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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 76767-JO

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT FROM THE MENA TRANSITION FUND

IN THE AMOUNT OF US$4.75 MILLION

TO THE

HASHEMITE KINGDOM OF JORDAN

FOR A

SUPPORT TO BUILDING ACTIVE LABOR MARKET PROGRAM

November 25, 2013

This document has a restricted distribution and may be used by recipients only in the

performance of their official duties. Its contents may not otherwise be disclosed without World

Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective October31, 2013)

Currency Unit = Jordanian Dinar (JD)

JD 0.709 = US$1

JD 1 = US$ 1.41

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

ALMP Active Labor Market Program

CBJ Central Bank of Jordan

CBO Community-based organization

CIDA Canadian International Development Agency

CPS Country Partnership Strategy

DA Designated Account

E-TVET Employment, Technical and Vocational Education and Training

ELE Electronic Labor Exchange

EO Employment Office

EU European Union

FA Framework Agreement

FDI Foreign Direct Investment

FM Financial Management

GDP Gross Domestic Product

GoJ Government of Jordan

JD Jordanian Dinar

JJC Jordan Jobs Compact

JRP Job Readiness and Placement Program

ILO International Labor Organization

IYF International Youth Foundation

KAFD King Abdullah II Foundation for Development

M&E Monitoring and Evaluation

MIS Management Information System

MIJS Market Information and Job Search

MOF Ministry of Finance

MOL Ministry of Labor

MOPIC Ministry of Planning and International Cooperation

NCHRD National Center for Human Resource Development

NEC National Employment Office

NES National Employment Strategy

NGO Non-Governmental Organization

NOW New Work Opportunities for Women

ORAF Operational Risk Assessment Framework

PMU Project Management Unit

POM Project Operational Manual

SOE Statement of Expenses

SME Small and Medium Enterprise

SSC Social Security Corporation

STC Special Tender Committees

STW School-to-Work

UNDP United Nations Development Programme

TORs Terms of Reference

WA Withdrawal Application

Regional Vice President: Inger Andersen

Country Director: Ferid Belhaj

Acting Sector Director: Enis Baris

Sector Manager: Yasser El-Gammal

Task Team Leader: Moukim Temourov/Iqbal Kaur/Setareh Razmara

HASHEMITE KINGDOM OF JORDAN

SUPPORT TO BUILDING ACTIVE LABOR MARKET PROGRAM

TABLE OF CONTENTS

Page

I. STRATEGIC CONTEXT .................................................................................................1

A. Country Context ............................................................................................................ 1

B. Sectoral and Institutional Context ................................................................................. 1

C. Higher Level Objectives to which the Project Contributes .......................................... 4

II. PROJECT DEVELOPMENT OBJECTIVES ................................................................5

A. Project Objectives ......................................................................................................... 5

B. Project Beneficiaries ..................................................................................................... 5

C. Key Results Indicators .................................................................................................. 6

III. PROJECT DESCRIPTION ..............................................................................................7

A. Project Components ...................................................................................................... 7

B. Project Financing ........................................................................................................ 10

C. Lessons Learned and Reflected in the Project Design ................................................ 10

IV. IMPLEMENTATION .....................................................................................................11

A. Institutional and Implementation Arrangements (see Annex 3 for detailed

implementation arrangements) .................................................................................... 11

B. Results Monitoring and Evaluation ............................................................................ 13

C. Sustainability............................................................................................................... 13

V. KEY RISKS AND MITIGATION MEASURES ..........................................................14

A. Risk Ratings Summary ............................................................................................... 14

B. Description .................................................................................................................. 14

VI. APPRAISAL SUMMARY ..............................................................................................14

A. Economic and financial analysis ................................................................................. 14

B. Technical ..................................................................................................................... 16

C. Financial Management ................................................................................................ 16

D. Procurement ................................................................................................................ 17

E. Social (including Safeguards) ..................................................................................... 18

F. Environment (including Safeguards) .......................................................................... 18

G. Other Safeguards Policies Triggered (if required)...................................................... 18

Annex 1: Results Framework and Monitoring .........................................................................19

Annex 2: Detailed Project Description .......................................................................................21

Annex 3: Implementation Arrangements ..................................................................................26

Annex 4: Operational Risk Assessment Framework (ORAF) .................................................39

Annex 5: Implementation Support Plan ....................................................................................41

PAD DATA SHEET

THE HASHEMITE KINGDOM OF JORDAN

Support to Building Active Labor Market Program

PROJECT APPRAISAL DOCUMENT

MIDDLE EAST AND NORTH AFRICA

Human Development Department

Report No.: 76767-JO

Basic Information

Project ID Lending Instrument EA Category Team Leader

P145241 Investment Project

Financing

C Moukim

Temourov/Iqbal

Kaur/Setareh Razmara

Project Implementation Start Date Project Implementation End Date

25-November-2013 30-June-2015

Expected Effectiveness Date Expected Closing Date

30-November-2013 30-December-2015

Joint IFC Joint Level

No

Sector Manager Acting Sector Director Country Director Regional Vice President

Yasser El-Gammal Enis Baris Ferid Belhaj Inger Andersen

Borrower: The Hashemite Kingdom of Jordan

Responsible Agency: Ministry of Planning and International Cooperation

Contact: H.E. Dr. Ibrahim Saif Title: Minister of Planning and International

Cooperation

Telephone

No.:

Email: [email protected]

Project Financing Data(in USD Million)

[ ] Loan [ ] Grant [ X ] Other

[ ] Credit [ ] Guarantee

Total Project Cost: US$5.95 million Total Bank Financing: US$4.75 million

Total Co financing: 0.00 Financing Gap: 0.00

mailto:[email protected]

Financing Source Amount(in USD Million)

Recipient 1.20

MENA Transition Fund - 4.75

Total 5.95

Expected Disbursements (in USD Million)

Fiscal Year 2014 2015 2016

Annual 1.5 2.65 0.6

Cumulative 1.5 4.15 4.75

Proposed Development Objective(s)

The project development objective is to increase access to career guidance, job search, and on the job

training among targeted youth.

Components

Component Name Cost (USD Millions)

(includes Government contribution)

Component 1: School to Work Program 0.73

Component 2: Market Information and Job Search Program

(Electronic Labor Exchanges)

0.69

Component 3: Job Readiness and Placement Program 2.86

Component 4: Project Monitoring and Evaluation and

Management

0.47

Institutional Data

Sector Board

Social Protection

Sectors / Climate Change

Sector (Maximum 5 and total percent must equal 100)

Major Sector Sector percent Adaptation

Co-benefits

percent

Mitigation

Co-benefits

percent

Social Protection Public Administration-

Social Services

70

Social Protection Vocational Training 30

Total 100

I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information

applicable to this project.

Themes

Theme (Maximum 5 and total percent must equal 100)

Major theme Theme Percent

Social Protection and Risk Improving Labor Markets 50

Social Protection and Risk Other Social Protection and Risk

Management

50

Total 100

Compliance

Policy

Does the project depart from the CAS in content or in other significant

respects?

Yes [ ] No [ X ]

Does the project require any waivers of Bank policies? Yes [ ] No [ X ]

Have these been approved by Bank management? Yes [ ] No [ X ]

Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]

Does the project meet the Regional criteria for readiness for

implementation?

Yes [ X ] No [ ]

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waterways OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

Legal Covenants

Name Recurrent Due Date Frequency

Project Management Unit (Schedule 2,

Section V.1)

No later than three

months after the

effective date of the

Grant Agreement

Description of Covenant

Establish and maintain the PMU in accordance with the provisions of Section I.A.4 and 5 of Schedule 2

to the GA with staffing, resources, terms of reference and with substance satisfactory to the World

Bank.


Project Operational Manuel (Schedule

2, Section V.2)

No later than three

months after the

effective date of the

Grant Agreement


Prepare and adopt POM, in accordance with the provisions of Section I.B of Schedule 2 to the GA in

form and substance satisfactory to the World Bank, and thereafter ensure that the Project is carried in

out in accordance with said manual.


External Auditor (Schedule 2, Section

II.B.4)

No later than six

months after the

Effective Date of

the Grant

Agreement


Recruit the external auditor referred to Section 2.07 (b) of the Standard Conditions in accordance with

Section III of Schedule 2 of GA and pursuant to terms of reference satisfactory to the World Bank

Conditions

Name Type

Withdrawals (Schedule 2, Section IV. B. (b)) Disbursement

Description of Condition

No withdrawals shall be done under Category (2) (Job Vouchers) until and unless the operational

module for Job Vouchers included in the POM and referred to in Section I.B.1.(b) of Schedule 2 to the

GA has been prepared and adopted in form and substance satisfactory the World Bank.

Team Composition

Bank Staff

Name Title Specialization Unit

Moukim Temourov Sr. Economist Social

Protection/co-TTL MNSSP

Haneen Sayed Lead Operations Officer Human

Development

Coordinator

MNSSP

Iqbal Kaur Sr. Social Protection Specialist Social

Protection/co-TTL

MNSSP

Hala Ballout Program Assistant Human

Development

MNSSP

Jad Mazahreh Sr. Financial Management Financial MNAFM

Specialist Management

Lina Fares Sr. Procurement Specialist Procurement MNAPC

Hassine Hedda Sr. Finance Officer Loan Operations CTRLA

Maria-Laura Sanchez

Puerta

Senior Economist Social Protection HDNSP

Setareh Razmara Lead Social Protection

Specialist

Social Protection /

TTL

MNSSP

Maya Abi Karam Sr. Counsel Legal LEGAM

Mohammad Nadeem Legal Analyst Legal LEGAM

Non Bank Staff

Name Title Specialization Unit

Ghada Shaqour Procurement Consultant Procurement MNSHD

Locations

Country First Administrative

Division

Location Planned Actu

al

Commen

ts

Lebanon

.

1

I. STRATEGIC CONTEXT

A. Country Context

1. The Jordan economy has performed well in the past decade but its macroeconomic

performance has been challenged by the global crisis and a series of regional events.

Following almost a decade of strong macroeconomic performance, the political upheaval that

swept the Arab region this year has had a significant impact on Jordan, taking the form of

economic shocks as well as demands for stronger citizen voice, greater accountability and

improvements in living conditions. Lower foreign direct investment (FDI), remittances and

tourist revenues resulting from the regional turmoil and interruptions in the gas supply from

Egypt have coincided with higher international grain and energy prices. At the same time, the

fallout from the Syrian conflict next door, and persisting social challenges including

unemployment at 12.8 percent and poverty at 14.4 percent is further undermining the economy.

2. At this time of weakening economy and growing social unrest, the Government’s top

priority is to create jobs, though it is a daunting challenge. At the macro level, the Jordanian

economy is not generating enough jobs to absorb the more than 60,000 young citizens who enter

the labor market every year. Major constraints arise from the structure of economic activity, the

lack of flexible labor markets, the large presence of the public sector with market-distorting

effects on wages and youth expectations, and the burden of inefficient employment-related social

safety net contributions borne by small and medium enterprises. Employment creation will

require a comprehensive approach which tackles supply issues (education, vocational training,

migration, etc.), demand issues (macro policy, structure of the economy, sector mix and size of

enterprises, etc.), and institutional issues (policy development and coordination, implementation,

monitoring and evaluation, and social dialogue) to be developed over the short, medium, and

long term.

B. Sectoral and Institutional Context

3. Despite periods of strong economic growth in the past decade (GDP growth averaging

6.7 percent in certain periods), unemployment among nationals remains around 13 percent

and is significantly higher for youth (36 percent) and women (21 percent)1. Jordan’s rate of

female labor force participation, at around 15 percent, is among the lowest in the region and in

the world. Unemployment is typically high among men with high school education or less,

while for women it is higher for those with high school or higher levels of education. The

reasons for double digit unemployment are many and include: (i) limited job creation by the

private sector; (ii) more than half of the jobs created in the private sector are taken up by foreign

workers; (iii) both macro and micro levels were challenged in terms of growing budget deficits,

global economic crises, low domestic investment, overall investment vulnerability to volatility

in the oil markets; (iv) the mismatch between labor supply and demand; (v) the high expectations

of the unemployed—caused in part by the existence of high wage jobs in Gulf countries—and

the low wages paid in Jordan; and (vi) the lack of fiscal ability to cushion the negative impact of

1 Jordan Department of Statistics

2

the macro and micro crises. As a result, Jordan’s ranking in terms of Doing Business and

competitiveness in the region and the world has decreased2.

4. The recently launched National Employment Strategy (NES) for 2011-2020 lays out the

foundation to rectifying unemployment anomalies and enhancing employability. The main

objective of the NES is to provide a long-term strategic vision for employment and job creation,

a strategy that is focused, credible, and sustainable to provide measurable results. Prepared by a

large multi-sectoral team to include representatives of both public and private sectors as well as

the support of international experts, the NES spells out a comprehensive approach to

employment creation which tackles supply issues (education, vocational training, migration,

etc.), the demand issues (macro policy, structure of the economy, sector mix and size of

enterprises, etc.), and institutional issues (policy development and coordination, implementation,

monitoring and evaluation, and social dialogue) to be developed over the short, medium, and

long term. In doing so, the NES includes: (1) an overview and diagnosis of the labor market, (2)

actions from the supply and demand side aiming to improve the employability of Jordan’s labor

and the creation of job opportunities and, (3) a sequencing of actions over the short, medium, and

long terms balancing both demand and supply of labor.

5. However, the economic and political environment within which NES has to be

implemented is increasingly challenging. The current labor market situation in Jordan is

characterized by a number of structural issues:

(a) Compared to the region and the world, Jordan’s economically active population is

extremely low (only around 35 percent of those of working age are working).

(b) The Jordanian economy is dominated by micro and small enterprises employing fewer

than ten workers with inadequate access to finance.

(c) Mismatch between labor supply and demand persists. Labor supply in Jordan is also

determined by in- and out-migration.

(d) The wage structure discrepancies between the public and private sector further exacerbate

the challenge of reducing unemployment.

6. Guided by the NES, the Government is committed to return to the path of job creation

and sustainable growth. The NES resulted in the “Jordan Jobs Compact” (JJC) – a

national program that aims to revive the social contract between the state, private sector

and citizens. Specifically, the JJC posits that employment creation should not be done by

expanding the fiscal deficit, or by imploring the private sector to increase its hiring at a time of

economic slowdown. Thus it needs to be done through changing fiscal priorities, modifying

investment incentives, balancing demand and supply of labor, utilizing the tremendous energy of

youth NGOs on the ground, and making better use of donor financing.

7. The JJC is a tripartite program with five components involving the Government of

Jordan (GOJ), the private sector, and active civil society organizations focused on youth. The overall objective of the JJC is to support building the institutional and financial basis for

creating decent jobs in the private sector for young Jordanians entering the labor market at

various skill levels. While the JJC addresses mainly the supply side of the labor market, the NES

2 See Annex for a detailed presentation on Jordan labor market

3

also proposes measures to boost the demand side to create new jobs and to move up the value

chain to result in better wages and working conditions.

8. The JJC will develop a multi-level approach to assist graduates in finding jobs in a

coordinated and strategic manner as follows:

(a) School to Work Program. The high unemployment rate among youth in Jordan is partly

the result of an inability to transition from an educational to a work environment.

Students often lack the skills, information, and guidance to help them prepare for this

transition. This program aims at upgrading career guidance, counseling and case

management during the last year of college, or university and employment offices to help

students with career guidance and build critical employment skills. In Jordan, a school-to-

work program might not reduce overall unemployment among youth in the short term but

it would start making an impact in the medium term (provided aggregate labor demand

improved) and is expected to help reduce the duration of unemployment for youth, which

is critical. Based on international experience, it is expected that unemployment rates

among male and female youth will start to drop once the program reaches a national

scale.

(b) Job Search and Matching Program will facilitate job matching during the first year of

graduation through improving information available to both employers and prospective

job seekers (thus reducing transaction costs of job search). It will build on existing search

engines and services in the market, including Ministry of Labor and the private sector.

The aim is to improve their reach and data information and make them available to all

employers and fresh graduates. However, an umbrella program is needed to ensure that

all efforts by public, private, and NGOs providers are coordinated and that no students or

regions are excluded or missed.

(c) Job Readiness and Placement will take place after rigorous search for a job in which

the graduate still fails to find an appropriate job. It will aim to provide basic training and

a voucher program to incentivize employers and employees to engage in on-the-job

training which could lead to permanent employment.

(d) Community Service. This will help those who have been unemployed for two years or

more (i.e. were unable to find jobs through market search and job readiness and

placement). It offers voluntary and part time opportunities to work with community based

organizations (CBO), municipalities, or military and civil defense services for a total of

one year.

4

(e) Retooling Program. This program would be accompanied by an on-going program

which helps older unemployed workers with re-tooling, upgrading, or shifting to other

careers.

C. Higher Level Objectives to which the Project Contributes

9. The Government of Jordan recently launched the National Poverty Reduction Strategy (PRS)

with an overall vision/goal of “containing and reducing poverty, vulnerability and inequality in

the current socio-economic environment of Jordan, between 2013 and 2017, through the

adoption of holistic and results-oriented approach, which targets poor and below middle class

households” with several specific objectives3. The proposed project is expected to improve the

employability of graduates and unemployed youth through increasing their access to career

guidance, job search, and on the job training.

10. The proposed project will provide a learning platform to test a number of initiatives

recommended by the National Employment Strategy for 2011-20. This will be achieved via

supporting three of the five pillars of the JJC, i.e, (i) school to work transition; (ii) job search and

matching; and (iii) job readiness and placement.

Alignment with Transition Fund Objective

11. The objective of the MENA Transition Fund is to improve the lives of citizens in transition

countries, and to support the transformation currently underway in several countries in the region

(the “Transition Countries”) by providing grants for technical cooperation to strengthen

governance and public institutions, and foster sustainable and inclusive economic growth by

advancing country-led policy and institutional reforms.

12. The proposed project aligns well with the objective of the Transition Fund in terms of

promoting inclusive development with particular focus on social inclusion, particularly for youth

and women. Through the proposed pilot initiatives, the project aims to facilitate the school-to-

work transition for the young graduates and unemployed youth, provide them with better

information-sharing mechanisms for job search and skills matching, and provide life skills

learning and real work experience to contribute to their employability.

3 PRS Objectives: (1). To better harmonize all public, private and civil society poverty reduction programming; (2)

To deliver expanded, increasingly aligned and better-targeted social protection; measures to members of poor and

vulnerable households; (3) To provide more gainful employment to Jordanians, especially youth, women and

persons with disabilities; (4) To work towards the elimination of child labor; (5) To provide micro and small

business incentives and more effective small and micro-finance, to male and female members of poor and vulnerable

households; (6) To supply more accessible and affordable basic health services to male and female members of poor

and vulnerable households, the elderly and persons with disabilities; (7) To supply more accessible basic education

services, and more effective vocational training, to male and female members of poor and vulnerable households,

the elderly and persons with disabilities; (8) To alleviate the impacts of climate change and environmental

degradation upon the members of poor and vulnerable households; and (9) To provide improved transport, housing

and utilities to members of poor and vulnerable households.

5

Relationship to CAS

13. The World Bank Group’s Country Partnership Strategy (CPS) for FY12-FY15 (report

#58114-JO) is designed to help lay the foundation for sustainable growth and job creation

through a three-pronged approach: (i) strengthen fiscal management and increase

accountability; (ii) strengthen the foundation for sustainable growth with a focus on

competitiveness through supporting priority infrastructure, leveraging private sector investment,

supporting improvements in the business environment, and supporting education and skills

development; and (iii) enhance inclusion through social protection and local development by

assisting the Government in better targeting its social assistance and subsidies to the poor and

vulnerable, implementing the new Social Security Law and building local authorities while

preserving local economic and social assets.

14. The proposed project is well aligned with the CPS priorities, specifically those

focusing on sustainable growth and social inclusion. The project will contribute to achieving

two of the CPS priority areas: (i) strengthen the foundation for sustainable growth with a focus

on competitiveness through supporting education and skills development; and (ii) enhance social

inclusion through supporting employability of young Jordanians who have been marginalized by

the ongoing economic, social and political upheaval. In this context the project is closely aligned

with the region’s strategic priorities – specifically the focus on economic and social inclusion,

the creation of jobs and the cross-cutting emphasis on addressing gender issues.

II. PROJECT DEVELOPMENT OBJECTIVES

A. Project Objectives

15. The overall objective is to pilot selected labor market interventions, to learn about their

effectiveness towards building a coherent active labor market system and to improve job

readiness and job placement opportunities for unemployed men and women graduates. The

project development objective is to increase access to career guidance, job search, and on the job

training among targeted youth.

B. Project Beneficiaries

16. Job Seekers: The project direct beneficiaries will be graduates from community colleges

and universities, and unemployed youth. Most of the unemployed Jordanians are young – 49

percent are below the age of 25; and 72 percent are below the age of 30. The stakes are high for

youth, as the longer they spend unemployed, the more demoralized they become and the more

likely it is that they will exit the labor force for good, especially females. There is a need for the

project to reach these young unemployed men and women and shorten the time youth spend

searching for a job. The project will, through multi-level interventions, aim to benefit about

14,000 job seekers.

17. Ministry of Labor (MOL) – The MOL is the implementing agency for this project

because it has the mandate to implement the National Employment Strategy. This project will

help MOL improve career counseling and job matching/information systems through the

6

Electronic Labor Exchange (ELE) in employment offices (EOs). The MOL’s Employment

Offices (EO) aim to offer high quality employment solutions specifically designed to meet the

companies’ needs via an effective job matching system, specialized career consultations, and

linking the job-seekers to the available jobs. As a result of this project, the MOL will develop

and reinforce career counseling and job matching that can be scaled up to all governorates.

18. E-TVET Fund:. The E-TVET Fund4 is a critical pillar of the E-TVET Council, chaired by

the MOL.The aim of the Fund is to finance projects to enhance the participation of the public and

private sectors in technical and vocational education, as well as training and employment

services. It is expected that through the project, the E-TVET Fund will finance the life skills

training for the beneficiaries of the wage vouchers plus employer and employee social security

contributions per month for a maximum of twelve months. This will bring the total contribution

of E-TVET Fund to the project to about US$1.2 million (JD850,000). Moreover, the E-TVET

Fund will benefit from the experience and lessons of the job placement component, in order to

finance the expansion of the program to other target groups (i.e., the unemployed with tawjihi or

lower levels of education) and improve their existing programs.

19. King Abdullah II Fund for Development (KAFD): King Abdullah II Fund for

Development (KAFD) is not benefiting directly from the project; however, the role of KAFD is

vital to providing strategic and policy guidance in managing and coordinating the

implementation of Component 1 (School to Work Program) focusing on career guidance and

counseling and Component 2 (Market Information and Job Search Program) as it is currently in

charge of coordinating various initiatives dealing with labor market information systems.

C. Key Results Indicators

20. Progress toward the PDO will be monitored through the following key indicators

(a) Direct project beneficiaries, in total number; percentage of which are female

beneficiaries (Core Indicator);

(b) Beneficiaries of Career Guidance and Counseling; percentage of which are female

beneficiaries;

(c) Beneficiaries of the updated and expanded Electronic Labor Exchange, percentage of

which are female beneficiaries;

(d) Beneficiaries of Job Readiness and Placement Program (JRP), percentage of which

are female beneficiaries.

4 The Employment, Technical and Vocational Education and Training (E-TVET) Fund is an autonomous

government agency with independent administration and financial procedures. Its establishment under Law 46 of

2008 followed recommendations of the National Agenda, which acknowledged the multiplicity of providers and

lack of coordination in the human resource development sector.

7

III. PROJECT DESCRIPTION

A. Project Components

21. The proposed project responds to the Government’s request for World Bank support

in supporting implementation key aspects of the Jordan Jobs Compact initiative (JJC)

which is a multi-pillar active labor market program (ALMP) of the National Employment

Strategy Action Plan. The JJC comprises of both long term and short term proposals for

improving employability and employment outcomes. The project will support three out of the

five pillars of the JJC. The project components are: 1) school to work program, 2) market

information and job search program, 3) job readiness and placement program, and 4) monitoring

and evaluation and project management.

22. The MOL will be responsible for the overall coordination and management of the

project under the strategic and policy guidance of the E-TVET Council and in close

coordination with KAFD. The Project Operations Manual (POM) will provide details on

implementation of all project components. The POM is expected to be ready no later than three

months after effectiveness.

23. Component 1: School to Work Program (STW) (US$730,000): This component will

provide “school to work” transition support for two groups between ages 19-25: (i) students

during their final year university through counseling centers; and (ii) unemployed youth through

the Ministry of Labor (MOL) employment offices. MOL has developed three sets of manuals for

career counseling and vocational planning for: community college graduates, university

graduates, and youth unemployed. Moreover, KAFD is currently reviewing the counseling

services of the 25 universities to assess their strengths and weaknesses and plans to improve

career counseling manuals for university students. The project will support the implementation

of these manuals for these two target groups in four universities and six employment offices in

selected governorates5 by: i) hiring of the technical experts who will assist in overall design,

planning and quality assurance, provide training to counselors, and oversee the delivery and

coverage of career services in selected universities and the employment offices; and ii) providing

needed refurbishment of university and employment offices including equipment and software. It

is estimated that during the project period approximately 10,000 youth (19-25 years of age)

could benefit from the counseling in the selected universities and employment offices in the

governorates. The POM will provide details on the implementation of this component, including

the selection criteria of universities and employment offices.

24. Component 2: Market Information and Job Search Program (MIJS) (US$685,000):

This component will facilitate job matching through improving information available to both

employers and prospective job seekers. Currently, several initiatives are being developed by

several players and financed by various sources (MOL, ILO, IYF, Microsoft, EU, UNDP,

NCHRD, E-TVET Fund). To ensure synergy and complementarity, KAFD is currently in charge

of the coordination of the various initiatives. The project will support MOL to update and expand

the Electronic Labor Exchange (ELE) by providing technical assistance for: i) capacity building

5 It is planned that the Component A will be implemented in three Governorates. Thus the number of universities

and EOs where the Manuals will be implemented may vary accordingly.

8

of MOL staff for improving data collection and analysis for effective intermediation services; ii)

building capacity for employment offices staff on facilitating job matching (including the use of

the updated and expanded ELE); iii) developing interactive online career guidance, mentoring,

vocational planning system; iv) a communication campaign to increase the awareness about the

ELE for both jobseekers and employers; and, v) providing related IT hardware and software for

the employment offices. The POM will provide details on the implementation of this component.

25. Component 3: Job Readiness and Placement Program (JRPP) (US$2,867,970): This

component will support graduates from universities and from community colleges in selected

governorates (between ages 19-25) who have been unemployed for at least one year (see the

eligibility criteria presented in the box below)6. It will provide the unemployed graduates a

package of 75 hours employability training and partial salary voucher/social security registration

for one year. The salary vouchers and training compensation will be financed by the project and

the training providers and social security contribution will be financed by the E-TVET Fund.

This scheme will encourage private employers and job seekers to engage in on-the-job training to

facilitate job placement. This pilot will target 1,200 unemployed graduate youth in the selected

governorates based on the selection criteria as below. The POM will provide details on the

design and implementation of this component.

Program Enrolment: The eligible candidates will enroll into the program by completing a

simple form covering the eligibility information and their ID number, contact information

and Bank account details under a special program window (one year training contract)

which exempts the employer from the labor laws relating to staff dismissal for one year.

Training: The beneficiaries of JRPP will receive training in basic employability skills.

Training providers will apply to provide training that would be financed by the E-TVET

Fund, which will request E-TVET Council authorization for an amount equivalent to JD

350,000. This will be confirmed by a written financial contribution commitment from E-

TVET Fund to Ministry of Planning and Internal Cooperation (MOPIC). All the

participants will have to take employability training up to 75 hours and upon training

completion, trainees will receive a certificate and a lump sum stipend of JD150 financed

by the project. The employability skills training will be provided by a competent provider

that will be selected on a competitive basis, coordinated by E-TVET Fund.

6 Based on actual age of graduates from Community Colleges and Universities, and the requirement of at least one

year unemployment, the age bracket of beneficiaries may need upward adjustment.

Selection Criteria for Youth and Employers Eligibility for Candidates: Male and female youth, aged 19-25 with community college or university

degrees, and have been unemployed for one year or more would benefit from both the employability training (life skills) and the on-the-job voucher programs. Based on the structure of the labor market in Jordan, educated youth who are lacking on the job experience have higher probability of unemployment.

Eligibility Criteria for Employers: All private and not for profit enterprises are eligible to benefit from the program regardless of enterprise size as long as they are registered or willing to register with the Social Security Corporation.

9

Job Voucher: The voucher system will be introduced to be paid against the results agreed

between the employer and the employee (voucher holder). Vouchers will remain the

property of the employee and can be taken from one job to another until all months of

eligibility have been used. It is proposed that the value of voucher not exceed JD 100 per

month for one year. In addition, the voucher program will cover the social security

contributions of employers and employees up to a year. The cost of this contribution

(amounting to about JD500, 000) will be financed by E-TVET Fund own resources. This

will be confirmed by a written financial contribution commitment from E-TVET Fund to

MOPIC. The job voucher can only be redeemed for a job which will meet the following

conditions of employment: (i) full-time, defined as 30 or more hours a week; and (ii) has

a written job contract spelling out the responsibilities of the worker and stating a wage at

least as high as the minimum wage. Employees will be considered a special category for

this program (training contract) during the duration of the voucher and firms should not

be subject to restrictions or penalties for firing these workers during the duration of the

voucher. If employees are retained once the voucher is finished, firms will have the three

month probationary period before becoming subject to standard legal provisions

regarding staff dismissal.

26. Component 4: Project Monitoring and Evaluation and Management (US$467,030): This component will include the following:

Monitoring and evaluation: The PMU will collect data on day to day project

activities through agencies which are responsible for the different components (MOL,

KAFD, E-TVET Fund). In addition, the PMU will be responsible for i) launching a

beneficiary assessment for students who received career guidance and ii) preparing an

impact evaluation of the voucher program (baseline and final)

Project Management: This sub-component will support the management of the

project. It will ensure that the PMU is operational and that it successfully and

efficiently implements the project in conformity with the Financing Agreement,

project document and the Project Operation Manual (POM). This component will

finance: (i) Technical Assistance to the PMU staff or needed PMU staff salaries for

those selected competitively; (ii) equipment and operating costs directly linked to the

daily management of the project (office space, utilities and supplies, bank charges,

Employers’ Contribution, Incentives and Penalties

To allow firms to be motivated to participate in the program and workers to find an appropriate match, the

following measures will be applied:

For employers to benefit from the voucher, they will have to keep the salary at least as high as the minimum wage.

Employers /Enterprises should not be subject to restrictions or penalties for firing these workers during the period of

voucher use. If workers are retained once the voucher is finished, firms should still have the three month

probationary period before becoming subject to the standard legal provisions regarding staff dismissal.

Enterprises or employees engaged in falsifying employment information would be denied access to the program in

the future and pursued legally.

10

communications, vehicle operation, maintenance and insurance, building and

equipment maintenance costs, travel and supervision costs, etc.); and (iii) regular

internal and external audits (focusing on financial and procurement aspects). Within

the framework of the monitoring cycle, a mid-term review will involve project’s

stakeholders and civil society in the review of project performance, intermediary

results, and outcomes. The progress and impact of the project will be measured using

the data collected at the mid-term review and project end.

B. Project Financing

Financing Instrument

27. The financing instrument is an Investment Project Financing grant in the amount of

US$4.75 million, which will be financed through the MENA Transition trust fund. The project

would be financed through a Recipient-executed grant agreement for US$4.75 million.

Project Cost and Financing

28. The project costs and financing are detailed in the table below.

Project Component Project

Costs

Trust

Fund

Financing

% TF

Financing

E-TVET

Fund

Financing

% E-

TVET

Fund

Financing

COMPONENT 1: School to Work Program 730,000 730,000 100% -

COMPONENT 2: Market Information and Job Search

Program (Electronic Labor Exchanges) 685,000 685,000

100% -

COMPONENT 3: Job Readiness and Placement Program

Vouchers

Life Skills Training

Social Security contribution

2,867,970

500,000

700,000

2,867,970

-

-

100%

-

500,000

700,000

-

100%

100%

COMPONENT 4: Project Monitoring and Evaluation and

Management 467,030 467,030

100%

TOTAL 5,950,000 4,750,000 80% 1,200,000 20%

C. Lessons Learned and Reflected in the Project Design

29. Overall lessons learnt from World Bank operations in Jordan relevant to this project are: (i)

take into account implementation capacity in designing the project; (ii) establish monitoring and

evaluation systems to ensure real time information on implementation of all project activities;

flow of funds, as well as on project related output and outcome indicators; (iii) secure beneficiary

participation at all levels to foster ownership and continued commitment to project development

objectives; and, (iv) pay significant attention to the time needed to implement reforms and to

appropriately consider vested interests and their potential to delay reforms. In addition to these

generic issues, the ongoing pilots and experiences in the country, as well as experiences in other

countries provide valuable lessons that are taken into account in the design of the proposed

project.

11

30. With respect to the technical aspects of the project design, the development of the school-

to-work component takes into account the lessons learned from the ongoing assessment by

KAFD and MOL, to reinforce the career counseling and vocational planning in universities, and

employment offices. Experience shows that school-to-work types of interventions are effective

if the jobs information sharing is combined with help on career guidance and basic employability

training. Based on this experience, the project design includes: a database for a systematic

follow up on job search support; case management capacity to monitor success in finding jobs

for the students receiving career guidance; and development of on-line resources to help students

make career choices and to provide them with the basic skills that will help them secure their

first job.

31. The market information and job search component builds on the lessons learned via

implementation of the existing search engines and services in the MOL, the initiative supported

by CIDA over the past ten years. The project design combines jobs data information sharing

with conducting effective intermediation services, matching job demand with supply, and

improving information sharing between employment agencies and education system.

32. The job voucher component builds on the lessons learned during implementation of the

Jordan NOW (New work Opportunities for Women) pilot project. In particular, the project

design takes into account specific recommendations of the NOW pilot to increase employability

of the beneficiaries (specific eligibility criteria for project beneficiaries; an amount of the

voucher set below the minimum wage so that firms are required to contribute a part of the costs

of social security registration; conditions of employment, including a written contract, etc.).

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements (see Annex 3 for detailed

implementation arrangements)

33. The MOL will be responsible for the overall project coordination and management

with policy and strategic guidance from the E-TVET Council, and in close coordination

with E-TVET Fund, KAFD and MOPIC. No later than three months after effectiveness, it

will establish a Project Management Unit (PMU) which will be staffed with one Director, one

technical officer for voucher program, one IT specialist, one procurement specialist, one

financial management specialist and one M&E specialist. The PMU staff is expected to be

appointed/ seconded by the Recipient (salaries financed by the Government budget). In the

event the Recipient is unable to identify qualified staff, PMU staff will be selected through

competitive process in accordance with the World Bank consultant/procurement guidelines

(salaries financed by the project). The selection and appointment process for PMU staff should

be acceptable to the World Bank, and based on terms of reference (TORs) acceptable to the

World Bank regardless of whether staff were appointed, seconded or competitively selected.

MOPIC will second from their own staff a Financial Management specialist that will collaborate

closely and work with the PMU. If needed, the project will finance consultants or a consulting

firm who will work closely with the PMU core team, as well as the E-TVET Fund staff for

managing and monitoring the vouchers program. The PMU will be located in E-TVET Fund

which will provide the office space. Fiduciary management responsibilities for all components

12

will be under MOPIC. The POM will describe details on responsibilities for the implementation

of the project components.

34. Component 1 (School to Work Program) will be implemented by the MOL in close

coordination with KAFD as follows: The PMU will hire the technical experts to train the

counselors and relevant personnel in the university centers and employment offices on utilization

of the new career guidance manuals and oversee / guide the counselors during the counseling

sessions with the students. In addition, the project will finance refurbishment of selected

universities and employment offices. The POM will describe implementation details of this

component.

35. Component 2 (Market Information and Job Matching) will be implemented by the

MOL in close coordination with KAFD as follows: Under this component, the job matching

will be done through the updated and expanded electronic labor exchanges (ELEs) that will be

supported by the project. The project will finance (i) capacity building for career counseling of

universities and employment offices staff on facilitating job matchmaking (use of the updated

ELE, etc); (ii) awareness campaign for jobseekers and employers; and, (iii) equipment and

software for employment offices. The POM will describe implementation details of this

component.

36. Component 3 (Job Readiness and Placement) will be implemented by the E-TVET

Fund in close coordination with MOL and Social Security Corporation (SSC) as follows:

a. With regard to training (job readiness), training providers will be selected competitively,

following the E-TVET Council’s approval based on cost, track record, and geographic

distribution, and E-TVET Fund would finance the training providers per trainee.

b. With regard to job voucher payment (job placement), the E-TVET Fund will be responsible

for technical implementation and monitoring of the job voucher component as follows:

Job Voucher Enrollment: Eligible unemployed youth would apply through MOL EOs or

SSC branches or a consulting firm by filling out a form. This form will be mailed to the

SSC or filled out online on a specially designed portal. In case the SSC will maintain the

database of unemployed youth, it will verify eligibility, and confirm enrolment into the

program to the participant through a voucher registration number, which identifies them

as program participants. The eligible firms (employers) will register with the SSC also to

be enrolled into the program. The role of SSC would be to confirm/verify the eligibility

of the worker and the employer. The POM will provide clarification on job voucher

enrollment.

Job Voucher Implementation: The implementation of the program will be the

responsibility of the E-TVET Fund with if needed support of a consulting firm who will

be hired, on competitive basis, and make the payment scheme as follows:

i. Step 1: Employer will directly pay the worker the wage (minimum wage offer of

JD190 per month is required) and, if applicable, remit the employer’s share of

social security contributions to the SSC. Contribution to the social security system

13

will serve as proof the worker is still employed in the firm, will be subject to

inspections by SSC inspectors, and will be used to automate the payment. The

cost of this contribution (amounting to about JD500,000) will be financed by the

E-TVET Fund own resources.

ii. Step 2: Upon verification of current conditions of employment, employment

status, employers’ payment of wage to the worker, the employers’ accounts will

be credited the subsidy (JD 100), plus the social security contributions financed

by E-TVET Fund own resources.

B. Results Monitoring and Evaluation

37. Focusing on the learning nature of this pilot project, monitoring and evaluation will be an

integral part of the program. The PMU will put in place a strong monitoring and evaluation

component to monitor progress during program implementation and address issues in a timely

manner, especially key activities such as building the effectiveness of school to work transition

interventions, job matching through ELEs and job voucher program. The PMU also will hire

independent firms or research centers to conduct spot checks, audits and performance

evaluations. Furthermore, the PMU will collect data on day to day project activities through

agencies which are responsible for the different components (MOL, KAFD, E-TVET Fund) and

will be responsible for i) launching a beneficiary assessment for students who received career

guidance and ii) preparing an impact evaluation of the voucher program (baseline and final) In

addition to the M&E integrated in the project, an independent assessment of the project

outcomes (external financial audits) will be prepared to audit the project’s annual financial

statements in accordance with terms of reference (TORs) acceptable to the World Bank.

C. Sustainability

38. The project is supporting a number of priority labor market initiatives identified by the

Government of Jordan in the National Employment Strategy. First, the “school-to-work”

transition support to the graduates will build on the ongoing work at the MOL on career

counseling offices. Bank support to strengthen the MOL capacity to better design, implement

and evaluate the project activities will also contribute to this purpose. Second, the market

information and job search component will also make use of the existing search engines and

services at the MOL, including support for capacity building of the staff on key aspects of

running such information systems. The voucher component also provides a platform for piloting

innovative labor market initiatives that would strengthen the capacity of the involved agencies

and pilot an approach that could provide the basis of a future government-supported program at

broader scale. Moreover, the E-TVET Fund is expected to finance from its own resources the

training providers as well as the social security contributions of the vouchers program.

Ultimately, the project is expected to generate momentum around key provisions of the JJC and

help support government attention to the critical national of employment generation.

14

V. KEY RISKS AND MITIGATION MEASURES

A. Risk Ratings Summary

Stakeholder Risk Moderate

Implementing Agency Risk

- Capacity Substantial

- Governance Moderate

Project Risk

- Design Substantial

- Social and Environmental Low

- Program and Donor Low

- Delivery, Monitoring and Sustainability Substantial

Overall Implementation Risk Substantial

B. Description

39. Overall, the risk for this operation is “Substantial” during implementation mainly due to: (i)

Stakeholder risk that requires the involvement and cooperation of employers and unemployed

graduates; (ii) lack of employers interest in using the vouchers; (iii) multiple actors involved in

the job voucher component that may cause delays in identifying eligible firms and payments to

beneficiaries; and (iv) lack of the private sector involvement in job placement information

system. Nonetheless these risks could be mitigated as follows: (i) launching a well-designed

public information campaign to raise awareness among the key stakeholders on the short term

and long term benefits of the project for the unemployed youth and seek their steady

commitment and ownership throughout the implementation; (ii) building consensus among the

participating employers at all levels of program design and seeking their participation and

ownership of the program..

VI. APPRAISAL SUMMARY

A. Economic and financial analysis

40. It is difficult to assess the economic benefit of the project on youth employment. However

the international experience shows that, counseling, labor intermediation and wage subsidies can

have positive effects to facilitate and improve employability of youth.

41. First, the expected development outcome is increased employability of individuals,

particularly youth. Increased employability is expected to through counseling programs, access

to updated electronic intermediation systems, and participation in a job voucher program, which

entails life skills training, intermediation services, and wage subsidies. Second, there is a clear

rationale for government intervention. The main rationale for these programs in Jordan is that

they would be giving work experience to workers who would otherwise re-main unemployed or

take jobs that do not exploit their potential productivity. At the same time, there is evidence

showing that the social benefits of this increase in human capital could outweigh the cost of the

15

subsidies. Finally, the World Bank has a comparative advantage on these domains given the

international experience on design, implementation, and evaluation of active labor market

programs. Moreover, this project is building on the knowledge and taking into consideration the

lessons from the previous, similar World Bank intervention (NOW). More details on the

international experience and impacts of the counseling, intermediation, and voucher components

can be found below.

42. With respect to Counseling, international evidence on the impact of these programs for the

unemployed -with particular reference to their job finding rate, application intensity and

matching probability- is scant. However, there are a few studies showing that counseling and

mentoring does reduce the time taken to find a job because people participating in the program

prepare more applications than those not participating, although no differences are found in

matching probabilities (Gorter and Kalb 1995).

43. With respect to labor intermediation, impact evaluations have found that employment

services are the most cost effective of all active labor market programs. In its review of

evaluations worldwide, the World Bank concluded that “employment services are generally the

most cost-effective intervention: employment and earnings impacts are usually positive and,

compared to other ALMPs, these employment services are inexpensive.” (Betcherman et al.,

2004). Similar findings are made in other evaluations as well. By Kluve (2006) and Card et al

(2009), employment services are found to be particularly cost-effective relative to other active

labor market policies, in particular, with lower costs per worker employed. In developed

countries, most studies find that employment services were successful in helping the unemployed

workers find better-paid jobs. This is true for most experimental studies in Canada, Sweden, the

United Kingdom, and the United States. According to Betcherman et al (2004), the two studies

that evaluate employment services in developing countries (Brazil and Uruguay) show that in

countries with large informal sectors, public employment services may have limited reach as

workers may prefer other channels of job search. In addition, when positive results are found,

they are linked to better-educated workers (See Rodriguez-Planas 2007 for an overview). 44. With respect to wage subsidies, they are in principle designed to subsidize an employer’s

cost of hiring- by contributing part of the worker’s salary or offsetting social security

contributions for a specified amount of time. Subsidies are a relatively straightforward way to get

long-term unemployed or disadvantaged workers into the labor market, and governments

sometimes use this instrument even if the job lasts only for a limited period of time. This project

follows international best practice evidence suggesting these are most effective when they

combine the subsidy with other components such as training or job search assistance

(Betcherman et al 2004). The cost and benefits assumptions for these types of targeted wage

subsidies are as follows. First, the wage subsidies enhance effective labor supply effect by

helping individuals to keep in contact with the world of work, therefore maintaining their

motivation and skills. Secondly, subsidy programs are seen as compensating employers for their

screening, orientation, and initial training costs with the expectation that the employee’s

productivity will have increased enough by the time the subsidy period is over for the firm to

continue the employment relationship. There is also a particularly strong social element to these

programs even if there is no net employment gain (Martin and Grubb 2001). Finally, the total

cost of this voucher program per beneficiary are in line with those in other developed and

16

developing countries. All in all, despite the risk of substitution and deadweight effects, the

benefits of the subsidies are expected to outweigh the costs by increasing employability of the

beneficiaries.

B. Technical

45. The project is technically sound. The school-to-work transition draws on good practice

examples from Canada and the United Kingdom and the activities are adequately customized to

the local conditions. The ELE, with the MIS and ICT solutions chosen, represents a good balance

between functionality and cost. The chosen model for the job voucher component is based on the

lessons learned from the Jordan New work Opportunities for Women (Jordan NOW) Pilot and

other international experiences, which included a rigorous impact evaluation study, and takes

also into account the experience and the technical capacity of both government and non-

government service providers included in the project.

C. Financial Management

46. The World Bank undertook an assessment of the Financial Management (FM) systems

within the MOL during the preparation of the recently closed Social Protection Enhancement

Project (P100546). For the purpose of this project, this FM assessment was updated. Owning to

the fact that MOPIC will manage the FM and disbursement functions of the Project, the recently

conducted assessment of MOPIC FM systems were updated as well. The updated assessments

concluded that with the implementation of agreed-upon actions, the proposed FM arrangements

will satisfy the minimum requirements under OP/BP10.00. Annex 3 provides additional

information on the FM assessment and the recommended mitigation measures. The detailed

financial management capacity assessment and arrangements are available in the project file.

47. The MOL will be responsible for the day-to- day project implementation through

establishing a Project Management Unit (PMU) while the MOPIC will manage the Project’s

main FM and disbursement functions. Having the MOPIC managing the FM and disbursement

functions enhances the project’s FM capacity. The MOPIC has built solid experience with the

World Bank FM and disbursement guidelines during the implementation of past and current

World Bank-financed projects. A Financial Officer will be seconded to or hired by the PMU.

The MOPIC will also identify a Financial Officer from its own Finance Department to be the

main FM person for the project at the MOPIC and as a civil servant its salary is financed by the

MOPIC. The two Financial Officers will maintain close coordination and collaboration.

48. To ensure that funds are readily available for project implementation, a Designated

Account (DA) will be opened at the Central Bank of Jordan (CBJ) and will be managed by the

MOPIC. The Project will be required to generate quarterly Interim un-audited financial reports

(IFRs). These IFRs will be submitted by MOPIC to the World Bank within 45 days after the end

of the concerned period. An external auditor financed by the project and acceptable to the World

Bank, will be appointed, based on terms of reference (TORs) acceptable to the World Bank, to

audit the project’s annual financial statements. The IFRs and annual financial statements will be

used as a financial reporting mechanism and not for disbursement purposes.

17

49. Financial Aspects Related to Job Vouchers - Component 3 (Job Readiness and Placement).

This component aims to assist 1,200 unemployed graduates in finding jobs with a package of

employability training, partial salary voucher, and social security registration for one year to

encourage private employers and job seekers to engage in on-the-job training to facilitate job

placement. The project will finance the salary vouchers and training compensation while the E-

TVET Fund will finance the training providers and social security contributions. The

implementation of the program will be coordinated by a consulting firm that will be hired on a

competitive basis, and will manage the related payment scheme. For all project components,

including this specific component, a Project Operations Manual (POM), acceptable to the Bank,

will be developed, describing the roles and responsibilities of E-TVET Fund, MOL, SSC,

MOPIC, KADF, and the consulting firms, including the FM and disbursement aspects of this

operation. The POM is expected to be ready no later than three months after effectiveness. More

details on funds flow to beneficiaries are explained in Annex III.

D. Procurement

50. The World Bank undertook an assessment of the procurement system and capacity in place

at the MOL. The MOL will coordinate with KAFD to design and implement Component 1

(school to work program) and Component 2 (Market information and job search program).

MOL will coordinate closely with E-TVET fund for the implementation of Component 3 (Job

Readiness and Placement Program) which foresees the recruitment of a consulting firm or an

NGO to manage the training and the distribution of the vouchers to the employed youth that were

retained by the program. MOL shall ensure the establishment of a Project Management Unit

(PMU) which will oversee the overall implementation of the project as well as forming a Special

Tender Committee (STC) to expedite the procurement processing.

51. The procurement capacity assessment identified the overall procurement implementation

risk and proposed the following mitigation measures: (i) ensuring proper coordination between

the different stakeholders involved in the project, especially with respect to procurement

planning; (ii) usage of procurement plan as a monitoring tool for processing timely activities and

not only as a reporting tool; (iii) preparing a procurement section in the Project Operation

Manual (POM) to integrate procurement processing but also forms and standardized documents;

(iv) systematizing record keeping, and initiating electronic archiving of procurement processing;

(v) enhancing capacity for appropriate support (staff, training, tools) to properly prepare the

project procurement by linking project objectives and procurement plan; (vi) agreeing on a

training program (internal/ external) to be implemented over the life of the project that is both

relevant and practical; (vii) NCB provisions in the grant agreement shall be observed; (viii)

enhancing capacity in terms of technical specifications drafting, (ix) establishing/improving and

implementing complaint management system; (x) reviewing causes for recurrent amendments

and cost overruns, if any; (xi) developing suitable corrections to planning, cost estimates, lack of

proper designs, technical specifications, etc.; and (xii) including appropriate coverage of

procurement aspects to meet project requirements in the audit TOR, that will require conducting

performance audits.

52. Project guidelines: “Guidelines On Preventing and Combating Fraud and Corruption in

Projects Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006 and

updated January 2011, World Bank “Guidelines: Procurement of Goods, Works and Non-

18

consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”

dated January 2011 and World Bank “Guidelines: Selection and Employment of Consultants

under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011,

shall apply to the project.

53. Particular procurement: Use of Nongovernmental Organizations a (NGO), specialized

firm or public institution under Component 3. The project may be appointing a lead NGO, a

competent private firm, or a public institution for managing the distribution of vouchers and

monitoring implementation of the component. In view of the nature of the activity, the consultant

should have extensive capacity and past experience in administering programs similar to the

requested. The selection will be on a competitive basis, although following market research, the

MOL may request single sourcing based on sufficient justification. In this case, the Bank will

have to clear the submitted justification for using single source method as per the guidelines

requirements (Selection of Consultants Guidelines Clause 3.9). MOL will have to be vigilant in

drafting Terms of Reference (ToRs) and will insure including in the contract all requirements

that the selected consultant will be observing with respect to transparency. A particular focus

shall be given with respect to record keeping.

54. Procurement plans: The procurement plan (dated October 2, 2013) for the life of the

project is developed to cover all project activities. Updates of the plan shall be reviewed by the

Bank at least twice a year or as seen necessary.

55. Project Operations Manual. The procurement section shall specify the procurement

processing and contract management. It shall also tackle the record-keeping requirements and the

complaint mechanism expected arrangements.

56. Procurement oversight:The procurement supervision of the Bank shall be ensured at least

twice a year and a post procurement review once a year. The post review sample shall be

composed of 20percent of contracts eligible for post review.

E. Social (including Safeguards)

57. The project will respond directly to several social concerns of Jordanian citizens through:

(i) helping young Jordanians increasing their employability skills and prospects; and (ii)

providing direct employment support to young job seekers who have been unable to find jobs

during their first year of graduation. The Project will be implemented by the MOL in

coordination with E-TVET Fund, KAFD, and MOPIC. However, the design, nature and scope of

the project do not result in environmental or social safeguards issues and safeguards policies are

not triggered as a result of project interventions.

F. Environment (including Safeguards)

58. No environmental issues are foreseen.

G. Other Safeguards Policies Triggered (if required)

59. No safeguard policies are triggered.

19

Annex 1: Results Framework and Monitoring

JORDAN: Support to Building Active Labor Market Program

Project Development Objective (PDO): . The project development objective is to increase access to career guidance, job search, and on the job training

among targeted youth.

PDO Level Results Indicators*

Co

re

Unit of

Measure Baseline

Cumulative Target

Values** Frequency

Data Source/

Methodology Responsibility

Description (indicator

definition etc.)

YR 1 YR 2

Indicator One: Total Direct project

beneficiaries:

(a) Total; and

(b) Of which are female

Number

Percentage

0

5,200

50

13,700

50

Yearly Administrative

data

Online database

PMU in MOL

with collaboration

of KAFD/E-TVET

Fund and SSC

Sum of beneficiaries of school

to work program, updated and

expanded ELE and job

readiness and placement program

Indicator Two: Beneficiaries of

career guidance and counseling (a) Total


Number

Percentage

0

3000

50

10, 000

50

Yearly Administrative

Data

PMU/MOL/KAF

D

Beneficiaries = students in the

final years of community college & university and

unemployed youth in

employment offices of MOL

Indicator Three: Beneficiaries of

updated and expanded Electronic Labor Exchange

(a) Total (b) Of which are female

Number

Percentage

0

1,000

50

2,500

50

Yearly Online database PMU/MOL/KAF

D

Beneficiaries = those who

accessed the updated and expanded ELE

Indicator Four: Beneficiaries of Job Readiness and Placement Program

(a) Total


Number

Percentage

0

1,200

50

1,200

50

Yearly

Administrative

data

PMU with collaboration of

MOL/KAFD/E-

TVET Fund and

SSC

Beneficiaries = at least one year unemployed graduate

youth (19-25 years) from

community college and

university

Indicator Five: Beneficiaries of

Labor Market Programs 7

Administrative

PMU

Same as the total beneficiaries

7 Total beneficiaries of Labor Market Programs are limited to the project and equal to total direct project beneficiaries.

20

(a) Total

(b) Of which female

Number

Percentage

0

0

5,200

50

13,700

50

Yearly data of the project.

INTERMEDIATE RESULTS

Intermediate Result (Component One): School to Work Program (STW)

Intermediate Result indicator One:

Refurbished career counseling centers

in universities and employment offices

Number 0 5 10 Yearly Administrative data

PMU/MOL/KAFD/Universities

Career counseling centers in selected universities, and

employment offices

Intermediate Result indicator Two:

Trained counselors in universities and

employment offices

Number 0 10 20 Yearly MOL /Universities

database

PMU/MOL/KAFD/Universities

Counselors in universities and employment offices

Intermediate Result indicator Three:

System for collecting feedback from beneficiaries in place

Yes/No No No Yes End of project Beneficiary

survey of career counseling

PMU/MOL Based on the beneficiary

review.

Intermediate Result (Component Two): Market Information and Job Search Program (Electronic Labor Exchanges)


Staff trained on updated and

expanded ELE

Number 0 50 100 Yearly Administrative

data

PMU Staff in universities and

employment offices.

Intermediate Result indicator Two: Awareness campaigns on updated and

expanded ELE

Number 0 5 10 Yearly Administrative data

PMU Awareness campaigns to promote use of updated and

expanded ELE

Intermediate Result (Component Three): Job Readiness and Placement Programs


Beneficiaries to complete skills training

Number 0 1200 1200 Yearly Administrative

data

PMU ETVET Beneficiaries: unemployed

university or community college graduates who have

been unemployed for a year or

more

Intermediate Result Indicator Two: Beneficiaries satisfied with on the job

training program

Percentage 0 20 50 Baseline and Final

Impact evaluation PMU/E-TVET Fund

Based on impact evaluation of the voucher program (baseline

and final)

21

Annex 2: Detailed Project Description


Project Background

1. The recently launched National Employment Strategy (NES) lays the foundation to

rectifying unemployment anomalies and enhancing employability guided by the priorities

of the “National Agenda”8. The NES includes (1) an overview and diagnosis of the labor

market, (2) actions from the supply and demand side aiming to improve the employability of

Jordan’s labor and the creation of job opportunities and, (3) a sequencing of actions over the

short, medium, and long terms balancing both demand and supply of labor.

2. However, the economic and political environment within which NES has to be

implemented is increasingly challenging. The current reality suggests that the high rate of

unemployment in Jordan is structural which could be attributed to the reasons below:

Compared to the region and the world, Jordan’s economically active population is

extremely low (only around 35 percent of those of working age are working). The

economically inactive are overwhelmingly female, and overwhelmingly less educated.

Among the economically active, males are entering the labor market at normal rates but

exiting early, while females are not entering the labor market at sufficient rates, and those

who do are exiting too quickly. In addition to lingering cultural issues and employer

perceptions that constrain female participation, it is increasingly institutional weaknesses

that hamper greater female participation. Better access to information on job

opportunities, targeted ALMPs, secured maternity benefits, and affordable and

dependable childcare would greatly facilitate female entry into the labor market. There

are differential hiring patterns between the public and private sectors: 45 percent of

public sector employees are female, but only 13 percent of private sector employees are

female. Unemployed males are overwhelmingly unskilled, while unemployed females are

overwhelmingly university graduates.

The Jordanian economy is dominated by micro and small enterprises employing

fewer than ten workers with inadequate access to finance. They represent more than

90 percent of all registered enterprises and employ 47 percent of workers in the private

sector. They also face different constraints than medium and large enterprises, the most

significant being access to finance; Jordanian banks have lent only 10 percent of their

total loans to SMEs, and less than 30 percent of SMEs have access to finance.

Mismatch between labor supply and demand persists. On the supply side, every year,

around 120,000 students take the high school tawjihi exam, and about 60,000 pass it. Of

those who pass, around 45,000 go to Jordanian universities and 6,000 go to community

colleges. Jordanian universities graduate around 40,000 students per year. On the

demand side, out of around 76,000 jobs created in 2009, only about 24,000 were taken by

university graduates, while 6,500 were taken by community college graduates; the rest,

8 The National Agenda was initiated in 2005 as a holistic approach to the reform process and encompassed a wide

variety of political, economic and social policies that were to be linked to the budget and include timelines and

performance indicators.

22

around 46,000, were taken by workers with a high school education or below (and a

substantial proportion of those went to foreign workers). Thus, around 15,000 new

university graduates enter the ranks of the unemployed or economically inactive every

year.

Labor supply in Jordan is also determined by in- and out-migration. This dynamic of

sending the “creative class” of skilled workers, professionals, and managers and

receiving less skilled foreign workers has made it much more difficult for Jordan to build

its human resource base towards a knowledge-based economy.

Wage realities further undermine the unemployment challenges. The average wage

in Jordan was JD 365 per month in 2009, reflecting growth of 3 percent in real terms

between 2006 and 2009. But the wage structure shows a very wide base of low wages

below JD 200, which makes it difficult for households with one income earner to live

beyond subsistence.

3. Moving forward, it is essential that Jordan launches a coordinated program to

generate 20-30 thousand additional jobs per year. Numbers vary on how many jobs the

Jordanian economy is producing every year but based on various sources, the National

Employment Strategy (NES) estimates that around 65,000- 70,000 jobs are created per year,

around 40,000- 45,000 of which go to Jordanians (the rest to foreign workers). In contrast,

Jordan needs to create around 70,000 jobs for Jordanians per year to keep the current

unemployment rate (and also inactive population rate) constant. It would need to create even

more jobs to start reducing unemployment and increasing employment rates. Thus, over the next

two to three years, it is essential that Jordan launches a coordinated program which generates 20-

30 thousand additional jobs per year. This could be achieved by coordinating various policies

and initiatives together to generate the desired job impact in the short run, and hopefully translate

into robust economic growth with employment over the medium term.

Project Description

4. The proposed project responds to the Government’s request for supporting

implementation of few key ideas in the Jordan Jobs Compact initiative (JJC) which is a

multi-pillar active labor market program (ALMP) of the National Employment Strategy

Action Plan. The JJC comprises of both long term and short term proposals for improving

employability and employment outcomes. The project will support three out of the five pillars of

the JJC. The project components are: 1) school to work program, 2) market information and job

search program, 3) job readiness and placement program, and 4) monitoring and evaluation and

project management.

5. The overall objective is to pilot selected labor market interventions, to learn about

their effectiveness towards building a coherent active labor market system and to improve

job readiness and job placement opportunities for unemployed men and women graduates. The project development objective is to increase access to career guidance, job search, and on

the job training among targeted youth.

6. The MOL will be responsible for the overall coordination and management of the

project under the strategic and policy guidance of the E-TVET Council and in close

23

coordination with KAFD. The Project Operations Manual (POM) will provide details on

implementation of all project components. The POM is expected to be ready no later than three

months after effectiveness.

Component 1: School to Work Program (STW): This component will provide

“school to work” transition support for two groups between ages 19-25: (i) students

during their final year at university through counseling centers; and (ii) unemployed

youth through the Ministry of Labor (MOL) employment offices. MOL has developed

three sets of manuals for career counseling and vocational planning for: community

college graduates, university graduates, and unemployed youth. Moreover, KAFD in

currently reviewing the counseling services of the 25 universities to assess their strengths

and weaknesses and plans to improve career counseling manuals for university students.

The project will support the implementation of these manuals for these two target groups

in four universities and six employment offices in selected governorates9 by: i) hiring of

the technical experts who will assist in overall design, planning and quality assurance,

provide training to counselors, and oversee the delivery and coverage of career services

in selected universities and the employment offices; and ii) providing needed

refurbishment of university and employment offices including equipment and software. It

is estimated that during the project period approximately 10,000 youth (19-25 years of

age) could benefit from the counseling in the selected universities and employment

offices in the governorates. The POM will provide details on the implementation of this

component, including the selection criteria of universities and employment offices.

Component 2: Market Information and Job Search Program (MIJS): This

component will facilitate job matching through improving information available to both

employers and prospective job seekers. Currently, several initiatives are being developed

by several players and financed by various sources (MOL, ILO, IYF, Microsoft, EU,

UNDP, NCHRD, E-TVET Fund). To ensure synergy and complementarity, KAFD is

currently in charge of the coordination of the various initiatives. The project will support

MOL in updating and expanding the Electronic Labor Exchange (ELE) by providing TA

for: i) capacity building of MOL staff for improving data collection and analysis for

effective intermediation services; ii) building capacity for employment offices staff on

facilitating job matching (including the use of the updated and expanded ELE); iii)

developing interactive online career guidance, mentoring, vocational planning system; iv)

a communication campaign to increase the awareness about the ELE for both jobseekers

and employers; and v) providing related IT hardware and software for the employment

offices. The POM will provide details on the implementation of this component.

Component 3: Job Readiness and Placement Program (JRPP): This component will

support graduates from universities and from community colleges in selected

governorates (between ages 19-25) who have been unemployed for at least one year (see

the eligibility criteria presented in the box below)10

. It will provide the unemployed

9 It is planned that the Component A will be implemented in three Governorates. Thus the number of universities

and EOs where the Manuals will be implemented may vary accordingly. 10

Based on actual age of graduates from Community Colleges and Universities, and the requirement of at least one

year unemployment, the age bracket of beneficiaries may need upward adjustment.

24

graduates a package of 75 hours employability training and partial salary voucher for 1

year. The E-TVET Fund will finance the training providers and social security

registration for one year. This scheme will encourage private employers and job seekers

to engage in on-the-job training to facilitate job placement. This pilot will target 1200

unemployed graduate youth in the selected governorates based on the selection criteria as

below. The POM will provide details on the design and implementation of this

component. More specifically the POM will include an operational module outlining

implementation, organizational, administrative, monitoring, financial management,

procurement arrangements, disbursement, detailed eligibility criteria, audit, verification

procedures and grievance mechanisms for the Job Vouchers component.

7. Program Enrolment: The eligible candidates will enroll into the program by completing a

simple form covering the eligibility information and their ID number, contact information and

Bank account details under a special program window (one year training contract) which

exempts the employer from the labor laws relating to staff dismissal for one year.

8. Training: The beneficiaries of JRPP will receive training in basic employability skills.

Training providers will apply to provide training that would be financed by the ETVET Fund,

which will request ETVET Council authorization for an amount equivalent to JD 350,000. This

will be confirmed by a written financial contribution commitment from E-TVET Fund to

MOPIC. All the participates will have to take employability training of up to 75 hours and upon

training completion, trainees will receive a certificate and a lump sum stipend of JD150 financed

by the project. The employability skills training will be provided by a competent provider that

will be selected on a competitive basis, coordinated by E-TVET Fund.

9. Job Voucher: The voucher system will be introduced to be paid against the results agreed

between the employer and the employee (voucher holder). Vouchers will remain the property of

the employee and can be taken from one job to another until all months of eligibility have been

used. It is proposed that the value of voucher not exceed JD 100 per month for one year. In

addition, the voucher program will cover the social security contributions of employers and

employees up to a year. The cost of this contribution (amounting to about JD500,000) will be

financed by E-TVET Fund own resources. This will be confirmed by a written financial

contribution commitment from E-TVET Fund to MOPIC. The job voucher can only be redeemed

for a job which will meet the following conditions of employment: (i) full-time, defined as 30 or

more hours a week; and (ii) has a written job contract spelling out the responsibilities of the

Selection Criteria for Youth and Employers Eligibility for Candidates: Male and female youth, aged 19-25 with community college or university

degrees, and have been unemployed for one year or more would benefit from both the employability training (life skills) and the on-the-job voucher programs. Based on the structure of the labor market in Jordan, educated youth who are lacking on the job experience have higher probability of unemployment.

Eligibility Criteria for Employers: All private and not for profit enterprises are eligible to benefit from the program regardless of enterprise size as long as they are registered or willing to register with the Social Security Corporation.

25

worker and stating a wage at least as high as the minimum wage. Employees will be considered a

special category for this program (training contract) during the duration of the voucher and firms

should not be subject to restrictions or penalties for firing these workers during the duration of

the voucher. If employees are retained once the voucher is finished, firms will have the three

month probationary period before labor laws on firing bind.

Component 4: Project Monitoring and Evaluation and Management: This

component will include the following:

Monitoring and evaluation: The PMU will collect data on day to day project

activities through agencies which are responsible for implementation and

coordination of different components (MOL, KAFD, E-TVET Fund). In addition,

the PMU will be responsible for i) launching a beneficiary assessment for

students who received career guidance and ii) preparing an impact evaluation of

the voucher program (baseline and final).

Project Management: This sub-component will support the management of the

project. It will ensure that the PMU is operational and that it successfully and

efficiently implements the project in conformity with the Financing Agreement,

project document and the Project Operation Manual (POM). This component will

finance: (i) Technical Assistance to the PMU staff or needed PMU staff salaries

selected competitively (non-civil servant); (ii) equipment and operating costs

directly linked to the daily management of the project (office space, utilities and

supplies, bank charges, communications, vehicle operation, maintenance and

insurance, building and equipment maintenance costs, travel and supervision

costs, etc.); and (iii) regular internal and external audits (focusing on financial

and procurement aspects). Within the framework of the monitoring cycle, a mid-

term review will involve project’s stakeholders and civil society in the review of

project performance, intermediary results, and outcomes. The progress and

impact of the project will be measured using the data collected at the mid-term

review and project end.

Employers’ Contribution, Incentives and Penalties

To allow firms to be motivated to participate in the program and workers to find an appropriate match, the

following measures will be applied:

For employers to benefit from the voucher, they will have to keep the salary at least as high as the minimum wage.

Employers /Enterprises should not be subject to restrictions or penalties for firing these workers during the period of

voucher use. If workers are retained once the voucher is finished, firms should still have the three month

probationary period before labor laws on firing bind.

Enterprises or employees engaged in falsifying employment information would be denied access to the program in

the future and pursued legally.

26

Annex 3: Implementation Arrangements


Project Institutional and Implementation Arrangements

1. The MOL will be responsible for the overall project coordination and management

with policy and strategic guidance from the E-TVET Council, and in close coordination

with E-TVET Fund, KAFD and MOPIC. No later than three months after effectiveness, it

will establish a Project Management Unit (PMU) which will be staffed with one Director , one

technical officer for voucher program, one IT specialist, one procurement specialist, one

financial management specialist and one M&E specialist that will be financed by the project.

2. The PMU staff is expected to be appointed/seconded by the Recipient (salaries financed

by the Government budget). In case the recipient is unable to identify qualified staff, PMU staff

will be selected through a competitive process in accordance with the World Bank

consultant/procurement guidelines (salaries financed by the project). Regardless of the selection

process used, the selection and appointment of PMU staff should be acceptable to the World

Bank, and based on terms of reference (TORs) acceptable to the World Bank. MOPIC will

second from their own staff a Financial Management specialist that will collaborate closely and

work with the PMU. If needed, the project will finance consultants or a consulting firm who will

work closely with the PMU core team, as well as the E-TVET Fund staff for managing and

monitoring the vouchers program. It is expected that the PMU with adequate staff will be in

place no later than three months after effectiveness. The PMU will be located in E-TVET Fund

which will provide the office space. Fiduciary management responsibilities for all components

will be under MOPIC. The POM will describe details on responsibilities for the implementation

of the project components. The PMU will be located in E-TVET Fund which will provide the

office space. Fiduciary management responsibilities for all components will be under MOPIC.

The Financial Management specialist of the PMU will work closely with the Financial

Management specialist of MOPIC. The POM will describe details on responsibilities for the

implementation of the project components.

3. Component 1 (School to Work Program) will be implemented by the MOL in close

coordination with KAFD as follows: The PMU will hire the technical experts to train the

counselors and relevant personnel in the university centers and employment offices on utilization

of the new career guidance manuals and oversee / guide the counselors during the counseling

sessions with the students. In addition, the project will finance refurbishment of selected

universities and employment offices. The POM will describe implementation details of this

component.

4. Component 2 (Market Information and Job Search Program) will be implemented

by the MOL in close coordination with KAFD as follows: Under this component, the job

matching will be done through the updated and expanded electronic labor exchanges (ELEs) that

will be supported by the project. The project will finance (i) capacity building for career

counseling of universities and employment offices staff on facilitating job matchmaking (use of

updated and expanded ELE, etc); (ii) awareness campaign for jobseekers and employers; and,

(iii) equipment and software for employment offices. The POM will describe implementation

details of this component.

27

5. Component 3 (Job Readiness and Placement Program) will be implemented by the

E-TVET Fund in close coordination with MOL and SSC as follows:

a) With regard to training (job readiness), training providers will be selected competitively,

following the E-TVET Council’s approval based on cost, track record, and geographic

distribution, and E-TVET Fund would finance the training providers per trainee.

b) With regard to job voucher payment (job placement), the E-TVET Fund will be

responsible for technical implementation and monitoring of the job voucher component

as follows:

Job Voucher Enrollment: Eligible unemployed youth would apply through MOL EOs or

SSC branches or a consulting firm by filling out a form. This form will be mailed to the

SSC or filled out online on a specially designed portal. In case the SSC will maintain the

database of unemployed youth, it will verify eligibility, and confirm enrolment into the

program to the participant through a voucher registration number, which identifies them

as program participants. The eligible firms (employers) will register with the SSC also to

be enrolled into the program. The role of SSC would be to confirm/verify the eligibility

of the worker and the employer. The POM will provide clarification on job voucher

enrollment.

Job Voucher Implementation: The implementation of the program will be the

responsibility of the E-TVET Fund with if needed support of a consulting firm who will

be hired, on competitive basis, and make the payment scheme as follows:

i. Step 1: Employer will directly pay the worker the wage (minimum wage offer of

JD190 per month is required) and, if applicable, remit the employer’s share of

social security contributions to the SSC. Contribution to the social security system

will serve as proof the worker is still employed in the firm, will be subject to

inspections by SSC inspectors, and will be used to automate the payment. The

cost of this contribution (amounting to about JD500,000) will be financed by the

E-TVET Fund own resources.

ii. Step 2: Upon verification of current conditions of employment, employment

status, employers’ payment of wage to the worker, the employers’ accounts will

be credited the subsidy (JD 100 per month).

Management, supervision and disbursement of funds under the job voucher component

E-TVET Fund, with the support of a consulting firm, will be responsible for job voucher

payments as follows:

6. Setting up the MIS: The PMU will hire a consulting firm, which will design the MIS

according to the criteria needed to manage the program for the E-TVET Fund. The MIS shall

include records of the job vouchers and job locations; follow up steps, inspection visits and

financial status of the salary subsidy per each graduate. The MIS used shall be simple and

practical and will be linked to SSC. The MIS could be also used by other complementary

voucher programs that E-TVET Fund will finance.

28

7. Verification and Eligibility: The first step in the process will be to verify eligibility

criteria and employment contracts as follows:

(i) Once the MIS is designed and functioning, and accounting and management support

teams are in place, the E-TVET Fund will begin the process of verification of eligibility.

(ii) The following verification and payment rules must be followed for each approved

disbursement:

1) Upon the start of the employment, both the firm and the graduate will be required

to confirm their employment with the consultant by the 25th of each month. A

grace period of seven working days from the 25th will be allowed. Failure to

confirm employment status on either side beyond that will result in payments

being reimbursed at the next monthly cycle, along with any reimbursements that

may be due for the next month. Failure to confirm employment status for two

continuous monthly cycles may risk a termination of benefits from the program.

Each of these payments is a reimbursement; the employer must pay the salary

first, and upon verification, the program will reimburse the employer through a

bank transfer.

2) The employment should be at least one month long to receive the first payment.

The firms and students will also be monitored by the consultant each month to

verify continued employment in the firm. In addition, random visits will be paid

to firms reporting having hired a graduate by the administrator of the voucher

program to ensure that the reimbursement claims are legitimate. If these

conditions are not satisfied, the E-TVET Fund, through MOPIC, will stop the job-

voucher payments and bar the student and the firm from further participation.

3) The E-TVET Fund must verify bank account details provided by the employer.

8. Implementation and Disbursement:

(i) Project will be responsible for reimbursing firms 100 JD a wage subsidies and E-TVET

Fund will reimburse the firm the employer and employee social security contributions per

month for a maximum of 12 months upon successful verification of employment and

bank details.

(ii) Once each month, on the 3rd of the month or earlier, the consultant must provide E-

TVET Fund and PMU with the list of all employers and graduates who have entered into

an employment contract and have satisfied all eligibility criteria. This list must be linked

to bank details and transfer amounts for payments due for the preceding month. Upon

submission of this list and approval of the PMU and E-TVET Fund, MOPIC will pay the

approved firms.

(iii)All transfers from the voucher account to the employer must be tracked in the MIS, and a

bimonthly report on all transfers in the form of formal bank statements must be submitted

by E-TVET to the PMU.

29

9. Monitoring: The E-TVET Fund shall use the developed MIS and the available resources

to monitor the activity of the beneficiaries and their progress in finding jobs and retaining these

jobs. They shall provide a contact officer to receive calls from graduates, in addition to

supporting staff to manage the monitoring process. Specifically, monitoring will include:

i. Follow up and trace the employed graduates by means of contact and field visits to

the workplace.

ii. Keep updated electronic track of the status of employed graduates.

iii. Keep copies of official documents and correspondence such as enterprises official

documents, letters of appointment and employment contracts.

iv. Report to the PMU about the progress of the program.

v. Approve the employers entitled to collect voucher payments based on the acceptance

conditions.

vi. Keep updated accounts of the vouchers eligible payments and the remaining

payments.

vii. Daily maintenance of the system.

Financial Management, Disbursements and Procurement

Financial Management

10. The Ministry of Labor (MOL) will be responsible for the overall implementation of the

Project, while MOPIC will manage the Project’s main FM and disbursement functions. A PMU

will be established under the MOL to be responsible for the overall coordination and monitoring

of the project. MOPIC will handle the FM and disbursement functions of the Project. MOPIC

has solid experience with World Bank financial management and disbursement gained during the

implementation of past and current World Bank-financed projects, and its overall performance is

considered satisfactory. A Financial Officer will be selected from the Finance Unit at MOPIC to

be the main FM person for the project in MOPIC and as a civil servant its salary is financed by

MOPIC. The Financial Officer will maintain close coordination and collaboration with the PMU.

11. Project FM Risk. The overall FM risk is “Substantial”. With mitigation measures in

place, the project will have acceptable project FM arrangements; its FM risk rating will be

“Moderate”. The FM risk is assessed as “Substantial” mainly due to:

i) Risk of funds being distributed to the ineligible citizens under the Job Vouchers program;

ii) Limited coordination between MOPIC and the PMU that may cause delays in financial

reporting and payments to beneficiaries;

iii) Multiple executing entities (MOL, E-TVET, SSC, KAFD, and MOPIC) and the potential

consultancy firms) involved in the “Job Voucher component” that might cause delays in

payments to beneficiaries;

iv) MOPIC managing the DA would enhance controls over payments but it might cause

delays in processing payments to beneficiaries; and

12. The following measures are to be taken to mitigate FM-related risks:

30

i) MOPIC will manage the main FM and disbursement functions on behalf of the PMU;

ii) SSC will confirm and verify the eligibility enrollment of the worker and the employer;

iii) A consulting firm will be hired, on competitive basis, to help E-TVET Fund manage the

payment scheme of this operation, including confirm meeting eligibility criteria before

processing payments; the firm will work closely with E-TVET Fund and coordinate with

SSC to obtain the necessary data and the MOPIC for replenishments;

iv) A Project Operations Manual (POM), acceptable to the Bank, will be developed by the

PMU in the E-TVET Fund for all components, describing the roles and responsibilities of

E-TVET Fund, MOL, SSC, MOPIC, KAFD, and the consultancy firm, including the

financial management and disbursement aspects;

v) An independent external auditor, acceptable to the World Bank, will be hired to audit the

project’s annual financial statements in accordance with terms of reference (TORs)

acceptable to the World Bank. The auditor will cover as well the “Job voucher

component” and will provide an opinion of the eligibility of funds distributed to

beneficiaries as per the agreed eligibility criteria and will assess the effectiveness of

internal controls within the project.

13. JobVouchers - Component 3 (Job Readiness and Placement Program). This

component targets unemployed graduates in finding jobs with a package of 75 hours of

employability training, partial salary voucher, and social security registration for one year to

encourage private employers and job seekers to engage in on-the-job training to facilitate job

placement. The project as explained earlier will finance the training compensation and salary

vouchers, and the E-TVET Fund will finance the training providers and social security

contribution. The main stakeholders for the implementation of this component are E-TVET

Fund, SSC, MOPIC, and a consultancy firm. The role of SSC would be to confirm and verify the

eligibility enrollment of the worker and the employer. SSC will maintain the database of

unemployed youth, verify eligibility, and confirm enrolment into the program to the participant

through a voucher registration number, which identifies them as program participants. The

eligible firms (employers) should register with SSC as well as be enrolled into the program. The

details of the enrollment process for this program are included under “Annex III, Section

“Project Implementation and Implementation Arrangements – Component 3”. E-TVET Fund

will be responsible for managing this component while MOPIC will process the payments to

beneficiaries, details are under “Annex III, Section “Project Implementation and Implementation

Arrangements – Management, Supervision, and Disbursement of Funds under the Job Voucher

Component”. A consulting firm, if needed, will be hired on competitive basis, to support E-

TVET in managing this program. A Project Operations Manual (POM), acceptable to the Bank,

will be developed specifically for all components of the operation no later than three months

after effectiveness describing the roles and responsibilities of E-TVET Fund, SSC, MOL, and

MOPIC, and the consultancy firm, including the financial management and disbursement

aspects.

14. Budgeting and Funds Flow. A project budget and periodical disbursement plan, based

on the procurement plan and implementation schedule, will be developed by MOPIC. To ensure

that funds are readily available for project implementation, a US Dollar DA will be opened at the

CBJ to be managed by MOPIC. Deposits into and payments from the DA will be made in

31

accordance with the disbursement letter. The MOPIC will prepare withdrawal applications with

the related supporting documents, signed by the designated signatories.

15. Accounting and Reporting. The project will follow the cash basis of accounting where

resources and uses of funds are recorded when cash is received or when payments are made.

MOPIC will be responsible for preparing quarterly Interim Unaudited Financial Reports (IFRs)

and annual project financial statements. The reports will consist of “Statement of Cash Receipts

and Payments by category” and accounting policies and explanatory notes, including a footnote

disclosure on schedules: (i) “the list of all signed Contracts per category” showing contract

amounts committed, paid, and unpaid under each contract, (ii) Reconciliation Statement for the

balance of the DA, and (iii) a list of assets (goods and equipment). The IFRs will be submitted by

MOPIC to the World Bank within 45 days after the end of the concerned period.

16. Internal Controls. Project’s expenditure cycle will follow the controls specified in the

National Financial System of the Hashemite Kingdom of Jordan, which includes: (i) technical

approval of the department involved; (ii) finance staff checking and approval; (iii) resident

Internal Auditors; and (iv) Ministry of Finance’s Financial Controller who validates the accuracy

of the payment and its compliance with the applicable laws in Jordan and with the World Bank

procurement and FM procedures as well as the Grant terms and conditions. Although the project

will follow the Government-applied controls set in the local laws, there will be supplementary

controls in place for monitoring project activities, including the verification and approval of the

PMU staff (financial and technical). A Project Operations Manual (POM) in form and substance

satisfactory to the World Bank will be prepared no later than three months after effectiveness. .

The POM will include, inter alia: (a) details on: (i) Project description and implementation

arrangements; (ii) technical (ii) administrative, (iii) procurement, (iv) financial and accounting;

(v) monitoring and evaluation procedures and arrangements for the Project; (b) an operational

module further outlining implementation, monitoring, financial management, disbursement,

detailed eligibility criteria, audit, grievance mechanism and verification, procedures for Job

Vouchers. Particularly the POM will document the roles and responsibilities of the MOL/PMU,

SSC, E-TVET, MOPIC, and the consultancy firm if needed, including the related FM and

disbursement aspects, flow of funds, information and documentation.

17. External Audit. An external independent auditor acceptable to the World Bank, financed

by the Grant, will be hired, no later than six months after the effectiveness, to audit project

financial statements in accordance with international standards of auditing. The audit report and

management letter will be submitted by MOL to the World Bank within six months after the end

of the audit period. MOL will be responsible for preparing the Terms of Reference (TORs) for

the auditor and submitting them to the World Bank for clearance. The scope of the auditor will

be extended to cover the “Job Voucher Component” and provide an opinion of the eligibility of

funds distributed to beneficiaries as per the agreed eligibility criteria. The auditor will be

requested as well to assess the effectiveness of internal controls within the project. The final

payment for the auditor after the closing date will be transferred from the Grant account to an

escrow account. According to the World Bank Policy on Access to Information issued on July 1,

2010, the audit report with audited financial statements of the project will be made available to

the public.

32

18. Training and Implementation Support. The World Bank will provide training to PMU

staff on World Bank FM and disbursement guidelines and procedures, and will provide FM

implementation support during project supervision.

Disbursements

19. The proceeds of the Grant will be disbursed in accordance with the World Bank's

disbursements guidelines as outlined in the Disbursement Letter and in accordance with the

World Bank Disbursement Guidelines for Projects. Transaction-based disbursement will be used

under this project. Accordingly, requests for payments from the Grant will be initiated through

the use of Withdrawal Applications (WAs) either for direct payments, reimbursements and

replenishments to the DA. All WAs will include appropriate supporting documentation,

including detailed Statement of Expenditures (SOEs) for reimbursements and replenishments to

the DA. The category of Eligible Expenditures that may be financed out of the proceeds of the

Grant and the percentage of expenditures to be financed for Eligible Expenditures will be spelled

out in the Grant Agreement. Interim Unaudited Financial Reports and Annual Financial

Statements will be used as a financial reporting mechanism and not for disbursement purposes.

The minimum application size for direct payment and reimbursement will be the equivalent of

20% of the Advance ceiling amount. The Bank will honor eligible expenditures completed,

services rendered and delivered by the Project closing date. A four months' grace period will be

granted to allow for the payment of any eligible expenditure incurred before the Grant Closing

Date.

20. Designated Account. The MOPIC will open a segregated Designated Account at the

Central Bank of Jordan (CBJ) in US Dollars to cover Grant' shares of eligible project

expenditures. The Ceiling of the Designated Accounts would be 10% of the Grant's amount.

MOPIC will be responsible for submitting monthly replenishment applications with appropriate

supporting documentation.

33

Cash & Documents flow

Document flow

Cash flow

sends WA to WB

WB replenishes DA

Payment request & Supporting documents

Transfer Request Payment requests

and checks w ith supporting documents

Supplier/Consultant

Accounting Entry - MOPIC

PMU

Supplier/Consultant

WB Grant Account

MOPIC DA PMU/ETVET/KAFD

/ Technical reviews

Quarterly IFRs reports -

spreadsheets

MOPIC Financial

Verification

PMU Records

21. E-Disbursement. The World Bank has introduced e-disbursement for all projects in

Jordan. Under e-Disbursement, all transactions will be conducted and associated supporting

documents and IFRs scanned and transmitted online through the World Bank’s Client connection

system. The use of e-Disbursement functionality will streamline online payment processing to (i)

avoid common mistakes in filling out WAs; (ii) reduce the time and cost of sending WAs to the

Bank; and (iii) expedite the Bank processing of disbursement requests.

22. Statements of Expenditures (SOEs). Necessary supporting documents will be sent to

the Bank in connection with contracts that are above the prior review threshold contracts as per

the procurement plan, except for expenditures under Contracts with an estimated value of: (a)

US$150,000 or less for Goods; (b) US$100,000 or less for Consulting Firms; and (c) US$50,000

or less for Individual Consultants, as well as Training, which will be claimed on the basis of

SOEs. The documentation supporting expenditures will be retained at the PMU and will be

readily accessible for review by the external auditors and World Bank supervision missions. All

disbursements will be subject to the conditions of the Grant Agreement and disbursement

procedures as will be defined in the Disbursement Letter.

34

23. Table 1 below specifies the categories of Eligible Expenditures that may be financed out

of the proceeds of the Grant and the percentage of expenditures to be financed for Eligible

Expenditures:

Table 1: Categories of Eligible Expenditures and the Percentage of Expenditures to be

financed by the Grant

24. “Training" means the expenditures incurred on account of Grant implementation such as

workshops, transportation and per diem of trainers and trainees, rent of training facilities and

provision of refreshments; preparation, acquisition, reproduction and distribution of training

materials; and fees for trainers as other reasonable expenditures as agreed upon with the Bank;

Incremental Operating Costs” means Project related incremental costs incurred by the PMU on

account of communication, translation and interpretation, printing, procurement-related

advertising, office supplies, banking charges, and local transportation, excluding salaries of the

Recipient's civil servants, and other miscellaneous costs directly associated with Project

implementation subject to prior approval by the World Bank.

Procurement

Procurement Capacity Assessment

25. Jordan’s public procurement system is a highly centralized, well defined system governed

by a series of regulations issued by the Council of Ministers and managed by the Government

Tenders Directorate (GTD) of the Ministry of Public Works and Housing (MPWH) for civil

works and consultants’ services and by the General Supplies Department (GSD) of the Ministry

of Finance (MOF) for supplies, equipment and furniture. The system operates in a transparent

environment where both the private sector and public officials are familiar with and comply with

the requirements of the regulations. Award of the majority of public contracts is based on

competition with contract award generally being made on the basis of the lowest priced

acceptable offer, but for consultants a weighting formula is used. The overall risk associated

with corrupt practices affecting public procurement in Jordan is considered low by both private

and public participants. As the demands on the government have continued to increase, the

Category Amount of the Grant

Allocated

(expressed in US$)

Percentage of

Expenditures to be

Financed (inclusive of

taxes)

Goods, consultants’ services (including

audits), non-consulting services, Training

and Workshops, and Operating Costs

1,882,030

100%

Job Vouchers 2,867,970 100% amounts

disbursed, payable under

the respective Job

Vouchers

TOTAL AMOUNT

4,750,000

35

centralized procurement system has become overburdened, lacking specialized expertise for a

growing range of procurement requirements. As a result, a number of exceptions have been

made to create special tender committees (STC) within ministries or autonomous authorities to

handle procurement. These special committees have been given unlimited authority to manage

the procurement process of goods, works and consultants for the programs/projects covered by

the authority. Regulations also establish a series of thresholds which determine what level of

government authority exists for procurement of civil works, goods and services. Within each

threshold level, the process is under the responsibility of committees. Committees do not make

final decisions but submit their recommendations to higher level policy officials for ratification.

STC is not restricted to any threshold and are used to expedite implementation of special

projects.

26. MOL past experience: The MOL has limited experience in large scale projects. It has

been exposed to international project (JAICA-5 years; IBRD: US$7.5M- 5 years) preparation

and implementation, and in projects’ procurement in general. Out of MOL budget, the average

annual procurement volume is of US$1.4M. The implementation of the IBRD project was not

satisfactorily completed due to shortcomings in decision making and lack of ownership.

Procurement processing was found acceptable though done in isolation from the ministry

purchase department. MOL has limited procurement capacity (staff) to support the project

procurement function.

27. Audit: Internal auditing is conducted by “Internal Audit & Control Department” and the

external auditing is conducted by the governmental Audit Bureau. The project shall continue in

observing the same arrangement, provided that auditors are made familiar with the Bank

guidelines.

28. Current Procurement Staff: MOL procurement is processed by the “Purchase

Committee” (operating under 10,000JD- US$14,000 equivalent) and the “Tendering Committee”

(up to 20,000JD- US$ 28,000equivalent). The Supplies and Procurement section is composed of

three main bureaus (Maintenance, Purchase, and Storage) and is housed under the Administrative

and Financial Affairs department. Both the “Purchase Committee” and the “Tender committee”

have four members each with bachelor degrees. Thus a Special Tendering Committees (STC)

established at MOL shall also be needed to expedite procurement processing without observing

the above mentioned threshold ceilings.

29. Procurement Planning: MOL does not rely on procurement planning. The budget

allocated line items and availability of funds drive procurement processing.

30. Overall Project Procurement Risk assessment of the implementing agencies is rated

“Substantial”.

Proposed Procurement Arrangements:

31. Project Implementation Arrangements: The project procurement will be implemented

by MOL that shall observe due diligence in processing transactions and will be responsible for

(i) Processing procurement implementation, (ii) Monitoring and managing contracts, and (iii)

Reporting to the Bank on fiduciary and technical aspects.

36

a. MOL shall ensure the establishment of a PMU for the overall implementation of the

project. It will be staffed with a project Director, procurement officer, financial

management officer, M&E officer, IT specialist, and technical officer for the voucher

program. MOL shall contribute with the rest of the needed support staff. The staff of

PMU will be selected competitively no later than one month after effectiveness.

b. In coordination with MOL and the PMU, the E-TVET Fund is envisaging hiring and

selecting a competent consulting firm or a NGO under Component 3 for providing

support to the E-TVET Fund for managing the issuance and monitoring of vouchers to

employed youth under the program.

c. The establishment of a STC at MOL is needed (with experienced relevant people) for

processing efficiently procurement activities.

32. Project guidelines: “Guidelines On Preventing and Combating Fraud and Corruption in

Projects Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006 and

updated January 2011, World Bank “Guidelines: Procurement of Goods, Works and Non-

consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”

dated January 2011 and World Bank “Guidelines: Selection and Employment of Consultants

under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011,

shall apply to the project.

33. Procurement methods for Goods, Works and non-consulting services: MOL is expected

to conduct (i) national competitive bidding (NCB) for which will be used the Jordanian Standard

Bidding Documents integrating the provisions listed in the grant agreement. The previous project

has already revised the SBD and it was accepted by the Bank; (ii) shopping; and, (iii) direct

contract. Also Framework agreements (FA) are explored to rationalize the repetitive procurement

(catering, training premises, and printing material) needed for training and workshops. FA,

which are long-term agreement with suppliers, contractors and providers of non-consulting

services sets out terms and conditions under which specific procurements (call-offs) can be made

throughout the term of the agreement.

34. Procurement methods for Selection of consultants: MOL is expected to conduct (i)

Quality and Cost Based Selections (QCBS); (ii) Least-Cost Selection (LCS); (iii) Selection

Based on the Consultants’ Qualifications (CQS); (iv) Single Source Selection (SSS); and, (v)

Selection of Individual Consultants.

35. Particular procurement: Use of Nongovernmental Organizations (NGO), a

specialized firm or public institution under Component 3. The project may be appointing a lead

NGO, a competent private firm, or a public institution for managing the distribution of vouchers

and monitoring implementation of the component. In view of the nature of the activity, the

consultant should have extensive capacity and past experience in administering programs similar

to the requested. The selection will be on a competitive basis, although following market

research, the MOL may request single sourcing based on sufficient justification. In this case, the

Bank will have to clear the submitted justification for using single source method as per the

guidelines requirements (Selection of Consultants Guidelines Clause 3.9). MOL will have to be

37

vigilant in drafting Terms of Reference (ToRs) and will insure including in the contract all

requirements that the selected consultant will be observing with respect to transparency. A

particular focus shall be given with respect to record keeping.

36. Staff: The procurement function shall be supported by MOL technical staff that will be

enhanced by an outsourced procurement officer.

37. Procurement plans: The procurement plan for the life of the project is developed to

cover all project activities. Updates of the plan shall be reviewed by the Bank at least twice a

year or as seen necessary.

38. The summary of the procurement plan is the following:

Consultancy Main Assignments with Selection Methods and Time Schedule

Procurement of Works and Goods with Procurement Methods and Time Schedule

38

39. Project Operations Manual: The procurement section in the manual shall be specifying

the procurement processing and contract management. It shall also tackle the record-keeping

requirements and the complaint mechanism expected arrangements.

40. External Audit Firm: A firm from the private sector, or the Jordanian Audit Bureau,

shall be appointed for reviewing the project transactions, and procurement processing. The firm

shall also conduct physical inspection on a sampling basis. The audit is expected to have past

experience in conducting performance audits.

41. Procurement oversight: The procurement supervision of the Bank shall be ensured at

least twice a year and a post procurement review once a year. The post review sample shall be

composed of 20% of contracts eligible for post review.

42. Mitigation measures of identified risks: To mitigate the identified capacity

assessment Substantial risks to Moderate the following measures are recommended: (i) ensuring

proper coordination between the different stakeholders involved in the project, especially with

respect to procurement planning; (ii) usage of procurement plan as a monitoring tool for

processing timely activities and not only as reporting tool; (iii) preparing a procurement section

in the Project Operation Manual (POM) to integrate procurement processing but also forms and

standardized documents; (iv) systematizing record keeping, and initiating electronic archiving of

procurement processing; (v) enhancing capacity for appropriate support (staff, training, tools) to

properly prepare the project procurement by linking project objectives and procurement plan;

(vi) agreeing on a training program (internal/ external) to be implemented over the life of the

project that is both relevant and practical; (vii) NCB provisions in the grant agreement shall be

observed; (viii) enhancing capacity in terms of technical specifications drafting, (ix)

establishing/improving and implementing complaint management system; (x) reviewing causes

for recurrent amendments and cost overruns, if any; (xi) developing suitable corrections to

planning, cost estimates, lack of proper designs, technical specifications, etc.; and (xii) including

appropriate coverage of procurement aspects to meet project requirements in the audit TOR, that

will require conducting performance audits.

39

Annex 4: Operational Risk Assessment Framework (ORAF)


Stage: Approval

Project Stakeholder Risks Rating Moderate

Description: Regional political instability that might shift the Government’s focus and slow down

JJC implementation. Stakeholder risk that requires the involvement and cooperation of employers and unemployed graduates; lack of employers interest in using the job voucher; multiple actors involved in the job voucher component that may cause delays in identifying eligible firms and payments to beneficiaries; and lack of the private sector involvement in job placement information system.

Risk Management : (i) careful consideration of the political economy associated with the

unemployment programs, in particular youth unemployment; (ii) well designed and timely implemented public information campaign is expected to be instrumental in this regard as well;

and (ii) consensus building events involving various employers, including beneficiaries are

expected to contribute to the ownership of project supported activities.

Resp: Government Stage:

Implementation

Due Date : end

of first year of

implementation

Status: ongoing

Implementing Agency Risks (including fiduciary)

Capacity Rating: Substantial

Description: MOL as well as E-TVET insufficient capacity to implement Bank project may cause delays; (ii) Slippage in implementation, (ii) weak capacity in project procurement activities, (iii)

insufficient quality of delivered services and purchased goods/works.

Risk Management : A team of specialists will be appointed to mitigate this risks and in additions specific measures will be taken as follows: (i) usage of procurement plan as a

monitoring tool for processing timely activities and not only as reporting tool; (ii) enhancing

capacity for appropriate procurement support (staff, training, tools) ; (iii) agreeing on a training program (internal/ external), (iv) reviewing causes for recurrent amendments and cost overruns,

if any; and (v) developing suitable corrections to planning, cost estimates, lack of proper designs,

technical specifications, etc.

Resp: Government Stage:

Implementation

Due Date : within 6

months of

project

effectiveness

Status: ongoing

Governance Rating: Moderate

Description: Inadequate system to handle complaints and grievances from eligible youth who may not be able to participate in the program.

Risk Management: SSC will maintain the database of unemployed youth and employers (firms), verify eligibility and confirm enrolment into the program to effectively manage this risk.

E-TVET will also reconfirm the eligibility of the beneficiaries.

Resp: SSC (in

coordination with E-TVET

fund)

Stage:

Implementation

Due Date : end

of first year of

implementation

Status: ongoing

Project Risks

Design Rating: Substantial

40

Description : While the project design was proposed by the Government based on advice of global

experts and drawing on lessons learnt from other countries who have successfully implemented the project with similar design with similar implementation dynamics, given the pilot nature of the

project, the risk is substantial

Risk Management: Monitoring and evaluation and continuous beneficiary rapid assessments

are embedded into the project activities which will help to refine the approach as the project proceeds and mitigate any risk to the design for successful outcomes.

Resp: Govt/Bank Stage:

Implementation

Due Date : end

of first and

second year of

implementation

Status: ongoing

Social & Environmental Rating: Low

Description : No particular risks related to Social and Environmental aspects are foreseen Risk Management : N/A

Resp: N/A Stage: N/A Due Date :N/A Status: NA

Program & Donor Rating: Low

Description : There are no donors involved in the project, thus the risk is low of any disruption to

the project. Risk Management : N/A

Resp: N/A Stage: N/A Due Date : NA Status: NA

Delivery Monitoring & Sustainability Rating: Substantial

Description : Fiscal sustainability of the JJC in view of the overall fiscal challenges, and monitoring of voucher program

Risk Management: The GOJ has shown a strong commitment to sustaining this program, and is putting in place number of policies to address both supply and demand side and changing fiscal

priorities to help sustain the program until unemployment rates begin to reduce. We expect that

the sustainability risk will be moderate. Particularly since the E-TVET Fund will finance the training providers and social security contribution of the employees and employers for the

vouchers programs and is expected to finance the expansion of the vouchers program to

unemployed with lower level of education. With regard to the M&E, the independent evaluation team will continue to verify whether the program is benefitting the eligible youth through

reconciliation of data provided by the MOL and SSC database; eligibility review of beneficiaries

and eventually a third party such as an NGO or other agencies. In parallel, MOL and E-TVET will get M&E support for impact evaluation to assess the sustainability and effectiveness of

career counseling and wage subsidies.

Resp: GoJ/Bank Stage:

Implementation

Due Date : by

project end Status: ongoing

Overall Risk Rating at Implementation Substantial

Comments: Overall, the risk for this operation is “Substantial” during implementation mainly due

to: (i) Stakeholder risk that requires the involvement and cooperation of employers and

unemployed graduates; (ii) lack of employers interest in using the vouchers; (iii) multiple actors involved in the job voucher component that may cause delays in identifying eligible firms and

payments to beneficiaries; and (iv) lack of the private sector involvement in job placement

information system.

41

Annex 5: Implementation Support Plan


Strategy and Approach for Implementation Support

1. The World Bank’s Implementation Support Plan will focus on: (i) developing

continued communication among government entities and between the Government and

the Bank team; (ii) and providing technical, fiduciary and evaluation support to GoJ to

achieve the project’s objectives and mitigate risks.

2. The implementation support plan consists of the following:

a. Policy Guidance: The Bank’s policy guidance and advice are an integral part of the

Bank support to the operation. The Bank will seek advice internally from the networks

and regions and global experts outside of the Bank. In the same time, the team is

expected to maintain close communication, cooperation and coordination with the client

as well as with different actors involved in the project. This role will be further enhanced

at the design and implementation stage to ensure that the project achieves its intended

objectives while achieving positive social and economic outcomes for Jordanian citizens.

b. Technical assistance on the design and planning: In addition to the frequent follow up

and communication with the client, official project supervision missions will be carried

out twice a year with all relevant task team members’ participation. During the periodic

supervision missions, the Bank will: (i) ensure coherence between the implementation

plan and actual project objectives and activities; (ii) assess overall achievement of results

set and adjust project interventions based on success/failures since previous mission; (iii)

actively participate in budgetary and action plan discussions; (iv) ensure compliance with

fiduciary agreements; (v) reassess project risks and mitigation measures; and, (iv)

determine if any adjustments are needed in the project design to ensure that the

development objectives are met. For all components, the Bank team will provide advice

as required on the design of the activities and ensure linkages with other ongoing

activities to keep the project in sync with the overall JJC program and within its

framework.

c. Procurement: The Bank will support project implementation by: (i) reviewing

procurement documents and providing clearances/comments (prior and post review); (ii)

ensuring consistency of procurement activities with agreed procurement plan as

necessary; (iii) maintaining close collaboration between the fiduciary agency and the

Bank’s country-based procurement staff; and (iv) providing ad-hoc training to project

procurement staff as needed.

d. Financial Management: The World Bank team will include fiduciary management staff

to provide routine supervision of FM and procurement activities. This will include review

and clearance of the TORs of local procurement and financial management officers, the

operations manual, interim financial reports, withdrawal requests, and other procurement

actions. The Bank fiduciary staff will also provide guidance to the local procurement and

42

FM officers on procurement issues, preparation of the first IFRs, compliance with the

Bank guidelines and other issues as they arise during the implementation.

e. Monitoring and impact evaluation support: In addition to the M&E integrated into the

project, the Bank will provide day to day supervision and expertise on overall design of

the M&E system, the data collection strategies including the design of the data collection

system for day to day monitoring and baseline and final data for impact evaluation of the

voucher program, TORs for the beneficiary rapid assessments, quality of the project

monitoring reports that will be prepared by the implementing agencies, and most

importantly, provide technical expertise to guide the design of the evaluation of the

voucher program which will guide the nature and scope of baseline and final data to be

collected. In order to rigorously evaluate the impact of the voucher program, the gold

standard of evaluations will be used if possible, i.e. a randomized controlled trial. The

participants (treatment) and the non- participants (control) group will be chosen through a

lottery design, which will ensure fairness and guarantee that each group will have similar

characteristics.

Implementation Support Plan

Time Focus Skills Needed

Year 1

Monitor the design of the campaign for promoting career counseling Labor Market Specialist

Skills Development Specialist

Monitoring the training of the counselors Labor Market Specialist


Monitoring the recruitment of the PMU staff Procurement Specialist

Operations Officer

Financial management FM specialist

FM, disbursement and report FM specialist

Year 2

Monitoring of the upgrading of the ELEs

Labor Market Specialist


IT Specialist

Procurement review Procurement specialist

Technical inputs



Operations Officer

Monitoring and Evaluation

M&E Expert



Project implementation progress TTL, Operations Officer