USAID_Egypt_Workforce_Egypt_RFI__RFI-263-20-00001.pdf

Section C: STATEMENT OF WORK

C.1 TITLE OF ACTIVITY AND INTRODUCTION

The title of the activity is Workforce Egypt.

USAID supports the Government of Egypt’s (GOE) effort to accelerate inclusive economic growth in Egypt by investing in activities that build the current and future skills of the workforce, improve the business enabling environment and strengthen private sector capacity.

Workforce Egypt is a five-year activity that supports the transformation of technical education and vocational training (TVET), the development of a skilled workforce, and the improvement in labor market efficiency.

C.2 GOAL

The goal of Workforce Egypt is to transform selected components of Egypt’s TVET system into a world class technical and vocational training program of consistent and reliable high quality that trains graduates for market driven jobs in Egypt’s globally competitive economy. By the end of Workforce Egypt, USAID/Egypt anticipates that the TVET administrative system will have been transformed so that: 1) Consistently higher quality and technically relevant training demanded by a competitive private sector is delivered, 2) Private sector engagement and public-private cooperation to improve human resource (HR) strategies at the firm-level is established, and 3) The policy and operating environment for market-driven skills development and job growth is improved.

Evidence that these objectives have been achieved will be reflected in the following outcomes:

1. At least 50,000 TVET graduates employed in medium to high skill jobs;

2. Workers’ turnover is improved in at least 30 companies by at least 10%.

3. Higher female labor market participation rates in the sectors covered by Workforce

Egypt; and

4. Sustainable private sector engagement in the TVET system.

C.3 BACKGROUND

USAID/Egypt began the TIPE project to achieve the development objective: “Rapid, Inclusive, and Sustainable Economic Growth” through Micro, Small, and Medium-sized Enterprise

(MSME) growth. The purpose of TIPE is “to promote inclusive economic growth and improve the competitiveness of the private sector in Egypt through the development of MSMEs, entrepreneurship, and workforce skills.” TIPE is expected to create new jobs and generate additional income for Egyptian small business owners, laborers, and entrepreneurs, especially women and youths. Here, youths are individuals aged between 15 and 29 years.

TIPE has three sub-purposes: (1) “MSME Development and Entrepreneurship Supported;” (2)

“Technical Education and Vocational Training and Workforce Development Improved;” and (3)

“Macroeconomic foundations for growth improved.” Workforce Egypt contributes to sub-purpose (2).

Problem Statement

The GOE is committed to undertaking far-reaching reforms to grow the economy for the benefit of all Egyptians. In 2016, the GOE embarked on a comprehensive reform program supported by a $12 billion fund facility from the International Monetary Fund (IMF). To date, successful implementation of the reform agenda has reduced the fiscal deficit, attracted more foreign direct and portfolio investment, and increased tourism receipts and merchandise exports. However, greater efforts are needed to upgrade labor skills and encourage enterprise formation, growth, and competitiveness -- to create jobs and ensure all share in Egypt’s prosperity. The World

Economic Forum (WEF) highlights Egypt’s challenges: WEF’s 2018 Inclusive Development

Index ranked Egypt very low (70th of 77 emerging economies) due to a highly unequal distribution of wealth, high public debt, and high unemployment rates among youths and the more educated graduates. As a result, improving labor’s skills, productivity and employability is critical to improving economically competitive and inclusive growth.

Egypt has a young and growing population that needs jobs. There are over 2.3 million unemployed Egyptians of whom nearly 67% are youths and nearly 800,000 more Egyptians enter the workforce each year. Many do not find jobs, become discouraged and leave the labor market, unable to make a living. The female labor force participation rate has grown modestly in the last

20 years but remains particularly low at 23 percent; with women representing around 75% of the

2.3 million unemployed. The structure and level of Egypt’s unemployment combines with its rapid population growth to present significant challenges to the nation’s stability and security.

The unemployment problem relates to a lack of private sector competitiveness, which limits inclusive, private sector-led growth. This lack of competitiveness has two interrelated causes: 1) insufficient business investment in productivity-enhancing technologies; and 2) a mismatch between the skills of the unemployed, especially youths, and the needs of modern/formal businesses. The 2019 Global Talent Competitiveness Index ranked Egypt 96th of 125 countries while the relevance of the education system to the economy is even lower at 120th of 125.

Analysis of the unemployed labor force reveals imbalances and disparities with respect to gender, age, and educational attainment. Since the 1970s, unemployment in Egypt has been increasingly concentrated among youths, particularly among 15- to 24-year-olds, whose unemployment rate reached 34.4% in 2017.

Unemployment and low job quality affect youths, females, and technical secondary school graduates more severely than others. Improving the technical capacity of these segments of the labor force and enhancing their ability to meet the needs of private sector employers is one of the main challenges for Egypt’s labor market. A skilled labor force will improve private sector performance, enhancing both growth and development -- critical concerns to sustain GOE commitment to difficult reforms.

There are currently 1.9 million students in the technical secondary education system under the

Ministry of Education and Technical Education (MOETE), studying in one of four major specializations: industrial track, agricultural track, commercial track, and the tourism track. The following table describes the composition and distribution of the 2500 technical schools and the

1.9 million students in the technical education sector, by track. While most technical education graduates face difficulties finding jobs, graduates from the commercial track, most of whom are females, are the most disadvantaged as the curricula they are taught are obsolete and totally detached from the market needs.

Industrial Commercial Agricultural Tourism

Number of Schools 1,321 835 244 117

Percent from the total 52% 33% 10% 5%

Number of students 900,000 700,000

210,000

60,000

Percent from the total 48% 37% 11% 3%

International donors have worked with the GOE to improve technical secondary education and strengthen its ties to the private sector. Projects targeting TVET reform, economic development, and labor market efficiency have been implemented by USAID, the European Union, the

International Labor Organization (ILO), the World Bank, the German International Cooperation

Agency (GIZ), Global Affairs Canada, and other donor agencies. Major donors and activities are discussed under C.5.d.

TVET institutions lack capacity yet are committed to improve the following shortcomings:

• The GOE rarely coordinates with the private sector to identify and deliver those TVET system reforms that will enable students to graduate with the market-driven technical and job-readiness skills that private sector companies need.

• Fragmented TVET governance systems mean many players with differing policies and objectives complicate the oversight and coordination of TVET institutions and programs.

• Without a functioning labor market information system, TVET institutions lack the contextual understanding of demographic and market trends to train students to meet current needs.

• Without a TVET quality assurance system (e.g., national qualifications framework, skills standards, accreditation, certification, assessments), TVET training lacks coherence, structure, transparency, and consistency and produces TVET graduates of variable quality which undermines the utility, reputation, and social perception of the TVET system.

• Shortages of qualified and certified TVET trainers (e.g., instructors, teachers, master trainers, assessors, verifiers, curriculum developers) amplifies the lack of private sector engagement and, in turn, compromises the effective performance of TVET systems.

• Inadequate infrastructure in most schools, especially workshops, tools and equipment, constrains student ability to gain current, practical skills.

• Lack of focus on innovation and student-centered education.

• Beyond technical skills, firms need more effective human resource skills and strategies to improve productivity, on-the-job training, and reduce worker turnover.

• Regulatory reforms are required to improve labor market efficiency, including female participation, labor and factor mobility, and productivity.

To address most of these problems, the MOETE recently developed a new comprehensive strategy for TVET reform (TE 2.0) and requested the assistance of the different development partners to implement this strategy.

As for the labor market, current economic conditions and poor market dynamics impede productivity gains and employment for youths. . In this regard, the Economic Freedom Index, intended to measure hiring and firing regulations and minimum wage; centralized collective bargaining; hours regulations; mandated cost of worker dismissal; and conscription, ranks Egypt

147 out of 162 countries. The WEF’s 2018 Global Competitiveness Report, on the other hand, ranked Egypt 130th of 140 countries in labor market efficiency Egypt ranks particularly low in female participation in the labor force (130th of 140), quality of vocational training (136th of

140), erase of finding skilled workers (109th of 140), active labor policies (103rd of 140), reliance on professional management (82nd of 140). And hiring and firing practices (51st of

140).1 Deficiencies in these areas erode employee productivity and reduce private sector competitiveness.

C.4 STATEMENT OF WORK

Workforce Egypt supports MOETE’s comprehensive TVET reform strategy (TE 2.0) and builds on the successful interventions of USAID’s previous activities (see details in Section J.1). The

MOETE TE 2.0 strategy is based on five pillars, namely:

• Establishing a transformed and high-quality technical education system,

• Upgrading teachers’ skills,

• Adopting the competency-based curricula for all specializations, and revamping the current outdated commercial education (which cover 33% of technical education students, the majority of which are females),

• Establishing a number of Modern Technical Schools based on private sector engagement and international standards and serving as hubs for other schools in their vicinity, and

• Changing the social perception of TVET.

To support the first two pillars, Egypt’s President approved the establishment of two new institutions: the Egyptian Technical Quality Assurance and Accreditation Network (ETQAAN) and the Technical & Vocational Education Teachers Academy (TVETA). The MOETE has also decided to establish a Center for the Enhancement of Quality Assurance in Technical Education

(CIQAT) to spearhead the reform process and assist schools in obtaining the accreditation from

ETQAAN once it becomes operational.

Workforce Egypt’s primary goal is to transform the technical education and vocational training system to produce the skills needed for a globally competitive Egyptian market, thereby creating sustainable jobs, especially for the youth and females, and institutionalizing structural labor market reforms that can support workforce development now and in the future. This will be achieved through (1) technical assistance, capacity building and training to relevant stakeholders and counterparts, including the MOETE, technical schools, public organizations, training institutions, private sector firms, NGOs, and business associations, (2) establishing partnerships

1 Please note that the indicators referred to in this paragraph belong to the Journey to Self-Reliance Indicators.

between businesses and MOETE at the Central, governorate and school levels (3) improving and promoting innovation in the provision of workforce development and vocational training programs, (4) upgrading and improving curricula of selected secondary technical educational programs including the revamping of commercial education programs, (5) establishing/upgrading a number of technical schools to meet international standards including funding the necessary equipment, tools and refurbishments, (6) establishing alliances between

USAID and selected private sector firms/associations, and (7) advocating for policy and regulatory reforms relating to labor market efficiency and human capital development at the governorate and national levels. While many of the activities under Workforce Egypt will impact the whole TVET system, specific on the ground interventions shall cover at least 15 governorates.

In order to achieve the Activity’s goal, the Contractor must attain the following three major objectives:

Objective 1: Transformation of the Quality and Market Relevance of the TVET Institutions and Programs.

Objective 2: Strengthened Private Sector Participation in Workforce Development.

Objective 3: Improved Environment for Skills Development and Employment

To reach the highest possible results, the Contractor must take into consideration the linkages among those three objectives throughout implementation and ensure a high level of coordination.

For all tasks under all three Objectives, the Contractor must report to USAID any implementation delays, and in cases of insurmountable roadblocks, recommend pivots and course corrections to USAID, so long as any such changes in implementation are (a) determined to be within the scope of work of the Contract, (b) do not require the commitment of additional funds, and (c) comply with applicable U.S. law and policy.

C.4.1 Objective 1: Transformation of the Quality and Market Relevance of the TVET institutions and programs

Result 1.1: A fully developed quality assurance and accreditation system that guarantees the quality of TVET institutions and programs

The National Agency for Quality Assurance and Accreditation in Egypt (NAQAAE) is currently the entity responsible for quality assurance and accreditation of all educational institutions, including those under technical education. Since its establishment in 2006, NAQAAE has been focusing its efforts on general and higher education institutions and did not develop any special standards for technical education. It was only in 2018 that NAQAAE, with the support and assistance of WISE, developed the first 9 standards especially designed for technical education. Based on the special nature of TVET and the successful experience of many countries, the MOETE advocated for establishing a new Egyptian Technical Quality Assurance and Accreditation Network (ETQAAN) that would focus on TVET institutions and programs.

Egypt’s President approved the establishment of this new authority and the Law establishing the authority is currently being reviewed to be presented to the Parliament. In order to prepare the technical schools for accreditation, the MOETE decided to establish (currently underway) a

Center for the Enhancement of Quality Assurance in Technical Education (CIQAT) to spearhead the reform process and assist schools in obtaining the accreditation from ETQAAN once it becomes operational.

It should be noted, however, that the Parliament may not approve the establishment of the new entity (ETQAAN) and may, instead, recommend strengthening the capacity of the existing entity

(NAQAAE) to fully undertake the mandate of providing quality assurance and accreditation for

TVET institutions and programs. It is expected that the decision will be made during the coming

Parliamentary round (October 2019-June 2020).

The following are the minimum tasks required by the Contractor for Result 1.1:

• The Contractor must provide the required support to the relevant GOE entity responsible for the quality assurance and accreditation of TVET institutions and programs to ensure that it operates in the most efficient way and that it is capable of undertaking its mandate as the accreditation body responsible for assessment, certification and accreditation of

TVET Systems and Programs within different TVET institutions affiliated to MOETE and other Ministries. This support must involve, at a minimum, providing technical assistance in the development of related regulations and work processes, building the capacity of the staff, providing technical assistance in developing the criteria, standards and processes required to ensure the quality and relevance of the different TVET programs, assisting in the standardization of competencies (awareness, knowledge, skills and attitudes) taught in TVET Institutions, ensuring active private participation in the whole process, and providing support for the Authority’s Board as necessary.

• The Contractor must assist in developing the capacity of the Center for the Enhancement of Quality Assurance in Technical Education (CIQAT) to undertake its reform and quality assurance responsibilities and develop monitoring and evaluation plans as well as clear indicators to measure performance.

• The Contractor must provide the necessary technical support to the 60 schools previously assisted by USAID (2015-2019), to become accredited by the quality assurance and accreditation authority (ETQAAN or NAQAAE in case ETQAAN is not approved).

Result 1.2: Improved Skills of all TVET Agents to comply with the New Quality Standards

In order to ensure the quality and continuous learning and improvement of TVET teachers, administrators and assessors, the MOETE also decided to establish the Technical and Vocational

Education Teachers Academy (TVETA). TVETA will be an entity affiliated to the MOETE and will have a mandate to train and develop technical teachers, trainers, assessors, internal verifiers, management and administrative personnel of technical schools as well as representatives of the private sector who are involved in TVET activities (mainly in-company trainers and tutors).

TVETA will establish policies for teacher development and undertake research on TVET trends and principles based on international quality standards. TVETA will be located in Cairo and will have satellite units in all governorates.

The following are the minimum tasks required by the Contractor for Result 1.2:

The Contractor must support TVETA in building the Skills of all TVET agents, including teachers, school principals and administrators, trainers, and assessors, to secure the required level of human resources capable of managing the technical education transformation process over the coming decades. Support will include providing assistance in the following areas: i) identifying the core technical and soft skills training programs to be taught by TVETA with the active involvement of the private sector in the design of those programs, ii) developing a number of essential training programs, iii) assisting in the selection, appointment and training of an initial pool of Master Trainers and assessors in priority occupations/sectors, iv) providing training for existing (in-service) technical teachers and trainers as well as management and administrative personnel of technical schools, v) establishing and developing a TVET research unit within

TVETA, vi) developing sustainable financing and funding sources for TVETA, vii) providing technical support for some TVETA satellite units, and viii) any other areas essential for ensuring the efficiency, market orientation, and sustainability of TVETA.

Result 1.3: Upgraded TVET Programs & Institutions to produce Market-driven Skills

The MOETE strategy TE 2.0 includes the establishment of a number of modern technical schools to become the innovation hubs for technical education development at the regional level in terms of research, knowledge transfer, and student-centered education. USAID developed generic manuals for the different features of a typical Modern Technical School and the MOETE is currently reviewing those manuals to use them as the foundation for school transformation.

The following are the minimum tasks required by the Contractor for Result 1.3:

a. Support the establishment of at least 10 Model Technical Schools: The Contractor must support the MOETE in transforming/establishing 10 Model technical Schools in several governorates, designed and implemented according to best practices, and serving as hubs for other schools in their vicinity. Selection of these schools will be made in collaboration with the MOETE and USAID. The main features of these Model Technical Schools will cover: a) governance structure with special focus on extensive private sector participation, quality assurance, and effective school management; b) accreditation and certification including the incorporation of accredited curricula from certified education/business organizations; c) implementation of competency-based education based on market needs; d) ensuring adequate hard and soft infrastructure, including IT, Fab-labs, library and technical workshops, and capacity building for teachers including technical and soft skills; e) career development centers providing a wide range of student services such as career guidance, entrepreneurship and innovation training, employment and internship services and community participation;

and f) funding capacity including the ability to attract private sector and NGOs contributions and generate revenues through internal activities.

The support that the contractor must provide to each of these schools will include technical assistance; introduction of new specializations incorporating a special focus on languages and IT; curricula development; technical, practical, and soft skills training; support for student services and transition to employment activities, tracer studies, and transformation to a green school; and funding the necessary equipment, tools and refurbishments for the digitization of learning and the entrepreneurship/innovation activities in the schools. The contractor must pilot different modalities for private sector partnership in the establishment of those schools and work with USAID to implement the selected modalities, based on

USAID’s new Private Sector Engagement Policy (see C.8.A).

b. Support the MOETE in Revamping the Commercial track of the Secondary Technical

Education: To achieve this, the Contractor’s support must entail: a) a full assessment of existing problems in this track and potential new specializations to be introduced, b) the introduction of at least four new competency-based specializations needed by the market, c) developing the required curricula and assessment tools for these new specializations, d) training the teachers, and e) supporting career guidance, entrepreneurship and innovation training, as well as internship and employment services in the supported schools. .

c. Building the Capacity of Training and Employment Centers: This must include providing technical assistance and capacity building to at least two existing / new training and employment centers to help them build their business model, develop and implement their training, employment and marketing strategies, adopt effective monitoring and evaluation tools, obtain the required accreditations, and ensure their financial sustainability. In implementing this task, the contractor will build on USAID prior experience with the

Alexandria Business Association’s Vocational Training and Employment Center (VTEC) in

Alexandria.

Targets for Objective 1:

1. Ten Model Technical Schools are supported by Workforce Egypt and are operating according to international standards based on strong private sector partnerships.

2. At least 7 new market-based specializations are introduced, tested and operational in technical schools, four of which pertain to the revamped commercial track

3. At least 50,000 graduates of the Workforce Egypt supported schools receive employment and 30,000 students receive internships.

4. The Quality Assurance and Accreditation system for TVET programs and institutions is operating efficiently.

5. The 60 schools previously supported by USAID are accredited.

6. TVETA is operational and is providing licensing to technical education teachers in at least ten technical subjects.

7. The technical, marketing, and financial capacity of at least two training centers is upgraded.

C.4.2 Objective 2: Strengthened Private Sector Participation in Workforce Development

Result 2.1: Improved capacity of Private sector-led institutions (the Sectoral Skills Councils) to set occupational standards, support effective work-based learning models, and recommend current and future skills requirements

Sector Skills Councils are employer-led industry sector groups that are currently being established. The EU funded TVET Egypt program is in the process of developing the framework for these councils in collaboration with the Federation of Egyptian Industries (FEI). Once established, the Councils will be responsible for working with the relevant GOE entities, including MOETE and ETQAAN/NAQAAE, to standardize skills standards based on best practices and introduce effective work-based learning models and standards. The Boards of these councils will represent all involved stakeholders, with majority private sector participation, to ensure that the needs of the market are the main drivers for skills development. These councils will be also responsible for ensuring that regular labor market studies/skills assessments are being undertaken to identify skills and specializations needed currently and in the future as a result of technological changes and globalization.

The following are the minimum tasks required by the Contractor for Result 2.1:

The Contractor must start with an assessment of the mandate, structure, and sustainability of the existing sector skills councils, based on international best practice. Based on this assessment, the contractor will develop an action plan in coordination with the FEI, to be approved by USAID, that should identify the following: a) the sectors to be covered by Workforce Egypt, b) the existing sector skills councils to be assisted, c) the new sector skills councils that Workforce

Egypt will assist in their establishment and operation, and d) the technical assistance and capacity building that Workforce Egypt will provide to each of those councils.

Result 2.2: Improved Human Resource Strategies at the Company level

USAID previous workforce projects introduced the Recruit-Retrain-Retain (3R) methodology to address challenges faced by private companies to attract, retrain, and retain a qualified and stable workforce and adopt a continuous improvement culture. The 3R methodology proved to be successful in all the companies that implemented it and hence, for sustainability purposes, needs to be institutionalized and embedded in the services provided by key private sector institutions such as the FEI and business/ investors associations.

The following are the minimum tasks required by the Contractor for Result 2.2:

• The Contractor must build the capacity of the Business Development Services unit established at FEI to capacitate it for the sustainable delivery of the 3R (Recruit-Retrain-

Retain) services to affiliated companies.

• The Contractor must also identify other business/investors organizations willing to provide 3R services to its members, build the capacity of those organizations and develop for them financial sustainability plans for the delivery of the service

• The Contractor must also provide direct support for selected private sector companies to improve their human resource management and reduce workers’ turnover. The

Contractor shall explore options for engaging these companies in a cost share agreement to ensure the sustainability of the intervention.

Result 2.3: Upgraded Skills and Employability of Current Workforce

In addition to the 800,000 that enter the labor market every year, there are currently 2.3 million unemployed, 63% of whom are youth searching for sustainable jobs. Providing the required market driven technical and soft skills training for those job seekers and linking them to the private sector is therefore an essential component of Workforce Egypt. USAID’s previous work in training for employment activities highlighted two main factors for success: 1) the importance of selecting the suitable GOE counterpart that is committed and has a wide network of offices throughout the country to reach job seekers, especially youth, in the different governorates; and

2) the value added of training supervisors at the factory on how to mentor and provide on the job training for new entrants.

The following are the minimum tasks required by the Contractor for Result 2.3:

Activities under this result should be targeted to: i) improving the skills of existing workers, ii) upgrading the technical and soft skills of job seekers and linking them to the private sector through sustainable mechanisms that maximize the employability of those job seekers, and iii) encouraging firms to offer continuous learning and training opportunities for their workers.

Targets for Objective 2:

1. At least three Sector Skills Councils are supported and are fully operational

2. The 3R function at FEI is financially sustainable

3. Workers’ turnover is improved in at least 30 companies by at least 10%.

4. The skills of at least 5,000 job seekers are upgraded and at least 80% of them receive employment.

5. The skills of at least 1000 current workers is upgraded through continuous training and learning.

C.4.3 Objective 3: Improved Environment for Skills Development and Employment

Result 3.1: Governorate Level Labor Market Inefficiencies are identified and addressed

USAID has supported the Beni-Sweif governorate to establish an Economic Partnership Council

(EPC) headed by the Governor. The EPC consists of members from the private sector, NGOs, public sector, and academia and its mandate is to promote economic growth and labor market efficiency in Beni Suef. To support the EPC, a 6-member EPC unit was also established in Beni

Sweif to serve as a secretariat to the EPC and to follow up on and/or implement programs approved by the EPC. To supervise operations of the local EPC unit and assist in rolling over the

EPC model to other governorates, a central 6-member EPC unit was established at the Ministry of Local Development (MoLD).

The following are the minimum tasks required by the Contractor for Result 3.1:

Building on USAID’s previous labor market advocacy activities and the establishment of the

Economic Partnership Councils (EPC) in the governorate of Beni-Sweif, the Contractor shall support policy dialogue between the different stakeholders at the governorate level to address constraints to labor market efficiency based on evidence-based research. The Contractor shall support the establishment of at least two new EPCs; build their capacities to identify and analyze constraints and work with the relevant entities to address those constraints. The Contractor shall also provide technical support to the EPC unit at the MOLD to improve its capacity in rolling out the EPC model to other governorates.

Result 3.2: Selected National Level Labor Market Reforms are advocated for with the

Relevant Stakeholders

According to several studies including “A Study of Employment Outcomes Among Technical and Vocational Secondary Education Graduates in Egypt” conducted by the Egypt Office of the

Population Council and USAID/ENCC labor Skills, Productivity, and Human Resource

Management Study, as well as the related position papers developed in collaboration with the

Egyptian National Competitiveness Council (ENCC), the following are key labor market constraints that need to be addressed: increasing women participation in the labor market, reducing informal employment, ensuring decent work opportunities for the youth, reducing regional disparities, and improving labor productivity.

The following are the minimum tasks required by the Contractor for Result 3.2:

• The Contractor shall review all existing studies and analyses to identify the major constraints to be addressed by Workforce Egypt.

• The Contract shall work with the Egyptian National Competitiveness Council

(ENCC) to further develop the capacity of its advocacy unit and continue the advocacy efforts related to labor market efficiency. Support should be also provided to the Economic Advisory Group (EAG), established at ENCC, to strengthen its ability to advocate for the selected reforms with the different stakeholders.

• The Contractor shall develop a sustainable mechanism that links the different EPCs with ENCC and the EAG to ensure that national level constraints identified by the

EPCs are addressed by the EAG.

Targets for Objective 3:

1. Two new EPC are operational and are actively engaged in addressing labor market inefficiencies in their governorates.

2. At least three labor market reforms identified by Workforce Egypt are addressed by the relevant parties through a PPP approach.

C.5 OPERATING CONSTRAINTS

a. Disadvantaged Areas

To encourage investment in the youths of disadvantaged areas, there will be a plug figure of $3 million allocated to activities targeting workforce development for youth and women in selected disadvantaged areas such as North Sinai, pending security clearance approvals. Upon award of the Contract, the Contractor will work with USAID to develop a plan for selecting the areas and interventions under this component.

b. Sustainability

The Contractor must seek to address the challenges and constraints in the labor market by addressing the key binding constraints to improved labor market outcomes in the vocational technical education sector, namely, making technical education responsive to the current and future needs of the private sector and establishing strong long-lasting partnerships between the private sector and the public institutions. The Contractor is, therefore, required to submit a sustainability plan for capacity building, institutional development, and sustainability of the interventions. This plan must include transforming TVET institutions and programs to become more flexible, efficient, and responsive to market needs, institutionalizing successful interventions, and building the capacity of TVET institutions and agents at the central, governorate, and school levels to be capable of managing the technical education transformation process over the coming decades. The strong involvement of the private sector in the design and implementation of the activities in this contract is a key factor for ensuring sustainability.

In addition, the sustainability plan must focus more on working through local organizations, NGOs, and the private sector for advocacy, to ensure that the appropriate eco-system for policy reform is established. Finally, the sustainability plan must also address gender imbalances as literature as well as country experiences demonstrate that gender equality is a necessary condition for achieving sustainable growth. According to an IMF publication: “fully equalizing male and female labor force participation in Egypt could increase GDP by some 60 percent”

(ECONOMIC GAINS FROM GENDER INCLUSION: NEW MECHANISMS, NEW

EVIDENCE).

c. Gender Integration

Education and training are critical to building human capital and Egypt’s potential for inclusive economic development. According to several IMF studies, “women’s economic empowerment is key for growth both through the direct impact of the size of the labor force on output and through the impact on productivity”. In fact, “fully equalizing male and female labor force participation in Egypt could increase GDP by some 60 percent in Egypt”. The Contractor must therefore place particular emphasis on providing equal opportunities to female students, teachers, trainees, and innovators. The preliminary gender analyses showed gaps such as the high unemployment rate of women (18.9%) compared to men (5.7%). A review of successful experiences in other countries promoting women in education, training, innovation, and employment must be used to better inform implementation. Specific activities in technical education and vocational training under the WE contract must ensure the adequate representation of females at the student/trainee level, the teacher level, and the employment level. All activities must include clear targets for female participation and must document the process for meeting these targets. Also, gender analyses must take account of the presence and impact not only of cultural considerations, but also occupational and hierarchical segregation of men and women in the organization and institutions involved in the programming.

d. Environmental Considerations

The practical training that will be provided to technical school students and teachers, graduates searching for employment, and current workers at workshops or the production line, may entail the need to deal with hazardous tools and dispose of wastes, especially in industries such as ready-made garments and food processing. Offerors must review the environmental impacts of the proposed activities and include the necessary mitigation measures in their proposals. These mitigation measures must address workplace safety practices, awareness of environmental hazards, and proper waste disposal practices.

e. Private Sector Engagement Policy

The Workforce Egypt Activity seeks full alignment with USAID’s Private Sector Engagement policy released on December 12, 2018. USAID/Egypt acknowledges that today, the private sector is playing an unprecedented role in creating and shaping opportunities that improve the lives of the people and communities that USAID supports particularly in Egypt where a robust and competitive private sector is so critical to accelerating inclusive Economic Growth. In this regard, the Mission conducted a round table discussion with a variety of private sector firms to ensure that their perspective is imbedded in the design of Workforce Egypt. The Mission seeks to increase collaboration with the private sector to support Egypt’s Journey to Self-Reliance through the Workforce Egypt Activity in part through a better skilled workforce and a more competitive private sector. To capitalize fully on this opportunity and reach the goal of ending

Egypt’s need for assistance, the active engagement of the private sector in the design and implementation of TVET reforms under Workforce Egypt will be an integral and inseparable component of success. Activities must focus on reducing the current skills mismatch, ensuring that the skills produced by the transformed technical education system meet the current and future needs of the market, and improving employability especially among the youth and females. Contractors should propose activities that work hand-in-hand with the private sector to deliver activities across all three objectives that harness private sector resources and expand opportunities for Egyptian and U.S. businesses.

f. Collaborating, Learning, and Adapting

USAID will promote Collaborating, Learning, and Adapting (CLA) among stakeholders during implementation. CLA objectives include:

• Generate Knowledge. The Contractor must generate new knowledge and evidence around learning questions identified together with USAID and other stakeholders, as well as questions that emerge during the course of implementation. In filling these knowledge and evidence gaps, the Contractor must provide reporting, data, analysis, and gather partners for inclusive reviews of the activity goals and results.

• Share Knowledge. The Contractor must increase knowledge sharing with stakeholders, local organizations, Government of Egypt, sectoral experts, donors, regional and international organizations, and others to encourage more widespread learning across teams, mechanisms, and sectors. The Contractor must work together within a learning network to share information with implementing partners of other USAID activities, such as local stakeholders and other development partners. The Contractor must convene forums to share knowledge and also use existing forums within Egypt.

• Incorporate Agile and Adaptive Processes. The Contractor must develop adaptive management and implementation processes and must include an adaptive management plan within the annual work plans to allow course corrections to respond to unintended effects, changing/emerging realities, and priorities. Together with USAID, the

Contractor’s activity work plan, quarterly reports, and periodic progress review meetings must provide a forum for an adaptive approach to change course based on lessons learned and the evolving country context. The Contractor must prioritize activities together with the COR during work planning and review the prioritization during the quarterly reporting period. If circumstances arise, the Contractor may and should alter activity designs with approval from the COR to accommodate the window of opportunity, as long as the reprogramming (i) falls within the scope of work of this Contract, and (ii) does not hold the USG to incurring additional costs, in each case unless otherwise directed by the

CO.

g. Other Donor Assistance Programs

Workforce Egypt will meet an important technical assistance need. Whenever possible, the

Contractor will collaborate with other development partners to ensure complementarity of the activities and avoid any potential duplication of efforts. This will include coordination with:

• European Union (EU): TVET Egypt is a program co-financed by the GOE and the EU until 2023. The program aims at improving the structure and the performance of the

TVET system, to better respond to Egypt’s rapidly changing socio-economic needs, with focus on youth employability and national competitiveness. TVET Egypt has three components: (1) Improving the Governance of the Egyptian TVET System, (2)

Enhancing the Relevance and Quality of TVET, and (3) Supporting the Transition to

Employment.

• German Aid (GIZ): “Employment Promotion Program”: The program aims at developing a quality management system for technical secondary schools, facilitating a national policy dialogue on youth employment promotion, and providing labor market information through the establishment of Regional Labor Market Observatories. Other activities are career guidance, entrepreneurship education and placement services for students and graduates of technical education. In addition, GIZ is planning for a future ten-year program starting next year focusing on quality assurance and accreditation, teachers training, support for dual education, and the establishment of a number of sector specific centers of excellence. These centers will provide technical secondary education as well as an additional two years of study for a technical college education. The first two centers will be for the energy sector for which the EU is providing 13 million Euros as blended funding.