional and provincial centers. To this end, ANPE would carry out activities with Chamber of Trades and other training institutions within the country where these two structures have offices. The ANPE would sign a contract with professional sectors and private and publics training institutions. 23. To ensure that relevant professional areas for apprenticeships are selected, ANPE will prepare a BAP and submit it to the PCU for review, and submission and approval by the SC. The BAP will also serve as the basis for drafting the contractual agreement and monitoring progress. (ii) Short and Midterm professional training programs 24. Based on Studies conducted by CCI-BF on employment and training identified the following sectors with a high potential of employment: (i) the hotel and tourism industry ; (ii) the processing meat for export instead of exporting livestock; (iii) the mining sector and civil construction industry. 25. The Chamber of Commerce has been successfully carrying out activities with a satisfactory precedence, which will allow for rapid start-up of project activities. Initial training and staff development 26. The sub-component will be managed by the CCI-BF. A specific steering committee will be created to monitor and asses the implementation of the sub-component. The committee will include representatives of MJFPE, the Ministry in charge of technical education and government departments responsible for mining and energy, agriculture and livestock, the chamber of trade and other professional groups. 27. CCIBF will develop specific procedures to the sub-component and will have responsibilities of the implementation. These responsibilities include agreements with companies or trade associations, identification and formulation of the scope of the work to be done, selection of public or private training, supervision of the implementation of the subproject. The project will provide technical assistance to the CCIBF and the steering committee. (iii) Entrepreneurship training and business development support 28. This activity will be implemented by the Maison de l'entreprise who has a proven track record in this area, and which already carries out similar activities funded by the World Bank. The ME will sign an agreement with the PCU as an Implementation Agency. This agreement will finance entrepreneurship training and business development support for economically viable activities to supply the demand in this field of these competencies. The Maison de 'Entreprise will take into consideration all business purveyor groups with a high potential for creation of economic activities and execute the sub-component using his own expertise or through external partnership with other institutions in that area. (iv) Basic life skills and entrepreneurship training for LIPW participants 64 29. This training will be offered as part of the LIPW activities to enhance beneficiaries' employability and future income opportunities. The training activities will be implemented by competitively selected service providers. Training activities will consist of workforce readiness, basic life skills and entrepreneurship and business development support modules. 30. Monitoring Component 2: The service providers of the above training activities will be responsible for providing monthly status reports to the PCU. The PCU will collect and validate the results data submitted by the service providers. Beneficiary surveys and an impact evaluation will be conducted to provide lessons for an eventual scale up. Component 3: Institutional Capacity Strengthening and Project Management 31. The PCU will be directly responsible for the implementation of component 3. In this capacity, the PCU will be in charge of issuing requests for proposals for analytical work, knowledge sharing and dissemination, technical assistance and different types of learning events etc. benefitting specific ministries, agencies (such as ANPE and CCI-BF) and private sector associations, involved in youth employment and skills development. More detailed guidelines on the administration of the component will be specified in the project implementation manual. 32. Monitoring and Evaluation Arrangements. The M&E system will be based on the agreed Results Framework (Annex 1) and implementation arrangements (Annex 4). The project coordination unit will be responsible for conducting M&E activities. Baseline data collection for the agreed indicators will be initiated by the PCU in close collaboration with public and private implementing agencies of the project. Implementing agencies will be responsible for data collection and reporting of their respective activities. Overall the PCU will be responsible for consolidating, analyzing all periodic data and output indicator. In addition, the PCU will be required to produce reports to the steering committee and to the Bank. To this end the PCU will recruit M&E staff for monitoring activities of the project. Furthermore, an international, independent M&E firm will be hired to assist the PCU to design the M&E system for the project, establishing an annual lessons learned/technical audit report and ensure an objective assessment of progress is made. 33. The project will also finance: (i) an impact evaluation that will help to demonstrate rigorously the effects of the project compared to non-beneficiary group,(ii)tracer survey to apprehend the youth situation in terms of employment and unemployment after obtaining the training. 34. Annual reviews. As the Technical Secretariat to the SC, the PCU will organize two reviews, the first to review interim progress, the second to approve the annual budgeted action (ABAP) plans. Based on the ABAP evaluation, the SC will approve activities to be financed in the year ahead. In year two, the Annual Review meeting will also evaluate progress made in the previous year and take into account lessons learnt and proposed corrective measures. To facilitate and harmonize this evaluation process, one of the two Bank project implementation support missions would be organized to coincide with the Annual Review There has been continued dialogue with the different developing partners (and with government counterparts or the private sector whenever appropriate) throughout the preparation of this project. Meetings 65 were called to ensure that the project's activities do not overlap with that of other donors and to ensure that complementarities are being used to render each project implementation more efficient. 35. The subsector enjoys the full support of the development partners, each of whom contributes to the program in its special area of interest and comparative advantage. The Government and the major donors, including UNDP, AFD, IDA, Lux Development, Austria, Swiss Cooperation (Swiss Contact), and Taiwan, China have decided to include their interventions within the employment strategy framework. Donors mainly provide support to the strategy through individual projects but all interventions are being harmonized within the framework. 36. Donor coordination through joint reviews will ensure that implementation of each donor "project" is consistent with the Government Youth Employment & Skills Development. Each year, two joint donor/government annual reviews will take place to: (i) assess the extent to which program objectives are being achieved; (ii) identify, through qualitative and quantitative measures, those aspects of the program that are behind or ahead of schedule and recommend adjustments according to annual regional and central implementation plans; (iii) identify reasons for any shortfalls in meeting targets and suggest possible strategies for action; (iv) review performance indicators and assess the functioning of the M&E system; and (v) review expenditure for the previous year, and draft action plans and budgets for the coming year. 37. Status of Project Preparation Activities. Substantial efforts by the government are being made to make progress in the project preparation. Notably, these include: drafting of terms of reference for core PCU staff, drafting of financial and administrative procedural and project implementation manual will begin shortly; legal text establishing the SC will be available in early September, and the preparation of the ESMF and RPF will be launched shortly, among others. Preparation Activities and Date Due Status of Preparation Conditions/Covenants Establishment of the PCU and recruitment Effectiveness ToRs is being drafted by the of a Project coordinator for the PCU; FM government expert; and two procurement experts Establishment of the Technical Steering Effectiveness Legal text will be available and Committee adopted in the first half of September 2013 Adoption of a Project Implementation 3 months after effectiveness Recruitment of consultant under Manual way to assist the government. Government is finalizing ToRs. 66 Annex 5: Operational Risk Assessment Framework (ORAF) Burkina Faso: BF-Youth Employment & Skills Development (P130735) Stakeholder Risk Rating Substantial Description: Risk Management: The National Council of Employment, the steering committee and technical partners Involvement of various ministries in the project may lead shall meet regularly to review progress and makes recommendations as needed. to delays in decision making and implementation of activities. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation Only weak participation of the private sector would make the achievement of the PDO challenging, since private sector engagement is essential for developing labor- Private sector involvement in project design and implementation, e.g. through market relevant skills. implementation of activities by the Maison de l'entreprise. There is a risk that the LIPW and training programs will Considerable private sector representation on the project led steering be oversubscribed by large scale interest of youth beyond committee will be part of the project's institutional arrangements. the available slots. Dissatisfaction of youth after the end of Resp: Status: Stage: Recurrent: Due Date: Frequency: the programs due to their temporary nature and lack of possibilities thereafter also presents a potential risk. Both Not Yet Due Implementation Risk Management: If project activities are oversubscribed by eligible participants, a randomized selection will take place. Consultations with and survey of youth to inform project design and ensure a good fit of the project objectives and design with beneficiary needs. 67 Beneficiary satisfaction surveys during project implementation to integrate lessons learned from the pilot phase during implementation. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation Capacity Rating Substantial Description: Risk Management: Overall weak management capacity, leadership and A capacity assessment of the key implementing agencies and service providers will be accountability mechanisms in fiduciary aspects, M&E, performed, on which basis appropriate technical assistance, follow up mechanisms and project administration, sector coordination and technical other capacity building measures will be provided to the implementing agency and aspects of skills development and training; job creation service providers to ensure effective implementation of the activities, and and entrepreneurship schemes pose a potential risk to establishment/improvement of solid M&E systems. implementation and achievement of project objectives. The project will also attempt to mitigate risks through building on existing projects and initiatives and selectivity of project design during preparation. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Implementation Governance Rating Moderate Description: Risk Management: Within the LIPW activities there is a risk of political The project will develop an appropriate and transparent targeting mechanism and interference in the selection of participants by either selection process of beneficiaries. This will be based on best practice and experience including non-eligible individuals or excluding eligible with other skills project and programs supported by the Bank, donors and government. ones. Regular beneficiary surveys will be developed to mitigate the risk and the operational manual will include mechanisms for addressing grievance complaints and disputes. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation D Risk Management: The Project document will specify eligible activities clearly and establish an adequate 68 non-objection process. Project staff will be trained in the use of project funds in accordance to IDA regulations. Financial and technical audits will be required, with clear terms of reference. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation 0 Design Rating Moderate Description: Risk Management: The Project has several different project components and The project components build on successful activities from other donor or government activities and the multi-institutional nature of the project supported projects and lesson learned from these projects will be incorporated into the may make implementation challenging. design of this project. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation D Social and Environmental Rating Moderate Description: Risk Management: The project could have potential adverse environmental * An ESSAF will be developed to ensure compliance of project activities with the and social impacts associated with the Labor Intensive World Bank's safeguard policies during the implementation of the project. Public Works (LIPW). These are generally less adverse * An Environmental and Social Management Framework (ESMF) and small-scale and site specific; thus, manageable to an Resettlement Policy Framework (RPF) will be prepared, reviewed, approved and accepted level. The component that could trigger the Bank disclosed in-country and at the Infoshop. safeguards policies is the Temporary Employment through * For sub projects with potential adverse impacts, a limited Environmental Public Works, which will be implemented by financing Analysis will be done during project implementation LIPW. The LIPW will be designed to promote short-term Resp: Status: Stage: Recurrent: Due Date: Frequency: employment while providing critical infrastructure and facilities which will contribute to increased economic Client Not Yet Due Both grown and employment opportunities. Program and Donor Rating Low Description: Risk Management: 69 N/A Resp: Status: Stage: Recurrent: Due Date: Frequency: 0 Delivery Monitoring and Sustainability Rating Substantial Description: Risk Management: e The government has also committed to including LIPW as a central part of its There is a risk of weak monitoring and evaluation due to road and infrastructure maintenance strategy. low capacity and the large number of stakeholders and service providers involved in the project. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation The LIPW only provides temporary employment opportunities. Sustainability of activities funded by the Project will potentially be a challenge for the government * A comprehensive management information system will be established by the to sustain. PCU for M&E purposes. A reliable system for data collection and reporting will be set up based on lessons learned from other Bank-supported skills projects. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation - 1 Risk Management: * The Project will provide technical assistance to service providers to ensure the quality of M&E. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation - 1 Risk Management: * The project will include a basic life skills and entrepreneurship training for participants in the LIPW to assist with the establishment of their own business after program completion. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation 70 Other (Optional) Rating Description: Risk Management: Resp: Status: Stage: Recurrent: Due Date: Frequency: D Other (Optional) Rating Description: Risk Management: Resp: Status: Stage: Recurrent: Due Date: Frequency: 0 Implementation Risk Rating: Substantial Comments: The key risks for this project are: (i) delays in decisions making and implementation of activities because several ministries will be involved in the project; (ii) weak participation by the private sector would make the achievement of the PDO challenging, since private sector engagement is essential for developing labor-market relevant skill; (iii) political instability in the country and in the region may delay implementation; and (iv) weak institutional capacity in job creation schemes is a risk to achieving the project objectives. The Project will include activities to mitigate these risks through building on existing projects and initiatives, selectivity of project design during project preparation and during implementation through capacity strengthening activities. 71 Annex 6: Financial Management and Disbursement Arrangements BURKINA FASO: Youth Employment & Skills Development Project Introduction 1. The objective of the Financial Management Assessment is to determine whether Youth Employment & skills development project coordination unit, has acceptable financial management arrangements to ensure: (i) the funds are used only for intended purpose in an efficient and economical way, (ii) the preparation of accurate, reliable and timely periodic financial reports, and (iii) safeguard the entities 'assets and (iv) it is subjected to a satisfactory auditing process. Financial Management arrangements 2. Staff and Training. The project FM staff is not yet recruited. FM staff should be composed of: (a) At the central level (PCU), a Financial Management (FM) Specialist and two accountants, (b) one accountant at each of the implementing agencies except CCI-BF. Six accountants will be in place to each of following entities Maison de 'Entreprise, ANPE, Mairie de Ouagadougou, Mairie de Bobo-Dioulasso, Mairie de Ouahigouya and Mairie de Manga. The accountants located to Ouahigouya and Manga will be also in charge to all transactions of the four rural communes to be determined. All accountants will be under responsibility of project financial management specialist and will report to him. Expenses generated by CCI-BF will be paid to the central level. The entire team will have the responsibility to collect and control invoices, maintain the books, enter data in the accounting software, manage the Project's bank account, keep the books of account and prepare the financial reports as well as the withdrawal and direct payments applications. An internal auditor will be recruited to maintain a sound control environment that will be described in the PIM. In addition, a financial controller will be appointed by the Ministry of Finance. He will be assigned to insure the ex-ante control in expenditure circuit. A training program will be drawn up every year. Training is mainly conducted through the bank's local or sub regional training institutions. Before disbursement, the Bank CTRLD and FM units will provide adequate training on report-based disbursement procedures and IFR elaboration. 3. Budgeting. The budget preparation process and its monitoring will be defined in the project implementation manual. This manual will have to describe the budgeting arrangements. This budget will be adopted by the program steering committee before project implementation. The budget execution will be monitored on a quarterly basis provided of accounting software. The financial management specialist or an accountant will be in charge of this monitoring. 4. Accounting Policies and Procedures. A consultant will be appointed to develop charts of accounts to be included in the PIM and to customize software. The PIM will provide all the required details on accounting and financial procedures. It set out in particular (i) the planning and budgeting arrangements, (ii) the treasury procedures, (iii) the procurement procedures, reporting format and arrangements. The PCU through its financial unit will have the overall responsibility of the project management system. Accounting software with all modules (general accounting, cost accounting, monitoring and evaluation, fixed assets management, preparation of 72 withdrawal applications interim financial reports and annual financial statements) will be used in the PCU level and the implementing agencies except CCI-BF. Training on the accounting software for staff will be provided by a consultant. As per CIFE procedures, the project accounting transactions will be reflected into the national financial statements. This will improve reliability of the national financial statements. Following a (i) satisfactory reconciliation between financial reporting from CIFE and the project accounting software and (ii) the deconcentration of CIFE at the project, decision will be made to shift to CIFE. 5. The PCU will apply the existing private accounting system in Burkina (SYSCOA). 6. Internal control and Internal Auditing. To control/master the maintenance of a sound financial management, the team is expected to follow the internal control mechanism that will be described in the PIM. This manual particularly will point out some procedures relating to budgeting, accounting, fixed assets management, disbursement and reporting. This manual will be implemented by project effectiveness. 7. To complement the FM system and in the context of the use of country system, reliance will be placed on a financial controller appointed by the Ministry of Economy and Finances. He will perform ex ante control over all transactions at central level. An Internal Auditor will be recruited for the proposed project with the aim of providing assurance on the level of risk. The report of the internal audit unit will be added to the quarterly IFR. 8. Financial Reporting and Monitoring. The project will have to prepare a quarter Interim financial Reports during project implementation. The reporting format and procedures will be documented as an annex to the project implementation Manual. Interim financial report will be composed of the following FM aspects: Financial reports: (i) Sources and uses of funds by funding source and (ii) Uses of funds by activities of the project; (iii) Projected expenditures and cash forecast for the next semester (six months); (iv) Bank reconciliation statement for the Designated Account and (v) The Operations Account, showing the cash balance available at end of the quarter under review. 9. The Interim Financial Reports (IFRs) will cover all activities financed through the Bank funds. Each interim financial report shall be furnished to the World Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar semester. 10. External Auditing. The consolidated annual financial statements will be subject to an annual audit by a reputable, competent and independent auditing firm based on terms of reference that satisfactory to the Bank. In addition to the audit reports, the external auditors will be expected to prepare a Management Letter giving observations, comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Financing agreement. The project will be required to produce, no later than June 30 of the following fiscal year, audited annual financial statements. In line with 73 the new access to information policy, project will comply with the Bank disclosure policy of audit reports (e.g. make publicly available, promptly after receipt of all final financial audit reports (including qualified audit reports) and place the information provided on its the official website within one month of the report being accepted as final by the team; 11. Funds Flow and Disbursement Arrangements. A Designated Account16 (DA) will be opened at the Central Bank in Ouagadougou and will receive project proceeds on the basis of the project cash needs. Upon grant effectiveness of the financing agreement and request from the project, the Bank will deposit the initial advance indicated in the disbursement letter into DA. The DA will be used as a transit account and as such, funds will be transferred from the DA to PCU transactions account. This account will be opened at the public treasury. The Coordinator and the Finance Officer will be joint signatories of these accounts. The Credit proceeds can also be withdrawn using the direct payments, Reimbursement and Special Commitment methods. . Each implementing entity except CCIB will open a transaction account in the public treasury or commercial bank. These transactions accounts will be replenished by the PCU. For municipalities, the mayor and the finance officer will be joint signatories of the account. For the MEBF and ANPE, the director and finance officer will be joint signatories of the account. 12. Disbursement Arrangements. For the first year, the project will use the transactions based disbursement procedures. After, an assessment will be performed to ensure the report based disbursement will be applicable. If yes, each funding request prepared by the PCU will be accompanied, by the quarter Interim Financial Reports, the designated account activity statement, the operations accounts activity statement and the up-to-date bank statements. The project FM staff will be trained on the requirements of designated account funding. Upon receipt of each application of withdrawal of an amount, the Bank shall, on behalf of the recipient, withdraw from the account and deposit into the designated account an amount equal or lesser of a) the amount so requested on basis of the cash forecast and IFR and b) the amount which the Bank has determined, based on the IFR accompanying the said application. Subsequently, the requested amount will be deposited into the designated account in order to meet the cash needs of the project based on the approved annual work program for every six months period following the date of such report. The authority to sign the withdrawal applications is vested on the Ministry of Economy and Finance. 16 In application of Subsection 5.2 of the Disbursement Guidelines, the advancing of financing proceeds into a designated account is not a Disbursement Method currently available under this Financing. In the interim, the project may use the other three (3) methods (direct payment, reimbursement, and special commitment) of withdrawing the Financing proceeds. 74 IDA Direct payments Interim Financial .......... PCU (Designated Account in BCEAO) U Order of transfer U S ......................... U PUCmeca rpbi IF mum.m.m . .m .mm.m. PCU Commercial or public banke account . . . .. .. .. .. .... . ........... ...... ....********A************E *E an Transactions Transactions Transactions Transactions Transactions Transactions account account account account account managed account managed managed by managed by managed by managed by by Mairie de byMairie de ANPE MEBF Mairie de Ouama Mairic do Bobo ManUEa Oushimouva Service Providers /Suppliers +salaries Transfers of funds Flow ofdocuments (Interim financial reporting,) MOMMEMEMEMOME Payment to suppliers 75 Disbursements by category: The table below sets out the expenditure categories to be financed out of the Credit proceeds. Amount of the Amount of the Percentage of Credit Credit Expenditures to Allocated Allocated be Financed (expressed in (expressed in (inclusive of Category US$) SDR) Taxes) Component 1: Labor Intensive Public Works Goods, 25,000,000 100% works, non-consulting services, and consultants' services Component 2: Skills Development Goods, non-consulting 20,000,000 100% services, consultants' services and training Component 3: Institutional Capacity Strengthening and Project Management Goods, works, non- 5,000,000 100% consulting services, consultants' services, operating costs and training Total Amount 50,000,000 100% Financial Management Action Plan Significant Weaknesses Action Respo Completion or risks nsible body PCU is not an entity 1) Recruit at central level By effectiveness already exists. Agency (PCU) FM staff composed of a will be established to the financial Management implementation of the Specialist, two accountants, an project. Some implementing agencies (ANPE, Municipalities) and relevant experience and all are not familiar with familiar with Bank FM World bank procedures procedures. and use only the public accounting. 2) Recruit for each By effectiveness implementing agency (excepted CCIB), an accountant with adequate and relevant experience and familiar with Bank FM procedures and private accounting. 3) Develop a project Within 3 months 76 implementation manual to after effectiveness ensure appropriate implementation of activities in line with Bank general framework related to the project. 4) Train staff to the bank's Within 2 months local or sub regional training after effectiveness institutions. Before disbursement, the Bank LOA and FM units will provide adequate training on report- based disbursement procedures and IFR elaboration 5) Purchase the accounting Within 2 months software for PCU and after effectiveness implementing agencies 6) Amend the TOR of Within 3 months external auditor by the supreme after effectiveness audit institution Risk of fraud and Ex ante controls: corruption The financial controllers will Coordinati During pursue the ex-ante control as on Unit implementation per the national public financial of project management arrangements. Ex post controls: External audit and integrated fiduciary review will be performed. 13. Implementation Support Plan. FM implementation support mission will be consistent with a risk-based approach, and will involve a collaborative approach with the entire Task Team. A first implementation support mission will be performed six months after the project effectiveness. Afterwards, the missions will be scheduled by using the risk based approach model and will include the following diligences: (i) monitoring of the financial management arrangements during the supervision process at intervals determined by the risk rating assigned to the overall FM Assessment at entry and subsequently during Implementation (ISR); (ii) integrated fiduciary review on key contracts, (iii) review the IFRs; (iv) review the audit reports 77 and management letters from the external auditors and follow-up on material accountability issues by engaging with the task team leader, Client, and/or Auditors; the quality of the audit (internal and external) also is to be monitored closely to ensure that it covers all relevant aspects and provide enough confidence on the appropriate use of funds by recipients; and, (v) physical supervision on the ground specially; and (vi) assistance to build or maintain appropriate financial management capacity. 14. Conclusion of the FM Assessment. The overall residual FM risk at preparation is considered Substantial. The proposed financial management arrangements for this project are considered adequate to meet the Bank's minimum fiduciary requirements under OP/BP10.00. 78 Annex 7: Procurement Arrangements BURKINA FASO: Youth Employment & Skills Development Project 1. Procurement Documents. Procurement will be carried out using the Bank's Standard Bidding Documents or Standard Request for Proposal (RFP) respectively for all International Competitive Bidding (ICB), for goods and selection of consultants. For National Competitive Bidding (NCB), the Borrower could submit a sample form of bidding documents to the Bank for prior review and will use this type of document throughout the project once agreed upon. The Sample Form of Evaluation Reports published by the Bank will be used. 2. Frequency of procurement reviews and supervision. Bank's prior and post reviews will be carried out on the basis of thresholds indicated in the following table. The Bank will conduct six-monthly supervision missions and an annual Post Procurement Review (PPR); the ratio of post review is at least I to 5 contracts. The Bank could also conduct an Independent Procurement Review (IPR) at any time until after two years of the closing date of the project. Low Moderate Substantial High X Table 3.4: Procurement and Selection Review Thresholds 1. Works > 5,000,000 ICB All < 5,000,000 NCB The first contract < 100,000 Shopping Direct No threshold contracting All 2. Goods > 1,000,000 ICB All < 1,000,000 NCB The first contract Consultation de Suppliers consultation < 100.000 across National - At least 3 offers Suppliers consultation across National - < 500.000 At least 3 bids for vehicles and fuel Direct No threshold contracting All All contracts of 3. Consultants Firms No threshold 'BS CS US$300,000 and FBS CQ more All contract of No threshold C US$100,000 and Individuals CVs) more No threshold (Selection All 79 Firms & Individuals) All Term of reference regardless of the value of the contract are subject to prior review 3. All trainings, terms of reference of contracts estimated to be more than US$10,000, and all amendments of contracts raising the initial contract value by more than 15 percent of original amount or above the prior review thresholds will be subject to IDA prior review. All contracts not submitted for prior review, will be submitted to IDA post review in accordance with the provisions of paragraph 5 of Annex 1 of the Bank's Consultant Selection Guidelines and Bank's procurement Guidelines. 4. Procurement Plan. For each contract to be financed by the Credit, the procurement plan will define the appropriate procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, the prior review requirements, and the timeframe. The procurement plan was confirmed during negotiations. The procurement plan will be updated at least annually, or as required, to reflect the actual project implementation needs and capacity improvements. All procurement activities will be carried out in accordance with approved original or updated procurement plans. All procurement plans should be published at national level and on Bank website according to the Guidelines. The Client and the Bank have agreed on a procurement plan covering the first eighteen (18) months of the Project. 5. Procurement Filing. Procurement documents must be maintained in the project files and archived in the safe place until at least two years after the closing date of the project. The Project Coordination Unit (PCU) will be responsible for the filing of procurement documents, with support from the FM expert. 6. Anti-Corruption. The Client will ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines of the Bank: "Guidelines on Prevention and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and updated January 2011. 7. Assessment and mitigations measures. The assessment conducted by the Bank, concluded that (a) a PCU will be set up to carry out procurement activities of the project. This PCU will work closely with all the entities involved in the project implementation. 8. The risk is High. The following mitigation measures are proposed and agreed with the Government: (b) two procurement specialists will be recruited to carry out procurement activities in the PCU; and (c) another procurement specialist will be recruited to reinforce the MIT. Indeed, the Ministry will be responsible for the implementation of Component 1 (Labor Intensive Public Works). Labor Intensive Public Works (Component 1), the responsibility of the implementation of this component will be given to the special LIPWs unit (PTR-HIMO) of the Ministry of Infrastructure and Transport (MIT) under a delegated management contract signed with the PCU.) 80 Annex 8: Project Preparation and Appraisal Team Members BURKINA FASO: Youth Employment & Skills Development Project Task Team Hamoud Abdel Wedoud Kamil Sr. Education Specialist Azedine Ouerghi Sector Leader Adama Ouedraogo Sr. Education Specialist Roch Levesque Sr. Counsel Aissatou Diallo Sr. Finance Officer Bintou Sogodogo Program Assistant Lucienne M. M'Baipor Senior Social Development Specialist Diop Saidou Sr. Financial Management Specialist Rose Claire Pakabomba Language Program Assistant Africa Eshogba Olojoba Senior Environmental Specialist Ryoko Tomita Education Economist Mamata Tiendrebeogo Procurement Specialist Edith Tchoko Financial Management Specialist Juliana Victor-Ahuchogu Sr. Monitoring and Evaluation Specialist Laura McDonald Extended Term Consultant Hamoud Abdel Wedoud Kamil Sr. Education Specialist Azedine Ouerghi Sector Leader Ali Sanaa Consultant Jean-Paul Chausse Consultant Sandra Beemer Consultant 81 Annex 9: Economic and Financial Analysis BURKINA FASO: Youth Employment & Skills Development Project 1. The economic and financial analysis of this project consists of two parts. The first part provides an analysis why to invest in the skills development, and the benefits to expect from the investment. In particular, we investigate whether there is skills signal in the Burkina Faso's labor market by estimating the rate of return to education. In here, we shed some light on the relationship between different level of education, poverty and the labor market as well as demonstrate the demand for skills and the rational of focusing on youth. The second part covers the cost-benefit analysis of the proposed project interventions followed by sensitivity and suitability. 2. Economic context. Education qualifications are a strong predictor of poverty reduction, formal employment, and economic growth. For more than a decade, Burkina Faso has been growing at an annual rate of about 5 percent yet more than 46 percent of the population still lives below the extreme poverty line (less than US$1.25 a day). A large share of the workforce has little or no formal education- three in four of the labor force population has no education and more than half of them live below the poverty line. The poverty incidence quickly falls with the level of educational attainment, for example, an estimate from EICVM 2009/2010 shows that about 40 percent of workforce with some primary education lives below the extreme poverty line compared to 23 percent for some lower secondary, 10 percent for some upper secondary, 5 percent for some TVET and only 1 percent for some higher education. Similarly, about 90 percent population with some higher education secure wage employment, and the corresponding figures for TVET, some upper secondary, some lower secondary, some primary and no education are 58, 49, 18, 9 and 2 percent, respectively. Furthermore, less than 5 percent of the workforce with wage employment lives below the poverty line and as shown on figure I higher education rewards a higher lifetime earning horizon. Figure 1: Monthly Earning by Education Levels ('000 CFAF) 68- ------------------ 0- 20 30 40 50 60 Age in Years Higher Education -_ - TVET Upper Secondary----- Lower Secondary Primary Source: Author's estimate using EICVM 2009/2010 82 3. The Mincerian wage regression coefficients also show that increasing returns to education as levels of education goes up, even after controlling for other determinants. Similar to results from many other developing countries, the regression estimation for Burkina Faso shows that an additional year of education rewards about 10.6 percent higher earning after controlling for the sector of employment and place of residence. In particular, as stated above people with higher levels of education prefer to work in wage/salaried jobs and breakdown of education by levels further insights the rate of return to education investment. In general, those who attain a higher level of education apparently receive greater returns from their investments in education. For example, the regression by level of education shows that workforce with some primary education earnings 10 percent more than those with no education. Similarly, those with some lower secondary earns 73 percent more than those with some primary; those with some TVET earns 31 percent more than those with some lower secondary; those with some upper secondary earns 36 percent more than those with TVET; and those with some higher education earns 10 percent more than those with some upper secondary. This implies that investment on skills in Burkina Faso is worthwhile. Table 1: Mincerian Regression Result: Dependent variable: Natural log monthly earning. Level of education Years of schooling Without Residence are and Without Residence are and control sector of employment control sector of employment control control Years of schooling 0.093 0.106 (8.81)*** (9.00)*** Level of education (No education omitted) Primary 0.102 0.157 (1.02) (1.49) Lower Secondary 0.834 0.961 (6.59)*** (7.01)*** Upper Secondary 1.192 1.319 (5.25)*** (5.63)*** TVET 1.144 1.339 (3.82)*** (4.30)*** Higher 1.291 1.398 (3.39)*** (3.39)*** Years of experience 0.054 0.057 0.055 0.057 (6.45)*** (6.73)*** (6.52)*** (6.67)*** Years of experience squared -0.001 -0.001 -0.001 -0.001 (6.30)*** (6.50)*** (6.27)*** (6.36)*** Urban -0.407 -0.442 (4.87)*** (5.30)*** Sector of employment ((agaric omitted) Industry 0.091 0.085 (0.76) (0.72) Services 0.156 0.140 (1.78)* (1.60) Constant 8.125 8.145 8.043 8.107 (58.21)*** (55.68)*** (57.34)*** (55.31)*** F 15.574 13.326 32.711 19.993 R2 0.049 0.058 0.048 0.057 N 3,873 3,635 3,873 3,635 Source: Author's estimate using EICVM 2009/2010 4. In Burkina Faso, wage employment (both public and private) accounts for less than 5 percent of the total employment and investment on skills development expected to increase the formal sector of the economy. Findings from economic evaluation of short-term training 83 courses show that they positively affect the likelihood of employment and raise earnings if they are links to specific jobs and focus on narrow skills. The fact that the wage employment accommodates about 90 percent of the workforce with some higher education level and the country only produce 7 percent of this type of skills is an indication for skills shortage and a high chance for people to invest on education and enjoy better return. In other words, about 36 percent of wage employment in Burkina Faso comprises workforce without any education, which clearly shows a shortage of skilled workforce to engage in the most rewarding employment category. Therefore, it is a rationale to invest in skills development in Burkina Faso, in particular, in short-term training courses as it can lead to economically and socially rewarding jobs, and can help the development of small and informal-sector businesses, as well as support the transition from school to work for school dropouts and graduates and help alleviate poverty. In addition to positive private rate of return on education, there are positive externalities associated with acquiring skills. For example, the presence of skilled labor in sufficient numbers is more likely to attract greater domestic and foreign direct investment making the social return to investment in skills greater than private returns. Skills attainment can spur technological adoption, which has beneficial effects on competitiveness and economic growth. 5. Although poverty rate is higher for rural areas, unemployment and youth inactivity is widespread in urban than rural areas and thousands of unskilled and uneducated youth are either unemployed or inactive in urban areas. Similar to many developing countries, Burkina Faso's labor force has a large share of young workers and number of youthful entrants will grow in the future. In 2010, youth (15-34 years) constituted more than half of the workforce, about 4.3 million. Figure 2 shows about 66 percent of youth ever in school with a significant variation between gander and areas of residence. In particular, the urban inactive/unemployed category are extremely alarming (84 percent of urban youth are economically inactive or unemployed), of which about 70 percent of them lives in the three targeted urban areas (Ouagadougou, Bobodioulasso, and Ouahiguya). These urban areas accounts for about 85 percent of the total inactive urban youth in Burkina Faso. Therefore, with little and low quality skills, new and young entrants to the workforce are likely to continue to experience under-employment, low wage levels, and even deepen the inactivity rate and the project's target on such group are economically viable. Figure 2: Status of youth (age 15-34) in Burkina Faso (%) 90 84 80 70 57 60 7 50 40 35 30 - 20 -- ----g -- 10 Total IMale Female Urban Rural Total Male Female Urban Rural Never in school Inactive or unemployedI Source: Author's estimate using EICVM 2009/2010 84 6. Finally, education can reduce inequality and create opportunities for the poor and disadvantaged population. It also can compensate for market failures in education by, for example, providing access for households too poor to afford their day-to-day livelihoods that undermine the generational opportunities for their offspring. In particular, focus of the project on gender and area specific innervations is crucial for the challenges that Burkina Faso currently facing. For example, Table 2 shows female earning is significant lower than male's counterpart regardless of their educational attainment. We employed Oaxaca decomposition model to evaluate if the earning gap between male and female is explainable by observed characteristics (education, experience and skills), unfortunately, no observable factor explains the gap. However, the good news is that the gap is narrowing at higher education level although female account for only 23.2 percent of wage employment with higher education level. Therefore, the project's focus on gender specific goals has additional social benefits, which further strengthen the rationality of the interventions. Table 2: Average Monthly Earning by Level of Education and Percentage of Employment by Categories No Primar Lower Upper Higher Education y Secondary TVET Secondary Education Total Total 14,817 21,607 24,904 43,502 61,031 120,634 18,716 Male 25,866 27,918 28,698 66,512 65,960 122,272 29,453 Monthly Female 8,804 11,766 18,971 29,444 46,211 117,029 10,617 average Urban 18,635 21,916 27,851 37,789 58,469 122,274 25,066 earning in Rural 13,532 21,131 16,776 133,140 73,123 56,805 14,909 Francis CFA Agaric 12,975 16,130 14,446 68,081 43,016 84,792 13,615 Industry 20,580 39,745 30,811 30,039 44,453 36,522 28,333 Services 19,669 19,180 29,236 46,661 72,555 136,364 25,740 % of female 61.6 42.4 40.8 46.5 22.1 23.2 53.5 % of Rural 64.3 30.7 18.6 9.3 16.6 3.7 49.8 % of epoy Agaric 59.4 30.2 21.3 7.0 14.9 3.7 46.8 Industry 8.8 14.7 17.3 14.0 12.7 8.5 11.0 Services 28.2 52.0 61.2 79.3 76.6 89.9 39.5 Source: Author's estimate using EICVM 2009/2010 7. Economic Analysis. The benefits of the project consist of quantifiable and non- quantifiable attributes and the cost-benefit analysis focuses on the quantifiable benefits and provides the economic rationale for the non-tangible benefit portions. In particular, component 1 and sub-components 2.1 A, 2.1 B and 2.2 signify the tangible portion of the project and accounts for about 82 percent of the total project costs. The non-tangible components comprise sub-component 2.3 - entrepreneurship training and component 3-capacity building-. Since the components of the project vary in terms of the target population, and implementation mechanism, we calculate the cost-benefit for each tangible component separately. At the end, we combine the cost-benefit estimation of all tangible components based on plausible assumptions as well as the cost side of non-tangible portions of components to envision the project's benefit at the lower spectrum. In order to conduct the cost-benefit analysis, the model makes several assumptions about the project and the associated costs and benefits. The following presents the model assumptions, net present values (NPV) and internal rate of return (IRR) for the project. 8. Assumptions relevant to all components: 85 * The analysis will take into account only quantifiable benefits. As a result, we assume that the internal rate of return (IRR) we compute is a lower bound for the impact of the project. * We use 10 percent discount rate to compute future returns. * We assume 5 percent annual inflation rate growth on expected benefit or nominal wage growth based average wage growth by age. * We assume the project will partially implemented in 2013 * We estimated a wage rate for different levels of education and by age using EICVM 2009/2010 (as shown on figure 1 above). * We assume post intervention employment wage is the entry wage for cohorts to their average age of youth and growth by the age cohort wage plus 5 percent inflation adjustment. 9. Assumptions for Component 1: * Since the project targets unskilled and unemployed youth in urban areas and during off agricultural pick seasons in rural areas, there is no opportunity cost associated for the program participation. Hence, the total cost is the project cost, US$25 million. * We assume there is no incremental cost for the project as there will be no activity after the end of the six months employment contract as part of the component(-although they can participate in a subsequent components). * The incremental benefits of the project for this benefit-cost analysis estimated using three scenarios (a) pessimistic approach-, which is estimated as the difference in annual earning between no education and some primary education categories. This is based on the assumption that after 6 months of wage employment, the available entry wage for the program graduates will be better than those with no education, (b), realistic approach - estimated as the difference in annual earning between no education category and average of some primary education and TVET annual earnings, and (c) optimistic approach - difference in annual earning between no education and TVET categories. * We assume that the beneficiaries of the programs work for a period of 35 years after completion of the program given that the average age of the youth is 23 year-old. * 50 percent chance of employment after the completion of the project taken from the projects target and relaxed to 40% and 30% for sensitivity analysis 10. Cost-benefit Analysis of Component 1. Under the three scenarios of post intervention entry wage categories (pessimistic, realistic, and optimistic) and three different rates of chance of employment, which makes nine possibilities, only two scenarios came with a short of the 10 percent discount rate. That means, except when the chance of post intervention employment is less than 50 percent, regardless of the entry wage assumptions, the IRR is more than the discount rate (10 percent) which makes the investment on the component is economically viable. However, given the skill shortage and return to education in Burkina Faso, the assumption we take, even under the realistic approach, are restrict, and realistic benefit scenario is highly likely to be attained. The net benefit value ranges from US$14.5 to US$35.0 with the respective IRR ranging from 19 percent from the lower to 31 percent to upper abound. The results strongly support investment in the project. 86 Table 3: Component 1: Net Present Value (NPV) and Internal Rate of Return (IRR) under different Scenarios Present Present NePrsn Inrmna ItralRe Potitrvninerning Poaiityof Value of Valueof enefi~ct BnefitCos o~flRet Pessimistic: Entry wage of Project target $19.8 $19.7 -$.1 1.0 10% some primary education 10% less than target $19.8 $16.5 -$3.3 0.8 8% level $ 20% less than target $19.8 $13.3 -$6.5 0.7 6% $19.8 $54.8 $35.0 2.8 31% Realistic: Entry wage of Project target average of primary and 10% less than target $19.8 $44.6 $24.8 2.3 25% TVET level thantarget $19.8 $34.3 $14.5 1.7 19% Project target $19.8 $90.0 $70.1 4.5 54% Optimistic: Entry wage of$1. $77 $593742 TVET level 10% less than target $19.8 $72.7 $52.9 3.7 42% 20% less than target $19.8 $55.4 $35.6 2.8 32% Source: Author's estimation based on earning estimate using EICVM 2009/2010 11. Assumptions for component 2. This component has three sub-components, namely, demand and demand driven, apprenticeship, and entrepreneurship trainings. The first sub- component has intervention plan that will go beyond the project's life cycle in a sense that project compliments with the exiting plan for building two training centers. Thus, unlike component 1, this component involves costs after the project life cycle including trainer's salaries, subsidies for the beneficiaries and maintenance and running costs for the two centers. Similarly, as stated above although short term trainings such as entrepreneurship training may have a huge social and long-term economic impact, it is impossible to quantify the opportunity costs and benefits of such short-term trainings. In other words, the entrepreneurship-training sub-component is too short to quantify the benefit (3 days to 3 weeks training), although in most of the cases, short training can easily invent the wheel leading to the enormous benefit. As the result, the cost-benefit analysis only captures the cost side of this category (i.e. the opportunity cost of training and benefit is not estimated) as part of the project cost-benefit summary but not as part of the component 2. Finally, since most of the assumptions listed above applies here, below are some additional assumptions specific to the component: * Under this component, the total costs account for: (i) project cost for quantifiable sub- components, (ii) forgone opportunity costs, and (iii) project running and maintenance costs accosted to the two training centers. * The project cost is the component share of the project's finance while the opportunity costs are the unearned wages due to participation in the program. For the first sub- component, the entry wage measured as the average wage earned by an entry wage level for primary education category while no education category assumed for the second sub- component (apprenticeship training) based on the targeted population status as described in the main section of the project document. * We assume 1.5 percent annual maintenance costs of the two training centers with 35 years life time (note average concrete building life time is assumed to be 40 years but we chose 35 to be consistent with average lobar force precipitation age although the will be new younger youth participation throughout the service time of the centers. * We assumed 20 permanent trainers with some higher education training level based 30:1 trainees to trainer ratio. Since trainers could be any age, the salary is estimated on the 87 average earning of some higher education level with 5 percent inflation adjustment over- time. * Other running cost including equipment costs assumed to be depreciated every 10 years and replaced by the original cost less 10 percent salvation value. In addition, 1.5 percent annual maintenance cost is applied for the life term of the running costs. * The incremental benefits for the developmental short term on demand training assumed to be the earning deference between primary education wage level and TVET education level. This is after the completion of the 9 months training, which is possibly the lower bound given that primary education required for the participation in to the training program as well as firms may show their interest on better educated people for demanded driven training. * The incremental benefits for the apprenticeship training assumed to be the earning deference between no education wage level and TEVT level. The assumption of this is because the training goes, on average, for 18 months, and the estimation from EICVM 2009/2010 shows that TVET wage is somewhere between lower secondary and upper secondary earning ranges, and earning level of TVET is more likely to be attained. 12. Cost-benefit analysis of component 2. Based on a discount rate of 10 percent, and the benefit and cost streams described above, the present discounted value of benefits for quaffable portion of component 2 is estimated to be ranging from US$30.0 million to US$42.4 million from the lower to upper bound as shown on Table 4. Net present value (NPV) of the component ranges from US$10.7 million to US$23.1 million with respective IRR of 17 percent and 27 percent. Thus, the results also strongly support investment in the project. Table 4: Component 2: Cost-benefit analysis result (excluding sub-comment 2.3-a a none tangible part of the sub- component) Present Present Net Increment Internal Rate Probability of Value of Value of Present al iBenefit of Return Probability level employment Total Cost Benefits benelit /Cost ratio (IRR) High expectation Project target $19.3 $42.4 $23.1 2.2 25% Moderate expectation 10% less than target $19.3 $35.7 $16.3 1.8 21% Lower expectation 20% less than target $19.3 $30.0 $10.7 1.6 17% Source: Author's estimation based on earning estimate using EICVM 2009/2010 13. Cost-benefit analysis of component 3. In addition to the usual difficulties of capturing benefits of education due to associated externalities, this component purely targets on capacity building which makes it unquantifiable for standard cost-benefit analysis (including calculation of a net present value and internal rate of return). In particular, as described in the main section of the document, the component aims to straighten the capacity to facilitate the logistics of skill development and employment by creating regular dialogue among several stakeholders. Therefore, although the benefit of the component is not quantifiable in monetary terms it will have tangible value added for the sustainability of the current project as well as for similar plans. 14. Summary cost-benefit analysis for the project. Table 5 show both internal rate of return and net present value of costs and benefits for both quantifiable components (combined) 88 and the cost aspect of the unquantifiable sub-component 2 and component 3 to establish the robustness of the project's benefit. The lower bound of present discounted value of benefits for the overall project is estimated to be US$64.4 million while the present discounted value of costs is estimated to be US$46.3 including the unquantifiable portions. The corresponding net present value (NPV) of program benefits is US$18.1 million. The internal rate of return (IRR) associated with this NPV is 15 percent. Therefore, although data necessary to measure all likelihood benefits are not available, the NPV from the quantifiable benefits are more than the NPV of cost and the results strongly support investment on the project. Table 5: Net Present Value (NPV) and Internal Rate of Return (IRR) Under Different Scenarios Combination of'realist Present Present Net Increment iternml Rate assumption of component 1 Probability of Value of Value of Present al Beneft of Return and coniponent 2 eniployment Total Cost Benefits benefit Cost ratio (IRR) Tangible cost benefit analysis (excludes costs and benefits of none tangible investment) High probability of employment Project target $39.1 $97.2 $58.1 2.5 28% Moderate probability of employment 10% less than target $39.1 $80.3 $41.1 2.1 23% Less probability of employment 20% less than target $39.1 $64.4 $25.2 1.6 18% Overall cost benefits analysis result (includes tangible costs but net benefit) High probability of employment Project target $46.3 $97.2 $51.0 2.1 23% Moderate probability of employment 10% less than target $46.3 $80.3 $34.0 1.7 19% Less probability of employment 20% less than target $46.3 $64.4 $18.1 1.4 15% Source: Author's estimation based on earning estimate using EICVM 2009/2010 15. Sensitivity Analysis. Sensitivity analysis was conducted by changing key parameters from the already presented realistic scenarios for both component 1 and quantifiable portion of component 2. For example for component 1, we do the sensitivity analysis in two steps with different assumptions, but since only what is presented on the table above lead to different scenarios, the figures associated to the second option of sensitivity analysis (described below) is not presented. Under the first option, we estimated by changing two main parameters which both consist of three different values, two low case scenarios, where NPV is likely to fall under zero (i.e., IRR is below 10.0 percent under 10 percent discount rate assumption), are presented as the extreme cases. There is a high risk that the NPV will fall below zero if: (i) Entry wage for component 1 graduates is less than or equality entry wage for some primary education level category, and (ii) Chance of employment is less than 40 percent for component 1 under the realistic assumption 16. In order to understand the implications of the risks for the project, in the second option, the cost benefit model considers a worst-case scenario under the following four assumptions(not shown on the table): (i) by shorting the life time benefit horizon for 35 to 20 years (ii) increasing the discounted rate to 15 percent, (iii) fluctuating the start of employment after graduation from the respective components from 6 months to 2 years, and 89 (iv) Finally, including opportunity cost of participating in the program, especially for the rural population as the model assumed the implementation timeline during agricultural pick off time. 17. The sensitivity analysis using various scenarios described above shows that the IRR may range from 14 percent at the low end (worst case) to 54 percent at the high end given that the two conditions listed above will not happen for Component 1. For Component 2, because of the targeted population is more selective and the implementation mechanism is straight forward, alteration of parameters assumptions has a minimal effect on estimated benefits and IRR, and only a concern if the project falls to deliver its promises and under achieved by more than 20 percent of the targets. 18. Financial Sustainability Analysis. The government seems to have a strong interest on skill development and job creation including the funding made available for job creation for about US$22 million per year from 2012-2014, in addition, there is a firm commitment from CCI-BF on a continuity of provision of skill training under component 2, which somehow minimize the risk of suitability. However, the analysis shows that two types of costs will likely affect the fiscal sustainability of the interventions, during the project cycle or following the completion of the project. (i) Cost benefit analysis assumes that LIPW continue to operate to generate employment opportunities for graduates of the program. In particular, we assume that the chance of employment is high if the type of job the youth get training on exists after the project life cycle. Therefore, it is vital that the government maintain its commitment on public work program directly or through public-private partnership schemes. (ii) The cost-benefit analysis assumed no demand side issues as the project intend to be provided free of charge and even with the accompanied benefits in most of the cases. In particular, if the project falls to attract enough females or an able to find a firm that take apprenticeship or willing entrepreneurship, or even the process delayed more than the time flexibility assumed in the cost-benefit estimation module, benefit stream may change and adversely affect the IRR of the project. (iii) Any alteration of the two training centers commitment will have a direct impact on the project as it directly depends on the fiscal space of the government. The project does not mention whether there will be user fees from the potential trainees or the end date the proposed subsidies for the trainee. Thus, a clear goal and sustainability mechanism will be required for the project to be as useful as described. 90 Annex 10: Lessons Learned Reflected in the Project Design BURKINA FASO: Youth Employment & Skills Development Project Lessons Learned and Reflected in the Project Design 1. The project design integrates best practices from relevant International Development Association (IDA) projects in the region. These include youth employment and skills projects in Cote d'Ivoire, Egypt, Yemen, Sierra Leone, Kenya, Liberia as well as private sector projects in similar countries, such as Niger. It incorporates, in particular, lessons learned from the recently closed and on-going IDA operations in C6te-d'Ivoire, such as the LICUS Youth Employment Pilot Program, the Young Entrepreneurs and Urban Job Creation Project and the Emergency Youth Employment and Skills Development Project. The project design is also based on analysis and recommendations of several pieces of Economic and Sector Work (ESW) jointly undertaken by IDA and the Government, as well as other sector studies prepared by development partners, and local and international researchers. Some of these studies/reports include: (i) the Diagnostic Trade Integration Study, The Challenge of Export Diversification for a Landlocked Country (September 2007); (ii) the Country Economic Memorandum (CEM), Promouvoir la croissance, la comptitivit et la diversification (2010); (iii) Creating Better Jobs for Poverty Reduction (2006); (iv) the Poverty Assessment, Reducing Poverty through Sustained Equitable Growth (2005); (v) the Country Education Status Report (CSR), (2010); (vi) Burkina Faso: Employment and Skills Development; June 19, 2012 and (vii) the draft skills study, Renforcer les liens entre l'dducation, le ddveloppement des competences et l'emploi dans les secteurs formel et informel (2011); (viii) two studies financed by AFD and Luxemburg Cooperation entitled Etude d'opportunit pour l'analyse des besoins en matidre de qualification des resources humaines dans le secteur agro-alimentaire (July 2010) and Etude d'opportunit pour l'analyse des besoins en matidre de qualification des ressources humaines dans le secteur du Batiment et des Travaux publics (April 2011); Revue des projets et programmes d'emploi au Burkina Faso (October 2011) financed by the World Bank. 2. Project design was also based on and is consistent with the main conclusions and recommendations of the recently completed Burkina Faso: Employment and Skills Development (June 19, 2012). Two of the most salient recommendations reflected in the project design include: (i) moving away from inefficient supply-driven programs targeted at youth who have spent many years in the education system and move toward training programs self-targeted youth who would not have other opportunities and are combining life skills and with skills that can clearly lead to salaried or self-employment given that most jobs in Burkina Faso are not in the formal sector; and (ii) strengthening/improving the existing public works (PW) programs, an area in which Burkina Faso has already had significant experience, to address income vulnerability among youth and adults, combining them with training in basic life skills and technical training for selected workers to help them find better earning jobs in the future. 91 Annex 11: Documents in Project Files BURKINA FASO: Youth Employment & Skills Development Project World Development Report 2013, JOBS, World Bank, 2013. The Challenge ofExport Diversification for a Landlocked Country (September2007). Country Economic Memorandum (CEM), Promouvoir la croissance, la compétitivité et la diversification (2010). Creating Better Jobs for Poverty Reduction (2006). Reducing Poverty through Sustained Equitable Growth (2005). Poverty Assessment. The Country Education Status Report (CSR), (2010). Burkina Faso: Employment and Skills Development; June 19, 2012. Renforcer les liens entre l'éducation, le développement des competences et l'emploi dans les secteurs formel et informel (2011); Etude d'opportunité pour l'analyse des besoins en matière de qualification des resources humaines dans le secteur agro-alimentaire (July 2010) Etude d'opportunité pour l'analyse des besoins en matière de qualification des ressources humaines dans le secteur du Bâtiment et des Travaux publics (Avril 2011); Revue des projets et programmes d'emploi au Burkina Faso (October 2011) Programme d'appui à la Politique d'Enseignement et de Formation Technique et Professionnelle (PAPS-EFT), 23 avril 2012, Ministère de la Jeunesse, de la Formation Professionnelle et de l'Emploi (MJFPE). Etude de faisabilité du centre BTP. CCI-BF 2012. Etude Emploi-Formation dans le secteur du Tourisme au Burkina Faso CCI-BF 2008 Conseil National de Prospective et de Planification Stratégique. Etude nationale prospective « Burkina 2025 » : Rapport Général. 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