Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: T7709-AF

TECHNICAL ANNEX

FOR A PROPOSED GRANT

IN THE AMOUNT OF SDR 12.60 MILLION

(US$20 MILLION EQUIVALENT)

TO THE

THE ISLAMIC REPUBLIC OF AFGHANISTAN

FOR THE

AFGHANISTAN S K I L L S DEVELOPMENT PROJECT

January 4,2008

Human Development Unit South Asia Region

Ths document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents mav not otherwise be disclosed without World Bank authorization I

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ANQA

ARDS

ARTF

BP BDS CDP CESP

cso DA DAB D A C

DOC DOP DTVET

E C EMIS

EQUIP

ESMF

FM GDP G O A GTZ

IBRD

I C T

IDA

I P IROA

CURRENCY EQUIVALENTS (As of November 30 2007)

Currency Unit - - Afghani us $1 SDRl -

49.8 AFN U S $1.59007

- - -

FISCAL YEAR

March 2 1 -March 20

ABBREVIATION AND ACRONYMS

Afghanistan National Qualification Accreditation Afghanistan Reconstruction And Development Services Afghanistan Reconstruction Trust Fund Bank Procedures Business Development Services Capacity Development Program Committee on Education and Skills Policy Central Statistics Office Designated Account Da Afghanistan Bank Development Assistance Committee Department o f Construction Department o f Planning Department o f Technical and Vocational Education Training European Commission Education Management Information System Education Quality Improvement Program Environment and Social Management Framework Financial Management Gross Domestic Production Government o f Afghanistan German Agency for Technical Cooperation International Bank for Reconstruction and Development Information and Communication Technology International Development Association Implementation Partners Islamic Republic o f Afghanistan

IRC ISDS

I S N IV JICA

KOICA

LCEP

LMIAU

M&E MAIL

M I S

M O E M O F M O H E MOLSAMD

M O U NGO NIMA

NPP NQF

NRVA

NSDP

NSP NVETB

OP PACBP

International Rescue Committee Integrated Safeguards Data Sheet Interim Strategy Note Instrumental Variables Japan International Cooperation Agency Korean Organization for International Cooperation Assistance Learning and Community Empowerment Project Labor Market Information and Analysis Unit Monitoring and Evaluation Ministry o f Agriculture and Irrigation and Livestock Management Information System Ministry o f Education Ministry o f Finance Ministry o f Higher Education Ministry o f Labor, Social Affairs and Martyred and Disabled Memorandum o f Understanding N o n Government Organization National Institute o f Management and Administration National Priority Program National Qualifications Framework National Risk and Vulnerability Analysis National Ski l l Development Program National Solidarity Program National Vocational Education Training Board Operational Policy Public Administration Capacity Building Project

FOR OFFICIAL USE ONLY

PDO PED

PEFA

PFM P ID PIU PPU PSO QF sc

Project Development Objective Provincial Education Department Public Expenditure and Financial Accountability Public Financial Management Project Information Document Project Implementation Unit Procurement Policy Unit Productive Skills Officer Qualification Framework Steering Committee

SDR SDU TA TOT TVET

UN USAID

VET VT WE?

Special Drawing Right Special Disbursement Unit Technical Assistance Training o f Trainers Technical Vocation and Education Training United Nations United States Agency for International Development Vocational Education Training Vocational Training World Bank

Vice President : Praful C. Pate1

Acting Sector Director : John A. Roome Country Director : Alastair McKechnie

Sector Manager : Michelle Riboud Task Team Leader : Venkatesh Sundararaman

This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents mav not otherwise be disclosed without World Bank authorization

THE ISLAMIC REPUBLIC OF AFGHANISTAN AFGHANISTAN S K I L L S DEVELOPMENT PROJECT

SOUTH ASIA, HUMAN DEVELOPMENT UNIT

Date: January 4,2008 Country Director: Alastair J. McKechnie Sector ManagerDirector: Michelle R i b o u d John A. Roome Project ID: P102573 Lending instrument: Emergency Recovery Loan

Team Leader: Venkatesh Sundararaman Sectors: Vocational training (100%) Themes: Education for the knowledge economy (P);Education for a l l (S) Environmental screening category: B Safeguard screening category: B

Source Borrower lBRD/IDA Trust Funds Total

Local Foreign Total

7.7 12.3 20 0 6 6

7.7 18.3 26

Percentage Cumulative (IDA) I 13.68 I 40.35 I 67.54 I 86.08 I 95.98 I 100.00 Project implementation period: March 1,2008 - February 28,2013

FY Annual IDA Annual Trust Funds

Expected effectiveness date: March 1, 2008 Expected closing date: February 28, 2013

Does the project depart f rom the CAS/ISN in content or other significant respects?

2008 2009 2010 2011 2012 2013

2.74 5.33 5.44 3.71 1.98 0.80 1 .oo 1.82 3.18

Does the project require any exceptions f rom Bank policies? Have these been approved by Bank management? I s approval for any pol icy exception sought f rom the Board?

Annual Total

Cumulative (IDA) Cum. (total)

Does the project include any critical r i sks rated “substantial” or “high”?

3.74 7.15 8.62 3.71 1.98 0.80 2.74 8.07 13.51 17.22 19.20 20.00 3.74 10.89 19.51 23 -22 25.20 26.00

oYes 0 No

Yes o N o Yes o No

o Yes 0 No

0 Yes o N o

Does the project meet the Regional criteria for readiness for implementation?

Significant, non-standard conditions, if any, for: NIA Board presentation: Streamlined Loadcredi t effectiveness: Covenants applicable to project implementation:

e Yes o N o

1.

2.

3.

4.

5.

6.

7.

8.

9.

The Recipient shall establish for the implementation o f Part 1 o f the Project, a Skills Development Mission (CESP) to be chaired by the vice president o f the Recipient’s Government and consist o f representatives o f MOE, MOHE, MOLSAMD, other relevant l ine ministries, the private sector and the donor community, to be responsible for overseeing the development and implementation o f the policy, legal and regulatory framework for the establishment o f ANQA.

CESP shall be assisted by NSDP which, through the NSDP PIU, shall be responsible for the administrative, financial management, procurement and day-to-day management o f the implementation o f Part 1 o f the Project and shall, in this respect, act as an implementation unit for CESP.

Upon the establishment o f ANQA, all policy and other functions performed by CESP under Part 1 o f the Project, including the development and institutionalization o f the national qualifications framework under Part l(b) of the Project, shall be vested in ANQA.

The Recipient shall vest responsibility for overseeing the implementation o f Part 2 o f the Project in M O E which, through DTVET, shall be responsible for coordinating the activities o f the various M O E l ine departments and units in the implementation o f Part 2 o f the Project.

M O E shall be responsible for performing the procurement, financial management and reporting functions under Part 2 o f the Project,

MOE’s department o f construction shall be responsible for carrying out all construction activities under Part 2 o f the Project including overall technical guidance on institute rehabilitation and construction.

The Recipient shall vest responsibility for the implementation o f Part 3 o f the Project in M O L S A M D through NSDP which shall be responsible for a l l financial management, procurement, disbursement, monitoring and evaluation and other administrative aspects o f Part 3 o f the Project

MOE through DTVET and M O L S A M D through NSDP shall be responsible for monitoring and evaluating the implementation o f Parts o f the Project that are within their lines o f responsibility, as required under Part 4 o f the Project.

Anti-Corruption: The Recipient shall ensure that the Project i s carried out in accordance with the provisions o f the Anti-Corruption Guidelines.

ISLAMIC REPUBLIC OF AFGHANISTAN Sk i l l s Development Project

TABLE OF CONTENTS

COUNTRY. SECTOR AND PROGRAM BACKGROUND ................................................ 1 Background ................................................................................................................................ 1

Key Issues ................................................................................................................................... 1 Supply Issues ........................................................................................................................... 1 Demand Issues ........................................................................................................................ 4 Government Strategy ............................................................................................................... 6 The Rationale for Bank Involvement ...................................................................................... 7 Development o f TVET System ............................................................................................... 8

Proposed Project Development Objective ............................................................................. 10

Project Description .................................................................................................................. 10

R i s k s .......................................................................................................................................... 14

Financial Management, Disbursement and Audit Arrangements ...................................... 17

Procurement ............................................................................................................................. 18

Annex 1: MAJOR RELATED PROJECTS FINANCED BY THE BANK AND/OR OTHER AGENCIES ...................................................................................................................... 20

Annex 2: RESULTS FRAMEWORK AND MONITORING ............................................. 22

Annex 3: DETAILED PROJECT DESCRIPTION ............................................................ 28

Annex 4: ESTIMATED PROJECT COSTS ...................................................................... 43

Annex 5: IMPLEMENTATION ARRANGEMENTS ........................................................ 44

Annex 6: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS .. 52

Annex 7: PROCUREMENT ARRANGEMENTS .............................................................. 64

Annex 8: ECONOMIC ANALYSIS ................................................................................... 80

Annex 9: SAFEGUARD POLICY ISSUES ........................................................................ 83

Annex 10: PROJECT PREPARATION AND SUPERVISION .......................................... 98

Annex 11: DOCUMENTS IN THE PROJECT FILE ....................................................... 100

Annex 12: STATEMENT OF LOANS AND CREDITS ................................................... 101

Annex 13: COUNTRY AT A GLANCE ........................................................................... 103

Annex 14: MAP IBRD 33358 ................................................................................................... 105

COUNTRY, SECTOR AND PROGRAM BACKGROUND

Background

1. Afghanistan was devastated by three decades o f conflict which destroyed physical and institutional structures and tore the social fabric o f the nation. The education and training infrastructure in the country was at the frontline o f this devastation both in terms o f physical infrastructure and ideology. The situation reached i t s lowest point under the Taliban regime.

2. formulate new policies and rebuild institutions. The social sectors have been placed at the top o f the reconstruction agenda o f the country with particular emphasis given to education, training and s lu l l s development.

Since the ousting o f the Taliban in 2002, the Government o f Afghanistan (GOA) has begun to

3. economic and social spheres despite the worsening security situation in parts o f the country. Elections, which witnessed larger turnouts than even before in the history o f the country (particularly female), brought in a parliament, with representation from a wide spectrum o f society. Economic growth has been vigorous with the real value o f GDP (excluding i l l ic i t opium production) increasing by about 29% in 2002, 16% in 2003,8% in 2004, 14% in 2005, and 8.0% in 2006, albeit from a low base in 2002 (IMF 2007). Most o f this growth was fueled by a significant influx o f foreign capital for reconstruction. On the social front, access to health care (including immunization services and pre- and post-natal care) and school services have improved significantly during this period. School enrollments have increased from about 1 mil l ion to nearly 6 mil l ion since 2002, with enrolments o f girls increasing to about 35% o f this total from a negligible base.

The f i rs t four years o f reconstruction have been marked by significant developments in political,

4. numerous challenges: institutionalization o f the political system, concerns o f security and the ru le o f law, weak institutional capacity, a lack o f defined market structures, poorly skilled labor force, non- responsiveness o f the s k i l l and capacity-building infrastructure to market demands, and persistent poverty (annual per capita GDP 300 U S $ in 2005/06)’.

Despite these impressive strides, Afghanistan remains at a critical stage in i ts transition, facing

5. force, GOA has requested the World Bank for technical and financial assistance in the area o f Technical Vocational Education and Training (TVET). T h i s request was aimed at improving the s k i l l levels and educational profile o f the country’s human resource, while simultaneously laying the policy and institutional framework for further human resource development. The Bank developed a policy note in 2006 entitled ‘Sk i l ls Development in Afghanistan’ in response to the GOA’S request and the proposed project builds on the findings therein.

As a key step in responding to these challenges, especially in the area o f l ow capacity o f the labor

Key Issues

Supplv Issues

6. The present TVET system’s ability to meet the s k i l l demands referred above depends on two elements: (i) the current and future educational profile o f labor market participants and entrants (i.e., the trainability o f the labor force) which will condition the type o f training to be provided (e.g., remedial; broad scoped; specialized) and affect the means o f access (formal or non-formal), and (ii) the ability o f

’ IMF, July 2007.

1

existing technical, vocational education and training providers, both public and non-public, to do so efficiently and effectively.

Human capital base of the current and potential labor force

7. estimates o f male and female literacy at about 43% and 13% respectively. Educational attainment, as measured by years o f schooling o f the population, i s also extremely low with school l i fe expectancy o f jus t over two years for the 2001/02 school year (Global Education Digest, 2004), and less than 1 year for girls2.

The current education profile o f adults i s low. Adult literacy (ages 15-49) i s very low, with

8. Though the potential number o f labor market entrants with basic literacy and numeracy s lu l ls i s expected to increase over the medium- to long-term as schooling cohorts have grown in size in recent years3, in the short-term the majority o f participants will continue to display low literacy and numeracy ski l ls. This will continue to hamper the supply o f skilled labor needed for reconstruction and rehabilitation activities.

The potential of TVET to meet skill demands

9. for the labor force with the needed s k i l l sets. Four factors contribute to this inability to provide the requisite training: (i) the low number o f opportunities for training, (ii) the poor quality o f existing training, (iii) relevance o f training to the needs o f the labor market, and (iv) weak institutional arrangements for planning, managing, regulating and financing o f training opportunities.

The existing TVET system has little capacity to train current participants or prepare new entrants

10. Provision: TVET provision occurs through both public and private institutions in Afghanistan. Table 1 summarizes the array o f current training opportunities and their providers. An indeterminate, but perhaps the largest, number o f trainees acquire sk i l l s through informal apprenticeships offered by small and micro enterprises. Very l i t t le information i s available on the how these apprenticeship programs are developed and implemented, but most use private channels to access them. Under the more formal set- up, two ministries play a critical role in the provision o f TVET: (i) the Department o f Vocational Education under Ministry o f Education (DTVET) under the MOE which oversees vocational education at a post-Grade 9 level through about 45 centers around the country; and (ii) the vocational training programs under the MOLSAMD, which manages 18 vocational training centers, and with the support o f the NSDP facilitates training programs in numerous other centers around the country. Given the large presence o f NGOs, NGOs too play an important role in the provision o f training directly, or through facilitation by various government entities. Given the overall lack o f capacity within government it i s expected that NGOs will continue to play an important role in the provision o f training services in the short- to medium terms. There i s a small but growing private sector in training in the country4 and efforts need to be focused on developing the needed mechanisms to improve the opportunities for private training. This private training opportunity i s particularly dominant in English Language and Computer Literacy training.

Afghanistan’s school l i fe expectancy i s the lowest in the wor ld and in the region Bangladesh and Pakistan have

These gains mask considerable system-wide inequities, for example, girls and women are under-represented in the life-expectancies o f 1.8 years and 2.5 years respectively for girls.

schooling system. This i s much more so in the formal and general schooling system, than in non-formal training mostly delivered by NGOs, where women’s participation is often mandated by the provider.

The Afghanistan T e c h c a l Vocational Institute i s one example o f such a nascent and growing private sector, established through public private partnership arrangements and managed privately.

2

MOE Dept. o f Technical and Vocational Education

MOLSAMD 18 new Vocational Training

NGOs & Private Sector This sector i s the largest provider o f

42 Vocational Schools (mostly mono-tech institutions)

About 1 1,000 students are enrolled in these schools

Technical and higher technical courses are offered through these institutions

Class 911 0 entry requirement i s imposed on prospective students

Centers (VTCs), in addition to small provincial VTCs and contracted NGOs

About 12,000 trainees enrolled

Shorter-term basic sk i l l s courses offered

Literacy & numeracy form the entry requirements for these programs

sk i l l s training and includes:

A small number (10-20) o f intentional/dedicated VTCs

A relatively small number (approx. 600) o f private training schools. (Eng., computing etc.)

A large number (many hundreds) of NGOs involved in basic s k i l l s development

A large number o f private apprenticeships offered by small and medium businesses largely in the informal sector .

I 1. Quality: The quality o f current TVET provision i s generally poor. Training access i s both formal and non-formal, which to some extent depends upon the level at which training services are pitched with higher level programs typically being more formal in provision. Typical programs are plagued by high number o f trainees to trainer ratio, time-based programs and not programs that are based on competencies acquired, given the lack o f limited resources, most training tends to be theoretical and not applied, teaching tends to be rote in nature, finally, the infrastructure for training i s dilapidated, with obsolete and non-functioning equipment the norm. The poor quality o f these inputs i s further compounded by the very low academic levels o f entrants to training programs given the poor quality or complete lack o f prior schooling, leaving most o f them with l i t t le literacy and numeracy sk i l ls . The complete absence o f mechanisms for quality control (either an accreditation system for the providers or a qualifications framework for the establishment and adoption o f curriculum reforms). This makes it difficult for employers to gauge the competencies o f people seeking employment.

12. Relevance: The relevance o f publicly-provided TVET i s undermined because courses offered have l i t t le to no relationship with the needs o f the labor market. The system i s very supply driven and provides the wrong incentives for participation in training programs. The curriculum in many trades tends to be overly theoretical, outdated, and has few links to the realities o f the workplace. Industry, private sector and the public sector have l i t t le input in the formation o f curriculum or courses and this results in choosing training sectors on the basis o f tradition rather than any analysis o f the economic environment. As a consequence curriculum development and standardization i s very limited, essentially focused on the pre-determined trades. It appears that training provided by NGOs i s more closely linked to s k i l l demands given the decentralized manner o f implementation. However, a lack o f training standards makes it difficult to assess competencies and limits the ability o f the worker to change jobs. The information system (monitoring and evaluation; research) does not contribute to decision making by individuals on the options that are available to them for training. The most effective information system i s private channels. These are limited in their ability to provide an over-all picture o f trends and developments that could inform beneficiaries o f the menu o f options available and the likelihood o f returns from various training programs.

M a n y o f these apprentices are underage - an issue that needs to be addressed through a comprehensive education and social policy.

3

13. Institutional Structures: Afghanistan currently possesses a number o f institutions which are concerned with Technical and Vocational Education and Training. However, the roles and responsibilities o f these institutions need to be more clearly defined and the expected outcomes need to be better articulated. The existing institutional underpinning o f the TVET system fails also to recognize and sustain the crucial link o f specific demand to supply o f specific, quality sk i l ls . There i s poor coordination across public providers in terms o f what their exact roles and responsibilities are, and what they should be. This fragmentation o f responsibilities further reduces the efficiency o f the use o f available resources, as organizations tend to duplicate efforts.

14. training providers to experiment and configure their training to labor market needs. This i s because these institutions are severely constrained in their functioning by a highly centralized administrative mechanism and lack o f operational and financial autonomy. This l i m i t s the opportunities for partnerships to leverage the strengths o f the private sector in planning and delivering demand-driven training programs.

Another key l imitation o f the current system i s that there are very few opportunities for public

15. The legislative framework for TVET provision in the country helps to support and maintain the current supply driven system o f training. In i t s current form, i t does not allow for the inclusion and participation o f industry and the private sector in many o f the decisions made regarding the sector. The current system does not provide legal recognition for implementing agencies, and does not help promote private and Non-Government Organizations (NGO) provision o f training using public resources. Finally, the existing legislation centralizes financing mechanisms, restricts decision making at the level o f the training provider, and offers n o incentives for new approaches and training modules to be experimented with and for putting in place training programs that are demand-driven. T h i s l imi ts the possibility o f cost- recovery or cost-sharing, and eventually developing sustainable, cost-effective training programs.

Demand Issues

16. economic growth prospects to assess the h t u r e demand for s lu l ls. There has been significant growth in the last four years as mentioned earlier, but this has not led to changes in the structure o f the economy. The primary sector (of agriculture and mining) continues to dominate the secondary and tertiary sectors (o f industry and construction, trade and services). Agriculture has been driving growth in rural parts o f the country while construction, trade and services have been spurring urban growth.

Demand side issues pertain to recent trends in the economy, the structure o f the labor market, and

17. informal in nature consisting mostly o f small, family-owned enterprises which are typically characterized as being labor-intensive and o f l o w productivity. Formal sector employment i s largely public, though there has been undocumented growth in the private sector since 2002, particularly in the form o f small and medium enterprises. Additionally, a id agencies and NGOs which play an important role in rehabilitation and reconstruction, also account for a significant portion o f formal sector employment.

In terms o f the labor market structure, i t i s estimated that 80 to 90 % o f economic activity i s

18. Reliable estimates o f unemployment rates, identification o f sk i l l s gaps and mismatches, development o f detailed labor market needs, etc., are diff icult in Afghanistan, given the overall lack o f credible statistical information. Years o f conflict, consequent economic instability and flux in the labor force since 2002 with large internal movement o f displaced persons, make it di f f icul t to estimate key indicators as mentioned above. However, evidence f rom localized surveys suggests an increasing demand for skilled and semi-skilled labor. There i s widespread perception among pol icy makers that the demand for skilled labor i s currently being met through the influx o f foreign workers. T h i s i s particularly true at jobs requiring higher order ski l ls , such as, financial management, accounting, procurement, HR, contractor and supervisory sk i l l s in engineering related trades, etc. Assuming that reconstruction efforts

4

continue, i t i s likely that the demand for skilled labor in these areas will increase and the pressure on the government will mount to ensure that there are a sufficient number o f Afghans in position to take these opportunities as they emerge. This i s particularly true for formal sector employment in urban areas o f the country.

19. non-farm production, limit opportunities for diversification o f production activities, make it more difficult to take advantages o f mechanization, post-harvest technologies, and access quality inputs, processing, transportation and marketing o f produce. Th is i s compounded by the l ow levels o f education and training, and lack o f skil ls, knowledge and understanding o f more productive and effective farming methods. Provision o f training in this context i s more difficult as even the demand side i s weak and not very clearly defined.

In rural areas, three decades o f conflict have constrained productivity and efficiency in farm and

20. develop a National Employment Strategy, and expand access to quality education and training at all levels.

Against this background, the GOA i s aiming to promote investments and generate employment6,

21. government’s request for support to TVET. To summarize, the four principal issues that will need to be addressed if TVET i s to be transformed into a demand-driven system are:

The proposed project falls within this overall approach, which i s also the rationale behnd the

Lack of a TVET framework that could promote, oversee and maintain a demand-driven provision of training. Such a framework would require several elements: the capacity to cross ministerial borders; create partnerships with industry and the private sector; and the legal and institutional authority to play the above roles. This project intends to build on existing TVET elements, but re-orient and reposition these elements and bring in structural coherence through programs that are directly derived from a demand driven model. This i s perhaps the most cost-effective approach available to the GOA at present.

Weak incentives are in place, making it difficult to orient training programs towards a demand driven approach. This program provides for such incentives whereby training provision i s contracted out to only those providers who are capable o f ensuring close linkages both to the labor market and to the needs o f trainees.

Key elements associated with high quality and relevant training provision are not present or brought together in a coordinated manner to achieve the highest value for resources. The institutional changes envisaged in the proposed project will address the issues o f coordination, standard setting,certification, and regulation. The proposed project aims to provide a range o f sk i l l s training to meet the critical needs in the labor market as assessed by policymakers, training experts and professionals, and employers.

The stakeholders of the TVET system (including government and non-government training providers, employers, potential entrants to the labor market, etc.) are operating in the absence of useful and timely information to make the right choices at the right time. There are two levels at which information will be gathered and utilized through this program. Firstly, information will be collected on labor market demand and supply through activities undertaken by the NSDP/MOLSAMD. Secondly, the project will monitor enrollment, attendance, drop-outs and pass-rates in al l institutions supported through this effort. In addition, tracer studies will be

~

For example, through the establishment of the industrial parks and estates under the authority o f the Afghan Investment Support Agency (AISA).

5

conducted to determine labor market outcomes o f graduates and comparable control groups to determine program impacts. Furthermore, under Component 2 and 3, placement cells e x i s t h i l l be established at the institute levels, and this too will provide a wealth o f information.

Government Stratem

22. and s h l l s development as a whole, and specifically in the area o f TVET. It i s cognizant o f the need for a full range o f skills in the country - f rom developing training programs to improve productivity at the small farm or cottage industry levels, to developing programs aimed at mid- to senior-management level and for large industry levels. The GOA understands that a full range o f providers will be needed to cater to sk i l l s needs in the country, and that the service providers need to be themselves distributed across the skills-provision matrix in terms o f a wel l developed scheme.

The GOA is in the process o f putting in place longer term policies and strategies for education

23. 2004 as one o f four National Priority Programs (NPPs) designed to provide targeted social protection for vulnerable groups throughout the country and to provide training to build the capacity o f the labor force. In the last two years, the NSDP has grown rapidly and today provides training to a wide range o f participants, with nearly 15,000 trainees currently under training in programs facilitated by, and formatively monitored and assessed by the NSDP.

With this understanding, the GOA launched the National Skills Development Program (NSDP) in

24. emerging as an independent authority for TVET in the country, this vision has not been fully realized. There are two factors that have contributed to this: (i) fiagmentation o f provision across numerous ministries and other providers, and (ii) the NSDP being closely l inked with a specific provider ministry, M O L S A M D . The Steering Committee established to help coordinate programs over nearly 11 Ministries, has had only l imited success in helping to develop such a coordinating and institutional ro le for the NSDP. This has made it diff icult for the NSDP to emerge as an independent authority t o oversee TVET provision.

Though the NSDP strategy envisages a much broader role for itself, with the NSDP eventually

25. o f which are 27 identified benchmarks to be achieved by 20 10. The benchmarks are drawn f rom the government’s Inter im Afghanistan National Development Strategy (IANDS), with the a im to “provide tangible benefits to the population.” The benchmarks specifically related to vocational education and training simply states that “150,000 persons are to be trained by the end o f 2010”. The benchmark does not specify the nature, thematic area, public versus private sector provisioning, pre- or in-service training, level o f training, or any other aspect o f the training to be provided. Thus, different ministries have seen in this benchmark a role for them to fulfill, though in a manner not wel l coordinated.

The London Conference (January 2006) concluded on the Afghan Compact, a significant feature

26. process has compelled the key education and sk i l l s development related ministries (viz., MOE, MOHE and M O L S A M D ) to work together in an effort to develop a meaningful and implementable sector strategy. The Wor ld Bank and other donors have contributed to th is process, and through dialogue with the government, have suggested means by which the sector strategy can be made more effective. It has been suggested that a comprehensive TVET strategy should be developed as part o f the proposed project and further contribute to the goals the GOA has set for itself through the ANDs process. This i s currently under discussion with various entities within the GOA.

The Afghanistan National Development Strategy (ANDs) will be finalized by March 2008. This

6

Essentially, the Government realizes that: 27.

28.

persistent l o w level o f sk i l l s in the labor force will not only retard the pace o f development and reconstruction but will also open the door for foreign labor to enter the market and create a vicious cycle whereby local labor and local sk i l l s will always be overlooked dealing with this problem will necessitate building s k i l l s across a whole spectrum o f trades and professional sk i l l s in such a way that employers may choose a specific set o f s k i l l attributes (from elementary to expert levels) within a particular trade or profession and be assured o f a supply pool nevertheless this can be done when (1) there i s a framework which standardizes sk i l l s and provides a reliable certification and licensing (where needed) institutional arrangement, and (2) there i s a concomitant regulatory mechanism in place, and when the structure and interlinking o f service providers itself i s aligned to the overall institutional arrangement.

Recognizing the importance o f this sector, the Government has acknowledged the need to underpin their TVET strategy by best international practice as i s related to effective TVET provision. The proposed project takes as i t s premises the above set o f parameters and aims to:

strengthen and make relevant the present regulatory institutional structure and to, where necessary, develop new institutional structures with such legislative support as may be needed in order to bring in a standardized framework o f qualifications covering the complete range o f sk i l ls with specific requirements o f certification and licensing, strengthen existing service providers and bring in new service providers as necessary for the relatively advanced level o f sk i l l s while simultaneously providing for and strengthening existing mechanisms and service-provision structures for lower level skills that are intrinsic to village and local level farming and industries.

29. Principles which the Bank team, together with intense consultations with the GOA, has identified to govern project preparation, design and implementation. These are:

I t i s proposed to address (a) to (c) above in terms also o f an overriding set o f K e y Guiding

0

Demand Driven System: Develop a demand-driven TVET system to replace the current supply driven approach in selected trades and institutions Competency Based Modular Approach: Adopt competency based modular approach to deliver training programs instead o f the current time based system Institutional Autonomv: Give training institutions autonomy to plan and customize their programs based o n sectoral and clients’ needs Contracting-Out Training: Establish partnerships for effective delivery o f training with experienced national and international training providers to improve service delivery and quickly produce graduates with qualifications that are globally competitive Industry and Private Sector Leadership: Industry leads in terms o f vision, sectors, curriculum, and certification to ensure a demand-driven training system

The Rationale for Bank Involvement

30. (with three IDA projects - Emergency Education and Rehabilitation, Education Quality Improvement Project and the Strengthening Higher Education Project), i t s involvement in the TVET sector has been more limited, with a JSDF financed Youth Entrepreneurship Empowerment and Development Project

Whi le the Wor ld Bank has been extensively involved in the education in Afghanistan since 2002

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with the M O L S A M D . This has helped build four centers around the country and has trained about 4500 youth in select trades. The proposed project o f the Wor ld Bank wil l be the first major effort focused o n TVET.

3 1. policymakers in the MOF, MOE, MOHE, and M O L S A M D . The counterpart ministries are aware o f the issues, the scale o f the problem, and the scope o f the proposed response o f the Bank through this project. As such, these ministries have committed themselves to introduce and implement di f f icul t reform measures in an effort to transform the landscape for TVET in the country.

The Bank’s involvement in both research and financing i s based o n direct requests f rom senior

32. The rationale for Bank support for the Skills Development Sector i s very compelling. First, the Wor ld Bank’s Interim Strategy Note (ISN) recognizes sk i l l s shortages in the country and the impact this has had on the recovery process in many sectors.

33. years 200712008:

Secondly, the I S N identifies three strategic pillars under which the Bank proposes to work in the

(i)

(ii) (iii)

Building the capacity o f the state and its accountability to its citizens to ensure the provision o f services that are affordable, accessible and o f adequate quality, Promoting growth o f the rural economy and improving rural livelihoods, and Supporting growth o f a formal, modem and competitive private sector.

34. This proposed project has been designed to fit under a l l three pillars. It addresses the concerns o f the f i rst pil lar by establishing an institutional, legislative and regulatory framework for TVET, which enhances accountability to the citizens and provides services that are affordable, accessible and o f quality. The second pil lar i s addressed by providing support for training with a predominantly rural focus and thus helping to promote growth in the rural economy. The final pil lar i s supported since the proposed project will prepare graduates for absorption in the modernizing industrial sector, thus supporting growth o f a formal and modem private sector.

35. elementary education and this has began to place increasing pressure o n increasing access to quality post secondary education and sk i l l s which are l ike ly to have a significant impact o n economic development. Finally, while there are other Development Partners who can contribute financially to support the Government o f Afghanistan in this area, the Bank i s acknowledged for i t s ability t o bring in comparable global experiences, a constructive critique, and technical assistance for defined areas o f focus.

Thirdly, the Bank and other donors are already supporting the achievement o f high quality

36. The Government’s specific stakes and interest i s expressed in this project through (i) i t s willingness to commit the resources o f more than one Ministry to the project, (ii) the involvement o f some o f i t s highest h c t i o n a r i e s in oversight and other functions related to the project, and (iii) a stated commitment to bring in the necessary legislative changes to strengthen the institutions. Government i s also committed to providing the funds for the sustenance o f the institutions covered by this project on an enduring basis.

Development o f TVET System

37. meeting the short-term training priorities o f the country to hasten the recovery process through targeted TVET provision in focus sectors, with the development o f a medium- to longer-term vision for TVET provision. The proposed project aims to achieve this balance by simultaneously focusing o n both meeting

The development o f a TVET program in Afghanistan will require a careful balance between

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immediate training needs, while simultaneously developing a modern system o f TVET provision, management, and regulation.

38. Given the years o f conflict, i t i s necessary to develop priorities in al l VET sub-sectors simultaneously, as Afghanistan tends to span several centuries simultaneously in terms o f i t s training needs. Since limited resources prevent the GOA from exerting efforts in al l directions, the proposed project identifies priority areas and guidelines for investment. By prioritizing and articulating the governments’ goals and programs, achievable goals can be set and put into place in a manner that provides the greatest returns on investment. Coordination o f donor efforts i s important to achieving such a transformation since donor efforts sometimes are equally fragmented. Thus, making it difficult to contribute towards the overall strategic development o f the sector.

39. system in Afghanistan i s not expected to be achieved in the life-time o f this proposed project. T h i s i s long-term vision, which however requires the GOA to put into place the basic building blocks o f an efficient system which could take as long as 12-15 years to achieve, as originally estimated by framers o f the NSDP. Efforts to understand long te rm needs o f the country wil l be a function o f demographic changes, economic change and growth, and the rapidity with which newer technologies and business practices are absorbed in the country over this period.

The development o f a high-quality, equitable, cost-effective, responsive and sustainable TVET

40. This project helps lay the foundations for a demand dnven training system to evolve over time. This, the first stage, would focus on meeting short-term training needs while putting into place the basic design for a TVET regulatory and institutional framework that would allow for the development o f a demand driven TVET system. In this first phase, the project will on the one hand: (i) provide rural- markets oriented training for youth, destitute women, and marginal farmers aimed at diversifying income sources, improving productivity, and developing market-linkages in rural Afghanistan without any pre- condition o f prescribed schooling levels, and on the other hand: (ii) provide training in focused areas o f the economy at the post-secondary level to prepare a cadre o f potential employees for entry- and mid- management (such as, accounting technicians, procurement officers, supervisors and site engineers, etc.), and embed both in (iii) a vocational education and training system that i s demand driven, responsive to the needs o f the economy and improves the employability o f all beneficiaries.

41. even more, evolve incentives programs to enhance private participation, and strengthen the systems for standards, certification and monitoring and evaluation. Development o f regulatory frameworks for development o f curriculum, quality assurance mechanisms, standards for various trades and methods o f assessing whether standards are being met will continue in this stage and be expanded to more economic sectors and trades. Stage I1 i s likely to witness a significant scaling up o f activities based on the results o f the rigorously evaluated pilot interventions o f Stage I.

There will be a need to ensure that a Stage I1 will help further develop the regulatory framework

42. Stage I11 will place greater emphasis on assessing the sustainability o f various interventions introduced in earlier stages. This will allow the government to make course corrections, drop failed interventions, and scale-up and replicate successful efforts. Afghanistan i s emerging from three decades o f conflict and thus there i s a need to balance the need for immediate training and the need to develop appropriate systems for future benefits. Failure to develop systems in an effort to provide immediate training could result in costly investment in programs that fail to be sustainable and have l i t t le or no value a few years from now. Failure to provide immediate training could result in larger cohorts o f youth and others with no options either in the labor market or for further studies, and this can have other undesired consequences.

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43. stage o f rebuilding o f the TVET system. The key guiding principles identified in an earlier section underpin the key components and put in place the needed reform measures.

The fol lowing section provides a br ie f description of the activities to be undertaken in this f i rst

Proposed Project Development Objective

45. graduates by building, in stages, a high quality TVET system that i s equitable, market responsive, and cost-effective. T h i s above project development objective i s to be operationalized through the project components described below.

The project development objective (PDO) i s to increase the number o f immediately-employable

Project Description

Lending Instrument

46. The proposed project will be financed by an IDA Grant in the amount o f U S $20 mi l l ion equivalent. The lending instrument for this proposed project i s the Emergency Recovery Loan (OP 8.50), which has been used for a l l projects in Afghanistan for which the request fkom Government was received pr ior to March 1,2007. Although IDA’S new Operational Policy o n Rapid Response (OP 8.00) i s in effect, the previous OP 8.50 i s applied to ensure continuity in project processing. The proposed project has received the necessary exceptions f rom OPCFC for the use o f OP 8.50 though the project duration (5 years) exceeds what i s stated under OP 8.50 guidelines. The project will involve the three key public sector ministries engaged in education and training, viz., Education (MOE), Higher Education (MOHE), and the Labor, Social Affairs, Martyrs and Disabled (MOLSAMD), with a specific focus on MOE and M O L S A M D . In addition, the Government o f Norway and USAID will finance Sub-Component 2.1 in the amount o f U S $ 6 mi l l ion each.

Proi ect Components

47. The project components are:

Component 1: Develop Regulatory and Quality Assurance Framework for TVET (Total $1.5 million, I D A $1.5 million)

48. i s demand driven and oriented towards labor market needs. This will be achieved through the establishment of: (a) an appropriate regulatory structure and quality assurance system; and (b) a Qualifications Framework. This component will have three sub-components and wil l be developed in parallel to Components 2 and 3 (see below). There i s sufficient information for the priority sectors (Administration and Management, Accounting, Information and Communications Technology (ICT), Basic Engineering Trades, and Agriculture) for the project to be able to move on Components 2 and 3, whi le i t puts in place new institutions to help manage and run a modern TVET system.

This component will create the necessary institutional conditions for a quality TVET system that

Sub-component 1.1 : Establish the Afghan National Qualification Authoritv (Total $0.3 mill ion, IDA $0.3 mill ion)

49. Education and Skills Policy (CESP), to be chaired by the Vice President. The CESP will be tasked with putting in place the necessary legal and regulatory foundations to establish the Afghan National Qualifications Authority (ANQA) as an independent, statutory Authority, with i t s own staffing and budget line. Similarly, the legislation will also allow for the development o f the Qualification Framework

This sub-component will establish an independent pol icy body known as the Committee o n

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and several awarding boards. The CESP will be the apex policy body for education and training in the country and will frame and execute necessary policies and provide required prescription until the establishment o f the ANQA. The NSDP o f the MOLSAMD will initially act as the Secretariat for this committee through an agreement reached between MOE, MOHE, MOF, and MOLSAMD. The Secretariat o f the CESP (initially NSDP PIU) will cany out all administrative and management functions o f the CESP. The CESP wil l thus also serve as a meeting point for the various interests in this project, and it i s envisaged that many o f the issues o f coordination will be resolved through the meetings o f this body.

Sub-Component 1.2: Establish the Afghan National Qualifications Framework (Total $0.8 million. IDA $0.8 million)

50. This sub-component will be implemented by the ANQA which will oversee the design, development, and institutionalization o f a National Qualifications Framework (NQF). The NQF will provide a levels-based structure needed to map al l education and training course provision in the country and to allow for appropriate, coherent and meaningful certification and accreditation processes.

Sub-component 1.3: Establish Awarding; Boards (Total $0.4 million. IDA $0.4 million)

5 1. within specific levels o f the NQF. In particular, for TVET, the ANQA will establish a National Vocational Education and Training Board (NVETB) as an independent, statutory Board, with a formal charter, staffing and budget line. In addition to the NVETB, the Government has expressed an interest in establishing a Board for Secondary Education, an Islamic Education Board, and a Higher Education Board’. The establishment o f the Awarding Boards as stated earlier i s not a new effort. There have been plans for the establishment o f such independent Boards on several different fronts (e.g., MOE wanting to establish a Board for Secondary Education, NSDP/MOLSAMD wishing to establish an independent authority for TVET) and the proposed project provides an opportunity to do so in a manner that i s coordinated, comprehensive and inclusive.

The ANQA will establish several Awarding Boards that will regulate and quality assure programs

Component 2: Improve Relevance, Quality and Efficiency of TVET (Total $18.5 million, IDA $12.5 million and Norway $6.0 million’)

52. programs, and to increase the number o f graduates from these programs, through the establishment o f a new institute, and by undertaking rehabilitation and reforms o f a select number o f other institutions. Initially, training programs will be contracted out to experienced, national and international training institutions through partnership arrangements. The partners wil l develop and implement comprehensive training packages, using competency-based approaches in selected sectors, and simultaneously develop indigenous capacity so that over a medium-term, the institutions involved may become academically self- sufficient. These training packages wil l be designed in such a way as to allow them to be fitted onto the NQF once it i s established. There i s sufficient information regarding the priority sectors to allow for the Component 2 to be implemented simultaneously with Component 1. Programmed activities will focus on both direct teaching o f students and on the critical area o f training o f TVET teachers. T h i s component i s envisaged as a broad-based one which will allow multi-trade, multi-center as well as specialized vocational training and education centers to be established under i t s various sub-components.

The objective o f this component i s to improve the relevance, quality and efficiency o f TVET

’ The Higher Education Board over time could be further expanded to include a General Board for Higher Education, a Board for Technical Education, etc.

are frnanced directly. Only co-financing from Government o f Norway i s administered through the ARTF. Expected contributions f rom Borrower (US $ 3 million) and USAID (US $ 6 million) not reflected here as these 8

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Sub-component 2.1 : Establish the National Institute o f Management and Administration INIMA) (Total $1 1 .O mill ion, IDA $5.0 m i l l i on and Government o f Norwav $6.0 milliong)

53. Administration which will offer programs in three key areas: (i) Management and Administration, (ii) Accounting, and (iii) Information Technology. The Institute will cater to student at Grades 13 and 14. Management and activities within the Institute wil l be contracted out t o international training providers. A new, fully equipped, campus wil l be developed. This sub-component will be executed in a partnership with USAID (parallel financing) and the Government o f Norway (co-financed with IDA through the Afghanistan Reconstruction Trust Fund, ARTF). A Memorandum o f Understanding (MOU) signed between the MOE, U S A I D and the Government o f Norway, identifies the specific roles o f the various parties, with Norway committing to financing the establishment o f new, physical infrastructure and goods needed for the school and to finance the rehabilitation o f existing facilities to serve as temporary accommodation, with U S A I D committing to supporting the ‘software’ needs o f the new Institute, such as, technical assistance and some o f the operating costs for the f irst three years. I t i s anticipated that the contribution f rom USAID, particularly in terms o f direct technical assistance will decrease over time and the Institute will be run more and more by Afghans. The MOE/GOA has also committed to take o n an increasing share o f the operating budget and cover a l l local costs by the end o f Year 3. IDA proposes to also finance the establishment o f the new institute and the rehabilitation o f temporary facilities. In addition, IDA will finance scholarship support to the students and goods and equipment, such as, computers, dormitory and classroom furniture, books, and a few vehicles.

This sub-component i s aimed at establishing a new National Institute o f Management and

Sub-component 2.2: Institution-Based Reform Package (Total $7.0 mi l l ion IDA $7.0 million”)

54. within the DTVET mandate. These include the 42 institutions currently operating in Afghanistan and which have not received support f rom other donors. Institutes under the DTVET, seeking financial and technical assistance, will self-select into the program by expressing a willingness to undertake the reforms needed to improve their relevance, quality and efficiency. Reform measures would include inter alia: (i) administrative and management process reforms, specifically by expanding stakeholder participation in institute management, (ii) focusing o n priority training sectors (administration and management, accounting, ICT, basic engineering and agriculture), and (iii) committing to a decentralized TVET management framework in which at the end o f f ive years the institute i s operationally and financially autonomous.

This sub-component aims to support reforms and rehabilitation in the remaining institutions

55. package will include and state the in i t ia l conditions and undertakings that have to be met by institutions intending to participate in the program. The MOE will then review the responses o f the individual institutions and decide upon institution specific strategies and action programs within the institute. The project will finance such support, including process consulting and technical assistance, physical upgradation, appropriate purchase o f new equipment, and faculty training and support as may be identified.

The MOE will develop a detailed guidance document o n what the reforms and rehabilitation

Sub-component 2.3: Management Reforms in DTVET (Total $0.5 mill ion, IDA $0.5 mill ion)

56. This sub-component aims to support reforms within the DTVET which will ensure that: (i) the various departments and personnel within DTVET develop a better understanding o f the structure and

All o f USAID’s expected contribution o f U S $ 6 mil l ion w i l l be focused on Sub-component 2.1. lo Borrower’s expected contribution o f U S $ 3 mil l ion i s likely to be spent on Sub-component 2.2. 9

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functioning o f modem TVET systems and become more responsive to market needs and accountable for effective vocational training delivery for institutions under their control, (ii) concerned staff and officer understand and implement the imperatives o f the whole project and address internal capacity building issues as necessary, (iii) the administrative procedures within DTVET are re-oriented in terms o f the wider responsibilities that the implementation o f the project will entail. In as much as the DTVET i s a major driver o f the whole project, i t i s the responsibility o f this directorate to ensure that there i s a seamless integration between internal DTVET reforms and external structural changes brought about through the creation o f the ANQA, the Qualifications Framework and the NVETB. Therefore, internal reforms shall be designed and implemented in such a manner that the overall project objectives are always fully supported. Simultaneously with these visualized changes, capacity will also be built within the DTVET to frame administrative and other policies based on the information that i s received from the monitoring and evaluation un i ts and agencies. Lastly, this sub-component will also focus on the Management Information System (MIS) needs o f the DTVET and the IT infrastructure needed to support it.

Component 3: Skills Development Program and Market Linkages with a Rural Focus (Total $5.0 million, I D A $5.0 million)

57. Development Program, and build the capacity within NSDP and MOLSAMD to undertake reforms in technical and vocational training, labor market assessments, and to strengthen industrial and market linkages. The three program subcomponents are:

This component aims to support a slice o f the on-going activities by the National Sk i l l s

Sub-Component 3.1 : Contracted Vocational Training Packages (Total $ 3.0 million. IDA $3.0 million)

58. employment, with a focus on (i) youth, (ii) ‘Chronically Poor Women’ , and (iii) marginal farmers and landless farm laborers. Training providers will be chosen competitively and their performance formatively monitored. Training will be based on localized labor market studies and will typically cover trades in the agnculture (including horticulture, animal husbandry, apiculture and market gardens), construction sector and fabrication, etc. Where training relates to self-employment, Business Development Services (BDS) training and facilitative links to micro-finance will be provided.

This component will contract out to training providers market driven training for waged and se l f

Sub-Component 3.2: Training; o f Trainers Program (Total $1.5 million, IDA $1.5 million)

59. trainers; and the development o f a menu o f 15-20 contextualized productive sk i l l s curriculum materials, through competitively selected public and private/NGO training providers, or consortia o f providers, to support the USAID-funded Learning and Community Empowerment Project 2 (LCEP2)

Contracted training for Productive Sk i l l s Officers (PSOs), BDS trainers, and selected trade

Sub-Component 3.3 : CaDacitv Buildinp for NSDPMOLSAMD (Total $0.5 million, IDA $0.5 million)

60. This sub-component will build the capacity within NSDPhiOLSAMD in the following areas: (i) curriculum and materials development, (ii) capacity building in these organizations to collect, collate, analyze and interpret labor market information. T h i s will also focus capacity building efforts on carrying out a labor force survey jointly with the Central Statistics Officer (CSO) and (iii) training up to 10 key personnel from the NSDPMOLSAMD in TVET planning, management and outreach.

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Component 4: Research, Monitoring & Evaluation (Total $1.0 million, IDA $1.0 million)

61. will provide routine, timely, and accurate information o n program implementation and allow for the measurement o f longer term impacts and independent research.

The objective o f this component i s to develop a program monitoring and information system that

Sub-Component 4.1 : Monitor ing and Decision Support (Total $0.4 mill ion, IDA $0.4 mill ion)

62. This sub-component will put in place monitoring and information systems to measure program progress. Information generated by the monitoring system (and other relevant data) wil l be used as input for a decision support mechanism which wil l identify alternatives and recommend course-corrections in program implementation.

Sub-Component 4.2: Impact Evaluation (Total $0.6 mill ion, IDA $0.6 mill ion)

63. to stated program objectives and identified key performance indicators.

This sub-component will conduct impact evaluations o n specific sub-components in relationship

Risks

64. This i s a challenging project for the fo l lowing reasons: (a) complicated design involv ing several ministries and numerous institutions, (b) weak implementation capacity, and in general, weak capacities in both public and private sectors, and (c) the near in-conflict environment in which the project i s being designed and which makes supervision more complicated and difficult. However, a key mitigation strategy employed by the team has been to design the components in manner that ensures that Components 2 and 3 are ring-fenced against the other. This ring-fenced structure allows for Components 2 and 3 to be implemented simultaneously without the risk o f weak implementation in one, affecting the other.

65. relatively slow to come onto the pipeline. That such a project i s being considered within a few years o f a return to some semblance o f normalcy in Afghanistan, reflects the learning that has taken place within IDA o n what works and what does not in post-conflict settings. The two main problems in such settings are: (i) scant resources for such training and (ii) limited employment prospects after the training. And, yet i s in exactly these conditions when even though vocational training provides a chance for education and training opportunities for youth and young adults who have missed regular schooling due to conflict.

In most other post-conflict countries, sk i l l s development or WET type projects have been

66. administrative and pol icy level decisions that may not be in step with: (a) established timelines, (b) stated priorities, (c) agreed upon processes. This i s largely due to the complexity o f the project and the very large number o f technical issues that need to be at least partially understood by the members o f the policy-malung bodies. Thus a major part o f inception level activities should focus o n ensuring that r isks arising out o f delayed or ambiguous decisions or decisions that do not match assumptions and are determined apriori, are minimized. Risk mitigating strategies provided in Table 2 have been developed to address these specific issues.

In general, the project has r isks that are associated with l o w management capacities leading to

67. as to who i s best equipped to manage these risks. Table 2 shows the potential impact o f each o f the identified risks. This i s combined with a risk-specific mitigation plan.

The various r isks identified have been allocated to the various actors o n the basis o f an evaluation

68. The overall project risk rating i s Substantial.

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Financial Management, Disbursement and Audit Arrangements

69. for Afghanistan by the Public Expenditure and Financial Accountability (PEFA) multi-agency partnership program, which includes the Wor ld Bank, IMF, EC, and other agencies. Afghanistan’s ratings against the PFM performance indicators portray a public sector where financial resources are, by and large, being used for their intended purposes as authorized by a budget that i s processed with transparency and has contributed to aggregate fiscal discipline.

A Public Financial Management (PFM) performance rating system has been recently developed

70. agents contracted under the Public Administration Capacity Building project. This i s the primary instrument for continuing to strengthen the fiduciary measures put in place for ensuring transparency and accountability o f funds provided by the Bank and other donors. Under these contracts, two advisers- Financial Management and Audit-are responsible for working with the government and line ministries to carry out these core functions. The Financial Management Agent (FMA) i s responsible for helping the MOF maintain the accounts for a l l public expenditures, including IDA-financed projects and for building capacity within the government offices for these functions.

Financial management and audit functions for proposed project will be undertaken through the

7 1. At the project level, the Ministry o f Education Grants Management Unit and the Finance Department o f the National Skills Development Program will undertake full responsibility o f the financial management functions. The GMU has gained enormous experience from previous and currently implemented Bank and other donor funded projects. I t has in its staffing qualified and experienced international and national consultants and there are plans to engage additional staff t o strengthen the capacity. The NSDP Finance Department also has adequate financial management arrangements and i t s capacity will be strengthened with the engagement o f additional staffing for this project.

72. Department. Consolidated project reports will be prepared, reviewed, and approved by the MOF, supported by the FMA.

Quarterly Financial Monitoring Reports will be prepared by the GMU and NSDP Finance

73. A Designated Account (DA), wil l be opened at D a Afghanistan Bank (DAB, Central Bank) in the name o f the project o n terms and conditions satisfactory to IDA. The DA will be maintained by the MOF. Withdrawal applications for replenishment will be submitted monthly. Financial management arrangements for the project are stated in details in Appendix 7.

Disbursement Method

74. Disbursements f rom the IDA grant will make use o f advances, reimbursement, direct payment, and payments under Special Commitments including records or against summary reports (statements of expenditures), as appropriate.

Audit o f Project Funds

75. IDA-financed projects. Annual audited project financial statements will be submitted within six months o f the close o f GOA’S fiscal year.

The Auditor General, supported by the Audit Agent, i s responsible for auditing the accounts o f a l l

76. and Ministry o f Labor, Social Affairs and Martyred and Disabled, have n o over due audit reports; key issues raised in these projects previous audit reports are being resolved.

The Bank-funded projects already or currently being implemented by the Ministry o f Education

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Procurement

77. Regulatory Framework for public procurement over the last five years. A new Procurement Law, reflecting international best practice in public procurement was enacted in November 2005 replacing the earlier procurement regulations. Whi le i t provides a very modem legal system for procurement, effective implementation o f the l aw may encounter difficulties in the current weak institutional structure and capacity o f the Government. A Procurement Policy Unit (PPU) has n o w been established under MOF to ensure the implementation through the creation o f secondary legislation, standard bidding documents, provision o f advice and creation o f the necessary information systems for advertising and data collection. “Rules o f Procedure for Public Procurement” which details the better implementation o f the Procurement L a w has been issued by MOF as circular number PPU/COO5/1386 dated April, 12 2007. The Procurement Appeal and Review mechanism i s in place and the Manual o f Procedures for “Procurement Appeal and Review” has been issued by MOF as circular number PPUM001/1385 o n March 18,2007.

With donor assistance, Afghanistan has made considerable efforts to establish the Legal and

78. under the chairmanship o f Minister o f Finance approves high value contracts. The current thresholds levels for: (i) Civ i l works more than U S $500,000, (ii) Goods more than US $100,000; (iii) Consultants more than U S $200,000 and a l l contracts following Direct Contracting or Single Source Selection Procedure independent o f value. These thresholds are now being reviewed with consideration for an upward revision thus decentralizing the authority t o MOF.

The special Procurement Commission, comprising Ministry o f Justice and Ministry o f Economy,

79. In the absence o f adequate capacity to manage procurement activities effectively, some inter im arrangements have been put in place to improve the procurement management o f the country. A central procurement facilitation service, Afghanistan Reconstruction and Development Services (ARDS-PU) has been established under the supervision o f Ministry o f Economy.

80. and capacity building, leading to the transition f rom centralized to decentralized procurement services. The Bank funded Public Administration Capacity Building project (PACBP) i s the primary instrument for implementing the program to strengthen capacity o f the l ine ministries to manage public procurement in an effective, transparent and accountable manner. The envisaged radical changes to the procurement management environment expected f rom the new l a w also require the urgent implementation o f a comprehensive human resources and capacity development program. The implementation o f the procurement reform component o f the PACBP should be considered with due priority to ensure that fiduciary standards are further enhanced and that capacity i s developed in the Government to maintain these standards. A three year contract for procurement capacity building i s in place under PACBP. T h i s assignment should result in development o f critical mass o f procurement professionals through intensive and extensive training. The consultant’s TORS include the development o f an accreditation system for procurement professionals. In addition, the law, procedures, procurement appeal, and review mechanisms need wide dissemination to the c i v i l society to enhance transparency and accountability.

The Bank and the Government have agreed o n a program for country wide procurement reform

8 1. overall responsibility for a l l procurement under the project. Bo th the implementing agencies will implement procurement action as requested by the Afghanistan Ski l l Development Project. Procurement will be in accordance with the Wor ld Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” (dated M a y 2004; revised October 2006); “Guidelines: Selection and Employment o f Consultants by Wor ld Bank Borrowers” (dated M a y 2004; revised October 2006); and the provisions stipulated in the Development Grant Agreement. In addition, the Wor ld Bank’s “Guidelines o n Preventing and Combating Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants” (dated October 15,2006), has been shared with the recipient. Bank’s Standard Bidding Documents,

The Ministry o f Education (MOE) and National Ski l l Development Program (NSDP) wil l have

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Requests for Proposals, and Forms o f Consultant Contract will be used. Civil works and goods fol lowing National Competitive Bidding (NCB) procedures shall be procured using the agreed Standard Bidding Documents (SBDs) for Afghanistan. In case o f conflictkontradiction between the Bank’s procurement procedures and any national rules and regulations, the Bank’s procurement procedures will take precedence as per the Article 4(3) o f the Procurement L a w o f the Islamic Republic o f Afghanistan (IROA) dated October 2005. The summary o f the procurement capacity assessment o f the implementing agencies and precise arrangements are presented in Annex 7.

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Annex 1: MAJOR RELATED PROJECTS FINANCED BY THE BANK AND/OR OTHER AGENCIES

a e . : mance T bl 11 IDAF· dP . t rOJec s ISRJIEG Ratings

Project Cr. No. Sector Issues (As of September 6, 2007)

Development Implementation lEG Ob.iective Progress Rating

Emergency Education Rehabilitation and • Lack of school materials Development Project (P077896) • Lack of a sound policy framework

H0080 • Gender and social disparities MS MS MS Date Approval: 06/0612002 • Lack of access to education Date Closed : 06/3012006 • Lack of relevance with the labor

market Education Quality Improvement Program • Poor quality of education (P083964) • Gender and regional disparities

H1190 • Weak role of communities and schools S MS N/A Date Approval: 07/29/2004 • Ambiguous role of the Ministry and Date Closed : 0313112009 (Expected) its weak capacity Strengthening Higher Education Program • Poor quality of education (P089040) • Fragmented and inefficient institutions

• Lack of appropriate physical facilities Date Approval: 05/1912005 H1620 • Lack of relevance and linkages with MS MS N/A Date Closed : 06/3012010 (Expected) the economy

• Inefficient and insufficient financing

• Outdated governance and management

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a e ° : T bl 12 P ro ec s mance t FO

»y er 1gencles db Oth A Project Development Project Description

Partner The program aims to develop physical and human capacity in the public sector, private sector and civil society, both in Kabul and the provinces. USAID invests as much as US $ 125 million for this initiative over the next five years, and anticipates additional

Capacity Development Program (CDP) USAID investments of US $ 25 million or more from universities and other ABC partners. The ABC program provides scholarships in order to improve the skill of key personnel in the Afghan public and private sectors. It has also established Education Quality Alliance between Afghan universities, US and third countries in order to improve teaching methods and running researches on capabilities of all Afghan universities. This project aims to support the development of vocational training under the MOLSAMD. The project has constructed 9 training centers across Afghanistan and

Basic Vocational Training Project JICA fall under the Ministry's jurisdiction. The center offer a range of trade training courses currently at the basic vocational training level. The trades include plumbing, sheet metal work, electrical wiring, tailoring, computer literacy. KOICA established a US $ 10 Million VT Centre (Afghan-Korea VTC) under the

Afghan Korea Vocational Training Center KOICA MOLSAMD in 2005/6. There are 6 departments: construction, computer training, electrical wiring, plumbing, automotive, welding and tailoring. KOICA staff has now left Afghanistan. GTZ developed a small computer training centre at the MOLSAMD in 2003/4. This

Computer training and TA support GTZ operated until 2007 but has now been closed. During this period GTZ provided TA related to VT, to the MOLSAMD. KfW will rehabilitate the Technikum built with German support in 1938. The project

Technical School Rehabilitation in Kabul KfW will finance civil works, equipment and technical assistance to reform and modernize the institute. The institute will be used as key teacher training center.

Support for TVET Spain The Spanish Government established a TVET centre in Chaikhar Town under the MOE

Youth Empowerment Project JSDF The WB established 4 small Youth Development Training Centers in Kabul, Mazar, Fariab ad Khandahar. The Iranian Government renovated a small VT center in Kabul City, operated by the Iranian Basir Association. The Iranians also constructed a new centre in Khandahar

Vocational Training Center Iran utilizing Japanese funding. The Iranians have also built a VT centers in Nirnroz, managed by the Immam Komani NGO, and two further centers are being built in Heart and Farah.

21

Annex 2: RESULTS FRAMEWORK AND MONITORING

Table 2.1: Results Framework PDO Project Outcome Indicators Use of Outcome Information

Increased number of immediately- • POI I: Increase in the number of pass-outs from project financed • Demonstrate to relevant Afghan employable graduates is produced institutions and training centers as compared to baseline of non- stakeholders that a demand oriented by building, in stages, a high reformed institutions. TVET contributes to better labor quality TVET system that is • POI 2: New institutional framework for TVET is in place and market results equitable, market responsive, and functioning, which includes the establishment of an independent • Measure program impacts cost-effective. qualifications authority (ANQA), an independent training authority • Given the substantial risk nature of the

boards (e.g., NVETB), and a national a qualifications framework (NQF) project, all intermediate information

• POI 3: Labor market outcomes, both in terms of employment and will allow for mid-program course earnings of trainees, are superior to the outcomes of comparable control correction and plan for future groups expansions

• POI 4: % of employers of trainees supported by institutional framework or piloted training facilities agree that employee productivity has increased since training compared to baseline as measured by a satisfaction survey.

Intermediate Outcomes Intermediate Outcome Indicators Use of Project Outcome Information Component 1: Develop Regulatory and Quality Assurance Framework for TVET

Sub-Component 1.1: • The statutes have been developed and submitted to parliament Demonstrate to Afghan stakeholders that Establish the Afghan National a new institutional framework is being Qualifications Authority (ANQA) established that has the capacity to

successfully promote demand-oriented TVET

Sub-Component 1.2: • The framework and the generic learning outcomes (knowledge, skills, Demonstrate to Afghan stakeholders the Establish the Afghan National and competences) associated with each level developed value of developing coherence across Qualifications Framework various levels of education and training

Send signals to potential employer of graduates with an outcome-oriented qualifications standards

-~~~---

22

Intermediate Outcomes Intermediate Outcome Indicators Use of Pro.ject Outcome Information Sub-Component 1.3: • In FY 2012 and FY 2013, Boards administer To prepare intermediate strategies for Establish A warding Boards assessment/examinations/tests, publish results, and issue certificates seamless integration of courses with the

NQF Component 2: Improve Relevance, Quality and Efficiency of TVET

Sub-Component 2.1: • Number of graduates from National Institute of Management and • Determine the extent to which Establish the National Institute of Administration imported skilled-manpower can be Management and Administration replaced by well-trained Afghans

• Assess the sustainability of the institution

Sub-Component 2.2: • Number ofDTVET institutions who have self-selected into reform • Demonstrate the importance of Institution-Based Reform Package program market orientation for TVET

• Percent of girls emolled (course specific) institutions Sub-Component 2.3: • Number of staff and officers trained on modern TVET systems • Gauge the effectiveness of a Management Reforms in DTVET decentralized governance system

• Demonstrate appropriate role for the public sector in the management of TVET effective institutions

Component 3: Skills Development Program and Market Linkages with a Rural Focus Sub-Component 3.1: • Average earnings of trainees self-employed or wage employed 9 month Demonstrate the effectiveness of Contracted Vocational Training after completion of training compared to control groups contracted demand-driven training Package Sub-Component 3.2: • Number of BDS trainers trained • Provide the ability to gauge Training of Trainers Program • Number of PSOs trained effectiveness of vocational and BDS

training oriented to rural areas

• Demonstrate synergies across programs

Sub-Component 3.3: • Number of certified TVET managers graduated through on-line, Indicate the effectiveness ofDL Capacity Building at distance-learning training on TVET management methodologies to build core competences NSDPIMOLSAMD in this sector

23

Intermediate Outcomes Intermediate Outcome Indicators Use of Project Outcome Information Component 4: Monitoring and Evaluation

Sub-Component 4.1: • Baseline survey conducted within 6 months of project effectiveness • Monitor project progress Monitoring and Decision Support MIS in place and regularly updated Sub-Component 4.2: • Follow-up surveys and evaluations undertaken in Y3 and Y5 • Provide for evidence-based policy Impact Evaluation elaboration, public debate and

program refinement

• Inform stakeholders of program impacts

24

T bl 22 A a e . : rrangements Ii R 1M or esu ts omtonng -~

Outcome Indicators Target Values Data Collection and Reportin2 Baseline YRI YR2 YR3 YR4 YRS Frequency and Data Collection Responsibility for

Reports Instruments Data Collection Project Development Ob· ectives Outcome Indicators

POll: Increase in the Annually EMIS MOE and NSDP number of graduates from BL-MOEi

1468 1500 2000 2500 3000 project fmanced institutions 718 and training centers as BL_NSDpii

3000 3000 3000 3000 3000 compared to baseline of non- 2435

reformed institutions. POI 2: New institutional framework for TVET is realized and functioning, N.A. Established

including the establishment ANQAand

of the ANQA, independent NQF

training boards (e.g., NVETB), and the NQF POI 3: Labor market MOE Tracer Annually - 6-9 Tracer Survey to MOE EMIS and outcomes, measured by in Year 1 months after every be completed in Tracer Study to be

employment status of NSDP Tracer graduating cohort Year I by conducted by

trainees, are superior to the study independent independent agency

outcomes of comparable currently agency contracted selected competitively; underway by MOE

control groups NSDP M&E Team Ongoing NSDP survey

POI 4: % of employers of Satisfaction Year 1,3 and 5. Satisfaction Independent agency trainees graduated from surveys to be surveys for both

reformed institutions agree carried out in MOE and NSDP

that employees have Years 1,3 and

improved their productivity 5 in a targeted

through training relative to a manner

baseline Notes. i: The baseline for Component 2 focuses only on the four schools that are being rationalized to fonn NIMA and not schools under Component 2.2 that are yet to be identified. u: The baseline for Component 3 focuses only on current enrollment in trades that have a rural focus including horticulture, bee-keeping, animal husbandry, flowers and fruits, etc.

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.-~--.-~---.. - Target Valu~ YR4-~'--

Data ColI~ction and Reporting

Outcome Indicators Baseline YRI YR2 YR3 YR5 Frequency Data Responsibility

and Reports Collection for Data Instruments Collection

Component 1: Develop Regnlatory and Quality Assurance Framework for TVET o Regulations and legislation Develop Enact Establish CESPI

developed for the formation of legislation legislation theANQA NSDP-PIU an independent Afghan needed to National Qualification establish the Authority (ANQA) N/A ANQA

o Establish the ANQA through an ACT of Parliament

o The framework and the Occupational Terms of NQF CESPI generic learning outcomes N/A and training reference for developed NSDP-PIU (knowledge, skills, and standards the competences) associated with developed for development each level developed focus sectors ofaNQF

o Boards administer tests, Board is Board is

CESPI publish results and award N/A operatio

operational NSDP-PIU and

certificates nal Boards Component 2: Improve Relevance, Quality and Efficiency of TVET

o Number of graduates from Annual M&E reports, DTVET National Institute of 718 718+750 750+750 1000+ 1250+ 1500+ EMIS. Bursary Management and 1000 1250 1500 payments Administration

o Number ofDTVET 5 In Year 2 DTVET institutions awarded reform package upon meeting reform 0 conditions

o Percent of girls enrolled in 8% 15% 20% 24% 27% 30% Annual M&E reports, DTVET post-basic programs under EMIS. Bursary DTVET payments

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Component 3: Skills Development Program and Market Linkages with a Rural Focus Target Values Data Collection and Reporting

Outcome Indicators Baseline YRI YR2 YR3 YR4 YRS Frequency Data Collection Instruments Responsibility for Data and Reports Collection

o Average earnings of Tracer Study Tracer studies surveys of M&E Cell within the NSDP trainees self-employed or for previous graduates of training programs together with independent wage employed 9 month cohort being and control group selected entity. after completion of initiated generated randomly at the time of training compared to entry into training program for control group each cohort.

o Number ofBDS trainers N/A Satisfaction surveys from village Independent agency trained shouras and other stakeholders contracted by NSDP

o Number ofPSOs trained N/A through a competitive manner

Component 4: Monitoring and Evaluation o MIS in place and regularly Baseline Annual EMIS MOE is responsible for

updated conducted and EMIS and NSDP conduct data being Annual or NSDP trainee selection surveys trainee selection surveys cleaned more and tracking surveys and updated annually (or

frequent other) o Follow-up surveys and Follow Evaluation

evaluations undertaken in up Y3 and Y5

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Annex 3: DETAILED PROJECT DESCRIPTION

Background

1. The GOA has recognized the importance o f sk i l l s development in the process o f recovery and rehabilitation o f a country that had been in c i v i l strife for a period o f nearly three decades. Early o n in this recovery process the GOA identified s lu l l s development as an essential ingredient and began to lay the groundwork for a major thrust in this area.

2. K e y l ine ministries were identified and mobilized, a new National Priority Program - the National Slulls Development and Market Linkages Program was established, and the government, through the support o f key donors, began to build new infrastructure (e.g., the Afghan Korea Vocational Training Institute and vocational training institutes supported by JICA, Government o f Iran, and the Wor ld Bank), and rehabilitate some existing institutions in the country. Furthermore, an increasing number o f NGOs were encouraged to offer vocational training programs around the country. The GOA i s keen to increase the number o f people undergoing labor market relevant training and has set a target o f 150,000 people to be trained as stated in the Afghan Compact. T h i s does not take into account the fact that thousands o f people continue to receive most o f their career related training through informal and traditional apprenticeship programs, though this i s very diff icult to quantify and document.

3. The strategies adopted by the GOA to implement their vision for sk i l l s development are predicated o n a two pronged approach: (i) increased access to technical vocational education and training opportunities around the country, and (ii) enhanced relevance o f the programs to the needs o f the labor market. The GOA has also identified and recognized the need for a variety o f providers (public, private and non-government), the need for modular competency-based and assessed programs (instead o f programs that are defined purely by major, formal examinations and the length o f t ime spent in classrooms), for a good mix o f theory and practical training, and for the need for a coherent system for a l l education and training, but particularly underpinning the TVET sub-sector. The Bank’s project design wil l ensure that a l l these suggestions are taken into account.

4. women who have completed Grade 12 and are seeking to improve their sk i l l s through post-secondary training programs diploma and certificate programs that will allow them to enter the labor market directly or continue their studies by enrolment in regular degree programs; and (ii) second chance training opportunities for those who have not had, or have had limited, formal schooling to enhance their sk i l l s to increase their employability or make them more adapted for self-employment in the informal sector. T w o special target sub-populations wil l include girls and women, and persons with disabilities.

In terms o f the target beneficiaries o f this project there are two main groups: (i) young men and

5. in 2006/07. However, they are s t i l l significantly under-represented in higher level education and specifically in vocational and technical education. The recent census o f institutions under DTVETMOE shows that only 8% o f the students in Grades 13/14 in these training institutions are women. Part o f the reason for this l o w number i s due to the nature o f the courses being taught largely oriented towards engine, mechanic repairs, construction, etc., a l l o f which do not employ women in the labor market. A number o f teachershainers in these sectors are however women. Training under the NSDP mandates that implementing partners must ensure a minimum threshold for women and persons with disabilities o f 35% and 10% respectively. This project will continue this emphasis on increasing access to these special sub- groups in the Afghan context. A detailed gender assessment i s included in Annex 11 o f this Technical Annex and a Disabil ity Assessment would be prepared within six months o f project effectiveness.

Since 2002, the number o f girls accessing general schooling has increased f rom nearly 0% to 35%

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The Project by Components

6. graduates by building, in stages, a high quality TVET system that i s equitable, market responsive, and cost-effective.

The project development objective (PDO) i s to increase the number o f immediately-employable

7. This will be operationalized through the specific components described below.

Component 1: Develop Regulatory and Quality Assurance Framework for TVET (Total $1.5 million, IDA $1.5 million)

8. has committed itself to undertaking diff icult reforms and in developing a new institutional framework for education and training, and in particular for TVET. This component will create the necessary institutional conditions for a TVET system in an effort to satisfy the requirements o f the above stated PDO. The two main elements o f this component include the establishment o f an appropriate regulatory structure and quality assurance system; and a Qualifications Framework. This component will be developed in parallel with the implementation o f Components 2 and 3. This i s a diff icult component, requiring the establishment o f new institutional and regulatory structures to replace the existing structures that are fragmented across three or more ministries. The focus on the priority sectors (Administration and Management, Accounting, ICT, Basic Engineering Trades, and Agriculture) allows for the implementation o f Components 2 and 3, even though Component 1 i s not fully developed.

The GOA, recognizing the need for coherence across various levels o f learning in the country,

9. and ensure quality provision across the education and training sectors, though it i s unlikely that without the added impetus provided by the proposed project, i t i s unlikely that these institutions will get established. For example, the original strategy documents o f the NSDP calls for the establishment o f an independent authority for TVET. However, n o legislation has been drafted or moved in the past three years. Similarly, the MOE has plans for the establishment o f an independent board for secondary education, and the proposed project could assist the MOE put such an institution in place. However, as stated earlier, the roles and responsibilities o f such institutions are not clear; their modes o f operation are wel l established, and sometimes not even relevant to a dynamic and vibrant education and training system. The key contribution o f the proposed project i s to bring together a disparate set o f actors, with a similar set o f goals, to help develop an education and training framework that provides coherence across various levels and i s comprehensive in i t s coverage. It i s necessary to strengthen these institutions, bring them under a properly defined legislative umbrella, make explicit their functions, roles and responsibilities, and to professionalize them so that they can become pro-active agents in the institutionalization and sustenance o f the TVET system as envisaged in this document.

This component builds o n existing designs and plans for independent institutions to help regulate

10. operate in such a manner that capacity i s built throughout the range o f trades and ski l ls , but must do so in a way that will ensure standardization, and therefore competitiveness o f Afghan labor vis-&vis labor f rom foreign countries.

It i s clearly recognized and understood that the institutional system must be designed, and must

1 1. sub-components highlighted below.

The specific activities to be accomplished through these components are described in the three

29

Sub-component 1.1 : Establish of the Afghan National Qualification Authority (Total $0.3 million, IDA $0.3 million)

12. highest regulatory and standards setting body in the country for education and training and would help bring about coherence (when the QF is developed) to the education and training sectors.

This sub-component will establish the ANQA through an act o f parliament. This will be the

13. A Committee o n Education and Skills Policy (CESP) will be established under the Chairmanship o f the Vice President. I t has been agreed between MOE, MOHE and M O L S A M D , that the NSDP o f the M O L S A M D wil l take o n the responsibilities o f in i t ia l ly establishing a Secretariat for the CESP. The CESP will comprise o f the Vice President, representatives o f MOE, MOHE and M O L S A M D , a representative o f MOF, two members representing the private sector, and two members representing the donor community (on a revolving basis). A Designated Officer o f the NSDP will be the Secretary to the CESP, but without the rights o f a full Member. All ministerial representation will be at the level o f the Minister, with their deputies being identified as the alternates o n the committee. The Secretariat o f the CESP will be responsible for a l l administrative and management functions o f the CESP - including the hiring o f technical experts needed to draft legal documents for the establishment o f new, statutory, regulatory structures, and for the development o f the NQF). The CESP shall initiate the establishment o f the Afghan National Qualifications Authority. Upon the establishment o f ANQA, al l pol icy and other functions performed by CESP under Component 1 o f the Project, including the development and institutionalization o f the National Qualifications Framework, will be transferred to the ANQA.

14. CESP init ially i s reflected in a Memorandum o f Understanding (MOU) between the three concerned ministries and the NSDP". The Secretariat o f the CESP wil l be responsible for overall coordination o f Component 1. The Secretariat o f the CESP will ensure coordination across government, donors, and user-agencies for a sustainable and smooth multi-year programmatic approach to building the TVET capacity in the country. The Director o f the NSDP will oversee the program, with the assistance o f consultants and longer-term national staff a l l chosen competitively. The TORS for a l l persons to be hired and brought o n board will be shared with the CESP for comments and the selection will be done by a duly appointed sub-committee o f the CESP

The agreement to avail o f the facilities and personnel o f the NSDP PIU as a Secretariat for the

15. DTVET) and other relevant ministries and agencies involved in TVET. The main function o f the Secretariat i s to facilitate the implementation o f Component 1. I t i s also responsible for (a) assuring steady progress o f execution in accordance to an implementation schedule reviewed and approved by the Wor ld Bank, (b) regular reporting to the CESP, and (c) ensuring that a high ethical standard and transparency i s maintained throughout the process.

The CESP-Secretariat will work in close coordination with the concerned departments (such as

16. approved by an A c t o f Parliament, and shall be independent o f a l l ministerial linkages. This includes the Afghan National Qualifications Authority and the awarding boards, such as, the Board for Secondary Education, the National Vocational Education and Training Board, the Islamic Education Board, and the Higher Education Board. The statutory nature o f these decisions will ensure the corresponding developments needed to finance such an entity in the init ial years, with the expectation that over time (approximately ten years) these bodies will become self-sustaining

All new regulatory bodies established under Component 1, would be statutory bodies having been

17. All new regulatory bodies will be headed by professionals who will have the tit le o f CEO. For the interim period, they will receive some support f rom the project but in the long run these new bodies

l1 Ths MOU has been signed by a l l the concerned Ministries and the MOF o n December 14,2007

30

will receive financing f rom the Government, but through a direct budget l ine that does not pass through the provider ministries, such as, MOE, M O L S A M D , and MOHE. Such an arrangement will ensure that the quality control and quality assurance functions o f these institutions, i s not compromised by a financial dependence on provider ministries. Such a separation between a regulatory authority and providers i s needed to ensure checks and balances in the system to improving the quality, relevance, equity and access to education and training programs.

18. The CESP may evolve into an oversight committee to oversee the functioning o f the ANQA and related bodies depending upon the view that the Government takes after the establishment o f the ANQA. At this point in time however, it i s anticipated that the CESP will cease to exist once the ANQA has been established.

19. The CESP will put in place the necessary administrative, legal and regulatory foundations needed to establish the ANQA in a time-bound manner. Outputs, approvals and concurrences o f the CESP wil l therefore include: (a) the presentation and ratification o f an Ac t in Parliament for the establishment o f the ANQA, and to define i t s Charter, role and mandate under the Act, and (b) a l l other interventions required to effectively implement the Act.

20. Qualifications Framework (NQF) for the recognition, development and award o f qualifications based on standards, ski l ls , and competencies to be achieved by student and trainees; (ii) establish and promote the maintenance o f awards standards at least in the area o f WET and perhaps in other areas as we l l depending o n which other bodies are established; and (iii) promote and facilitate access, progression and movement through the Framework.

The specific functions o f the ANQA will be to: (i) establish and maintain a National

2 1. ordinate qualifications, standards, quality assurance and awarding authorities for the education and training sectors. In particular, the Act will simultaneously establish the National Vocational Education and Training Board (NVETB)”, which will be a major element in terms o f TVET reforms.

The A c t will also establish or modify other institutions which together will constitute the sub-

Sub-Component 1.2: Establish the Afghan National Qualifications Framework (Total $0.8 million, IDA $0.8 million)

22. This sub-component will be implemented by the ANQA which will oversee the design, development, and institutionalization o f the NQF. The NQF will provide a levels-based structure needed to map a l l education and training competencies into specific award-types and helps to create a learner centered environment.

23. due to conflict years, The NQF will help to:

This i s particularly important in the Afghan context given the disruption in education and training

0

0

recognize prior learning (for example, o f the large number o f IDPs and returnees), bring about much needed standardization through the adoption o f levels based curricula and awards, provide a clear signal to employers o n the abilities and sk i l l s available,

The Act w i l l also provide space for the establishment o f the following: Secondary Education Board, Higher Education Board, the Islamic Education Board. For general education, i t i s proposed that a Board o f Secondary and Higher Secondary education be established independent o f the Ministry o f Education to set standards and accredit secondary and senior secondary programs offered through government schools, within the prescriptions o f the ANQA. The Board could also conduct the School Leaving Certificate Examination.

12

31

0 allow trainees to concretize their learning needs and develop a commitment to l i f e long learning lay the groundwork for reciprocity and mutual recognition arrangements with other countries.

24. Establishing and maintaining an NQF will require a number o f steps: 0

0

engage in extensive consultations in the process o f developing the guidelines for establishing the NQF, decide on policies and criteria o n which the NQF i s t o be established prepare an outline o f the proposed framework. define the relevant levels in the framework and the generic learning outcomes (knowledge, sk i l l s and competences) associated with each level. prepare a backgroundconsultative paper on the proposed NQF development for the next series o f consultations to obtain a consensus on this with other stakeholders

25. move towards a more learner centered approach to education and training, instead o f the current system where the learner i s merely a participant.

At each step o f the way it i s important to review the purpose o f the NQF in light o f the need to

26. with awarding bodies, such as, NVETB, to apply this new framework, develop standards for new qualifications, and ‘map’ existing qualifications o n to the framework.

Once a framework has been mapped out and legally approved, the Authority would have to work

Sub-component 1.3: Establish Awarding Board (Total $0.4 million, IDA $0.4 million)

27. As stated earlier, the A c t will also provide the necessary legal and regulatory underpinning needed to establish several awarding bodies or councils. For TVET, the Ac t will provide legislative cover for the establishment o f a National Vocational Education and Training Board (NVETB) with a formal charter. The Act will also provide space for the establishment o f a Board for Secondary Education, an Islamic Education Board, and a Higher Education Board as stated earlier.

28. (please refer to Education Sector Strategy prepared by the ANDs and to the strategy document o f the NSDP). I t i s anticipated that the pol icy functions currently being undertaken by the various departments within the MOE, MOHE, M O L S A M D , and the NSDP PIU will be transferred to the NVETB once it has been established. These Boards wil l be independent entities with their own staffing, budget and functions, but will act under the direction o f the ANQA to realize their aims and objectives, as set out in the Act. The NVETB will be a jo in t decision making body and wil l include in i t s membership a l l the key national stakeholders involved in the TVET system in the country.

The establishment o f the NVETB has already been envisaged in earlier government documents

29. and in ensuring that the procedures set by it are implemented by providers. The Boards will maintain the quality and standards demanded by the ANQA. They will also have the right to determine credit for pr ior learning and the awards to individuals who have not gone through any specific provider or without participation in specific programs, in terms o f the NQF.

The Boards will be primarily responsible for facilitating and applying the policies o f the ANQA

30. by the ANQA are being complied with through the conduct o f a common school leaving certification examination, and through other quality control and assurance mechanisms. The MOE has expressed a desire to establish an Islamic Education and Training Board to provide a systematic relationship between students in Islamic education programs and those in general or vocational schooling. This wil l a l low for

The proposed Secondary Education Board will help ensure that the ‘school leaving’ standards set

32

developing coherence across similar levels o f competencies in both general and Islamic education, and permit the movement o f students from one to the other. The adoption o f such a model would make it a f i rst o f i t s kind in the world.

Component 2: Improve Relevance, Quality and Efficiency of TVET (Total $18.5 million, IDA $12.5 million and Norway $6.0 million”)

3 1. programs, and to increase the number o f graduates from these programs, through the establishment o f a new institute, and by undertaking reforms in a select number o f other institutions. Training programs will be contracted to experienced, national and international training institutions through partnership arrangements. The partners will develop and implement comprehensive training packages, using competency-based approaches in selected sectors. Given that these training packages will be designed with modem and up to date standards and curriculum, this will allow for them to be mapped into the NQF once this has been established at a later stage. It should be noted that Component 2 will not be held in abeyance till Component 1 has been fully implemented, both will be implemented simultaneously. Courses developed for Component 2 and 3 will be placed on the Framework (at the appropriate level) once the NQF has been developed. Programmed activities will focus on both direct teaching o f students and on the training o f TVET teachers.

The objective o f this component i s to improve the relevance, quality and efficiency of TVET

Sub-component 2.1 : Establish the National Institute of Management and Administration (NIMA) (Total $11.0 million, IDA $5.0 million and Government of Norway $6.0 rni~ion’~)

32. Administration, under a cabinet decision involving the Ministries o f Education, Higher Education, and Economy. The Institute will provide training in the areas o f (i) Management and Administration, (ii) Accounting, and (iii) Information and Communications Technology (ICT). The Insti tute will cater to students at Grades 13 and 14. Thus, minimum requirements for entry to this Institute would be a pass in Grade 12 from either the general or vocational education streams. A new, fully equipped, campus will be developed and i s likely to cater to about 2000 per year in all three fields.

This sub-component i s aimed at establishing a new National Inst i tute o f Management and

33. USAID (parallel financing) and the Government o f Norway (co-financed with IDA through the ARTF). The Government o f Norway and USAID will provide U S $ 6 mil l ion each over a three year period. IDA will provide an additional U S $ 5 mil l ion over a 5 year period. While USAID, through it principal contracting partner, Bearing Point, will support the project through the development and implementation o f all necessary software components including, provision o f international experts and trainers, text books, computer software, etc., the Government o f Norway and IDA will finance hardware costs associated with the establishment o f this institute. This will primarily focus on c iv i l works, goods and equipment. Donor coordination has been enshrined in an MOU between USAID, the Government o f Norway and the GOA, signed on October 10,2007, and to which IDA was a witness.

Donor Sumort and Coordination: This sub-component will be executed in a partnership with

34. assistance will decrease over time and the Insti tute will be increasingly run by Afghans. The MOE/GOA has also committed to take on an increasing share o f the operating budget and cover all local costs. To this effect, GOA has committed to financing all local costs o f the Institute &om the very start o f the

It i s anticipated that the contribution from USAID, particularly in terms o f direct technical

l3 Expected contributions f rom Borrower (US $ 3 million) and USAID (US $ 6 million) not reflected here as these are financed directly. Only co-financing from Government o f Norway i s administered through the ARTF. l4 All o f USAID’s expected contribution o f U S $ 6 mil l ion will be focused on Sub-component 2.1.

33

project at Year 1. This will help ensure the sustainability o f the investment both by reducing the operating costs o f the institute to a more meaningful amount, and by providing an environment where wel l qualified, professional Afghans run the Institute and eventually take o n training roles.

35. Oversight Provision: A Steering Committee (SC) will be established to provide oversight to the functioning o f the Institute. The SC i s expected to have participation f rom the three concerned ministries, members o f the private sector and academia, and with a revolving membership f rom the three principal donor organizations. The SC will be Chaired by the Minister for Education, as the other ministries party to the Cabinet decision have given the MOE the leadership role o n this Institute.

36. over NIMA. Whi le SC will be concerned with strategic direction and internal and external policy, DTVET will primarily be concerned with ensuring that overall policies o f the national government are being adhered to. The Institute will be established as an autonomous one with n o role o f the two oversight bodies o n i t s day to day functioning. The autonomous nature o f the Institute will ensure the management’s complete and sole responsibility and accountability for i t s functioning, performance and the outcomes achieved. All Institute level decisions including issues such as faculty hiring and replacement, student selection procedures and systems, assessments, course content, identification and procurement o f teaching learning materials, and numerous other decisions to be taken in the running o f an institution o f this kind will be at the sole discretion o f the Institute’s management. The SC and the MOE together wil l approve the annual or multi-year work plans o f the Institute and monitor progress carefully to ensure that the planned targets are being met.

Institutional Autonomy: The SC and DTVET will have distinct supervision and oversight roles

37. Contract-Out Management and ODeration: In the init ial years o f the Institute’s operation, the program will be managed by contracting out to experienced, reputed, international training providers.

38. Students in the program will be trained by Afghan trainers who have undergone intensive TOT programs with the partner agency selected to manage this Institute. T w o forms o f TOT programs will be provided - an Accelerated Training Program for Year 1, and a Basic Training Program thereafter. The TOT program will also be open to participants o f other institutions in Afghanistan who desire to upgrade their faculty capacities in the three fields specified under this program. The international faculty will provide a l l the necessary supervision to Afghan faculty and thus, help in the capacity building objectives.

Training o f Trainers: An important part o f this program will be the training o f trainers (TOT).

39. Equity Issues: The GOA desires that students at the Institute shall be drawn f rom a l l parts o f the country. The Institute will ensure equitable access through the provision o f on-site residential facilities. I t has been decided that students from outside o f Kabul (likely to be about 70% o f the total) will be lodged in dormitories constructed o n the Institute’s premises. I t i s expected this approach would also help in addressing concerns o f gender equity. Since parity may be diff icult to achieve in a country l ike Afghanistan, widespread dissemination campaigns will be needed to ensure regular and continued participation o f female students. Alternatives to being housed at the Institute could be to provide an equivalent stipend and allows such students to l ive with relatives in Kabul. Additionally, given the post- conflict status o f the country and the large number o f persons with disabilities, due to injuries and otherwise, the program wil l focus o n making these available to a broader set o f individuals.

40. Course Structure: The agency contracted to run this institute wil l be given the freedom to devise the details o f the curriculum. However, the structure o f courses will fo l low a modular, competency based model. All programs offered by the Institute will conform to the developments in the overall structure being institutionalized through Component 1. All the coursed programs offered by the Institute will have to be mapped on to the NQF after i t s establishment in Year 2. I t i s expected that the Institute will primarily provide three types o f training programs - (i) a 1 year Certificate Program, (ii) a 2 year Diploma

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Program and (iii) a host o f short-courses aimed at individuals who are unable to participate in longer term programs due to work commitments. The proportion o f these courses will be determined by the Institute’s management as a response to the perceived demand for various program lengths.

41. Accreditation and Professional Certification: I t i s expected that any provider selected to manage and run the Institute will itself be accredited and recognized by various international institutes. The awarding o f certificates/diplomas will be done by the Awarding Bodies once established. Whi le this will greatly increase the mobi l i ty o f the Institute’s graduates, students will also be encouraged to obtain professional certification through industry or professional bodies, such as, various regional and international chartered accounting institutes and other professional bodies (e.g., I C A S L or ACCA, etc.), and in the area o f ICT through Microsoft or Cisco Certification programs or any other equivalent programs. The Institute’s management will be responsible for developing the necessary linkages needed for professional certification with the help o f the donor partners. The percentage o f graduates o f these programs who obtain professional certification will be one o f the key indicators o f the success o f this Institute.

42. expected that an Imprest Bank account will be opened to permit f lexibil i ty in the day to day functioning o f the Institute. All the courses offered at the Institute will be costed-out and a fee p lan prepared and students interested in attending the Institute without financial support f rom the MOE or Institute, will become eligible for participation o n a fee paying basis. Financing f rom such sources or from the sale o f shorter term programs will be retained within the Institute for future investments.

Imprest Account and Cost Recoveq: A long with the need for operational autonomy, i t i s

43. to see that this does not have a significant impact o n equity. T h i s will require the implementation o f affirmative action programs and the introduction o f bridging courses in English and Computer Literacy, as wel l as refresher programs in basic mathematics and other relevant subjects.

Sub-Component 2.2: Institution-Based Reform Package (Total $7.0 million IDA $7.0 milli~n’~)

Med ium o f Instruction: The medium o f instruction will be English. However, care shall be taken

44. DTVET’s remaining 42 institutions which have not received support f rom other donors16. These institutions are plagued by the same issues discussed earlier in the document, including problems in institutional and regulatory structures (fragmented decision making), governance, management and administration at the Institute and DTVET level (for example, n o stakeholder involvement and centralized decision making with litt le room for decisions to be taken at the Institute level,), programs with very l i t t l e relevance (supply driven programs with litt le links to the needs o f the labor market), poor quality o f inputs and outcomes (resource constraints, poorly trained teachers and trainers, and very l itt le equipment and materials), and finally poor planning for changing these attributes o f the system.

This sub-component aims to support reforms and rehabilitation in a self-selected subset o f the

45. This sub-component will re-orient a select number o f institutions to be more responsive to the needs o f the labor market, improve the quality o f the training provided, establish programs to help link trainees to market opportunities, and rationalize programs and activities that are not in tune with the above mentioned characteristics o f a we l l developed TVET system. This re-orientation would be undertaken through a sequence o f reform measures, each o f which wil l trigger a tranche-release to undertake the next set o f reform and rehabilitation activities.

l5 Borrower’s expected contribution o f U S $ 3 mil l ion i s likely to be spent on Sub-Component 2.2. l6 The Technical School in Kabul i s being rehabilitated under support from KfW.

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46. This sub-component i s deliberately kept flexible in an effort to ensure that new ideas and developments can be incorporated with relative ease as it i s diff icult to fully define the steps to be undertaken in the reform process and predict the nature o f the partnerships that may emerge. For example, discussions are already underway for the establishment o f a Construction Trade Training Center in Mazar e Sharif to be jo in t ly managed by the Afghan Chamber o f Commerce (Mazar branch) and MOE, and similar discussions are underway for the involvement o f the Ministry o f Agriculture and support f rom the Government o f the Netherlands for development o f programs in agriculture.

47. Mechanism for Self-selection: Three broad measures will have to be agreed to by each institute to become eligible for program participation - (1) limiting training to focus sectors, (2) agreeing to re- orient the institutes by expanding stakeholder involvement and serving community and industry at large and (iii) gradually declining government contribution to the overall operating budget o f the institute beginning in Year 3.

Focus Sectors: The f irst set o f reforms will involve (a) the narrowing down the sectors or occupational areas in which training wil l be provided and (b) converting mono-trade schools to multi-trade schools. The focus sectors have been identified based on perceived needs o f the market and includes at present: (i) management and administration, (ii) accounting, (iii) ICT, (iv) basic engineering sk i l l s (such construction related trades, metal work, and mechanical repairs), and (v) agriculture and related sub-sectors. Training outside o f these areas should be phased out.

0 Stakeholder Involvement: This reform measure needs to be adopted before program participation i s triggered. The purpose o f this reform i s to encourage the active participation o f industry, private sector enterprises, and other key stakeholders in the management and guiding o f the institute’s activities.

0 Gradually Declining Government Sup~or t : Institute directors, faculty, staff and students agree to declining support f rom Government beginning in Year 3. This will ensure that under a decentralized management framework, Institute management wil l liaise closely with the needs o f the private sector and begin to develop channels o f alternative financing”.

48. All institutions that subscribe to and implement these reform measures will be eligible to participate in the next stage o f the reform program in terms of: (i) physical and equipment rehabilitation and upgradation, (ii) training o f administrative, management and faculty personnel, (iii) developing, adapting, and adopting course content, curriculum, standards, and teaching-learning materials, (iv) establish internship and placement programs for trainees, (v) the development o f tools to monitor the process o f transformation, and (vi) adoption o f a continuing program o f quality management an assurance in l ine with the prescriptions o f the NVETB in these regards.

49. need o f renovation and physical rehabilitation due to conflict related damage, lack o f maintenance, and poor quality construction. The project wil l finance the upgradation o f existing buildings and the construction o f new learning spaces and workshopsAaboratories as needed to carry-out training functions. The program will also finance stop-gap measures needed to accommodate students in other facilities while their institutes are being rehabilitated. Preliminary estimates for the rehabilitation o f a ‘generic’

Physical and Eauipment Rehabilitation and Upmadation: Mos t buildings and campuses are in

Whi le the current Constitution o f the country ensures free education and training, th is w i l l either require an amendment or the MOE would have to contract in a private partner who w i l l have the authority to charge fees for training programs. An initial amount o f merit scholarships w i l l be agreed with the Government for a three year period and beyond this negotiated every year during supervision missions.

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institution has been made and it i s believed that depending upon the specific conditions o f each institute, a maximum o f ten institutes may be accommodated under this f i rst batch. This i s also a good opportunity to develop flexible learning spaces and engage in partnership arrangements with industry to allow for cost- effective programs.

50. provide training. Specifically, the will include such things as furniture, tools and equipment, computers and related peripherals, and other fixtures and equipment as may be needed (such as, access to V S A T facilities, etc.).

The project will also finance the purchase o f equipment, tools, and other consumables needed to

5 1. Training o f Administrative, Management and Faculty Personnel: Administrative and management capacity within the institutions i s very weak and wil l be strengthened in two ways -by expanding the management team to include participation o f external partners f rom private and NGOs sector, and through direct recruitment o f new personnel with the necessary capacities and training o f existing personnel. Specifically, administrative and management capacity building will include training in areas such as strategic planning, annual planning, budgeting, procurement and finance, labor market assessment and o n how to promote the institute to stakeholders.

52. curriculum, standards, and newly developed instructional materials. Furthermore, pedagogical training will be an important part in the faculty and training o f trainers program. The emphasis o n TOT in the Sub- component 2.1, will also help ensure a steady f l ow o f teachers and trainers for the institutions being rehabilitated through this sub-component.

Faculty and trainers will be specifically trained to deliver courses which incorporate revised

53. Course Content: The project will finance the development o f course materials, teaching learning materials, training manuals, teaching guides, and other consumables needed for training, and will ensure that a l l o f the above dovetail into Component 1 that will help develop clear guidelines o n standard setting and levels/volume o n the NQF. Specifically, with regards to the teaching learning material such as books and manuals, efforts will be made to minimize duplication o f efforts through the adoption o f what already exists in the public domain either in the country or in neighboring countries".

54. Student Internships and Placement: Each institute being financed through this project will establish a placement cell in order to build close linkages with the market and industry. Internship assignments or apprenticeship programs must be a defined and compulsory part o f every student's work programlg. The responsibility o f these cells would be to prepare the trainee adequately for school-to-work transition, inform her o f the opportunities that exist in the labor market, identification and purchase o f appropriate tool k i t s for trainees completing their program o f learning, and develop and maintain close links between the institute and employers in the schools vicinity and elsewhere.

55. short-listed, an elaborate project monitoring system would have to be developed to ensure that the transformation f rom a supply driven program to an institute that i s responsive to the needs o f i t s surroundings, i s invested in the trainees future, and measures success only through the performance o f i t s

Promam Monitoring: Once the institutes to receive financing through this project have been

" Text books available in Iran lend themselves (with minimal alterations) for easy use in Afghanistan given the proximity between Farsi and Dar i languages. Many o f these books have recently begun to come into the bazaars in Kabul and are readily available for student use.

Whether the internship comes at the end o f an extended period o f study, for example for students in accounting programs, or whether the student's course o f study consists o f a couple o f months in class, followed by a 3 months on-the-job training, followed by another few months in class, etc. (as might be the case in classes on masonry, construction, brick laying, etc.) would be for the institute's reformed management to decide. This would also apply to Sub-Component 2.1,

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students in the labor market can be carefully tracked. This will allow for rapid scaling up o f the program, and for simultaneously ensuring that a l l bottlenecks that may arise can be quickly and effectively mitigated.

56. package will include and state the init ial conditions and undertakings that have to be met by institutions intending to participate in the program. The MOE will then review the responses o f the individual institutions and decide upon institution specific strategies and action programs with the institute.

The MOE will develop a detailed guidance document on what the reforms and rehabilitation

Sub-component 2.3: Management Reforms in DTVET (Total $0.5 million, IDA $0.5 million)

57. departments and personnel within DTVET develop a better understanding o f the structure and functioning o f modem TVET systems; (ii) become more responsive to market needs and accountable for effective vocational training delivery through institutions under their control, and (iii) the administrative procedures within DTVET are re-oriented in terms o f the wider responsibilities that the implementation o f the project will entail.

This sub-component aims to support reforms within the DTVET to ensure that: (i) the various

58. achieving a TVET management system that i s decentralized. As has been mentioned earlier, the TVET system in Afghanistan as it exists n o w i s a very centralized structure, with litt le t o n o room at the institution level both administratively and financially to be able to take decisions critical t o the survival and functioning o f such institutions in a reformed TVET environment. By further delegating roles and responsibilities in management and administration to the institution- level. It i s expected that the institutes will become more responsive to the specific needs o f i t s clients in the community and private sector.

Specifically, the reform measure to be implemented through this sub-component focuses o n

59. These reforms will entail a review o f a l l staffing, responsibilities and occupational standards, and other procedures to streamline the delivery o f services f rom the DTVET. The Government has expressed an interest in having a decentralized framework for TVET, and has explicit ly stated that i t wishes that by the end o f Year 5, that there would only be a loose relationship between the Ministry and the institutions under i t s purview. The specific focus o f this sub-component would be to help and trace out the changes needed at the Department over time to achieve such a loose relationship between the DTVET and the institutions. In as much as the DTVET is an important institutional set-up in the TVET sector, i t i s the responsibility o f this Directorate to ensure a seamless integration between internal DTVET reforms and external structural changes brought about through the creation o f the ANQA, the NVETB, and the development o f the NQF. Therefore, internal reforms shall be designed and implemented to support overall project objectives. Such reforms will include building capacity within the DTVET for framing administrative policy o n the basis o f Monitor ing and Evaluation studies carried out by various agencies and uni ts o n the effectiveness and progress o f the TVET system. Lastly, this sub-component will focus o n the M I S needs o f the DTVET and the IT infrastructure needed to support it.

Component 3: Skills Development Program and Market Linkages with a Rural Focus (Total $5.0 million, IDA $5.0 million)

60. This component aims to support a slice o f the on-going activities by the National Skills Development Program, and simultaneously build the capacity within NSDP and M O L S A M D to undertake reforms in technical and vocational training, labor market assessments, and to strengthen industrial and market linkages. The three program subcomponents follow.

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Sub-Component 3.1 : Contracted Vocational Training Packages (Total $3.0 million, IDA $3.0 million)

61. This component wil l contract out to training providers market driven training for wage- and self- employment. Training providers will be chosen competitively and their performance formatively monitored. Training will be based on localized labor market studies and wil l typically cover trades in the agriculture (including horticulture, animal husbandry, apiculture and market gardens), construction sector and fabrication, etc. Where training relates to self-employment, BDS training and facilitative links to micro-finance will be provided. This sub-component builds on existing training programs facilitated by the NSDP. In the current Afghan government’s FY, the NSDP i s facilitating more than U S $ 10 mill ion dollars worth o f training programs in about 24 provinces across the country. This i s done through contracts primarily with 6-7 main training providers, most o f whom are established as NGOs. By building on an existing model o f training, the project will ensure speedy implementation. However, by focusing on training needs in rural areas and by rigorously evaluating the program, the project will help to develop much needed information on training needs and impacts in rural areas and on specific target populations.

62. ‘Chronically Poor Women’*’, and (iii) Marginal farmers and landless farm laborers.

The specific focus within th is sub-component would be on: (i) Youth development, (ii)

Youth DeveloDment: This activity will be targeted at youth, particularly those who have missed out on educational and training opportunities, with the aim to provide them with market driven vocational and business development training. Such training will not only provide them with a toe-hold on the ladder o f life-long learning but could contribute to their own, and families’ livelihood. This i s particularly true in a post-conflict setting, where the concern l ies in the fact that male youth, unable to find employment, will become disenchanted and demoralized and become a security risk.

Chronically Poor Women: Given nearly three decades o f conflict and social and cultural mores, the plight o f women in Afghanistan i s more difficult to address than in some o f the neighboring countries. L o w labor force participation rates o f women, suggest that any educational and training interventions aimed at improving income earning opportunities, and to eke out a livelihood, would have to focus on activities that can be done within the personal confines o f one’s home. Recent research studies, commissioned by JICA and GTZ, provide some focus on how to identify and work more effectively with extremely poor women.

Marginal Farmers: Key areas o f interventions have been defined and wil l support the introduction o f improved farming methodologies, increased yields and better marketing o f farm produce. Technical assistance to support the development o f a comprehensive set of curriculum and facilitation-of-training materials at an entry level (into the NQF), covering key agriculture-sector topics such as: Horticulture, Food processing, Cash Crop Farming, Ecosystem protection, Livestock Restocking, Aquatic Farming, Plant Protection. These materials wil l be designed to be accessible by marginal farmers. Trainer farmers, drawn from the same faming communities, will be trained in the use o f these highly accessible learning materials and will work with groups o f marginal farmers on their own land, to introduce the new farming methodologies.

’’ Terminology used by the ANDS.

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63. Training will be contracted out to reputable agencies with expertise in the area o f WET, and who are capable o f delivering well-focused, market driven vocational and business development training interventions, sensitive to the needs o f the youth, and which wil l lead to wage- and self-employment. The NSDP mandates in the contracts with training providers the percentage o f trainees to be in self- or waged- employment within a certain number o f months after the completion o f the program, and tracks this through systematic tracer studies.

64. T o make the program impacts more explicit, the NSDP has agreed to stipulate in their contracting procedures with training agencies the need for a randomized allocation o f potential trainees into treatment and control groups and to periodically track the two groups over time to determine the impact o f training on labor market outcomes for people receiving training and a comparable control group. This more rigorous evaluation method will be applied beginning next month in the next round o f NSDP training facilitation, even though we wil l not be financing this activity.

65. mixtures o f both (on-the-job/off-the-job ‘dual’-system training). All training wil l be underpinned and supported through a focus on essential competencies, specifically, literacy and numeracy.

Training will be conducted through a combination o f workplace or centre-based training, or

66. follow-up business incubation support training and intervention. In these cases the NSDP supports the procurement o f independent and registered Business Development Service (BDS) providers to provide B D S training and facilitate the essential linkage to sources o f finance - such as savings, revolving funds and microfinance.

Trainees in the area o f business development services (BDS), could be further provided with

Sub-Component 3.2: Training of Trainers Program (Total $1.5 million, IDA $1.5 million)

67. Contracted training for Productive Skills Officers (PSOs), Business Development Service (BDS) trainers, and selected trade trainers; and the development o f a menu o f 15-20 contextualized productive sk i l l s curriculum materials, through competitively selected public and private/NGO training providers, or consortia o f providers, to support the USAID-funded Learning and Community Empowerment Project 2 (LCEP2).

68. The PSOs will do the following: (i) Assessing the employment market and marketing opportunities in the community districts, (ii) Locating training venues and trainers for the delivery o f the productive s lu l ls elements, (iii) Assisting the literacy teachers and members o f the Community Development Councils in ensuring that the productive skills training i s seamlessly l inked to literacy learning, and to viable l ivelihood improvement opportunities and (iv) providing guidance to selected s lu l l s trainers in h o w to deliver f i rst level skills development modules l inked to literacy development.

69. LCEP 2 i s a USAID-funded project which will support the development o f communities through a combination o f literacy and productive sk i l l s development. UN Habitat has identified the lead agency to implement the LCEP2, which will be delivered through the Ministry o f Education’s (MoE’s) Literacy Department. The key a im here i s t o adopt key lessons learned form global research on acquisition o f functional literacy, and deliver much more effective literacy development courses by linking them to productive s lu l l s training.

70. sk i l l s development project components by developing a range o f introductory Skills Development curriculum modules suitable for: (i) Trainees having very basic levels o f pr ior learning; (ii) focus on a wide range o f agricultural, horticultural, animal husbandry and food processing, and off-farm slulls, and (iii) incorporating literacy-development guide notes for the trainer.

The project will finance capacity building for LCEP2 through hnding the fol lowing productive

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Sub-component 3.3: Capacity Building for NSDPMOLSAMD (Total $0.5 million, IDA $0.5 million)

7 1. ' This sub-component will build the capacity within NSDPMOLSAMD in the following areas: (1) curriculum and materials development, (ii) strengthen the capacity within these organizations to collect, collate, analyze and interpret labor market information and to support capacity building to carry out a labor force survey jointly with the CSO; and (iii) will train up to 10 key personnel from among the actors involved in TVET planning, management and outreach from the NSDP, MOLSAMD, and MOE. In addition, the sub-component wil l finance capacity development through study tours to countries in the region and beyond to obtain a better understanding o f how modem TVET systems exist and operate. Three comparative study visits (Malaysia, Bangladesh, and Iran), consisting o f four NSDP/(VET sector) members o f staff for each v is i t . (Three separate groups o f four staff completing one study visit per group.) Each group will follow the same pre-prepared study guidelines and then work together after the visi ts to present a comparative overview o f TVET management systems for each country visited. (Allocation wil l cover visits, associated planning and post-visit workshop activity.)

72. Curriculum and Materials Development Specialist: The project will finance high quality, international, Technical Assistance in the area o f Curriculum and Materials Development. Expert will develop the curriculum and standards in grassroots agricultural training, and training facilitation materials, suitable for very poor farmers having low levels o f basic education, and work closely with all other organizations that undertake similar work, such as, MAIL, MRRD, FAO, and other organizations and offices. Widespread consultation and dissemination will have to be undertaken with practitioners, government, private sector and other entities to ensure an adoption o f standards and levels described. Level descriptors from the NQF can be used to develop the volume and duration o f such training programs so that a coherent set o f training standards can be developed.

73. six-month period to provide technical assistance to support the professional competence and development o f a team o f data collection and processing managers and analysts attached to the newly established Labor Market Information and Analysis Unit (LMIAU) under the MOLSAMD.

Labor Market Information Specialist: The project will finance an international consultant, for a

74. Training in TVET ManaPement and Administration: The project will finance accredited Distance Learning programs o f study in the area o f TVET management and administration for individuals involved in the management o f the existing WET system in the country. This will include individuals from the NSDP, MOLSAMD, MOE and other ministr ies and organizations as appropriate. The training will be through an informal distance learning program and can be designed to suit the needs o f each individual.

Component 4: Research, Monitoring & Evaluation (Total $1.0 million, IDA $1.0 million)

75. will provide routine, timely, and accurate information on program implementation and allow for the measurement o f longer term impacts and independent research.

The objective o f this component i s to develop a program monitoring and information system that

Sub-component 4.1: Monitoring and Decision Support (Total $0.4 million, IDA $0.4 million)

76. This sub-component will put in place monitoring and information systems to measure program progress. Information generated by the monitoring system (and other relevant data) will be used as input for a decision support mechanism which will identify alternatives and recommend course-corrections in program implementation.

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77. and NSDP for Component 2 and 3 respectively. Specifically, in the case MOE, whi le the DTVET will be primarily responsible, i t will work in close cooperation with the DOP o f MOE and develop key monitoring instruments within the EMIS fkamework. Development o f data collection tools will be designed, piloted and implemented and within 6 months o f project effectiveness a thorough baseline will be developed for al l 42 institutions under DTVET’s jurisdiction. T h i s information wil l be updated every year, and the project will finance the necessary investments needed to provide this, including computers, experts to further develop and implement the E M I S system, and establish clear and concise reporting mechanisms.

The monitoring o f program implementation, outputs and outcomes will be done by the DTVET

78. With respect t o NSDP, instruments will be developed to monitor and evaluate the program through the course o f the project. This will include developing a good understanding o f participants before, during training and after training participation in the labor market. The project will also finance the further strengthening o f the M&E team under the NSDP both through technical assistance and through the provision o f key goods and equipment.

Sub-Component 4.2: Impact Evaluation (Total $0.6 million, IDA $0.6 million)

79. to stated program objectives and identif ied key performance indicators.

This sub-component will conduct impact evaluations o n specific sub-components in relationship

80. The EMIS team will also be trained by experts to help develop the necessary procedures for sampling, randomization in ini t ia l admissions processes, and methods and procedures to carry out tracer studies o f both those in the eligible and randomly selected and trained cell, and others in the eligible, randomly chosen not to be selected for training, and not trained at the specific institute.

8 1. different the method to be applied for the evaluation o f program impacts are very similar and for this purpose please refer to Annex 5 o n project supervision for a detailed lay-out o f h o w program impacts wil l be evaluated.

Though the target populations for the training under the DTVET and the NSDP might be very

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Annex 4: ESTIMATED PROJECT COSTS

3 3.1

Table 4.1 : Estimated Financing Requirements Comnonent DescriDtion I IDA I Norwav I TOTALz1

Ski l l s Development Program and Market Linkages with RuralFocus 5.0 5.0 Contracted Vocational Training Projects 3.0 3.0

3.2 3.3

Training o f Trainers 1.5 1.5 Capacity Building for NSDP and MOLSAMD 0.5 0.5

4 4.1 4.2

21 Expected contributions f rom Borrower and USAID in the amounts o f U S $ 4 mil l ion and U S $ 6 mil l ion respectively not shown in the table as i t i s financed directly and on items not covered under project financing.

Improve Relevance, Quality and Efficiency o f TVET 1 .o 1 .o Monitoring and Decision Support 0.4 0.4 Impact Evaluation 0.6 0.6

Total Estimated Financing. 20.0 6.0 26.0

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Annex 5: IMPLEMENTATION ARRANGEMENTS

1. involves MOE, NSDPhIOLSAMD, and MOHE. The Bank team intends to work with a l l three ministries mentioned above, though principally with the DTVET (MOE) and the NSDP (MOLSAMD). Given the different objectives o f each component and specific roles o f a l l key stakeholders in i t s development and implementation, i t i s proposed that the implementation arrangements be designed in such a way as to limit the need for coordination between these two principal ministries and in effect, ring-fence each component f rom the other. As such, Component 2 will be implemented by the DTVET and Component 3 by NSDP.

Institutional Set-Up: The education and training sector cuts across ministerial boundaries and

2. years (World Bank) f rom March 1,2008 to February 28,2013.

Implementation Period: The project will be implemented over a period o f five year and six fiscal

3. capacity to take o n the responsibility o f the implementation and delivery o f this project. The Bank team did consider other alternatives, such as, employing a Facilitating or Implementation Partner to manage and help implement the entire project. This idea was discarded in favor o f using Government systems to implement, which will simultaneously help further build capacity within the Government to undertake such tasks in the future. Furthermore, in a post-conflict setting, there i s a critical need to explicit ly demonstrate that the Government i s both in control and capable o f taking key decisions aimed at improving the lives and welfare o f the population and as such, an interest in visibly establishing Government presence across the country.

Government’s Capacity for Proiect Execution: The DTVET and NSDP PIU both have the

4. Implementation Arrangements: N o new Program Implementation Unit (PIU) will be established for the execution o f this project. Given the emergency nature o f the project, i t s strategic importance, the large number o f activities to be completed within the time frame o f the project, and the s t i l l l imi ted capacity o f the government to be able to coordinate and monitor program implementation, the fo l lowing institutional arrangements have been agreed to ensure that funds disburse quickly, multisectoral objectives are reached, and transparency o f a l l transactions i s maintained.

5. providing ministries - MOE, MOHE, and M O L S A M D . As stated earlier, The DTVET (MOE) will be responsible for the implementation o f Component 2 and the NSDP’s PIU will be responsible for Component 3. These are the two principal service provision components. The DTVET and NSDP will be responsible for Component 4, Research, Monitor ing and Evaluation. These are described in greater detail below.

Component 1 i s an institutional reform component and requires the participation of a l l the three

a. Execution o f Component 1 : A Committee o n Education and Skills Policy will be established under the chairmanship o f the Vice President. It has been agreed between MOE, MOHE and M O L S A M D , that the NSDP PIU wil l take o n the responsibilities o f a Secretariat for the CESP. The CESP will comprise o f the Vice President, representatives o f MOE, MOHE and M O L S A M D , a representative o f MOF, two members representing the private sector, and two members representing the donor community (on a revolving basis). A Designated Officer o f the NSDP wil l be the Secretary to the CESP, but without the rights o f a full member. All ministerial representation will be at the level o f the Minister, with their deputies being identified as the alternates on the committee. The Secretariat so established will be responsible for a l l administrative and management functions o f the CESP - including the hiring o f technical experts needed to draft legal documents needed for the establishment o f new, statutory, regulatory structures, and for the development o f the NQF.

44

b. Memorandum o f Understanding (MOU) between the three concerned ministries and the MOF. This Secretariat will be responsible for overall coordination o f Component 1. The Secretariat will particularly ensure coordination across government, donors, and user-agencies which will be a key requirement for a sustainable and smooth multi-year programmatic approach to building the TVET capacity in the country. A designated officer o f the NSDP will oversee the program, with the assistance o f several short-term, international consultants and longer-term national consultants all chosen competitively.

The agreement to use the NSDP as the Secretariat initially for the CESP i s reflected in a

C.

(such as DTVET) and other relevant ministries and agencies involved in TVET. The main function o f the Secretariat i s to facilitate the implementation o f Component 1. I t i s also responsible for: (a) assuring steady progress o f execution in accordance to an implementation schedule reviewed and approved by the World Bank; (b) regular reporting to the CESP; and (c) ensuring that a high ethical standard and transparency i s maintained throughout the process.

The CESP-Secretariat will work in close coordination with the concerned departments

d. Execution o f Component 2: The DTVET i s a fully established department within the M O E with a total staff o f about 2460 across the country with about 140 staff members managing the Department headquarters in Kabul. A Grants Management Unit within the MOE, which i s responsible for all donor-funded projects in MOE, will play the main fiduciary roles related program activities, such as, all procurement, financial management and reporting as well as all project related coordination with other l ine departments, such as, planning and M&E. All construction and works related aspects o f this component would be handled by the Department o f Construction (DOC) o f the MOE. This would include overall technical guidance on institute rehabilitation and construction. Whi le the DTVET has i t s own Department o f Planning, the project proposes that the overall responsibility for monitoring wil l l ie with the MOE’s Department o f Planning (DOP). All DTVET schools will be included in the EMIS data collection program so that an annual update on all the students through these programs can be maintained.

e. the DTVET as i s done now. However, in terms o f fund flows and personnel decisions, the roles o f the provincial education departments (PEDS) and other officers o f the MOE (such as the engineering staff in the DOC, etc.,) will come into play. While it i s anticipated that under the reform package stated in Component 2.2, schools will gain increasing autonomy as the DTVET moves to a more decentralized management style, the impacts o f such developments on implementation arrangements i s necessarily vague. The MOF has agreed to allow the institutions selected from the 42 institutions under the DTVET to have and access imprest bank accounts to help ensure operation autonomy and flexibility in the implementation o f programs. However, this more laissez-faire management style will have to be supported with intensive monitoring o f project implementation and outcomes, and evaluation o f program success.

Provincial Institutes: Institutes in the provinces will continue to be supported directly by

f. Execution o f Component 3: Implementation o f Component 3 would be the sole responsibility o f the NSDP PIU. As this component i s only a slice o f the activities o f the NSDP, the same procedures will be followed for program implementation as are being done today. The NSDP already employs procurement and financial management processes that conform to Bank guidelines.

g. independence by the Ministry to chart their own course. Nevertheless, MOLSAMD plays a critical role in the fbnctioning o f the NSDP, as the Chairperson o f the NSDP Steering Committee (NSDPSC) i s also the Minister o f MOLSAMD. The NSDP, as an NPP, has a direct budget l ine

The NSDP, while linked to MOLSAMD has been given relative freedom and

45

from the MOF. The authority to clear al l o f NSDP activities rests with the Chairperson o f the NSDPSC. All training contracts are approved by the Chairperson o f the NSDP, but are monitored by the NSDP PIU.

h. Execution o f Component 4: T h i s component will be implemented by DTVET and NSDP respectively for all monitoring o f project activities, while the ministries will outsource evaluation work to third parties.

i. management group, which consist o f the Minister, the Deputy Ministers, the head o f GMU, and other advisers as deemed necessary. T h i s oversight body meets regularly (at least twice monthly) to review overall project implementation progress, and are also responsible for review and approval o f annual work plans and budgets.

The oversight function for all projects implemented by M O E i s performed by a senior

j. which i s made up o f representatives from 11 line ministries and chaired by the Minister o f Labor, Social Affairs and Martyred and Disabled. The steering committee will meet at least every quarter to review overall project implementation progress, and are also responsible for review and approval o f annual work plans and budgets.

The oversight function for the NSDP will be performed by the a steering committee,

k. The Grant Management Unit o f the Ministry o f Education and the Finance Department o f NSDP will be responsible for the financial management o f their respective project components. They will carry out day-to-day financial management operations o f the project, preparation o f M- 16 forms (payment orders), project coding sheet, B27 allotment form and overall contract and project management.

6. that would span both MOE and NSDPMOLSAMD, but then decided against this idea with the realization that i t may be better for implementation purposes to limit the need for coordination across the various entities.

The project preparation team considered the establishment o f a joint program coordination unit

Donor Support and Coordination

7. o f Norway (co-financing). In a recent M O U signing, between USAID, the Governments o f Norway and Afghanis tan.

Component 2 o f the project i s also supported by USAID (parallel financing) and the Government

Monitoring and Evaluation

8. organizations. The monitoring o f programs in the MOE has been considerably strengthened in the past 10 months and the NSDP’s monitoring efforts have been commendable with the conduct o f periodic tracer studies to determine the usefulness and impacts o f these training programs. These are described in some detail below.

The monitoring systems for the Components 2 and 3 exist, to varying degrees, in their respective

9. Monitoring o f M O E TVET Promams: A recent census by the MOE has begun to provide information on the number o f students in DTVETs programs around the country. However, there are no clear policies on monitoring and evaluation in the DTVET and the department has not maintained any centralized, computerized, information on the nearly 11,000 student in their programs. As part o f this project, the DTVETMOE have committed to strengthening the M&E o f TVET programs through a

46

centralized M&E department for the whole ministry, rather than a stand-alone M&E unit for the DTVET department. The DTVET will become the repository o f this information, but the collection, processing, analysis, and interpretation o f this data will be done by the more centralized M&E unit within the MOE.

10. accounting o f their performance during the program and a follow-up o f graduates with respect to their labor market outcomes through tracer studies 6-9 months after program completion. Furthermore, the DTVET should also seek to benefit from the MOE’s decision to develop a HR data base. T h i s will provide information on availability o f trainers, their qualifications, the training they have received in recent years, and the gaps in their sk i l l s sets that need to be filled.

This wil l enable a regular updating o f records o f all students in the programs and proper

1 1. not conduct systematic tracer studies on students and their performance in the labor force, once they leave the program. This leaves the DTVET very little means o f veri f jmg the effectiveness o f training programs offered through the institutions under the DTVET. The DTVET has agreed to conduct, by contracting out to a qualified third-party, systematic tracer studies within a period o f 6-9 months after the completion o f the trainees period o f study. The main aim o f this effort would be to determine the labor market outcomes o f these individuals, and hence the success or failure o f the programs. In addition to this, the Bank team has proposed to work closely with the DTVET to attempt to randomize students in to treatment and control groups during their process o f application. This will be achieved from a l i s t o f all students eligible for admission (assuming that there are more eligible candidates than those that can be admitted or that the program has been over-subscribed) students will be randomly assigned to control and treatment groups. Tracer studies will cover both sets o f students to try and determine the effectiveness o f the training program on labor market outcomes.

Tracer Studies: Given the poor quality o f monitoring, it i s not surprising that the DTVET does

12. exists within the NSDP. The program has a fully staffed M&E department and the training being carried out (by contracted agencies that may be either government, nongovernment, or private institutions) i s closely scrutinized. The monitoring officers visit and inspect contracted out training programs closely. This scrutiny provides a reason for good performance, and lays the foundation stone for a good demand- driven, labor market oriented program. The benchmark o f program success used by the NSDP till this year has been to determine the proportion o f the graduates out o f their contracted research programs who are employed within six months o f completing their training or have a job through self-employment within the same period o f their completing the training.

Monitoring o f NSDP Facilitated Training A very tight and organized system o f monitoring

13. determine the labor market outcomes o f i t s trainees. Two rounds o f such tracer studies have been carried out, typically within a period o f 6-9 months after the completion o f their studies. These studies provide the basis for determining the success or failure o f the training programs since the NSDP’s primary goal i s to ensure that all trainees become more employable after the program, and hence improving their chances for obtaining work andor being self-employed. As stated above, till date the measure o f program success was defined by the percentage o f program participants who were gainfully employed or engaged in self- employment opportunities. Through discussions with the Bank team it has been agreed that the NSDP wil l now seek to obtain a more rigorous measure o f program impact. The NSDP, eager to demonstrate the success o f their model o f training facilitation, have agreed to adopt a rigorous evaluation design beginning this FY, though Bank financing will not be available by then. The section below outlines the approach to be followed and i s applicable to training by the NSDP, and MOE, though the text below refers to NSDP.

This i s typically achieved through tracer studies carried out by the NSDP team in an effort to

47

Design for Evaluating Impacts of NSDP Facilitated Training Program

14. Afghanistan through the provision o f a sk i l l s development and vocational education and training, facilitated by the NSDP. It i s expected that these training programs offered will be responsive to labor market needs and which will provide Afghan women and men with the knowledge and sk i l l s for decent work through increased wage and self-employment opportunities.

Sub-Components 3.1 and 3.2 o f the project a im to contribute to the socio-economic recovery o f

15. In order to achieve this target, the NSDP relies strongly o n Implementing Partners (IP) f rom among NGOs and the private sector. These are selected based o n their quality and offered price for a given project. In each round o f the program the NSDP announces, publicly, i t s intention to train a given number o f trainees in a specific region and asks IPS t o submit their technical and financial proposals22. The technical proposals o f the IPS must contain a labor market assessment, for the areas where they intend to train23, as a justification for the type o f sk i l l s that they are willing to provide. Moreover, recruitment and screening for the program al l are conducted by the selected IPS. These IPS provide information to the public through outreach activities, screen applicants to ensure that they meet the eligibil i ty criteria and assign eligible candidates to classes.

16. NSDP objectives in Afghanistan where the lack o f useful and timely information to a l l actors in the vocational education and training system i s evident. However, there i s not any effort to study the effectiveness o f the trainings o n employment and welfare status o f the participants to help making informed decision about program expansion or even i t s termination.

Although this procedure i s not without i t s limitations, i t is, probably, the fastest way to reach the

17. training programs on participants’ earnings and work opportunities. A social experiment where the eligible participants are randomly assigned to treatment and control groups will be carried out. Econometrics methods will be used to estimate the difference between the responses o f those in the treatment group and those in the control group and this i s the estimated effect o f the training.

This research i s intended to devise a method for estimating the causal impact o f the NSDP

Main Assumptions

18, The a priori bel ief i s that:

0

0

The earning o f the treatment group i s significantly greater than the earning o f the control group Participation in the training program improves the chance and the quality o f employment.

Methodology and Data Sources

19. The overall impact analysis i s designed to examine two major types o f outcome measures:

0 Employment and earnings 0 Dependence o n family, welfare and or public transfers

22 In the recent call for proposals (2007), for example, the NSDP has divided the country in to seven regions and asked the interested IPS to submit proposals for training o f 1400 individuals, on average, for each region. 23 Even, if the training is designed for remote rural areas, the labor market assessment can be part o f the contracted activity.

48

20. Employment and earnings outcomes indicators provide a key summary o f the quality o f an applicant’s post-program employment experiences, and allows for inference on the effectiveness of the training program. Other indicators collected will provide information on trainees and control group individuals personal, household and other characteristics, thereby providing means to understand the manner in which the benefits o f training accrue to various participants.

21. counterfactual o f interest i s the outcome that would have been observed for the beneficiaries, after the program took place, had they not participated in the program. The evaluation problem exists because we only observe persons either in the state o f the world where they participate in a program or in the state o f the world where they do not, but never both.

Since the interest i s to correctly estimate the effect o f the program on the beneficiaries, the

22. Various methods o f dealing with this problem can be found in the literature. One possibility i s to assess the counterfactual using a control group o f non-participants matched on observable characteristics or some scalar aggregate o f those characteristics, such as the propensity score matching (following Rosenbaum and Rubin, 1983). An alternative approach i s to use an instrumental-variables estimator, in which the instrumental variable (IV) identifies the exogenous variation in participation. Naturally these non-experimental methods require assumptions to make up for the missing data on outcomes in the absence o f the intervention. Matching on the basis o f propensity scores requires the conditional independence (sometimes called “strong ignorability”) assumption, namely that outcomes are independent o f participation given the observable covariates. Instrumental- variables methods require an alternative conditional independence assumption, namely the exclusion restriction that the IV i s uncorrelated with outcomes given participation and the control variables.

23. Randomization i s often considered to be the gold-standard for evaluation designs in that i t balances the distributions o f al l (observed or unobserved) covariates between the treatment and control groups. If everyone who was given access to the training automatically took it up and access was assigned randomly then we would have no difficulty estimating the impact on those treated by comparing measured outcomes with those observed for the randomized-out control group. Under weak conditions, an unbiased estimate o f mean impact for those treated can then be obtained by taking the mean difference in the outcome measure (employment say) between the treatment and control groups. This i s equivalent to the regression coefficient o f the outcome measure on a dummy variable for which group one belongs to (treatmentlcontrol). This provides an unbiased estimate o f impact because this dummy variable i s exogenous given randomization and full compliance.

24. descriptive in nature, such as age, gender, education, prior occupational training, work history, wages, determination toward work, assets and herhim household socio-economic characteristics. Some data, however, will be measures o f variables related to program objectives. These data will be compared to data collected at completion o f the program to determine effects. We will use the following steps for collecting the data:

Thus, the data will come from a controlled, randomized experiment. Most participant data will be

. To make sure all eligible candidates are aware o f the program, NSDP training contractors use all national and local media to inform people o f their intent to provide training facilitated by the NSDP. The eligibility conditions are set according to the NSDP goals and are precise enough to be understood by everyone and minimize ambiguities in the selection process. Moreover, at the day o f registration, all applicants will be briefed about the programs and courses offered, possible number o f applicants, and the finite capacity for each course, and the criteria on which the final set o f trainees will be selected

49

. The registration i s local and will be conducted by the evaluation team. A questionnaire wil l be given to each applicant, containing questions o n the following: (i) personal information and their interests; (ii) employment and employment histories; (iii) household characteristics; and (iv) community variables. Staff will be trained to help fill in the forms for those who are illiterate.

Randomized . Eligible? yes -

25. Random Allocation to Training: These data in these questionnaires will then be entered into a computer data base, a l l eligible applicants will be assigned an x digit random number, and they will be then sorted out according to a combination o f their region, gender and lottery number. The assignment o f training will start with the applicant with the lowest lottery number for a given region and gender category. The holder o f the lowest lottery number has this opportunity to register in hisher most favourite course. The same procedure applies to the next lottery numbers.

Control group

26. and third choices if they have not already f i l led up. The assignment continues until a l l classes have been filled. The l i s t o f admitted applicants will be announced to the IPS for enrolment and starting the classes. Those with “too high” lottery number and those who couldn’t enrol in their most interested subject constitute the f i rst control group. The second control group will be matched by NRVA survey (or a separate survey as may become available). This group must contain the eligible people who do not participate.

As the process continues, the courses will fill up and candidates have to register in their second

27. next rounds o f training and probably part o f them will be selected in the future, i t i s possible, as training cycle goes on, to have another control group to investigate the dynamic effects o f training o n target variables. The timetable o n the fol lowing page i s for the current set o f training contracts being issued by NSDP. This round o f training i s being financed through the GOA’S Ordinary Budget, and not through Bank financing. However, the NSDP has adopted the evaluation approach based o n an understanding that the method i s superior. The timetable pertains to the current training contracts and activities.

Since the past experience shows that almost 70% o f not-selected applicants will return for the

Figure 5.1 : Social Experiment With Random Assignment

50

Table 5.1 I Proposed Dates

0910 1107- 1 1 IO 1/07

09101107-11101107

02105108-02115108

02116108-02130108

0310 1 I08 -0313 0108

05121108 -05101108

0 81 1 010 8 -0 812 1 IO 8 0 8125108-0813 010 8 11101108-11/06/08

11/10/08-11/21/08 11125108-11130108 1210 1108- 12130108

0211 0109-0212 1109

02125109- 04l10109

0411 1109-04130109

0511 0109-05l2 1109

0 5 I2410 9-0 61 1 010 9

0611 1109- 06130109

Timetable of Evaluation Activities under Current NSDP Cc Activity

The NSDP requests for proposals, Evaluate them and awards contracts to the IPS 1 . The evaluation team develops participant's data gathering

instruments: questionnaire, questioner guide, computer program for data entry, etc

2. Training interviewer and make them ready for registration day

Registration and enrollment o f applicants, Collection o f baseline data Start o f the class I. 1 (6 month duration classes) Start o f the class 11.1 (9 month duration classes) Analyzing data and providing a preliminary report on socio- economic characteristics o f applicants, Developing the plans and instruments for collecting necessary data regarding the program implementation Review projects records and interview the project director, staff and participants o f class I. 1 End o f class I. 1 Certification o f trainees Review projects records and interview the project director, staff and participants o f class 11.1 End o f class 11.1 Certification o f trainees Developing follow-up data collection methods and instruments 1 St Follow up survey for class I. 1 1'' Follow up survey for class 11.1 Data entry

Analyzing data, f irst report on impact analysis

2nd Follow up survey for class I. 1 2nd Follow up survey for class II. 1 Data entry

Analyzing data, second report on impact analysis

tracts

NSDP By

Evaluation Team

NSDP

I P S

Evaluation Team

Evaluation Team

NSDP & IP Evaluation Team

NSDP & IP Evaluation Team NSDP

Evaluation Team Evaluation Team NSDP

Evaluation Team Evaluation Team

51

Annex 6: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS

Country Issues

1. environment in Afghanistan through the large number o f projects under implementation over the past four years. The Public Administration Capacity Building Project (PACBP) i s the primary instrument to continue and enhance the fiduciary measures put in place during the past years to help ensure transparency and accountability for the funding provided by the Bank and other donors.

The Bank has gained substantial experience and understanding o f the financial management

2. Public Expenditure and Financial Accountability (PEFA) multi-agency partnership program was applied in Afghanistan in June 2005. PEFA i s comprised o f the Wor ld Bank, IMF, EC, and several other agencies. The system i s structured around six core dimensions o f PFM performance: i) budget credibility, ii) comprehensiveness and transparency, iii) policy-based budgeting, iv) predictability and control in budget execution, v) accounting, recording, and reporting, and vi) external scrutiny and audit. Afghanistan’s ratings against the PFM performance indicators generally portray a public sector where financial resources are, by and large, being used for their intended purposes. This has been accomplished with very high levels o f support f rom international f i rms ; this assistance will continue to be needed over the medium term if these ratings are to be maintained. There i s also much room for improvement.

A PFM performance rating system using 28 high-level indicators that was developed by the

3. In spite o f undeniable gains made in reconstruction since the end o f 200 1, the challenges facing Afghanistan remain immense; not least because o f the tenuous security situation in the region and continued prevalence o f a large i l legal and i l l ic i t economy. The pol icy framework benchmarks have not yet been fully costed so various priorities are funded through the annual budgeting process. The rising costs o f the security sector constitute the major constraint on attainment o f fiscal sustainability. With regard to executive oversight, the national assembly wil l play an increasingly active role. All in all, the new national strategy has created high expectations o f the executive which could prove to be quite diff icult to meet.

4. weak outside o f Kabul. The lack o f qualified staff in the c iv i l service and the absence o f qualified counterparts in the government after 30 years o f war and conflicts i s a binding constraint. Delays in reforming the pay structure and grading o f c iv i l servants have severely crippled the public administration o f the country. Domestic revenues lag behind expenditures by a factor o f ten to one. Large-scale corruption could emerge to undermine the government’s efforts to enhance aid flows through national accounts. Capacities to track expenditures and monitor expenditure outcomes have improved, but they need rapid and substantial strengthening if progress toward the attainment o f national development targets i s to be monitored. Currently, 75% o f external revenues bypass government appropriation systems.

The public sector, in spite o f considerable efforts to reform i t s core functions, remains extremely

5. The Wor ld Bank i s financing a Financial Management Advisor to assist the Ministry o f Finance, an Audit Advisor to assist the Control and Audt Office, and a Procurement Advisor to assist in Procurement-related activities. Also an Internal Audit function i s being developed within the Ministry o f Finance with Wor ld Bank financing. USAID, and earlier the Indian Aid Assistance Program, i s financing a team o f consultants and advisors to assist the D a Afghanistan Bank in local as we l l as foreign currency operations. The activities carried out under the existing Public Administration projects have helped the Government to ensure that appropriate fiduciary standards are maintained for public expenditures, including those supported by the Bank and the donor community.

6. Advisors to capacity development and knowledge transfer to the c i v i l servants. Given that, i s expected

Progress has been slower than expected in shifting from operations support provided by the three

52

that the Advisors will continue to be required for the medium term. Challenges s t i l l remain in attaining the agreed upon fiduciary standards and also to further enhance them. And to make matters more complex, the regulatory environment in Afghanistan has advanced significantly in the past three years. Unfortunately, even mastery o f basic skills in the early environment does not fully qualify the c iv i l servants to work effectively in the new emerging environment.

Country Inherent Risk M Source - PFM study M Project Financial H Minimize use o f Designated Account, S Management Risk maximize direct payments to

consultants; a l l procurement through Procurement Advisor

controls and new internal audit will help to reduce the high level o f perceived

Perceived Corruption H Government commitment, internal S

Risk Assessment and Mitigation

N N

N

7. to be addressed. The overall FM risk rating i s high but the residual risk rating after application o f the mitigating measures i s substantial.

The table below identifies the key r isks that the project may face and indicates how these r isks are

OVERALL INHERENT I H

Table 6.1: Financial Management Risks

S

Risk

Engagement o f additional staff in GMU o f MOE and NSDP to strengthen the capacity.

consultants, Suppliers, etc. from the Designated Account (DA) by SDU-MoF. In addition to payments out o f DA funds, the implementing entities can also request the SDU to make i) direct payments from the Credit Account to contractors, consultants or consulting firms, and ii) special commitments for

Payments will be made to contractors,

Risk Rating

M

Risk Mit igat ion Measures

I I Condit ion o f negotiations,

Effectiveness

Residual I Risk 1 B o a r d o r

RISK I I I I

Weak implementing Entity

Funds Flow

S

S

~~~ ~

2. Control Risk Utilization o f the services o f the Grant I M Management Un i t (GMU) o f the Ministry o f Education (MOE), which has gained enormous experience from previous and currently implemented Bank and other donor funded projects. Presence o f qualified and experienced internationallnational staff in GMU o f M O E and in NSDP.

N

N

53

Risk

Budgeting

Accounting Policies and Procedures

Internal Audit

External Audit

Reporting and Monitoring

Overall Control Risk Detection Risk

Risk Rating

S

S

Risk Mitigation Measures

contracts covered by letters o f credit. These payments would only be made by SDU after due processes and proper authorization f rom the implementing entities.

Funds meant to be utilized for activities at the provinces, will be transferred to the Da Afghanistan Bank provincial branch, after due processes at the Mustofiat, funds are received by the imtllementing unit. Respective component’s implementing entity budget committee will coordinate the preparation o f the project’s annual work plan and the derivation o f annual budget there from. The budget committee will include representatives from relevant departments o f the implementing entity, and shall report to the top management. W i l l follow international standards. Project accounting procedures and details o f the FM arrangements w i l l be documented in an FM Manual already being prepared by the key implementing entities - M O E and NSDP, and which will be approved by the Bank MOE’s & NSDP’s newly-created internal audit department w i l l review project internal Control systems W i l l be audited by CAO with support _ _ f rom Audit Advisor Strengthening the SDU i s a priority under the FM Advisor contract, to provide information that w i l l comply wi th agreed format o f financial reports. This will be facilitated by the computerized accounting system being utilized by NSDP and the database that MOE plans to acquire for budget preparation, record keeping, expenditure tracking and generation o f required reaorts.

Adequate accounting, recording, and oversight w i l l be provided in project procedures.

Residual Risk

M

M

S

S

S

S M

Condition of negotiations,

Board or Effectiveness

(YW

N

N

N

N

N

N

54

I I I I I Condition of I

Weaknesses Action

Appointment o f a Finance Officer in GMU o f MOE. Appointment o f a National FM Consultant and an Internal Auditor in NSDP.

Shortage o f qualified and experienced FM staff

negotiations,

Effectiveness

Residual Risk Mitigation Measures 1 Risk 1 Boardor 1 Risk

Responsable Agent

MOE/NSDP/CESP

(YW Accounting/Recording/oversight by SDU - M O F o f all advances/M-16 supported by Financial Management Advisor.

Risk rating: H=high risk; S=substantial risk; M=modest risk; L-low risk

Project internal controls and procedures need to be defined Inter im reports need to include required information

Strengths and Weaknesses

Financial Management Manual MOE/NSDP BY 30th updated October 2007 Un-audited interim financial IDA/MOF/KM Before report formats confirmed negotiations

Strengths

8. The Government provides assurance to the Bank and other donors that the measures in place to ensure appropriate utilization o f funds wi l l not be circumvented. The Government support for PACBP i s strength in itself to enhance financial management in Treasury operations, public procurement, internal audit in the public sector, and external audit by the Auditor General.

9. Affairs and Martyred and Disabled have implemented some IDA-funded grants previously, so it has experience in implementing Bank projects and following Bank procedures.

The key implementing l ine ministries, Ministry o f Education and Ministry o f Labor, Social

Weaknesses and Action Plan

10. suitably qualified and experienced counterpart staff especially for Financial Management. The utilization o f the services o f the Grant Management Unit (GMU) o f the Ministry o f Education (MOE), which has gained enormous experience f i o m previous and currently implemented Bank and other donor funded projects, presence o f qualified and experienced internationahational staff in GMU o f MOE and in NSDP, engagement o f additional staff in GMU o f MOE and in NSDP, together with intensive training programs included in this project, i s expected to strengthen the fiduciary arrangements.

The main weakness in this project, as in many others in Afghanistan, i s the abil ity to attract

I Completion

Supervision

55

Implementing Entity

1 1. Comuonent 1 : A Committee o n Education and Skills Policy wil l be established under the Chairmanship o f the Vice President. I t has been agreed between MOE, MOHE and M O L S A M D , that the NSDP P I U wil l take o n the responsibilities o f a Secretariat for the CESP. The CESP wil l comprise o f the Vice President, representatives o f MOE, MOHE and MOLSAMD, a representative o f MOF, two members representing the private sector, and two members representing the donor community (on a revolving basis). A Designated Officer o f the NSDP will be the Secretary to the CESP, but without the rights o f a full member. All ministerial representation will be at the level o f the Minister, with their deputies being identified as the alternates on the committee. The Secretariat so established will be responsible for a l l administrative and management functions of the CESP - including the hiring o f technical experts needed to draft legal documents needed for the establishment o f new, statutory, regulatory structures, and for the development o f the NQF.

12. The agreement to use the NSDP as the Secretariat init ially for the CESP i s reflected in a Memorandum o f Understanding (MOU) between the three concerned ministries and the MOF. This Secretariat will be responsible for overall coordination o f Component 1, The Secretariat will particularly ensure coordination across government, donors, and user-agencies which will be a key requirement for a sustainable and smooth multi-year programmatic approach to building the WET capacity in the country.

13. Component 2: The DTVET o f MOE will be responsible for the implementation o f this component. The DTVET i s a fully established department within the MOE with a total staff o f about 2460 across the country with about 140 staff members managing the Department headquarters in Kabul. A Grants Management Unit within the MOE, which i s responsible for a l l donor-funded projects in MOE, will play the main fiduciary roles related program activities, such as, a l l procurement, financial management and reporting as we l l as a l l project related coordination with other l ine departments, such as, planning and M&E. All construction and works related aspects o f this component would be handled by the Department o f Construction (DOC) o f the MOE. T h i s would include overall technical guidance o n institute rehabilitation and construction. Whi le the DTVET has i t s own Department o f Planning, the project proposes that the overall responsibility for monitoring will l i e with the MOE’s Department o f Planning (DOP). All DTVET schools will be included in the E M I S data collection program so that an annual update o n a l l the students through these programs can be maintained.

14. PIU. As this component i s only a slice o f the activities o f the NSDP, the same procedures will be followed for program implementation as are being done today as the NSDP already employs procurement and financial management processes that conform to Bank guidelines. The NSDP, while l inked to MOLSAMD, i s independent o f the Ministry and has the relative freedom to chart their course. M O L S A M D plays a critical ro le in the functioning o f the NSDP, as the Chairperson o f the NSDP Steering Committee (NSDPSC) i s the defacto Minister o f M O L S A M D . The NSDP, as an NPP, has a direct budget l ine f rom the MOF. The authority to clear al l o f NSDP activities rests with the Chairperson of the NSDPSC. All training contracts are approved by the Chairperson o f the NSDP, but are monitored by the NSDP PIU.

Component 3: Implementation o f Component 3 would be the sole responsibility o f the NSDP

15. monitoring o f project activities, whi le the ministries will outsource evaluation work to third parties.

Component 4: This component will be implemented by DTVET and NSDP respectively for a l l

16. The oversight function for a l l projects implemented by MOE i s performed by a senior management group, which consist o f the Minister, the Deputy Ministers, the head o f GMU, and other advisers as deemed necessary. This oversight body meets regularly (at least twice monthly) to review

56

overall project implementation progress, and are also responsible for review and approval o f annual work plans and budgets.

17. The oversight function for the NSDP will be performed by the a steering committee, which i s made up o f representatives from 11 l ine ministries and chaired by the Minister o f Labor, Social Affairs and Martyred and Disabled. The steering committee will meet at least every quarter to review overall project implementation progress, and are also responsible for review and approval o f annual work plans and budgets.

18. The Grant Management Unit o f the Ministry o f Education and the Finance Department o f NSDP will be responsible for the financial management o f their respective project components. They will carry out day-to-day financial management operations o f the project, preparation o f M-16 forms (payment orders), project coding sheet, B27 allotment form and overall contract and project management.

Budgeting

19. The respective component implementing entity’s budget committee will coordinate the preparation o f annual work plan and the derivation o f annual budget. This committee will be made up o f representatives from relevant departments o f the implementing entity, and shall report to the respective implementing entity’s oversight body. The Budget Committee shall also coordinate quarterly budget reviews to ensure adequate budget discipline and control. The committee will be responsible for ensuring that project expenditures for each fiscal year are captured in the Governmental Development budget o f that fiscal year. The M O E & NSDP must get approvals from the presidential office and the parliament and attach them to B27 and PCS forms at the time o f requesting yearly allotments for contracts under the project to avoid delays in payment processing.

Funds Flow

20. The standard funds flow mechanism in Afghanistan will be followed in this project. Project funds will be deposited in the Designated Account (DA) to be opened and maintained at the Da Afghanistan Bank (DAB). The DA, in keeping with Afghan law and current practice for other projects in Afghanistan, will be operated by the Special Disbursement Unit (SDU) in the Treasury Department o f MoF. Requests for payments from the DA will be made to the SDU by the implementing entities when needed.

21. make i) direct payments from the Grant Account to contractors, consultants or consulting f irms, facilitating partners, NGOs, ii) advances to other accounts, and iii) special commitments for contracts covered by letters o f credit. These payments will follow World Bank procedures. All payments will be made either through bank transfers into the account o f such f i rms or by check.

In addition to payments out o f DA funds, the implementing entities can also request the SDU to

22. ways:

Expenditures payable from the provinces as support to provincial institutes will be made in two

(a) Cash transfers to provinces as an advance - after due processes and approval by the Deputy Minister (or Minister) o f payment request initiated by the DTVET Coordinator, MoF processes the authorized form M 16 prepared and submitted by the GMU and transfers the amount to the designated province Mustofiat, from where the designated MOE official i s paid. On completion o f the activities, the SOE and supporting documents are provided by the provincial Finance Officer to the Mustofiat, after relevant checks, the Mustofiat prepares a form (M27) and forward this form together with the relevant supporting documents to MoF for liquidation o f the cash advance. MOE finance department also gets a copy o f this form and supporting documents.

57

(b) Contracts payments in the provinces - after receiving MOE’s or NGO’s engineering staff certification o f work accomplished (25%, 50%, 75% & 100%) for specific contracts already approved by designated Government official (Provincial Education Director, Governor and Minister, depending on the threshold), the provincial Finance Officer will prepare the form M16 together with the relevant supporting documents, gets this approved by the Provincial Education Director and submits to the Mustofiat for processing and payments. The Mustofiat, thereafter sends copies o f the form M16 and supporting documents to MoF. Also the provincial Finance Officer, sends copies o f the form M16 and supporting documents to MOE finance department.

Figure 6.1: Funds Flow Chart

DAB denominated in U S

\

Direct Payments to Consultants,

Contractors, NGOs, etc. after approval o f W.A initiated by the

project and submitted

through SDU

Project transactions processed through SDU and paid in U S $ or Afghanis; Advances to other accounts

\ Payment Requests

Payment T Requests

58

Figure 6.2: Funds Flow Chart (Provinces)

Stea

1

5

6

9

10

11

12

13

Activities Time Required

Preparation of D1, PCS for each Contract at

Submitting signed D1 and PCS to Archive of

By MOE Finance

contract , D1, PCS and approval from the head of Budget departme

By MoF Budget Dept. & MOE Finance After review and Approval

D1 and PCS is delivered back to MOE relevant

on the approved D1

Get approval from

submitting M16 to

Submitting Cheque to Da Afghanistan Bank

Mastuffee Control the

PED or other responsible person assigned by the MOE

to delivers money to DTVET -

59

Legal Requirements for Authorized Signature

23. authorized signatories in MoF are on f i le.

Ministry o f Finance has authorization to disburse funds from the Grant. Specimen signatures o f

Accounting

24. The SDU will maintain a proper accounting system o f all expenditures incurred along with supporting documents to enable IDA to verify these expenditures. The MOE Grant Management Unit, the NSDPNOLSAMD for their respective components, will: i) supervise preparation o f supporting documents for expenditures, ii) prepare payment orders (Form M 16), iii) obtain approval for M- 16s by the Minister or Deputy Minister depending on the payment amount, and iv) submit them to the Treasury Department in MoF for verification and payment. W h i l s t original copies o f required supporting documents are attached to the Form M16, the project i s required to make and keep photocopies o f these documents for records retention purposes. The FM Advisor in the MoF/SDU will use the government's computerized accounting system, AFMIS, for reporting, generating relevant financial statements, and exercising controls.

25. The M O E Grant Management Unit and NSDP will maintain essential project transaction records using computerized accounting system/Excel spreadsheets and generate required monthly, quarterly, and annual reports.

26. The M O E & NSDP respective FM Manuals, already being prepared and to be approved by the Bank, will include: i) roles and responsibilities for all FM staff, ii) documentation and approval procedures for payments, iii) project reporting requirements, and iv) quality assurance measures to help ensure that adequate internal controls and procedures are in place and are being followed.

27. Afghan government policies and procedures including use o f the government Chart o f Accounts to record project expenditures. The use o f these procedures will enable adequate recording and reporting o f project expenditures. Overall project accounts will be maintained centrally in SDU, which will be ultimately responsible for recording o f al l project expenditures and receipts in the Government's accounting system. Reconciliation o f project expenditure records with MoF records will be carried out monthly by the MOE GMU & NSDP.

The FM Manuals wil l also establish project financial management in accordance with standard

Internal Control & Internal Auditing

28. in the FM Manuals including segregation o f duties, documentation reviews, physical asset control, and cash handling and management.

Project-specific internal control procedures for requests and approval o f funds will be described

29. activities o f the project with the SDU.

The Head o f the MOE GMU and the NSDP FM unit wil l be responsible for coordinating FM

30. to the project as separate l ine items with adequate details to reflect the details o f expenditures within each component.

Annual project financial statements will be prepared by S D U N o F detailing activities pertaining

3 1. internal audit department o f the M O E & NSDP, according to programs to be determined by the heads o f the department using a risk-based approach.

The project financial management systems will be subject to review by the newly-established

60

External Audit

Responsible Agency Audit Auditors

MoF, supported by Special SOE, Project Accounts and Auditor General Disbursement Unit Desirmated Account

32. Advisor, with terms o f reference satisfactory to the Association. The audit o f the project accounts will include an assessment o f the: (a) adequacy o f the accounting and internal control systems; (b) ability to maintain adequate documentation for transactions; and (c) eligibility o f incurred expenditures for Association financing. The audited annual project financial statements will be submitted within six months o f the close o f fiscal year. All agencies involved in implementation and maintaining records o f expenditures would need to retain these as per the IDA records retention policy.

The project accounts will be audited by the Auditor General, with the support o f the Audit

Date

Sep 22

33. The following audit reports will be monitored each year in the Audit Reports Compliance System (ARCS):

34. and Ministry o f Labor, Social Affairs and Martyred and Disabled, have no over due audit reports; key issues raised in these projects previous audit reports are being resolved.

The Bank-funded projects already or currently being implemented by the Ministry o f Education

Financial Reporting

35. Based upon the FM arrangements o f this project Financial Statements and Project Reports will be prepared monthly, quarterly, and annually by the M O E GMU & NSDP. These reports will be produced based on records kept on the project’s computerized accounting system or Excel spreadsheets after due reconciliation to expenditure statements from SDU (as recorded in AFMIS) and bank statements from DAB.

Financial Statements and Project Reports will be used for project monitoring and supervision.

36. The quarterly Project Reports will show: (i) sources and uses o f funds by project component, and (ii) expenditures consolidated and compared to governmental budget heads o f accounts, the project will forward the relevant details to SDUDBER with a copy to IDA within 45 days o f the end o f each quarter. The government and IDA have agreed on a pro forma report format for al l Bank projects; a final customized format for ASDP wil l be agreed prior to project negotiations.

37. The annual project accounts to be prepared by SDU from AFMIS after due reconciliation to records maintained at the project, will form part o f the consolidated Afghanistan Government Accounts for all development projects. T h i s i s done centrally in the Ministry o f Finance Treasury Department, supported by the Financial Management Advisor.

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Disbursement Arrangements

Amount of the

[SDRI

12,600,000

ExDenditure Cateporv Grant Allocations

(1) Goods, works, consultants’ services, training, and Incremental Operating

38. Disbursements procedures wil l fo l low the Wor ld Bank procedures described in the World Bank Disbursement Guidelines and the Disbursement Handbook for World Bank Clients (May 2006).Table 1 shows the allocation o f IDA proceeds in a single expenditure category and Table 2 presents the expected co-financing. The single category for “goods, works, consultancy services, training and operating costs” will facilitate preparation o f withdrawal applications and record-keeping. The final disbursement date will be four months after the closing date. During this additional 4-month grace period, project-related expenditures incurred prior to the closing date are eligible for disbursement.

Financing Percentage (inclusive of taxes) 100 %

39. expenditures incurred and paid by Government after November 15,2007 and pr ior t o signing o f the financing agreement i s authorized.

Retroactive Financing. Retroactive financing not exceeding U S $ 2 m i l l i on for project-related

IDA U S A I D Norway I Beneficiaries I Total

I I Total I 12,600,000 I 100%

20 6 26

40. expenditures o n contracts above U S $20,000; a l l training programs and operating costs regardless o f whether Bank procurement pr ior review i s required or not.

Summary Reports. Summary reports in the form o f Statements o f Expenditure will be used for

41. maximum amount o f U S $1.5 mill ion. The S D U in MOF will manage payments f rom and new advances/replenishments to this account. Cash advances and transfers to other accounts may be taken f rom the Designated Account, and held and managed by the MOE & NSDP or other agencies or contractors approved by Government. MOE’s and NSDP’s controls for holding and accounting for cash advances, and preparation o f Summary Reports (SOEs) have been satisfactorily assessed. N e w cash advances will only be made when a l l other pr ior cash advances have been justif ied through submission o f SOEs to the SDU. The designated account wil l be replenished o n a monthly basis.

Designated Account. A single designated account will be opened at DAB in U S dollars for a

42. amounts exceeding 20 percent o f the advance in the Designated Account (US $300,000). All such

Direct Payments. Third-party payments (direct) and Special Commitments will be permitted for

24 Incremental Operating Costs refers to project-related incremental expenses incurred on account o f project implementation support and management including the rental o f office space; the operation, maintenance, rental and insurance o f vehicles; fuel; communications supplies and charges; advertisements; books and periodicals; office administration and maintenance costs; bank transaction charges; utility charges; domestic travel and per diem but excluding salaries o f officials and staff o f the Recipient’s c iv i l service.

62

payments require supporting documentation in the form o f records (copies o f invoices, bills, purchase orders, etc.).

43. forward those reports to the S D U for further processing as a reimbursement application. The S D U wil l review withdrawal applications for quality and conformity to Treasury procedures, and then obtain signature. Selected M O E N S D P and S D U finance staff wil l be registered as users o f the Wor ld Bank Web-based Client Connection system, and take an active hand in managing the flow o f disbursements.

Preparation of Withdrawal Applications. MOE & NSDP will prepare Summary Reports and

Financial Management Covenants

M o F shall submit audited financial statements for the project within six months o f the end o f each fiscal year. The Project’s audit report will cover the financial statements, the Designated Account, and SOEs, in accordance with terms o f reference agreed with the Association.

Un-audited project interim financial reports will be submitted by MOE & NSDP respectively o n a quarterly basis to the Wor ld Bank and a copy to SDU-MoF within 45 days after the end o f each quarter.

The Ministry o f Education and the National Ski l l Development Program will ensure that key FM staff engaged for this project are retained throughout the duration o f the project in order to ensure smooth project implementation.

Regular Supervision Plan

44. arrangements. The team will:

During project implementation, the Bank will supervise the project’s financial management

Review the project’s quarterly un-audited interim financial reports as wel l as the project’s annual audited financial statements and auditor’s management letter.

Review the project’s financial management and disbursement arrangements (including a review o f a sample o f SOEs and movements o n the Designated Account and bank reconciliations) to ensure compliance with the Bank’s minimum requirements.

Review agency performance in managing project funds to ensure that i t i s timely, accurate, and accountable. Particular supervision emphasis will be placed o n asset management and supplies.

Review o f financial management risk rating and compliance with al l covenants.

Conclusion

45. support this project - subject t o implementation o f the items listed in the action plan.

The FM arrangements, including the systems, processes, procedures, and staffing are adequate to

63

Annex 7: PROCUREMENT ARRANGEMENTS

Country Context

1. Afghanistan through i t s involvement in the interim procurement arrangements put in place through Emergency Public Administration Project (EPAP) as we l l as with the institutions such as Afghanistan Reconstruction and Development Services ( A R D S ) that i s holding the current responsibility for government’s procurement administration. As part o f the broader review o f Afghanistan’s Public Finance Management (PFM) system, the Bank recently carried out an assessment o f the procurement environment in the country based on the baseline and performance indicators developed by a group o f institutions l ed by the Wor ld Bank and Organization for Economic Co-operation and Development (0ECD)Development Assistance Committee (DAC).

The Bank has gained substantial experience and understanding o f the procurement environment in

2. champion in the Government for reform, deepening o f capacity, ensuring integrity in the operation o f procurement systems, and promoting sound procurement among ministries.

The f i rs t key issue identified through the procurement assessment was the need for ownership and a

3. and regulatory framework for the procurement administration o f Afghanistan. Whi le i t provides a very modem legal system for procurement, effective implementation o f the l aw may encounter difficulties in the current weak institutional structure and capacity o f the Government. A Procurement Policy Unit (PPU) has n o w been established under MOF to ensure the implementation through the creation o f secondary legislation, standard bidding documents, provision o f advice and creation o f the necessary information systems for advertising and data collection. “Rules o f Procedure for Public Procurement” which details the better implementation o f the Procurement L a w has been issued by MOF as circular number PPU/COO5/1386 dated April, 12 2007. The Procurement Appeal and Review mechanism i s in place and the Manual o f Procedures for “Procurement Appeal and Review” has been issued by MOF as circular number PPU/NOO1/1385 o n March 18, 2007.

A new Procurement L a w has been adopted in November 2005 which radically transforms the legal

4. arrangements have been put in place to improve the procurement management o f the country. A central procurement facilitation service, A R D S -PU has been established under the supervision o f Ministry o f Economy. The Bank and the Government has agreed on a program for country wide procurement reform and capacity building, leading to the transition f i o m centralized to decentralized procurement services. The Bank funded Public Administration Capacity Building project (PACBP) and Public Financial Management Reform Project (PFMRP) are the primary instruments for implementing the program to strengthen capacity o f the l ine ministries to manage public procurement in an effective, transparent and accountable manner. However, the implementation o f the procurement capacity building strategy has not made any significant progress yet due to lack o f coordination and delays in decision making within the Government. The envisaged radical changes to the procurement management environment expected from the new L a w also require the urgent implementation o f a comprehensive human resources and capacity development program. The implementation o f the procurement reform component o f the PACBP and PFMRP should be considered with due priority to ensure that fiduciary standards are further enhanced and that capacity i s developed in the Government to maintain these standards.

In the absence o f adequate capacity to manage procurement activities effectively, some interim

5. A Consultant has n o w been mobilized under the PPU/MOF to carry out the capacity Building which focuses o n systematic training o f staff o f ministries in public procurement. The assignment includes conduct o f training programs to private sector. The consultant has completed the training needs assessment and the program for training o f trainers has begun. The first training program i s planed to commence o n December 1,2007.

64

Procurement Overview

General

6. Ministry o f Labor, Social Affairs, Martyrs and Disabled (MOLSAMD) will have overall responsibility for al l procurement under the project. Both the implementing agencies will implement procurement actions under the Afghanistan S k i l l Development Project.

The Ministry o f Education (MOE) and the National Sk i l l Development Program (NSDP) under the

7. Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004, Revised October, 2006 “Guidelines: Selection and Employment o f Consultants by World Bank Borrowers” dated May 2004 and Revised October 2006, and the provisions stipulated in the Financing Agreement. The general description o f various procurements under different expenditure categories are described below. For each contract to be financed by the Grant the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Grant Recipient and the Bank project team are described in the Procurement Plan agreed with the Government at appraisal and finalized during negotiations. This Procurement Plan will be updated at least annually or at lesser time intervals as required to ref lect the actual project implementation needs and improvements in the institutional capacity.

The Procurement administration o f the project would be carried out in accordance with the World

8. ReconstructiodRehabilitation o f existing Dar-ul-Aman campus (ii) construction o f new Administrative and Academic buildings (iii) Six Dormitories, kitcheddining facilities, and heating (iv) Landscaping, Power and Water Supply Systems for the various buildings (iv) Auditorium, Library and Gym (v) miscellaneous other buildings necessary for the campus) All the civi l works component will be handled by the Ministry o f Education (MOE). The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all ICB and National SBD agreed with (or satisfactory to) the Bank. Threshold for ICB civi l works will be equivalent or more than U S $5,000,000; threshold for N C B works will be less that U S $5,000,000. All civi l works contract estimated to cost U S $ 100,000 or less per contract can be procured through shopping procedure o f paragraph 3.5 o f the procurement guidelines.

Procurement o f Works: Works procured under this project, would include:(i) *

9. Furniture (iii) IT Equipments, (iv) two mini buses and two other vehicles, (v) students’ recreational equipment (vi) Audio-visual equipment for teaching and for the Auditorium, (vii) installation o f a V-sat dish and related equipment, and (viii) miscellaneous other equipment including tools.. The procurement will be done using Bank’s SBD for all ICB and National SBD agreed with (or satisfactory to) the Bank. Threshold for ICB wil l be equivalent or more than U S $200,000 and threshold for NCB goods will be equivalent or less than U S $200,000 per contract and shopping threshold per contract wil l be U S $ 100,000 per contract.

Procurement o f Goods: Goods procured under this project would include: (i) Office Equipment, (ii)

10. Staff Development: The grant will finance several study tours and in-country workshops.

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1 1. Selection o f Consultants: Major contracts to be financed under this grant include: (A) for f i r m s under NSDP (i) Training for youth development, (ii) Training for vulnerable women, (iii) Training for marginalized farmers, (iv) Training for Productive Ski l ls and Business Development Services, (v) Management Consultant for providing Technical Support for setting up o f Qualification Boards; (B) for individual consultants under NSDPhlOLSAMD (vi) Technical Consultant for designing the National Qualifications Framework, (vii) Procurement and Contract Officer, (viii) Curriculum and Materials Development Specialist; (ix) Technical Support for Labor Market Unit (LMIAU); (C) for f i r m s under MOE: (x) Management Consultants for the rehabilitation o f the Vocational Education and Training Schools, (D) for Individual consultants under MOE: (xi) Design Engineer, (xii) Assistant Design Engineer, (xiii) Three Engineering and Works Supervisors, (xiv) Two Electrical & Water Supply Engineer [for six months], (xv) Management Consultant for the Department o f Technical and Vocational Education and Training.

12. The selection method for hiring consultants shall be QCBS, QBS, FBS, LCS, CQS, SSS, and Individual Consultant. Single Source Selection may be used when appropriate and prior IDA agreement shall be obtained. Short l is ts o f consultants for services estimated to cost less than $100,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.

13. Threshold for CQS wil l be U S $200,000 or less per contract.

Operational Costs

14. procedures which were reviewed and found acceptable to the Bank.

Would be financed by the project and be procured using the implementing agency’s administrative

Assessment of the Agency’s Capacity to Implement Procurement

15. overall responsibility for all procurement under the project. Both the implementing agencies will implement procurement action under the Project.

The Ministry o f Education (MOE) and National Sk i l l Development Program (NSDP) will have

Ministry o f Education

16. Unit, GMU.

Procurement activities under the M O E components wil l be carried out through Grant Management

17. actions for the project, has been carried out by Rahimullah Wardak procurement Analyst in September 2007.

An assessment o f the capacity o f GMU, the Implementing Agency to implement procurement

66

18. The GMU i s a group o f individuals established in 2005 to carry out procurement activities for Education Quality Improvement Project (EQUJP-I), and other donors funded projects. The agency i s staffed with 17 procurement staff. The procurement staff has limited experience in procurement under the World Bank financed projects. The contracts for 17 procurement consultants are funded by the World Bank and other donors. The procurement staff i s responsible for procurement o f works, goods, and consultancy services. As the agency does not have competent procurement staff to cover the procurement actions under Afghanistan National Sk i l l Development Project as well. Therefore, i t i s agreed that the two International Procurement Specialists to be hired under EQUIP-I1 will provide cross support to both the projects [ASDP and EQUIP-IT].

19. wil l be responsible for managing procurement based on technical specifications/TOR provided by the technical team o f the Ministry o f Education.

The International Procurement Specialists along with other procurement officers under the GMU

National Sk i l l Development Program

20. An assessment o f the capacity o f the procurement staff o f the implementing agency to implement part o f the procurement actions for the project has been carried out by Rahimullah Wardak, Procurement Analyst in September 2007. During the assessment it was revealed that the NSDP procurement staff did not have experience in procurement under Bank financed projects.

Procurement activities under the NSDP components will be carried out by the NSDP PIU.

21. To mitigate the risk, the following actions are needed:

The NSDP will be strengthened by a competent procurement specialist to carry out procurement action under the project and train the NSDP procurement staff. To ensure compliance with the World Bank policy and procedure, procurement documentation for complex and large value o f goods, works and consultancy contracts shall be carried out with consultation o f the ARDS.

22. a competent procurement specialist and large value procurement being handled by ARDS-PU.

The overall project risk for procurement with above arrangement i s medium with the recruitment o f

Procurement Plan

23. The Borrower, at appraisal, developed a Procurement Plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team on December 12,2007 and i s available at Ministry o f Education and the NSDP offices. I t will also be available in the Project’s database and in the Bank’s external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

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Frequency of Procurement Supervision

24. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment o f the implementing agencies have recommended one supervision mission to visit the field to carry out post-review o f procurement actions. As the overall project risk for procurement i s high, therefore, the percentage o f contracts to be post reviewed will be 10%.

Procurement Audit

25. independent procurement audit will also take place during the project l i fe.

In addition to the prior review and post review supervisions to be carried out from Bank offices, an

68

Attachment 1

DETAILS OF THE PROCUREMENT ARRANGEMENTS INVOLVING INTERNATIONAL COMPETITION

(a) Goods and Works and Non-Consulting Services.

i) List o f contract Packages which will be procured following ICB and Direct contracting:

Reference No.

MOE/G-4

MOEIW-2

Contract Description

I T Equipment (computers, printers and accessories) Package- 1 Six Dormitories, kitcheddining facilities, and heating Package 2 Utility Systems, H e at i n g , power and Water Package-3 Landscaping, play-ground Gym, and Streetlights Package-4 Administration and Academic buildings Package 5 Auditorium and Library Packaged Miscellaneous Buildings including student shops, security barracks, etc

Estimated cost

515,000

3,250,000

450,000

530,000

1,600,000

625,000

60,000

Total Price

515,000

6,5 15,000

Procurement Method

ICB

ICB

ICB

ICB

ICB

ICB

ICB

YeslNo

Review by Bank

(PriorPost)

Prior

Prior

Prior

Prior

Prior

Prior

Prior

Expected Bid

0 pen i n g Date

January 15,2008

February 1,2008

February 1,2008

February 1,2008

February 1,2008

February 1,2008

February 1,2008

Comments

ii) Works contracts estimated to cost equivalent US $500,000 or more per contract, Goods contracts estimated to cost equivalent U S $200,000 or more per contract and al l Direct contracting wil l be subject to prior review by the Bank.

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@) Consulting Services.

i) List o f Consulting Assignments with short-list o f international f i rms.

Ref No

Expected Proposal-

Total Procurement Review opening Contract (Description) Price Method by Bank Date Remarks

70

NSDP/C- 6

NSDP/C- 8

NSDP/C- 9

MOE MOE/C- 1 MOE/C- 2 MOEIC- 8

MOE/C- 9

MOEIC- 10

MOE/C- 11 MOE/C- 12 MOE/C-

Support for the Labour Market Unit 72,000 I C Prior Feb 15- (LMIAU) under MOLSAMD 08 [Individual Consultant]

Technical Consultant for designing 500,000 QBS Prior Feb 15- the National Qualification 07 Framework[Firm] Management and Administrative 150,000 I C Prior Dec 30- Consultant for Afghan National 07 Qualification Authority [Individual Consultant]

Design Engineer [Individual 120,000 I C Prior Nov30- Consultant] 07 Assistant Design Engineer 120,000 I C Prior Nov30- [Individual Consultant] 07 Management and Technical 300,000 QCBS Prior Mar 20- Consultant setting up o f 08 Qualification Boards[fm] Management and Technical 600,000 QCBS Prior Jan 20- Consultant Rehabilitation and 08 Reform o f VETS [Firm] Management consultant to the 200,000 I C Prior Dec 31- Directorate o f Vocational Education 07 and Training [Individual Consultant] Chief Project Adviser (inclusive o f 720,000 I C Prior Jan 31- all costs, for three years) Implementation Adviser (inclusive o f 570,000 IC Prior Dec 31- all costs, for three years) Design Consultancy for NIMA [Firm] 220,000 QCBS Prior Feb-15-

Consultancy Services

08

07

ii) Consultancy services provided by firm estimated to cost above $ 100,000 per contract and consultancy services provided by individual estimated to cost above $50,000 per contract and all Single Source selection o f consultants f i r m s and individual regardless o f value will be subject to prior review by the Bank.

iii) Short l i s t s composed entirely o f national consultants: Short l is ts o f consultants for services estimated to cost less than $100,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.

71

PROCUREMENT PLAN

Procurement Method Prior Review Threshold 1. Civil Works US $500,000

Project Information Countw: Afghanistan Borrower: Islamic Republic o f Afghanistan Project Name: Afghanistan Skills Development Project Grant No.: XXXXXX Project Implementing Agency: Ministry o f Education and National Skills Development P rog radMOLSAMD, and the Ministry o f Higher Education

Comment

Bank’s Amrova l Date o f the Procurement Plan [Original December 12,20071

2. 3.

Date o f General Procurement Notice: Issue 16 December 2007

Goods us $200,000 Direct Contracting All Regardless o f value

Period covered by this Procurement Plan: 18 Months

1. 2. 3. 4. 5.

I. Goods and Works and Non-Consulting Services

Procurement Method Threshold for Methods Comment ICB Civil Works U S $ 5,000,000 Equivalent or more NCB Civil Works U S $5,000,000 Equivalent or less ICB Goods us $200,000 Equivalent or more NCBGoods us $200,000 Equivalent or less Shopping Goods us $100,000 Equivalent or less

(i) Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement: [Thresholds for applicable procurement methods (not l imi ted to the l i s t below) will be determined by the Procurement Specialist Procurement Accredited Staff based o n the assessment o f the implementing agency’s capacity.]

(ii) Reference to (if any) Project OperationaVProcurement Manual: A Project Operational Manual shall be prepared and agreed with IDA.

72

T

T U

!

8 k .-

-L 3

0

=*

2 a m

b

a- 2

- 3 3 '-

'')I 8

c e c i i a a

I

/t

l-

SELECTION OF CONSULTANTS

1. 2. 3.

Prior Review Threshold; Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment o f Consultants:

Selection Method Prior Review Threshold $ Comment Competitive Methods (Finns) 100,000 Competitive Individual Consultant 50,000 Single Source (Finns & Individual) All Regardless of value

1. 2. 3.

Selection Method Threshold for Methods Comment QCBS/QBS/FBS/LCS 200,000 equivalent or above QCBS/QBS/FBS/LCS 200,000 equivalent or less CQS 200,000 equivalent or less

Short list comprising entirely o f national consultants: Short l i s t o f consultants for services, estimated to cost less than $ 100,000 equivalent per contract, may comprise entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.

Prior

Prior

Prior

Prior

Any Other Special Selection Arrangements: Procurement and Contract Officer will be hired under retroactive financing.

Mar 15 - 08

Mar 15- 08

Marl5- 08

Mar 15- 08

Consultancy Assignments with Selection Methods and Time Schedule

NSDP/C-3

NSDP/C-4

NSDP/C-5

NSDP/C-6

Total Ref. No. Price

women-[fm] Training for marginalized 1,000,000 QBS/LCS farmers [firm] Training for Productive 1,500,000 QBS/LCS Sk i l l s and Business Development Services [fml Curriculum and Materials 144,000 I C Development Specialist [Individual Consultant] Support for the Labor 72,000 I C Market Unit (LMIAU) under MOLSAMD

Procurement Method

Prior

Prior

Prior

Prior

NSDP Consultancy Services NSDP/C- 1 I Training for youth I 1,000,000 I QBSILCS

Feb 15- 08

Feb 15- 08

Jan25- 08

Feb 15- 07

I development [fm] NSDP/C-2 I Training for vulnerable 1 1,000,000 I QBS/LCS

I [Individual Consultant] NSDP/C-7 I Procurement and Contract I 60.000 I I C

designing the National Qualification

Expected Proposal-

Review opening byBank 1 Date ~ Remarks

76

Ref. No. NSDP/C-9

Contract (Description) Management and Administrative Consultant for Afghan National Qualification Authority [Individual Consultant]

Expected Proposal-

Total Procurement Review opening Price Method by Bank Date Remarks 150,000 I C Prior Dec30-

07

MOE Consultancy Services MOE/C-1 I Design Engineer [Individual I 120,000 I I C I Prior I Nov30- I

MOE/C-2

MOE/C-3

MOE/C-4

MOE/C-5

MOE/C-6

MOE/C-7

Consultant] 07 Assistant Design Engineer 120,000 I C Prior Nov30- [Individual Consultant] 07 Implementation & 24,000 I C Post Apr 15-

[Individual Consultant] Implementation & 24,000 I C Post Apr 15-

[Individual Consultant] Implementation & 24,000 I C Post Apr 15-

six months, Individual Consultant]

Engineer [for six months, 07 Individual Consultant]

Engineer [for six months, 07

Supervision Engineer 08

Supervision Engineer 08

Supervision Engineer [for 08

Electrical & Water Supply 12,000 I C Post NOV 30-

Electrical & Water Supply 12,000 I C Post NOV 30-

I Individual Consultant] MOE/C-8 I Management and Technical I 300,000 1 QCBS I Prior I Mar 20- I

MOE/C-9

MOE/C- 10

MOE/C-11

MOE/C-12

MOE/C-13

MOE/C-14

Consultant setting up o f 08 Qualification Boards[fm] Management and Technical 600,000 QCBS Prior Jan20- Consultant Rehabilitation 08 and Reform o f VETS [Firm] Management consultant to 200,000 I C Prior Dec 31- the Directorate of 07 Vocational Education and Training [Individual Consultant] Chief Project Adviser 720,000 I C Prior Jan 31-

three years) [Individual Consultant] Implementation Adviser 570,000 IC Prior Dec 31- (inclusive o f a l l costs, for three years) [Individual Consultant] Design Consultancy for NIMA 220,000 QCBS Prior Feb-15- Campus [Firm] 08 Implementation Officer 57,000 sss Prior Dec 31-

(inclusive o f a l l costs, for 08

07

I [Individual Consultant]

I 07 I 8,483,000 I

I 07

77

MOE/C- 15 I Translator 54,000 I IC I Prior I Dec 31- I

Implementing Agency Capacity Building Activities with Time Schedule

No.

In this section the agreed Capacity Building Activities (some items could be from CPAR recommendation) are listed with time schedule.

Expected outcome / Estimated Estimated Start Date Comments

TRN- 1

Activity Description Cost U S $ Duration

Training o f two 15,000 Two weeks NSDPDTVET The training sessions procurement staff in N IFM to provide should be completed in or ASCI in India the f i r s t FY o f the

I project.

National Competitive Bidding procedures shall be subject to the fo l lowing additional procedures:

(i) (ii)

Standard bidding documents approved by the Association shall be used. Invitations to bid shall be advertised in at least one (1) widely circulated national daily newspaper and bidding documents shall be made available to prospective bidders, at least twenty eight (28) days pr ior to the deadline for the submission o f bids.

(iii) Bids shall not be invited o n the basis o f percentage premium or discount over the estimated cost. (iv) Bidding documents shall be made available, by ma i l or in person, to a l l who are willing to pay the

required fee. (v) Foreign bidders shall not be precluded from bidding. (vi) Qualification criteria (in case pre-qualifications were not carried out) shall be stated o n the bidding

documents, and i f a registration process i s required, a foreign firm determined to be the lowest evaluated bidder shall be given reasonable opportunity o f registering, without any hindrance.

(vii) Bidders may deliver bids, at their option, either in person or by courier service or by mail. (viii) All bidders shall provide bid security or a bid security declaration form as indicated in the bidding

documents. A bidder’s bid security or the declaration form shall apply only to a specific bid. (ix) Bids shall be opened in public in one place preferably immediately, but n o later than one hour, after

the deadline for submission o f bids. (x) Evaluation o f bids shall be made in strict adherence to the criteria disclosed in the bidding

documents, in a format, and within the specified period, agreed with the Association. (xi) Bids shall not be rejected merely o n the basis o f a comparison with an official estimate without the

pr ior concurrence o f the Association. (xii) Split award or lottery in award o f contracts shall not be carried out. When two (2) or more bidders

quote the same price, an investigation shall be made to determine any evidence o f collusion, fo l lowing which: (A) if collusion i s determined, the parties involved shall be disqualified and the award shall then be made to the next lowest evaluated and qualified bidder; and (B) if n o evidence o f collusion can be confirmed, then fresh bids shall be invited after receiving the concurrence o f the Association;

so that extensions are not necessary. Extension o f bid validity may be sought only under exceptional circumstances.

(xiv) Extension o f bid validity shall not be allowed without the prior concurrence o f the Association: (A) for the f irst request for extension if it i s longer than eight (8) weeks; and (B) for a l l subsequent requests for extensions irrespective o f the period.

(xiii) Contracts shall be awarded to the lowest evaluated bidders within the init ial period o f bid validity

(xv) Negotiations shall not be allowed with the lowest evaluated or any other bidders. (xvi) Re-bidding shall not be carried out without the Association’s pr ior concurrence; and

78

(xvii) All contractors or suppliers shall provide performance security as indicated in the contract documents. A contractor’s or a supplier’s performance security shall apply to a specific contract under which it was furnished.

79

Annex 8: ECONOMIC ANALYSIS

1. Secondly, Afghanistan i s yet to develop the kind o f statistical infrastructure and resources needed for such an analysis. However, a brief analysis has been undertaken and i s included below.

As the project i s being processed under OP/BP 8.50 a f i l l economic analysis i s not required.

2. in the country by the Year 2010. This initial step i s aimed at providing the country with a corps o f trained individuals who can better help implement projects and programs in the process o f rehabilitation and development. This includes providing school leavers the opportunity to acquire market relevant s h l l s and become more employable, while simultaneously providing focused employment oriented training for those who have not had the benefit o f formal schooling and are seeking second chance opportunities. This project aims to address critical sk i l l s issues in both the public and private sector, and cater to both formal and informal sector employment. The government’s aim i s to enhance the productivity o f i ts labor force through such training and ensure that large numbers o f young Afghans are trained to be able to find opportunities in the country and beyond.

The objectives o f the GOA under the Afghan Compact are to produce 150,000 skil led personnel

3. will have an impact on a wide-variety o f social and economic outcomes. This will be a key measure in helping individuals and families come out o f poverty and for laying the foundations for an inclusive growth trend. I t i s widely recognized that a trained and educated workforce i s a necessary component o f the process o f economic growth, though not necessarily a sufficient one.

Investment in human capital, especially o f the kind that i s currently taking place in Afghanistan,

4. world to suggest that in developing countries, those completing a higher level o f education are more likely to find employment and have higher life-time incomes compared to individuals who do not. Furthermore, in a country like Afghanistan, the direct and indirect spill-over effects o f education and training for girls in terms o f delayed age o f f irst marriage, lower levels o f fert i l i ty and better child health, are likely to be critical.

Though not specifically related to training per se, there i s sufficient evidence from around the

5. S h l l s development and improvement can also be a key strategy in Afghanistan to deal with the problems o f high unemployment and poverty. Demand-driven and market relevant VET can enhance an individual’s likelihood o f being employed. Better job and higher income opportunities encouraged by training, could improve the quality o f l i fe o f the population. It i s expected better trained persons will be more able to make use o f economic and social opportunities available to them, better adapt to newer technologies, and modem processes. As has been stated above, a formal analysis o f the returns to training (and education) would be difficult given the paucity o f relevant data in the country (for example, little information on population estimates and trajectories, on schooling attainment, prior training, and wages o f trained graduates).

Afghanistan’s Labor Market

6. census conducted in 1979. Consequently, there currently exists a very limited and inadequate population database on which to formulate development policies and programs. The size and distribution o f the population i s not known and this shortage o f information hampers national planning and policy formulation. In 2003, the IRC carried out a market survey25 between March and April. The survey demonstrates a high degree o f correlation between education levels, sector o f employment, and incomes

The only previous population census in Afghanistan was a partial, incomplete one population

25 These numbers are based o n an IRC survey f r o m 2003 and i t s methodology has come under question recently. Furthermore, the 40% o f businesses needing skil led personnel i s in sharp contrast t o the Bank’s ICA that places the lack o f skil led personnel very low o n the pr ior i ty l ist o f employers and business owners.

80

in localized markets. However, the survey design i s methodologically weak and some survey estimates have come under considerable scrutiny. However, these estimated have almost become home-truths in Afghanistan (even among development partners), who frequently cite large levels o f unemployment in the country. There i s also a belief that about 40% o f businesses suggest that there i s a critical need for skilled personnel, in sharp contrast to the Bank’s ICA that places the lack o f skilled personnel as being very l o w o n the pr ior i ty l is t o f employers and business owners (World Bank 2007).

7. basic education provides for higher returns in developing countries than in developed countries. Such rate o f return calculations form the basis for decision making o n whether to invest in education. One of the weaknesses with the typical ROR type calculations i s that they are typically applied to those in the waged or salaried economy. In most developing countries, and particularly in a country l ike Afghanistan, where over 90 % o f activity i s in the informal sector, there does seem to be a l imi ted value for such elaborate economic analysis. As stated earlier, in the Afghanistan context, this i s further compounded by the lack o f reliable data o n indicators, such as, salariedwages by levels o f education and training, unit investment and recurrent costs in education, and the probability o f being gainfully employed in the stream o n which in which training was obtained.

There i s considerable empirical evidence f rom around the wor ld that completing basic and post-

8. The benefits o f the projects are assumed to accrue in three ways: (a) increased number of graduates being put through the system, (b) children access training programs that are o f a higher quality, and (c) improved internal efficiencies with lower dropout rates, absence rates, etc. Even the direct calculation o f costs and benefits i s most l ikely to be a lower bound, since the indirect or spillover benefits through better health, adaptability to changing environment, trainability are a l l concepts that are di f f icul t to measure but demonstrates these qualities.

9. education and training in Afghanistan i s very high. The NRVA 2005 indicates that there exists a positive relation between education level and annual income. I t also shows that the wage and salary workers earn between 24% and 174% times at each level o f school as much as those in self-employment (Table 1 and Figure 1).

However, given the post-conflict nature o f the country, i t i s n o surprise that the rate o f return to

Table 8.1: Average annual income of Afghans wage and salary workers (Afghani)

.. - Salaried/Wage Labor Self-Employed Ratio o f Wage/Self-

Employed Illiterate 73,073 Read & wr i te 80,722 Primary 103,096 Secondary 86,923 High School 82,246 College 174.135

49,495 56,268 49,092 69,767 64,873 63.515

i.47 1.43 2.10 1.24 1.26 2.74

10. labor by years o f educational attainment. T o draw this graph we have estimated a wage equation26 where education, age and sector o f employment were explanatory variables.

Figure 8.1 shows the distribution o f annual income o f wage and salary workers, and non-wage

: ln(wage)= 10.36 + 0.004 age +0.49 skilled -0.09 agriculture + 0.04 read & write +0.03 primary + 0.18 middle 26

+0.22 h g h + 0.28 college

81

Figure 8.1: Wage distribution for skilled and unskilled wage and salary workers

Wage distribution

'1 nP

4 6 8 1.0 12 14 Yearly wage(Afghan1s)

Skilled

1 1. o f employment. It i s clear that given education, experience and sector o f employment the income level o f a salaried worker i s greater than the income level o f a non-salariedwage one. I t i s anticipated that with the specific focus sectors o f training identified under this project, viz., management and administration, accounting and financial management, ICT, basic engineering, and agriculture, and the level at which the training i s being conceived (post-grade 12), there will be a shift towards wage employment for most trainees emerging from two-year, post-grade 12 institutions under the MOE's DTVET. This would considerably improve their chances for salary/wage employment and hence lead to predicted higher income levels. For people seeking second chance opportunities, and who are trained through the NSDP facilitated training programs, i t i s anticipated that the training would increase their opportunities for wage employment or bring them to a higher income bracket within the self-employed categories.

Figure 8.2 is, indeed, the predication o f wages for different educational levels and ski l ls , by type

Figure 8.2: Wage Distribution after Controlling for Age and Sector of Employment

Y r r

I I I I I No read and vmte Pnmmy High School

Read and rmtS Ssccndary College education

82

Annex 9: S A F E G U A R D POLICY I S S U E S

Safety o f Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP 7.60) Projects o n International Waterways (OPBP 7.50)

[I [XI

[I [XI

[I [XI

Environmental And Social Safeguards Framework

Background

1. the world. Afghanistan needs a well-trained and flexible workforce to help rebuild the country after three decades o f conflict. The conflict has decimated Afghanistan’s training infrastructure, tom the fabric o f human society, and has relegated the country to the status o f one o f the least developed in the world. The country’s efforts to emerge from this predicament i s hampered by numerous factors, one o f which i s the availability o f a well-educated and trained labor force, that i s competent and flexible, thereby allowing the acquisition o f new ski l ls and trades needed by the country as i t grows and develops. A well-trained labor force will yield higher productivity and be able to accommodate the changing needs o f a changing economy, while simultaneously ensuring higher earnings and greater mobility for participants in the labor force. Though a majority o f the Afghan labor-force i s in the informal sector, sk i l ls acquisition and judiciously combined with literacy and numeracy programs, wil l result in a productive work force, adaptation o f modern production technologies and enhance opportunities through self-employment and small enterprise development.

Wi th an estimated population o f around 25 million, Afghanistan i s among the poorest countries in

2. The Afghanistan Sk i l l Development Program in response to the above needs has different components including the renovation and building the infrastructures for the s k i l l development program.

Objectives

3. The proposed project development objective is:

Increased number o f immediately-employable graduates i s produced by building, in stages, a high quality TVET system that i s equitable, market responsive, and cost-effective.

Potential Impacts o f Various Components

4. impacts, provided they are designed and implemented with due consideration o f environmental and social issues. Construction activities may cause limited, temporary, and localized negative impacts due to

Activities under the project should not entail significant and negative environmental and social

83

depletion or degradation o f natural resources such as stone, earth, water etc. used for school construction if proper environmental management i s not carried out at design, construction and operation stages. This can be mitigated through the implementation o f an appropriate social and environmental management plan. Capacity building o f PEDS and DEDs including physical and institutional management, are likely to have a positive impact on social and physical environment.

5 . institutions having components and installations o f old or new plants involved with, chemicals, chemical fertilizer, and other similar polluting industries would need a special and full EIA by a competent relevant specialist or a team as the case may be.

In case, the project i s considering rehabilitation/ or construction o f new buildings o f vocational

6. The project will apply the principal Environmental and Social Safeguards Framework (ESSF) for emergency projects in Afghanistan. To limit the extent o f these risks, the Framework provides guidelines and codes o f practice for an environmental mitigation measures to be incorporated in the design, contracting and monitoring o f sub-projects, along with an implementation structure assigning responsibilities to implementing agencies and their consultants, and a capacity building program for social and environmental management.

OPBP 4.0 1 i s triggered because o f vocational institutions building or rehabilitation activities.

7. renovatiodrehabilitation o f buildings belonging to existing training institutions or few new constructions within these institutions, which are al l located on Ministry o f Education land. All the training institutions are currently functioning, and there are thus no questions o f squatters or informal settlers on these lands.

There will be no land acquisition under the project as all the physical works relate to

8. involving c i v i l works will be handled according to provisions in the “Law on Preservation o f Afghanistan’s Historical and Cultural Heritage (2004)” and be reported to the provincial or district governors, who then will inform the Archaeological Committee.

Chance finds o f cultural property (archaeological artifacts) during implementation o f sub-projects

9. Compliance with the safeguard provisions and the negative l i s t will be ensured through an environmental, social and risk screening procedure (check lists) required for sub-project proposals, and by internal input, process, and output monitoring, and by Bank supervision missions.

Purpose o f the Environmental and Social Management Framework

10. capacity constraints. Since there i s potential for adverse environmental impacts, albeit limited, from the proposed activities under the ASDP, their mitigation and management i s key to the wholesome rehabilitation and development within the vocational educational sector. Hence, keeping in view the existing management capacity, as well as the flexibility required with investments s t i l l to be finalized, a framework approach i s adopted for ASDP. I t allows for early identification o f potential adverse impacts, without the requirement o f rigorous analysis through quantification, and also provides general policies and broad guidance for their effective mitigation, along with codes o f practice and procedures to be integrated into project implementation. Consistent with existing national legislation, the objective o f the Framework i s to help ensure that activities under the proposed reconstruction operations will:

Currently, social and environmental management in Afghanistan i s suffering from critical

0 Protect human health; 0

0

Prevent or compensate any loss o f livelihood; Prevent environmental degradation as a result o f either individual subprojects or their cumulative

Enhance positive environmental and social outcomes; and Ensure compliance with World Bank safeguard policies.

effects; 0

0

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General Principles

1 1. Recognizing the emergency nature o f the proposed relief and reconstruction operations, and the related need for providing immediate assistance, while at the same time ensuring due diligence in managing potential environmental and social risks, this Framework i s based on the following principles:

a. The project will support multiple subprojects, the detailed designs o f which may not be known at appraisal. To ensure the effective application o f the World Bank’s safeguard policies, the Framework provides guidance on the approach to be taken during implementation for the selection and design o f subprojects, and the planning o f mitigation measures;

b. All proposed subprojects will be screened to ensure that the environmental and social r i sks can be adequately addressed through the application o f standardized guidelines;

c. Project design and subproject selection will aim to maintain regional balance, and equity between ethnic and religious groups, considering variations in population density. Employment opportunities within the projects will be available on an equal basis to all, on the basis o f professional competence, irrespective o f gender, or ethnic or religious group. A separate gender assessment has been conducted to help accomplish the project’s development objective” to expand access to jobs and sk i l ls training, as well as meet i t s commitment to gender mainstreaming through a gender-focused assessment.

d. Consultation and disclosure requirements will be simplified to meet the special needs o f these operations. Prior to approval by the World Bank Board, this Environmental and Social Safeguards Framework will be disclosed in Afghanistan in Dari and Pashto, and in the World Bank Infoshop.

Safeguard Screening and Mitigation

12. with the following guidelines, codes o f practice and requirements:

The selection, design, contracting, monitoring and evaluation o f subprojects wil l be consistent

a. A negative l i s t o f characteristics that would make a proposed subproject ineligible for support, as indicated in Attachment 1;

b. Procedures for the chance discovery o f archaeological artifacts, and unrecorded graveyards and burial sites, provided in Attachment 2;

c. Relevant elements o f the codes o f practice for the mitigation o f potential environmental impacts, presented in Attachment 3;

d. Relevant Environmental Guidelines for Contractors to be used during the construction o f the facilities (see Guidelines in Attachment 4)

Responsibilities for Safeguard Screening and Mitigation

13. The overall responsibility o f project implementation rests with the Ministry o f Education (MOE) and the Ministry o f Labor, Social Affairs, Martyrs and Disabled (MOLSAMD). A designated Safeguards Nodal Officer will be identified with responsibility for overseeing the implementation o f the Environment and Social Safeguards Framework and Management Plan within the Project Management Team at the

2’ Increased number o f immediately-employable graduates is produced by building, in stages, a high quality TVET system that i s equitable, market responsive, and cost-effective.

85

relevant ministries. T h i s could be a sanitation engineer currently having responsibility in the ministries and no need to hire a specific person for this.

Capacity Building and Monitoring of Safeguard Framework Implementation

14. The capacity building activity will be implemented under a separate Technical Assistance program for Social and Environmental management. As part o f the social and environmental capacity building that will be provided for implementation o f IDA-financed operations in Afghanistan, the Safeguards Focal Officer and relevant staff o f MOE and implementing agencies/Consultants wil l receive training in the application o f the Safeguard Framework. Specialist training modules may be considered after an acceptable level o f base knowledge has been established. During supervision o f the project, the World Bank will assess the implementation o f the Framework, and if required, wi l l recommend additional strengthening.

Consultation and Disclosure

1 5. Framework for World Bank-funded reconstruction operations which was prepared in consultation with the principal NGOs, and development partners participating in reconstruction activities in Afghanistan. Prior to approval o f the project by the World Bank, i t will be disclosed by the Government in Dari and Pashto, as well as English, and it will also be made available at the World Bank’s Infoshop. Since no other separate environmental or social assessments will be prepared for activities under the proposed reconstruction operations, no additional disclosure requirements will apply.

This Environmental and Social Safeguards Framework was developed on the basis o f an overall

86

Attachment 1

Negative List of Subproject Attributes

1. emergency reconstruction operations.

Subprojects with any o f the attributes listed below will be ineligible for support under the proposed

Table 9.2: Attributes of Ineligible Subprojects GENERAL CHARACTERISTICS

Involves the significant conversion or degradation o f critical natural habitats. Including, but not limited to, any activity within:

0 Ab-i-Estada Waterfowl Sanctuary;

0 Dashte-Nawar Waterfowl Sanctuary; 0 Pamir-Buzurg (Proposed) Wildl i fe Sanctuary; 0 Bande Amir National Park;

0 Ajar Valley (Proposed) Wildlife Reserve;

0 Kole Hashmat Khan (Proposed) Waterfowl Sanctuary.

W i l l significantly damage non-replicable cultural property, including but not l imited to any activities that affect the following sites:

monuments o f Herat (including the Friday Mosque, ceramic tile workshop, Musallah complex, Fifth Minaret, Gawhar Shah mausoleum, mausoleum o f Al i Sher Navaii, and the Shah Zadehah mausoleum complex); monuments o f Bamiyan Valley (including Fuladi, Kakrak, Shar-i Ghulghular and Shahr-i Zuhak); archaeological site o f Ai Khanum; site and monuments o f Ghazni; minaret o f Jam; mosque o f Ha j i P i y a d a u Gunbad, Balkh province; stupa and monastry o f Guldarra; site and monuments o f Lashkar-i Bazar, Bost; archaeological site o f Surkh Kotal.

Requires involuntary acquisition o f land, or any resettlement o f people. Involves the use o f unsustainably harvested timber or fuelwood. Involves the use o f hazardous substances.

87

Attachment 2

Protection of Cultural Property

1. Physical culture includes monuments, structures, works o f art, or sites o f "outstanding universal value" f rom the historical, aesthetic, scientific, ethnological, or anthropologxal point o f view, including unrecorded graveyards and burial sites. Within this broader definition, cultural property i s defined as sites and structures having archaeological, paleontological, historical, architectural, or religious significance, and natural sites with cultural values.

2. sub-projects will largely consist o f small investments in community infrastructure and income generating activities, reconstruction o f existing structures, and minor urban public works. Further, the negative l i s t o f attributes, which would make a subproject ineligible for support (Attachment l), includes any activity that would significantly damage non-replicable cultural property. Nevertheless, the following procedures for identification, protection f rom theft, and treatment o f chance finds should be followed and included in standard bid documents.

The proposed emergency project i s unlikely to pose a r isk o f damaging cultural property, as the

Chance Find Procedures

3. Cultural Heritages (decree no. 19, Off ic ia l Gazette, no. 828, 1383/02/31 - 2004/05/20)), specifying the authorities and responsibilities o f cultural heritage agencies if sites or materials are discovered in the course o f project implementation. T h i s l a w establishes that a l l moveable and immovable historical and cultural artifacts are state property, and further:

Chance find procedures are defined in the l aw o n the Preservation o f Afghanistan's Historical and

i. All humanitarian artifacts (Moveable and Immoveable) which have historical, scientific, artistic or cultural value and are at least one hundred (100) years old.(art. 3, 1)

ii. All artifacts which are less than 100 years o ld but have cultural, scientific and artistic value and are determined to be preserve able and valuable artifacts (art. 3,2).

iii. The Archaeology Institute and the Historical Artifacts Preservation and Repair Department are both responsible to survey, evaluate, determine and record al l cultural and historical sites and collect and organize a l l historical documents related to each specific site. N o one can build or perform construction on the recorded historical and cultural site unless approved or granted permission or agreement i s issued from the Archaeology Institute (art. 7)

iv. Whenever municipalities, construction, irrigation or other companies (whether they are governmental or private) find or discover valuable historical and cultural artifacts during the conduct o f their projects, they are responsible to stop their project and report any findings to the Archaeology Institute about the discovery. (art. 10). If a construction project harms a historical or cultural artifact, the project will be stopped until proper measures are taken to preclude such harm. (art. 11)

v. Any finder or discoverer o f historical and cultural sites i s obligated to report a find or discovery to the Archeology Institute immediately but not later than one week if it i s in the ci ty and not later than 2 weeks if it i s in a province. All discovered artifacts are considered public properties and the Government o f Afghanistan will pay for a l l lands and sites which are considered to be o f historical or cultural value.(&. 19, 1)

88

v1.

vii.

... v111.

ix.

Whenever there i s an immovable historical and cultural site discovered which includes some movable historical and cultural artifacts, all such movable artifacts are considered public property and the owner o f that property will be rewarded according to Article 13 o f this Decree (art. 19,2).

A person who finds or discovers a movable historical and cultural artifact i s obligated to report the discovery to the Archaeology Department no later than seven (7) days i f he/she l ives in the capital city o f Kabul, and in the provinces they should report the discovery to the Historical and Cultural Artifacts Preservation Department or Information and Culture Department or to the nearest governmental Department no later than fourteen (14) days. Mentioned Departments in this article are responsible to report the issue to the Archaeology Department as soon as possible and the discoverer o f the artifact will be rewarded according to Article 13 o f this Decree.(art. 26)

Whenever individuals who discover historical and cultural artifacts do not report such discoveries to the related Departments within the specified period according to Articles 19 and 26 o f this Decree, they wil l be incarcerated for a minimum o f one (1) month but not more than a maximum o f three (3) months.(art. 75)

Individuals who deliberately destroy historical and cultural artifacts will be fined and according to the level and kind o f destruction, they shall be incarcerated from one (1) month minimum to a maximum o f ten (10) years. (art. 74)

4. agency i s responsible for securing the artifact from theft, pilferage and damage until the responsibility has been taken over by the relevant authorities as specified above.

In case o f a chance find o f moveable or immovable historical or cultural artifact, the implementing

5. These procedures must be referred to as standard provisions in construction contracts, when applicable. During project supervision, the Site Engineer shall monitor that the above regulations relating to the treatment o f any chance find encountered are observed.

6. and Implementation Completion Reports (ICRs) will assess the overall effectiveness o f the project’s cultural resources mitigation, management, and capacity building activities, as appropriate.

Relevant findings will be recorded in World Bank Implementation Status and Results Report (ISR),

89

Attachment 3

Deforestation caused by: unsustainable use o f timber. Ensure fired bricks are not wood-fired. wood-firing o f bricks. Where technically and economically feasible, substitute fired bricks

Replace timber beams with concrete where structurally possible.

with alternatives, such as sun-dried mud bricks, compressed earth bricks, or rammed earth construction. Apply low-cost aseismic structural designs. Ensure designs include adequate sanitary latrines and access to safe

Injury and death from earthquake: Disease caused by inadequate provision o f water and sanitation: water.

contamination by seepage from latrines, municipal waste or agricultural areas. high mineral concentrations. creation o f stagnant pools o f water.

Chemical and bacteriological testing o f water quality from adjacent comparable sources prior to installation o f new sources. Redesign to prevent contamination if adjacent comparable sources are found to be contaminated. Subsequent monitoring o f installed or rehabilitated sources. Appropriate location, apron and drainage around tube wells and dug wells to prevent formation o f stagnant pools. Provision o f cover and hand-pump to prevent contamination o f dug wells. Where pit latrines are used they should be located more than 10m from any water source. The base should be sealed and separated by at least 2 m o f sand or loamy soil f rom the groundwater table. Where nightsoil latrines or septic tanks are built they should be sealed. Outflows should drain either to a soakaway located at least 10m from any water source or be connected to a working drain.

Depletion o f water source: over-exploitation o f aquifers. context o f groundwater investigations.

Urban interventions and abstraction l im i t s to be planned in the

Contamination o f water supplies: I Where pit latrines are used they should be located more than 10m contamination o f groundwater because o f seepage. contamination o f surface waters due to flooding or over-flowing. 0

0

Disease caused by poor handling practices o f nightsoil.

0

from any water source. The base should be sealed and separated vertically by not less than 2 m o f sand or loamy soil f rom the ground water table. Where nightsoil latrines or septic tanks are built they should be sealed. Outflows should drain either to a soakaway located at least 10m from any water source or be connected to a working drain. Maintenance training to be delivered along with new latrines. Training and health education to be provided to nightsoil handlers where affected by interventions. Protective clothing and appropriate containers for nightsoil transportation to be provided.

90

Disease caused by inadequate excreta disposal or inappropriate use o f latrines.

0

0

Nightsoil should be handled using protective clothing to prevent any contamination o f workers skin or clothes. Where night-soil i s collected for agricultural use it should be stored for a sufficient period to destroy pathogens through composting. At the minimum it should be stored in direct sunlight and turned regularly for a period o f at least 6 weeks. Septic tanks should not be constructed nor septic waste collected unless primary and secondary treatment and safe disposal i s available. Health and hygiene education to be provided for al l users o f latrines. Awareness campaign to maintain sanitary conditions.

0

0

91

Attachment 4

Environmental Guidelines for Contractors

The following guidelines should be added to the ESMF and included in the contractual agreements: 0

0

0

0

0

0

0

0

0

0

0

a

a

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Installation o f the work site on areas far enough from water points, houses and sensitive areas; Sanitary equipments and installations; Site regulation (what i s allowed and not allowed on work sites); Compliance with laws, ru les and other permits in vigor; Hygiene and security on work sites; Protect neighboring properties; Ensure the permanence o f the traffic and access o f neighboring populations during the works to avoid hindrance to traffic; Protect staff working on work sites; Soil, surface and groundwater protection: avoid any wastewater discharge, o i l spill and discharge o f any type o f pollutants on soils, in surface or ground waters, in sewers and drainage ditches; Protect the environment against exhaust fuels and oils; Protect the environment against dust and other solid residues; Waste management: install containers to collect the wastes generated next to the areas o f activity; Degradatioddemolition o f private properties: inform and raise the awareness o f the populations before any activity causing degradation o f natural vegetation and resources. Compensate beneficiaries before any work; Use a quarry o f materials according to the mining code requirements; Compensation planting in case o f deforestation or tree felling; N o waste slash and bum on site; Speed limitation o f work site vehicles and cars; A l low the access o f Public and emergency services; Organize the storage o f materials; Organize parking and displacements o f machines; Footbridges and access o f neighbors; Signaling o f works; Respect o f cultural sites; Safe Disposal o f asbestos; Consider impacts such as noise, dust, and safety concerns on the surrounding population and schedule construction activities accordingly; Protect soil surfaces during construction and revegetate or physically stabilize eligible surfaces; Ensure proper drainage; Prevent standing water in open construction pits, quarries or fill areas to avoid potential contamination o f the water table and the development o f a habitat for disease-carrying vectors and insects; Select sustainable construction materials; Control and clean the construction site daily; During construction, control dust by using water or through other means; Provide adequate waste disposal and sanitation services at the construction site; Dispose o f o i l and solid waste materials appropriately; Preserve natural habitats along streams, steep slopes, and ecologically sensitive areas; Develop maintenance and reclamation plans and restore vegetation.

92

Gender Assessment

1. obstacles in their access to education and development o f sk i l l s for employment. Minimal involvement in public l i f e has left a generation o f women with low literacy rates (estimated recently at 18 percent for women over age 18 and, in rural areas, as l ow as 10 percent2*) and limited sk i l ls for paid employment. Women’s participation in economic activities remains largely agricultural, family-based, and not monetarily compensated. In certain areas, cultural traditions restrict women’s work to that which i s performed in the household. Afghan males face their own set o f barriers in the current armed conflict situation, which promotes a violent atmosphere and i s not conducive to raising awareness about vocational s k i l l s training opportunities. Training programs must compete with higher-paying activities, including the illegal opium industry, that have a greater short-term appeal to males than the longer-term payoff o f investment in sk i l l s and educational attainment. Barriers for both males and females deprive Afghanistan o f a substantial contribution to i t s stock o f human capital, a critical factor in i t s rapid reconstruction.

Over the past three decades o f conflict, Afghan men and women have encountered pronounced

Review of Gender Focus in the Four Components o f Project Design

2. The project has committed to gender mainstreaming through a gender-focused assessment prior to Project Appraisal that will inform further planning and implementati~n.’~ By targeting females as well as males in i t s objectives, ASDP reflects the gender sensitive approaches (reviewed below) o f related programming in M o E and the NSDP in MOLSAMD, under whose aegis the project will operate.30 Components 2 and 3 support NSDP and M o E programs for TVET and literacy training. Both program strategies give attention to gender mainstreaming in several project and sub-project activities and have identified gender-related targets among priority results. Components 1 and 4 address gender to a lesser degree and draw from NSDP’s Strategy, as discussed below.

3. an appropriate regulatory, legislative and institutional framework and strengthening capacity to plan, monitor and coordinate the framework, NSDP aims to develop a national VET delivery policy with gender-sensitive attention to sk i l ls shortages in all sectors.

Component 1 : Develop Rermlatorv and Oualitv Assurance Framework for TVET. In developing

4. post-basic education and training programs that are relevant to the needs o f the market, o f high quality, and improve employment opportunities for both women and men.31 T h i s component addresses improvements among select trades and VE institutions under MOE, which has made TVET a major part o f i t s National Strategic Plan. I ts TVET program i s fundamentally gender sensitive in i t s approaches and objectives, with an overall goal to “provide relevant and quality technical and vocational opportunities for all male and female Afghans in order to equip them with marketable sk i l l s that meet the needs o f the labour market in Afghanistan and other c o u n t r i e ~ . ” ~ ~ Like NSDP, MoE’s programming emphasizes a shift from supply-driven technical and trades training to labor market demand-driven TVET opportunities

Component 2: Improve Relevance, Oualitv and Efficiency o f TVET aims to increase the access to

Afghanistan ‘s Millennium Development Goals Report, 2005: Vision 2020; (Islamic Republic o f Afghanistan Ministry o f Education (MoE). 2006. “The National Strategic Plan for Education in Afghanistan” [December 2006 Draft], p. 49. 29 This commitment i s expressed in the ASDP, Project Information Document, p. 3. 30 ASDP has adopted MoE’s vision to provide “. . .equal access to a better quality education for all, regardless o f gender, ethnicity, language, religion or geographical location, and build the country’s human resources to meet the challenges of national reconstruction and launch the country on a path of rapid growth and development (MoE 2006: p. 4). I t also reflects NSDP’s “strong commitment to addressing women’s access to vocational education and training and gender issues wi l l be addressed in all

aspects o f the program” (NSDP, Strategy Master Document [May 31,2007 draft], p. 13. 3’ These opportunities are gained “through the provision of market-driven skills training, business training and linkages to business development support services” (NSDP 2007, p. 4). 32 MoE. 2006, p. 13.

93

(plus management sk i l l s training) for both men and women. For the target period (2006-2010), this wil l be accomplished through expanding existing TVET apparatus, closer partnership with the private sector, and short-term training courses in select TV fields that target both male and female unemployed youth. The Literacy and Non-formal Education program o f M o E builds upon NSDP and M O L S M D ’ s planned Vocational Training Centres. This program i s especially attentive to females, as MOE cites poor female attendance in an already l o w overall participation rate (10 percent among only 15,000 students in 2006). One goal i s that by end 2007, females comprise at least 60 percent o f the target 100,000 learners f rom a l l provinces. Principal planning objectives for 2010 include a minimum 50 percent improvement in literacy rates and a minimum 60 percent o f learners are female. Another objective i s that at least 30-35 percent o f the 12,000 youth and c iv i l servants trained in finance and public administration sk i l l s are female (2008- 2010). T w o o f f ive priority program components also address gender issues: curriculum development wil l adhere to the principle o f easy access to education for females and males; and short-term (6-12 months) vocational courses for up to 4,000 youths and existing c iv i l servants require a minimum 40 percent female participation. The cascade approach to training, where literacy facilitators mentor facilitator assistants who then launch classes in their communities aims to “enable communities with few literate people, females in particular, to develop their own team o f literacy facilitators after the f i rst classes have been conducted.. . .”33

5. component will provide rural-markets oriented training for youth, destitute women, and marginal farmers aimed at diversifying their income sources, improving productivity, and developing marker linkages in rural areas without any pre-condition o f prescribed schooling levels. The component wil l be implemented by the NSDP o f M O L S A M D with the fol lowing priority results expected by 2010: at least 35 percent o f the 150,000 unemployed or underemployed Afghans who gain opportunities are women; and improved capacity o f GOA and VET providers to promote gender equality in relevant, high-quality, labor market- driven training.

Component 3: Skills Development Program and Market Linkages with a Rural Focus This

6. relevant PIUs and other training institutions will receive gender awareness training, and at least 30 percent o f stafvmanagers in the NSDP PIU are to be women. NSDP ensures gender sensitivity in training, framework development, and labor market analysis; and attention to the security situation so related constraints do not impede female participation. NSDP’s two-pronged strategy o f gender mainstreaming and gender-specific action (carried out in partnership with the Ministry o f Women’s Affairs) emphasizes gender equality in teaching methodology and training/skills development curricula; encourages female participation in non-traditional occupations; and commits to set up facilitiedmechanisms for female trainee management o f childcare, provide school-level career guidancehounseling; build training provider capacity to address gender issues, carry out targeted campaigns for training/promotion o f female employment, and provide second-chance educatiodliteracy training to both men and women.

NSDP plans to gender sensitize VET practitioners and c i v i l servants: a l l staff and managers in

7. systems to provide routine, t imely information on implementation and more accurate, up-to-date gender- disaggregated labor market data that translates into policies for men’s and women’s sh l l s development. MoE’s TVET, Literacy/Non-formal Ed programs already collect gender-disaggregated data on literacy, training rates and student, teacher participation in TV Schools.

Component 4: Research, Monitor ing and Evaluation. NSDP, MoE will develop info/M&E

33 Ibid., p. 112.

94

Recommendations for Enhancing Gender Focus, Male and Female Participation

8. The measures that NSDPMOLSAMD and MoE already have incorporated to improve gender equality and sensitivity in their TVET and literacy trainingleducation programs would be enhanced by considering the recommendations displayed in Table 9.4 below. These recommendations are based on international best practices and observations from vis i ts to program sites, Sept-Oct 2007.34

34 Field research was conducted by Nasrin Rafiq, local consultant to the World Bank Kabul office.

95

Annex 10: PROJECT PREPARATION AND SUPERVISION Table 10.1: Project PreDaration Schedule

Planned Actual PCN review 05/08/2007 05/08/2007 Appraisal 11/15/2007 1 11 1712007 Negotiations 121 1212007 12/5/2007 Board Approval 0113 112008 Planned date o f effectiveness 03/31/2008 Planned date o f mid-term review 04/01/2010 Planned closing date 02/28/2013

Key institutions responsible for preparation of the project: 0 Ministry o f Education 0

0 Ministry o f Higher Education 0

0 National Sk i l l s Development Program

Ministry o f Labor, Social Affairs and Martyred and Disabled

Department o f Technical and Vocational Education Training

Table 10.2: Bank staff and consultants who worked on the project included: Name Title Unit Venkatesh Sundararaman EconomistfTask Team Leader SASHD Alexandria Valerio Senior Education Specialist LCSHE Amit Dar Lead Education Economist SASHD Cynthia Deane Consultant SASHD

Hasib Karimzada Team Assistant SASHD Hiroshi Saeki Operations Analyst SASHD Julie-Anne Graitge Program Assistant SASHD Kenneth Olcpara Senior Financial Management Specialist SARFM Mic he1 W elmond Lead Education Specialist AFTH3 Mohammad Arif Rasuli Environment Specialist SASDN Nazir Ahmad Extended-Term Consultant SASFP Pema Lhazom Operations Officer SASHD

Scherezad Joya Monami Lat i f Senior Education Specialist SASHD Sheila Braka Musiime Counsel LEGMS

Deepal Fernando Senior Procurement Specialist S A R P S

Rahimullah Wardak Procurement Analyst SARPS

Bank funds expended to date on project preparation: 1. Bank resources: U S $254,169.54 2. Trust funds: U S $55,744.74 3. Total: US $309,914.30

Estimated Approval and Supervision costs: 1. Remaining costs to approval: U S $25,000.00 2. Estimated annual supervision cost: U S $ 150,000.00

98

SUPERVISION

1. TTL, and a total o f 60-80 staff weeks per year for other staff. T h i s i s keeping in l ine with emergency operations where the money i s made available relatively quickly, but with an increased emphasis o n supervision, monitoring and evaluation. This amounts to approximately 300-400 staff weeks (on an annually declining basis) over the l i f e o f the project through FY 2013. During the f irst year, supervision will focus o n performance o f the DTVET and the NSDP PIUs abil ity in managing contracts, procurement, and financial matters, as we l l as in completing the agreed implementation plans. The focus will also be o n the training o f trainers program, the works components needed to rehabilitate temporary infrastructure to accommodate the students whi le the NIMA i s under construction.

The Bank wil l devote an average o f 25 staff weeks per year to supervise the project as

2. During the fol lowing years, supervision will focus o n progress in executing works, developing the plans for the rehabilitation o f institutions that have self-selected for reforms, strengthening the capacity o f government entities to implement future TVET projects with the a im o f developing a vibrant private sector for training.

99

Annex 11: DOCUMENTS IN THE PROJECT FILE

Project's Background Documents

1. Policy Note on Slu l ls Training in Afghanistan, World Bank (November 2006).

Bank Staff Documents

1. Project Information Document (PID), Appraisal Stage, October 3 1,2007. 2. Integrated Safeguards Data Sheet (ISDS), Appraisal Stage, October 31,2007. 3. Aide Memoire, Pre-appraisal Mission, October 9-21,2007. 4. Preparation Mission, Management Letter August 7,2007. 5. Minutes o f the Project Concept Note (PCN) Review Meeting, May 8,2007. 6. Project Concept Note, March 2007. 7. Project Information Document (PID), Concept Stage, May 22,2007 8. Aide Memoire, Identification Mission, February 1 - February 13,2007

100

Annex 12: STATEMENT OF LOANS AND CREDITS

ProjectID

PO88719 PO90928 PO78936

PO83720

Table 12.1: Active IDA Projea

Active Proiects

FY Project Name

2005 AF Investment Guarantee Facility 2007 AF PSD Support Project 2004 AF: Emergency Irrigation

2004 AF: Emergency Communications Rehabilitation

DeveloDment

27.87 8.23

20.66 18.96

3.49

80.29

I Reha P103343 I 2008 I Afghanistan Emergency Rural Access

1.57 0.33

(1.72)

1.89

50.64 (3.63)

i4 2005 Education Quality Improvement Program

PO83906 2004 Emergency Customs and Trade

PO78284 PO839 19 P102288 PO82472 PO84736

I Facilitation PO83908 I 2004 I Emergency Power Rehabilitation

Project 2003 Emergency Transport Rehabilitation 2005 Kabul Urban Reconstruction Project 2007 NSPII 2003 2005 Public Admin Capacity Building

Natn'l Emergency Emp. Prog for Rural

36.19 I Project

PO89040 I 2005 I Strengthening Higher Education 0.64 1 Program

PO87860 I 2006 I UrbanWaterSector Overall Result

in Afgh

IDA

5.00 25.00 65.00

22.00

20.00 33.40

10.00

89.60

112.00

30.00 8.00

20.40 35.00

3 1 .OO

105.00

153.00 25.00 120.00 39.20 27.00

40.00

nistan Difference

Between Expected and Actual

Disbursements a/ Undisb. 1 , 1

Frm I Orig. I I Rev'd

25.54 39.99 12.62

3.85 2.87

14.94 24.29 24.00 0.1 1 11.13

13.81 48.13

7 79 ,.,,

42.28 14.84

101

Annex 13: COUNTRY AT A GLANCE

Afghanistan at a glance 1 I510 7

POVERTY and SOCIAL Afghanistan

2005 Population, mid-year (millions) GNI per capita (Atlas method, US%) GNi (Atlas method, US% billions)

Average annual growth, 1SSS-05

Population (%) Labor force (%)

Most recent estimate (latest year available, 1 SS9-05) Poverty (% of population below national poverty line) Urban population (% offotal population) Life expectancy at birth (years) infant mortality (per 1,000 live births) Child malnutrition (% of children under 5) Access to an improved water source (% ofpopulation) Literacy (% ofpopulation age 15+) Gross primary enrollment (% of school-age populaflon)

Male Female

KEY ECONOMIC RATiOS and LONG-TERM TRENDS

1985

GDP (US% billions) Gross capital formation1GDP Exports of goods and ServiceslGDP Gross domestic savingslGDP Gross national savings1GDP

CUNent account balance1GDP Interest payments1GDP Total debtlGDP Total debt servicelexports 6.7 Present value of debtlGDP Present value of debtlexports

(average annualgrowth) GDP GDP per capita Exports of goods and services

1985-95 1995-05

7.0

2.3

24 45

165

40 29 54

IS65

2004

8.0

-2.8

South Asia

1,470 684

1,005

1.7 2.1

29 63 66 45 84 60

110 116 105

2004

6.0 31.1 11.5

-13.1 -13.1

1.4

2005

14.0

31.4

Low- income

2,353 580

1,364

1.9 2.3

31 59 60 39 75 62

104 110 9s

2005

7.3 25.0 12.4

-18.2 -18.2

-1.0

2005-09

Dsvelopment diamond'

Life expectancy

1 Gross

per primary capita

I

Access to improved water source

- Awhanistan - Low-Income group

Economlc ratios.

Trade

Capital formation

Domestic savings

Indebtedness

-AfBhanlsfan ~ Low-Income group

STRUCTURE of the ECONOMY

(% of GDP) Agriculture lndusby

Services

Household final consumption expenditure General gov't final consumption expenditure Imports of goods and services

Manufacturing

1985 1695 2004 2005

37.2 36.1 24.4 24.5 15.8 14.9 38.3 39.4

.. 104.0 109.6 9.1 8.6

55.7 55.7

Growth of capltal and GDP (X) T I

I -GCF *GDP I

1985.g5 19s5-05 2005 IGrowth of exports and Imports (x) (average annual growth) Agriculture lndusby

Services Manufacturing

-17.1 32.4 21.9 34.6 14.3

Household final consumption expenditure -5.0 20.3 1 / I General gov't final consumption expenditure -7.7 14.0 Gross capital formation -1 1.9 -2.7 -Expo* -O- lmpor ts Imports of goods and SeNiCeS -25.7 20.9

Note: 2005 data are preliminary estimates. The diamonds show four key indicators in the counby (in bold) compared with its lncome-group average. If data are missing, the diamond will be incomplete.

103

Afghanistan

PRICES and GOVERNMENT FINANCE

Domestlc prlces (YY change) Consumer prices Implicit GDP deflator

Government finance (% of GDP, includes current grants) Current revenue Current budget balance Overall surplusldeficit

TRADE

(US$ millions) Total exports (fob)

Fresh fruits Dried fruits Manufactures

Total imports (cif) Food Fuel and energy Capital goods

Export price index (2000=100) Import price index (2000=100) Terms of trade (2000=100)

BALANCE of PAYMENTS

(US$ millions) Exports of goods and services Imports of goods and services Resource balance

Net income Net current transfers

Current account balance

Financing items (net) Changes in net reserves

Memo: Reserves including goid (US$ millions) Conversion rate (DEC, local/US$)

EXTERNAL DEBT and RESOURCE FLOWS

(US$ millions) Total debt outstanding and disbursed

IBRD IDA

Total debt service iBRD IDA

Official grants Official creditors Private creditors Foreign direct investment (net inflows) Portfolio equity (net inflows)

World Bank program Commitments Disbursements Principal repayments Net flows Interest payments Net transfers

Composition of net resource flows

1985

1985

1985

668 1,076 -408

21

-26

61 1 50.6

1985

2.274 0 0

47 0 0

210 0

0 0 0 0 0 0

1995

1995

1995

IS95

5,619 0 0

89 0 0

0 0

0 0 0 0 0 0

2004

26.7 17.0

9.5 0.1

-0.7

2004

592

2,713

2004

1,720 4,432

-2,712

8 2,787

83

38 1 -464

1.283 47.8

2004

2005

12.7 11.9

9.8 1.1 0.1

2005

755

3,280

2005

1,705 4.849 .3,144

27 3,048

-70

448 -378

1,662 49.7

2005

Inflation (%) I

1 -GDPdeflator *CPI I

Export and Import levels (US$ mill.)

T I 3.000

2,000

1,000

0

" ' I 99 00 01 02 03 04

rn Exporls rn Imports

Current account balance to GDP (Ye)

4 T

Development Economics 1/5/07

104

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Meydan Shahr¯

Bamyan¯ ¯¯ ¯ ¯Charıkar

GardızGhaznı

¯ ¯Taloqan¯Kunduz

¯Baghlan¯Samangan

¯¯

Mazar-eSharıf

¯Sheberghan

¯Chaghcharan¯Herat

¯Farah

Zaranj

¯Lashkar Gah¯Kandahar

¯Qalat

¯Tarın Kowt

Pol-e ‘Alam

¯ ¯ ¯Jalalabad

¯Mehtarlam

¯ ¯Nuristan¯ ¯Asadabad

Sharan

Kowst

Meymaneh

Saripul

Qal‘eh-ye Now

¯ ¯¯Mahmud-e Raqı¸

Faisabad

KABUL¯

TURKMENISTAN

UZBEKISTANTAJIKISTAN

TAJIKISTAN

PAKISTAN

PAKISTAN IND

IA

ISLAMICREPUBLICOF IRAN

Gowd-eZereh

Helmand

Helmand

Hamun-eSaberı˛

¯ ¯¯ ¯

Harırud¯ ¯

Morghab¯¯

¯

Pamir

Pyandzh

Indus

MurghobAmu Darya

Khas

h¯

Farah¯

Harut

¯ ¯

Darya

-yeQonduz

Tarnak¯

Arghandab

D a s h t - I M a r g o

Khyber Pass

P a r o p a m i s u s R a n g e

H i nd

u

Ku

sh

Tirich Mir(7690 m)

ToMashad

ToMary

ToChardzhev

ToDushanbe

ToKulob˘

ToDushanbe

To Shazud

ToChitral

ToMardan

To Peshawar

ToKohat

ToZhob

ToQuetta

ToQurghonteppa˘

30°N

30°N

35°N

60°E

35°N

75°E

60°E

65°E 70°E

65°E 70°E

0 50 100

0 50 100 Miles

150 Kilometers

IBRD 33358

NO

VEM

BER 2004

AFGHANISTANPROVINCE CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

PROVINCE BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

AFGHANISTAN