Action Fiche for Mongolia IDENTIFICATION Title/Number Support to Technical and Vocational Education and Training (TVET) Programme DCI-ASIE/2011/022-921 Total cost EUR 7 000 000 Aid method / Method of implementation EU contribution: EUR 7 000 000 Project approach centralised (direct) DAC-code 11330 Sector TVET RATIONALE Sector context Mongolia s Gross Domestic Product (GDP) is expected to grow substantially throughout 2011-2013 as a result of the revenues from the mining sector. In parallel, there will be an increase in the demand for skilled labour and urgent need for the Technical and Vocational Education and Training (TVET) sector to meet the requirements of a market-driven economy, particularly in the service sectors and the processing industry with emphasis on food production, infrastructure and construction. A Labour Market Study produced by the main existing project in the sector, notably the US-funded Millennium Challenge Account (MCA), notes that the predominant occupations are found within agriculture, the second largest sector is trade with 12% of total employment, while the mining sector absorbs 2-3% of the labour force. Unemployment rates, particularly for the youth, are significantly high. Stakeholders recognize the lack of an adequately qualified and trained workforce and the need to develop a national human resource capacity to achieve Mongolia s goals of economic diversification and industrialization. The provision of TVET is deemed to be insufficiently able to meet local market requirements and the equipment and professional expertise of the TVET system are outdated and limited. This often results in the import of skilled labour from China despite the high rate of unemployment of Mongolian youths. The proportion of TVET students has doubled since 2005, due to the government policy of granting a monthly allowance (approximately EUR 30) to students in order to subsidize what is considered a strategic sector. However, the percentage of students at TVET schools that are enrolled after graduating the complete secondary education is only 30% of the total students in 2009-2010. It seems that most students see TVET schools as a way to complete secondary education before entering university, by taking advantage of the government monthly allowances. Furthermore, there is wide discrepancy between the level of training, the quality of qualifications achieved and the certification system in the various training centres/institutes (a total of 64 of which 44 are State run and 20 are private training institutions; 26 are located in Ulaanbaatar City and 38 in provinces). The Government of Mongolia has undertaken a series of measures to address these issues through a revised Law of Mongolia on Vocational Education and Training (2009), the establishment of a National Council for TVET, composed by private and public stakeholders (e.g. ministries, business intermediate organizations, universities) with responsibility for coordination and strategic policy 1
orientation as well as the Agency for Vocational Education and Training (AVET) with responsibility for the implementation of the national TVET strategy. An ambitious Action Plan for Implementing Technical and Vocational Education and Training (2010-2013) formulated by the Agency for TVET indicates the main objective to successfully establish competency-based training in TVET institutions. The government has committed to match its reform ambitions in the sector by increasing the budget allocated to the sector (and to the AVET), which has doubled since 2008 and amounts to more than EUR 35 million in 2011. A major project funded by the MCA (USD 46 million) is currently supporting the sector at different levels and will provide external technical and financial assistance until 2013 when all activities will be terminated and the unspent funds recovered. One could expect a major risk of systemic stand-off once this project ends, and the momentum of reform will need to be maintained to ensure the creation of a real competence-based TVET sector. Lessons learnt Lessons learnt from other capacity-building initiatives in Mongolia indicate the importance of closely tying projects to the Government of Mongolia's programmes and priorities. Awareness of other donor activities and development projects is also important in order to ensure that activities complement the broad TVET reform agenda. One should further consider that the different line Ministries with a stake in TVET (e.g. Education, Labour, Agriculture and Light Industries, etc.) must be involved at all stages of the project in order to ensure coherence in the country policies. Projects implemented in the field have usually been disconnected from the national government strategy and from other external donors initiatives, thus creating a very fragmented scenario in which no single quality and assessment framework exist. The findings of the formulation mission indicate that there is need to develop the leadership and management qualities of the AVET to ensure that its operations are managed in a coordinated manner, in line with its own strategic roadmap. Furthermore, it is crucial that the Agency will be enabled to promote the decision-making capacities of the Government of Mongolia through the National and Sector Councils as well as via promote public-private partnerships. The proposed EU project builds upon the Action Plan of the AVET and is thus consistent with the reform priorities of the Government of Mongolia. It will also be instrumental in developing institutional and human capacities to deliver vocational qualifications to nationally (and internationally) recognized standards. The need to ensure national quality standards and a uniform assessment system with concomitant need for an effective Quality Assurance system will seek to obviate the present tendency to promote short-term skills development in isolation of a wider national focus. A crucial aspect of the EU project will be the programme based approach adopted with other major donors active in the sector, under the framework of a common dashboard with results, indicators and activities agreed with the Government, and a single reporting and monitoring system, to the national authorities (both the Agency and the Council). Complementary actions The EU has so far been focusing its bilateral cooperation with Mongolia on rural development with a contribution to the World Bank Sustainable Livelihood Programme and through the Animal Health and Livestock Marketing Programme (AHLM), which is being implemented through the Ministry of Food, Agriculture and Light Industries. In addition, a EUR 4 million Support for Small and Medium Enterprises (SME) Development in Mongolia project implemented by the European Bank for Reconstruction and Development (EBRD) 2
will start in 2011. This programme addresses key areas of weakness of the local business sector and can contribute to an integrated sector-wide approach by creating synergies with local SMEs. The USA Millennium Challenge Account (MCA) is the most substantial donor investment in the TVET sector in Mongolia (USD 46 million), due to end in 2013. There have been delays with regard to delivery in terms of its original expectations and most activities, including the provision of an important amount of supplies and infrastructures, will be launched this year. The software component of the project includes elements such as the development of a National Vocational Qualifications Framework, training of the trainers and capacity building for the AVET. These activities are of crucial importance for the sustainability of the sector reform and the EU project will complement and fill the gaps left by the MCA programme by timely launching its activities at the same time of the US fund withdraw from the sector. The Swiss Agency for Development Cooperation (SADC) is formulating a bilateral TVET programme (approx EUR 5 million for 2012-2015) targeted to the Western Region of Mongolia. The programme is to improve the capacity of 7 vocational training schools through curriculum development and teacher training, with a strong focus on practical training to improve the income generating capacity of herders through traditional activities. The programme seeks to facilitate market linkages between the institutes and the potential employers in the region. The EU Delegation has coordinated closely with the SADC during the formulation of its project and has agreed to adopt a programme approach with common logical framework elaborated with the Government and Joint reporting methodologies. The German International Cooperation (GIZ) currently engages mainly in urban construction skills upgrading, and small enterprise skills development in selected regions in the country. TVET is a component of a wider investment support project. GIZ has received the request from the government to focus more deeply into TVET and is considering a project in the sector based on its previous field experience. The Delegation has agreed with the local GIZ office that an eventual project launched in the sector would be included in the above mentioned programme approach developed with SADC. Canada and Australia have economical interests in Mongolia related to mining and are considering sector interventions in the TVET sector. While their programmes are not yet defined, one could reasonably expect that, in presence of a coordinated sector approach by other donors, new interventions would be incorporated in the same scheme. Other small interventions exist in the field. They are not very relevant to the TVET system reform process but can be eventually considered as reference experiences for possible replication of best practices: CARITAS CZ implements a 6-month project to start mid 2011 for 8 schools. The project will train teachers in the use of the new agriculture curricula being developed by the MCA and will provide teaching materials. The project will also provide pedagogic training at the Darkhan Regional Methodology Centre (RMC). The Mongolian National Chamber of Commerce (MNCCI) runs skills training courses through its own established training centers, but these do not match any nationally agreed standards. It also supports a privately funded agricultural college to train teachers. Singapore Polytechnic has trained 56 teachers in the design and development of competence based module templates which provide a useful platform for further curricula development and reform. Donor coordination The Government of Mongolia and donors working in the field of TVET have been closely involved in the identification and formulation process, notably by identifying the sector of intervention. There are currently bi-annual donor meetings organized by the Ministry of Finance and the World Bank and there are 5 sectoral working groups led by the Government of Mongolia and co-chaired by a 3
donor. The Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) co-chair the working group on Education, but with no specific focus on TVET. Donor coordination in the TVET sector issues is through a TVET working group, which is chaired by the Government of Mongolia and currently co-chaired by GIZ, and which includes the main donor programmes (e.g. MCA, SADC, etc.). Information received indicates that the sectoral working groups meet infrequently and the coordination remains extremely poor. A key aspect of the EU project, and the main conditionality posed to the Government, will be the elaboration of a national strategy, including milestones and result indicators, which the EU project (but also the Swiss Agency for Development Cooperation and eventually GIZ) will dovetail. A senior expert, funded by the MCA project, will provide technical assistance (and relevant logical framework) for the drafting of the national strategy starting from September 2011 for the next 18 months. Additional measures to strengthen the AVET to support aid coordination to ensure alignment by donor programmes to the Government of Mongolia s strategic implementation plan for TVET will form part of the overall activities of the EU project. 3 DESCRIPTION 3.1 Objectives The overall objective is to support the economic development and human capital potential of the Mongolian government and population by enabling key stakeholders to provide Technical and Vocational Education and Training in a way that is responsive to the needs of a rapidly changing labour market. The specific objective is to strengthen and consolidate the work of the AVET to establish and initiate: an efficient, sustainable and demand driven TVET sector with attention to rural areas, an appropriate quality assurance procedures for assessment and certification. 3.2. Expected results and main activities Main expected results are as follows: Strengthened leadership capacities of the AVET and support to the National Council on Vocational Education and Training (NCVET) and Sector Councils to ensure an effective and coherent TVET modernization process which is consonant with the reform agenda of Government of Mongolia, alignment of donor funded projects, and inclusion of private investors. Strengthened capacities of TVET schools to meet the qualification requirements of an expanding and diversifying labour market through the nation-wide implementation of competence-based programmes and quality assurances processes. Increased coverage of the TVET best practices in the rural development sector and strengthened implementation capacities of TVET rural development programmes to benefit rural economies. An overall work plan will be drafted by the implementing partner during the inception phase in consultation with local public and private stakeholders and in close coordination with the donors already active in this field. The work plan will be coupled with a global assessment of the level of progress made by the Government of Mongolia and the respective donor agencies with regard to initiatives in the TVET sector to determine gaps and/or the need for additional/alternative activities. The work plan will have to be coherent with the Government Strategy Plan, its specific objectives and indicators of results in order to have a sector programme approach, coordinated with other major donors active in the sector (e.g. SDCA, GIZ, Canada), under the overall responsibility of the AVET. 4
A national strategy is currently being elaborated by the AVET, with the support of the MCA project. The alignment of the project with this Government strategic policy and roadmap will be the priority for the inception phase of the project, which will consider the possible additional contribution required for the adoption of a national TVET reform strategy. The possibility of providing assistance to the Mongolian TVET system to adopt European principles, norms and standards, in coherence with article 7 of the EU-Mongolia Partnership and Cooperation Agreement (PCA), will also be considered during the inception phase. Activities will mainly involve technical assistance, training of trainers and curricula development. At this stage, the indicative list of activities is the following: 3.2.1 Provide technical assistance to AVET for the creation of problem-solving and strategic decision-making capacities in order to enhance and institutionalize private-public partnership at national, regional and sector level and TVET school level through: Assistance to AVET to support the strengthening of the NCVET as the highest authority for coordination between TVET and employers, particularly for strategic discussion and decisionmaking through. Special emphasis should be given to achieve an appropriate financing of the TVET sector and the revenue-generating capacities from TVET schools; Assistance to AVET to foster improved donor coordination to ensure alignment by donor programmes to the Government of Mongolia s strategic implementation plan for TVET, its specific objectives, milestones and indicators of results; Familiarization of AVET personnel with regard to EU (e.g. European Foundation for Quality Management) and other models to provide a framework for assessing and improving organisations at different stages of their development. 3.2.2 Support AVET or a relevant institution to set-up a leadership programme with the objective of creating a critical number of managers and TVET staff who are competent to manage and to promote a demand-led TVET system: Identify with stakeholders priorities in leadership, management and private-public partnership that are related to issues for modernizing the current TVET system and to develop pilot training modules; Implement training programme for key staff members from the TVET agency, related institutions and principals from VET schools to improve the quality of management and cost effectiveness of TVET training institutions leading to a Professional Development Award qualification and link, if possible, to a reward structure; Assess the training programme for replication by AVET or an outsourced training agency. Conditions for enrollment of AVET and other government staff into the leadership programme should be agreed during the implementation phase and included in the overall work plan. The commitment to work in the TVET sector in Mongolia for a defined period after completion of the programme should be ensured. 3.2.3 Strengthening the quality assurance system to ensure uniformity of acceptance of qualifications provided, with emphasis on the fine-tuning and implementation of the proposed National Vocational Qualifications Framework (NVQF) through: Capacity building and technical assistance to enable AVET to initiate and establish its operational and administrative short-term and long-term responsibilities with regard to the validation of qualifications, accreditation of providers and assessment groups, the external quality assurance of assessments leading to issuance of qualifications and to appeal procedures; Technical Assistance to AVET to support to the design/review process of the implementation roadmap for a National Qualifications Framework (NQF) and implementation strategy with regard to the incorporation of the NVQF and TVET-related components; 5
Assistance to AVET to promote partnerships between business and the TVET sector to develop occupational standards. 3.2.4 Technical Assistance to AVET to support the Regional Methodological Centres (RMCs) task of facilitating the implementation of new curricula and embedding competency-based modularized training: Technical Assistance to support the National Learning Resource Centre (NLRC) to serve as a national forum to disseminate new curricula programmes, to act as centre to distribute training and learning resources to TVET schools and to conduct research on issues of technical education and the development of new technology. Technical Assistance to support the RMCs programmes to provide initial pedagogical training to new trainers in student-centered training approaches and assessments, and to gain practical experience. 3.2.5 Support for AVET and other relevant stakeholders at regional and provincial level to replicate and up-scale best practices experienced in Mongolia to develop new curricula and implementation materials related to the rural development sector focused on developing the economy/livelihood of rural areas. This activity will be defined during the implementation of the project and will be implemented through a separate service contract. Terms of Reference of the contract will be drafted in coordination with the AVET and the other partner donors in the programme, in order to ensure that best practices developed at micro/local TVET institutes by other projects can be replicated and institutionalized. In scope of the project implementation, the Delegation will facilitate the communication with the Directorate-General for Education and Culture and the EU Agency for Vocational Education and Training, as to ensure that the Mongolian Beneficiaries, through the Technical Assistance Team, will benefit from the experience and advice that can be obtained through these channels. On a request basis, the Delegation will further facilitate the networking with similar EU funded project in the Region. 3.3. Risks and Assumptions Risks The programme will require assurance by the Government of Mongolia that AVET will obtain the necessary funding required to implement its activities. Moreover, the following risks can be identified at this stage: The identification of a national fit-for-purpose TVET system is still at an experimental stage. The internal logic of change within the present TVET system indicates that the implementation capacities of the whole TVET-related institutional framework need to be strengthened. To mitigate this risk, the project is expected to focus on capacity building of the main TVET institutions, notably the AVET and the NCVET. The current situation is still fragile and unpredictable given the high turn-over of staff within the ministries and various government agencies. Moreover, the political landscape for reform could change with the coming elections in 2012. To mitigate this risk, the project will request to the government counterpart guarantees on the mid-term permanence of trained beneficiaries in their posts. Tensions exist between AVET and the Ministry of Education. The Agency reports directly to the Prime Minister but derives its budget from the Ministry of Education. As such, there appears to be no clear distinction in terms of accountability. To mitigate this risk, the Project Steering Committee will include all relevant ministries involved in the process. Assumptions 6
This project proposal is based on the following assumptions: There will be stable economic development and growth throughout 2011-2013, based on the predicted economic forecasts and that the demand for skilled employable labour and the need for an improved TVET sector will remain a high priority; The AVET, supported by MCA project international technical assistance, will draft a national strategy including milestones and indicators of results, which the project will dovetail, in coordination with other donors; The AVET will have sufficient personnel to provide counterparts to the Technical Assistance Team so as to be fully engaged in the project s work, to help to build the capacity of staff on a continuing basis and to provide continuity in the future; Continuous support by relevant ministries and institutions as well as social partners, in order to achieve the project s anticipated results including a smooth transition of MCA project activities to AVET; Active participation of all schools and stakeholders at national, regional and local levels in the project s activities; Supply of necessary equipment to TVET schools to meet the new curricula requirements will be provided either by the Government or through Public-Private Partnership or donor grants as the EU project will not provide equipment. 3.4. Crosscutting Issues Issues of good governance (transparency and accountability) are given extensive focus in the capacity-building of the AVET and the proposed support accorded to the NCVET and Sector Council for Agriculture; The project gives focus to disadvantaged rural groups through its activities in the agriculture sector, which is consonant with an EU policy of support to the very poor and vulnerable people; The development of new curricula for training programmes related to rural development will give attention to issues of environmental sustainability; There will be equal opportunity principles and practices to ensure equal gender participation in the project. 3.5 Stakeholders The following actors have been identified and will be further defined during the inception phase: The AVET is the main beneficiary, responsible for the operational implementation of the sector reforms. It coordinates TVET policy and is directly responsible for the public vocational schools and institutes (curricula, standards etc) and for the agreements with all the private schools officially cooperating with the state in the provision of TVET; NCVET - 8 representatives from those State Ministries that have an active interest in education and in particular TVET and 8 representatives from business and trade union organisations; The National Learning Resource Centre, to be established by the currently ongoing MCA funded project, which is anticipated to disseminate resource materials and to provide continuous professional development for regional and local schools; The 6 Regional Methodological centers, which should serve as link between the national and local level for the implementation of the national policies; Technical and vocational education institutions (64 institutions 44 public and 20 private) with some 45,971 students (2010-2011) and 2,062 trainers; The Ministry of Education, Culture and Science, which was instrumental in the establishment of the Agency for the Vocational Education and Training which is part of its annual budget; Ministry of Social Welfare and Labour, targeting the people who are below the poverty line with very specific trainings to enable them to become self-employed. It delivers 150 vocational training sessions every year; 7
Ministry of Food, Agriculture & Light Industries, providing non-formal training on livestock management skills and grassland management; Mongolian National Chamber of Commerce and Industry (MNCCI) - the main business representative body of Mongolian business community and the Mongolian Employers Federation (MONEF) a nationwide organisation with 21 regional employers association, 12 sectoral associations and representing some 8,100 businesses. The Mongolian Employers Federation and the Chamber of Commerce are active at the local level in working with TVET schools to ensure that the required numbers of trained workers are produced by the schools. The partnerships allow companies to transmit their needs to the schools and also to provide students with practical experience through a non-official internship system; National Development and Innovation Committee established by Parliament to formulate Government action plan strategies, economic development policies, technology and innovation concepts, and to evaluate the implementation of the Millennium Development Goals. 4 IMPLEMENTATION ISSUES 4.1 Method of implementation The project will be implemented by the EU Delegation to China and Mongolia through direct centralized management. A Financing Agreement will be signed with the Ministry of Finance of Mongolia covering the whole project.. Following the launching of tender procedures two service contracts will be signed by the European Commission within three years following the entry into force of the Financing Agreement. The provision of technical cooperation will be guided by local ownership and be demand driven. A National Strategy, representing the logical framework for the project and for other donors projects included in the sector programme, will be drafted by the AVET prior to the signature of the Financing Agreement. Technical assistance provided will be embedded in the agency and no parallel project implementation units are foreseen. The project will be implemented through two separate service contracts: One service contract to provide technical assistance to the TVET Agency resulting from the launch of an international restricted service tender. The Call for Tenders will be launched by the EU Delegation to China and Mongolia. One service contract to support the AVET and other relevant stakeholders at regional and provincial level to replicate and up-scale best practices experienced in Mongolia in order to ensure employment opportunities in the labour market and partnership with the private sector. This tender is expected be launched in the second year of the implementation of the project to allow the AVET and other relevant stakeholders to identify the best practices and to define jointly the Terms of Reference on the basis of the needs and experiences in the field. A Call for Tender will be launched by the EU Delegation. The technical assistance team will coordinate with and report regularly to the AVET. A joint Project Steering Committee will be established on a programme level to coordinate and review EU/Swiss (possibly additional donors) TVET interventions. The Project Steering Committee will be held twice a year under the leadership of AVET. The EU Delegation will be a voting member of the Project Steering Committee. One of the Project Steering Committee meetings each year shall be combined with a dialogue on progress at policy/strategy level, led by NCVET (National Council for Vocational Education and Training). 4.2 Procurement and grant award procedures All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. 8
Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by the Development Cooperation Instrument (DCI). Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in articles 31(7) and (8) Development Cooperation Instrument. 4.3 Budget and calendar The total cost of the project is estimated at EUR 7 000 000, of which a maximum of EUR 7 000 000 will be covered by the general budget of the European Union. The contribution from the Government will only be in kind, notably through provision of office space to accommodate the Technical Assistance Team and support staff seconded from to counterpart. The table below summarizes the estimated project budget. The breakdown of the budget is indicative and may be adjusted according to the need and subject to prior written agreement between the Beneficiary and the European Commission. Project Breakdown Categories (In Euro) EU contribution Total Contracting/Paying Authority 1. Services 7 000 000 7 000 000 1.1 Service contract 1 4 500 000 4 500 000 European Commission 1.2 Service contract 2 2 000 000 2 000 000 European Commission 1.3 Monitoring, External Evaluation and Audit 250 000 250 000 European Commission 1.4 Contingencies 250 000 250 000 European Commission TOTAL 7 000 000 7 000 000 The operational duration of the project is set at 60 months as from signature of the Financing Agreement. 4.4 Performance monitoring Adequate day-to-day project monitoring will be carried out by the project. The projects will be subject to both internal and external Result Oriented Monitoring (ROM). Performance of the overall action will be monitored according to indicators jointly established with the AVET and will be monitored with reference to standard performance indicators in the TVET sectors relevant to the action and to be determined during the Inception phase. 9
4.5 Evaluation and audit Independent mid-term and final external evaluations and, possibly an ex-post evaluation will be funded by the project. These evaluations will be carried out by independent consultants recruited directly by the Commission, in accordance with EU rules and procedures on specifically established terms of reference. Government and European Commission joint decisions (if any) would be taken on the follow-up actions and necessary adjustments, including, if indicated, the reorientation of the programme. 4.6 Communication and visibility The programme will follow the visibility guidelines of the Commission and visibility will form part of the communication strategy and regular bulletins, which will include all stakeholders. The terms of reference of the service contractors will make provision for ensuring the visibility of EU contribution, in all relevant activities and in appropriate forms, in coordination with the Delegation of the European Union. 10