TRAINING INSTITUTE FOR

COMMERCIAL VEHICLE DRIVERS IN

ETHIOPIA
(140347)
A private public partnership project to support
specialized skills development in Ethiopia
Date
November 2016

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Basis for Application
Business for Development (B4D)

Requesting Party:

Organization: United Nations Industrial Development Organization

Contact: Mr. Dejene Tezera
Address: Vienna International Centre – Wagramerstr 5. Austria, Vienna
Tel: +43 1260263499
E-mail: d.tezera@unido.org
Website: www.unido.org

In collaboration with:

Organization: AB Volvo
Contact: Malin Ripa (project owner)
Address: 405 08 Göteborg, Sweden
Tel: +46 31 661161
E-mail: malin.ripa@volvo.com
Website: www.volvogroup.com

Johan Reiman (Project coordinator)

405 08 Göteborg, Sweden
+46 31 323 3423
Johan.reiman@volvo.com

Organization: Selam Vocational Training College

Contact: Mr. Shewangezaw Lullie.
Address: Selam village Addis Ababa Ethiopia
Tel: +251 11646 292 646
E-mail: gm@Selamchildrenvillage.org

The application relates to:

Location of project:
The project will be located in Addis Ababa, Ethiopia

Total calculated project cost:

USD 5,445,000

Timeframe:
The project will be implemented over a period of 5 years.

Previous work with Sida

UNIDO and Volvo have both worked with Sida in the past.

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Signatures

On behalf of the Government of Ethiopia:

________________________________________

On behalf of the United Nations Industrial Development Organization:

________________________________________

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 Contents
1.  Background ................................................................................................................. 5 
2.  Challenges (problem analysis) .................................................................................... 5 
3.  Strategic fit with Sweden’s development country strategies .................................... 11 
4.  Project ....................................................................................................................... 12 
5.  The objectives ........................................................................................................... 14 
6.  Expected outcomes ................................................................................................... 14 
7.  Target group .............................................................................................................. 16 
8.  Project stakeholders .................................................................................................. 17 
9.  Implementation arrangements ................................................................................... 18 
10.  Project budget ........................................................................................................ 20 
11.  Sustainability and other issues ............................................................................... 22 
12.  Risk and risk management ..................................................................................... 28 
13.  Monitoring and evaluation ..................................................................................... 28 
14.  Time frame and scheduling .................................................................................... 29 
15.  Legal context and contractual arrangements.......................................................... 32 
16.  Other requirements................................................................................................. 32 

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 1. Background

Ethiopia’s economy is one of the fastest growing in Africa. Agriculture still contributes 40
percent to GDP, industry 14 percent and services 46 percent (2013/14). Although agriculture
remains the largest sector of the economy, the base of economic growth is broadening, with
industry making increasing contributions. The share of GDP generated by agriculture declined
from 50.2 percent to 41.9 percent between 1989 and 2014, and the sector remains an important
source of growth, employing more than 85 percent of the population. However, given mounting
pressure on the land, sustaining higher rates of growth in agriculture which is mostly subsistence
will require substantial effort and faces many challenges. Services, dominated by financial
intermediation, public administration, and retail business activities, are the second largest sector
of the economy, with a share that has remained stable over the past decade. The share of GDP
generated by industry remains small, but is gradually increasing in importance. The country aims
to sustain an annual rate of economic growth of more than 10 percent to become a middle-
income country by the period 2020-23

According to the Ethiopian Growth and Transformation plan (GTP II), the share of agriculture,
industry and services is projected to reach 35.6, 22.8 and 41.6 percent respectively by year 2020.
These goals will require significant improvements in labor productivity.

As the economy develops and the industrial and service sectors adopt more complex production
techniques, a workforce with more technical skills will be necessary. International experience
suggests that investments in vocational training are especially important in order to both avoid
shortages of skilled labor to the industry and provide jobs for the youth.

2. Challenges (problem analysis)

Current situation

As a land-locked country with a population of more than 90 million, limited and dysfunctional
rail infrastructure totaling 681 kilometers (km) and 18 airports with paved runways, Ethiopia is
highly dependent on road transport for the movement of passengers and freight. The road
(sector) has continued to witness increased investment during the first Growth and
Transformation Plan (GTP) implementation. This has helped to increase the road network from
48,800 km in 2009/10 to 60,466 km in 2013/14. The total distance covered by busses increased
from 70,000 km in 2009/10 to 101,983 km by 2014/15. The number of passengers increased
transported increased from 148.1 million to 394 million. The GTP II, covering the period
2015/16 to 2019/20, targets a doubling of the length of all-weather roads from 110,414 km to
220,000 km by 2019/20.

The Federal Transport Authority (FTA) is responsible for the federal roads. The Rural Roads
Authorities (RRAs) are responsible for regional states. All-weather roads at the community or
rural (Woreda) level are projected to reach 71,522 km by 2014/2015.

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According to the latest available transport authority data, there are 65,534 commercial transport
vehicles in Ethiopia and it is estimated that it will reach approximately 90,000 vehicles by 2018.
From 65,534 commercial vehicles, about 35,000 have a load capacity between 7 and 40 tons.
More than 60 percent of the trucks have been in operation over 10 years.

The country also has an estimated 10,000 pieces of heavy duty construction equipment, such as
(dozers, excavators, rollers and graders). Most of these are imported as used. Ethiopia imports
approximately between 2,000 and 3,000 pieces of heavy duty machinery per year. To encourage
more imports of such machinery, the government of Ethiopia provides duty-free privileges to
importers once the companies are approved by the Ministry of Urban Development and
Construction (MoUDC).

There are six oil companies using over 1,000 liquid bulk cargo (fossil fuel) tanker trucks and
only 7.5 percent of these tankers are below the age of five.

Pushed by the rapidly growing economy, demand for new commercial vehicles and skilled
drivers will increase sharply in Ethiopia in the near future. The commercialization of agriculture,
fast increasing quantity of trade, mining, housing, roads, airports construction and the ongoing
and planned mega-projects of dams, irrigation schemes construction are helping to drive
economic growth. However, with expansive territories to cover, and long handling chains
between farmers in rural areas and processors in urban areas, high post-harvest losses are
common. Efficient transport is important in reducing such losses and professionally trained
drivers are key to efficient transport.

However, there is an acute shortage of professionally trained drivers. This shortage is projected
to continue for the coming two decades, unless the government and private sector operators are
able to address the constraints facing the sector.

Unemployment

The unemployment1 rate in the country is 17.5 percent. Urban unemployment rate is 20.6 percent,
which is about ten times higher than in rural areas (2.6 percent). The incidence of unemployment
also varies by gender. In urban areas unemployment among women is estimated at approximately
27.2 percent, compared to 13.7 percent among men. The same pattern holds true for rural areas,
where approximately 4.6 percent of women and 0.9 percent of men are reported to be
unemployed.

Rural-urban migration – driven by the increasing rural population density and the resulting
smaller farm sizes and low level of agricultural productivity – is one of the main contributing
factors to urban population growth and increased urban unemployment. Urban unemployment,
youth unemployment in particular, remains a growing area of concern for the government.

A large size of the labor force is also engaged in the informal sector where underemployment,
poor earning and lack of institutional protection are the characteristic features. These realities

1
Unemployment is measured by taking the following three criteria into consideration, simultaneously: without work,
currently available for work, and seeking work
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nurture the problem of the working poor in Ethiopia, making poverty more a result of poor
earnings than unemployment.

The rapid growth of the supply of labor is the central feature defining the labor market in
Ethiopia. The labor force is growing much more rapidly than the population as a whole because
of Ethiopia’s demographic profile which is characterized by many more under-15 year-olds
entering the work force each year than there is old people leaving the labor force. The latest
available data of under-employment in Ethiopia stands as 51 and 47 percent for males and
females between the ages of 15 and 29 in urban areas.

GoE’s strategy for employment generation

According to the second Growth and Transformation Plan (GTPII), the Government of Ethiopia
(GoE) intends to create 717,114 more jobs in urban areas by 2020. This will be achieved by
creating conducive environment for the private sector, attracting both domestic and foreign
investment and developing human resource requirements for the industries. In order to fulfill this
requirement, emphasis will be given to establishing strong linkage between the transport sector and
Technical Vocational Education Training (TVET) colleges and other relevant institutions in order to
make their programs well-matched to the requirements of the private sector.

National Employment Policy and Strategy (NEPS)

The government of Ethiopia formulated the National Employment Plan and Strategy (NEPS)
with the following objectives and actions:
− Accelerating private sector development for employment generation
− Ensuring effective and efficient public sector employment
− Support private investment in the employment-intensive manufacturing sector and
enhance its competitiveness
− Promote the labor-intensive private construction sector
− Expand the export of labor-intensive manufactured and processed products
− Improving and raising labor productivity
− Improving labor administration and strengthening labor market institutions
− Achieving a Demographic Transition
− Arresting Rural-Urban Migration
− Mainstreaming Gender and Youth in Employment Generation

Vocational Training in Commercial Vehicle Driving

Each year, more than 120,000 regular students (nearly 50 percent men and 50 percent women)
graduate from vocational schools in Ethiopia at different levels (level 1 – level 5). However, due
to the supply driven nature of the TVET system, many graduates from TVETs do not find
employment in their area of specialization. Since no TVET school provides training in
Commercial Vehicle Driving (CVD), most of the commercial vehicle drivers in the country do
not have professional education. There is no government training school in the country serving
the public transport institutions. As of 2013, there were approximately 58 CVD training schools
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registered in Addis Ababa. However, as a result of the increasing number of traffic accidents in
the city, the FTA undertook the evaluation of the CVD schools and revoked the licenses of 15
driving schools that scored extremely low and temporarily suspended the operations of 34
schools. As a result, only nine schools remain operational, albeit with limited capacity and low
quality training.

HIV and AIDS

In Ethiopia, there were 730.000 People Living with HIV/AIDS (PLHIV) in 2014. In 2011, the
prevalence of HIV infection was estimated to be 1.5 percent of the adult population (1.9 percent of
all females and 1 percent of all males). The HIV epidemic in Ethiopia is generally stabilizing, with
signs of decline in major cities, though rising in small towns and market centers. Women and
children are particularly affected by HIV/AIDS – 60 percent of the PLHIV in the country are
females (totaling around 700,000 women) and about 80,000 are children.

Despite advances in the fight against HIV/AIDS in Ethiopia, a report for USAID concluded that
HIV prevention actions remain lacking or inadequate among high risk groups such as truck
drivers and suggests increased focus on these groups in urban areas and regions. Analysis has
shown that HIV prevalence is four times greater among populations that reside within 5 km from
a main asphalt road compared to those further away.

Truck drivers are particularly susceptible to HIV/AIDS. Drivers s are of an age to be sexually
active, but are separated from regular partners for extended periods of time. Moreover, they carry
large sums of cash to meet their travel needs. Combined with easily accessible sex networks
operating along the highways and at halt points, truck drivers are attractive customers to the sex
work industry in the country and thus, also contribute to spreading HIV/AIDS.

Adult HIV prevalence is more than five times higher in urban areas (10.5 percent) than in rural
areas (1.9 percent). AIDS accounted for about 34 percent of all deaths occurring among the
population aged 15-49 years.

Regarding the regional distribution of the epidemic, the highest infection rate is in Addis Ababa
(9.2 percent) followed by Diredawa (4.9 percent) and Harari (3.9 percent). Both regions are
transport hubs where there is heavy truck traffic to and from the port of Djibouti. The infection
rate in other regions varies between 0.9 and 3 percent.

A recent study which evaluated the economic impact of HIV/AIDS in 15 different organizations
shows that the HIV incidence was 0.58 percent of the workforce, and was concentrated mainly in
manufacturing, and transport and communication industries. Of the 233 AIDS cases studied, 109
(46.78 percent) were in the transportation sector which required long distance travel and a
significant amount of time away from home. A survey of truckers and their assistants found that
17.3 percent those surveyed were HIV-positive.

The loss of income, in addition to rising medical costs, reduces the ability of people to provide
care for themselves and their families, pushing HIV-affected households, in particular women
and children, deeper into poverty.

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The epidemic damages businesses through absenteeism, falls in productivity, labor force
turnover, and the subsequent added costs to operations. Moreover, company costs for healthcare,
funeral benefits and pension fund commitments rise as people take early retirement or die from
AIDS-related illnesses.

Road traffic accidents

With 65 fatalities per 10,000 vehicles, Ethiopia has one of the highest fatality rates per vehicle in
the world. The majority of accidents are attributed to limited driving skills. The government
plans to reduce this rate to 27 per 10,000 vehicles by the end of the second Growth and
Transformation Plan (GTPII) in 2020. The FTA report indicates that 87 percent of vehicle
accidents in 2012 were due to driver incompetence. This is linked to unsatisfactory level of
drivers’ safety training and awareness of the pedestrians, including children.

Ethiopian police records show that between 2003 and 2007, at least 76 percent of fatal accidents
were due to driver error, 6 percent due to vehicle defects, 5 percent due to pedestrian error, 2
percent due to road defects and the remaining due to other causes. Over half of road traffic
accident deaths in Ethiopia involve pedestrians, of whom 20 percent are children younger than
18 years old.

The analysis shows, among other things, road accidents erode more than 0.49 percent of the
country’s GDP. A mix of revised laws that set a uniform standard in the issuance of driving
licenses, empowering organizations such as the federal transport authorities and impose heftier
fines for traffic violations are strategies adapted to reduce the road accidents in Ethiopia

Motor vehicle crashes have far-reaching financial and psychological effects for employees, their
co-workers, families and employers. Introduction and mandatory road safety training and
awareness campaigns can reduce the number of insurance claims, vehicle repair expenses and
time away from work due to driving related injuries and deaths. These situations make road
traffic safety training a national priority.

The government established a National Road Safety Council (NRSC) in 2011, by an Act of
Parliament within the Ministry of Transport, to spearhead all road safety activities in Ethiopia
over the next 10 years. This project will work with the NRSC in the form of capacity building
and awareness campaigns in collaboration with national and international NGOs.

Ethical conduct of drivers and anti-corruption

There are reports that some commercial vehicle drivers are engaged in un-ethical conduct such as
fuel stealing, replacing new truck tires with old ones, the general misuse of vehicles, including
often overloading them. Other issues, such as drunk driving, ignoring speed limits, working
excessive hours, are also a problem. Transport companies spend considerable time and resources
to minimize such occurrences, but are largely unsuccessful. The project will introduce ethical
behavior training to the drivers and will introduce accountability courses. The project will also
work with the stakeholders to develop mechanism such as introduction of ethical conduct as
criteria for the renewal of driving licenses and for the selection of the trainees.
1. During the lifetime of the project, UNIDO will make sure that the project resources are
used according to UNIDO’s established standards to avoid any misuse. There will also be

9
 a project monitoring system which will check and report any breach or infringement of
highest expected standards of accountability and transparency to all stakeholders.
2. UNIDO also has policies and practices for internal control structure, including internal
and external audits Code of Conduct, whistle blower function, fraud awareness and
prevention etc. Anti-corruption measures are also integrated in UNIDO internal
processes. UNIDO employees formally commit to abide by the “Standards of Conduct
for International Civil Service”. In addition, all employees of UNIDO must take
mandatory courses on Ethical conduct and Fraud awareness.
3. All project staff of UNIDO involved in this project at HQ and in the field will undergo
training on ethical conduct and Fraud awareness. This training will be done at the
beginning of the project.

Policy
In recent years, there has been considerable expansion in TVET in Ethiopia reaching more than
450 TVET institutions. The average annual increase in enrolment in TVETs between the years
2006-2013 was 30.5 percent. These institutions enrolled total of 308,501 students in regular,
evening, summer and distance programs. As a result, Ethiopia has the second largest number of
vocational training institutes in Africa.

The fact that government is committed to overhauling and reforming the basic framework and
conditions of the TVET system shows that it is aware that the training programs need
improvement to be relevant to the workplace reality and to maximize their contribution to
industry. This project will demonstrate how a systematic integration of vocational training
systems with the world of work can be achieved.

One of the obstacles to CVD schools is the quality of existing teachers/instructors. Most have
low formal qualifications, severely affecting the teaching and learning process. The project will
assist the government to define the qualification required for CVD training and the certification
of instructors.

There is also need for a post-training evaluation of the impact of graduates of driving schools in
the transport industry in order to ensure that there is constant alignment to needs. This process
will be more efficient if there is an association of CVD schools. The project will assist the
public and private sector training schools to form an association and build its capacity to engage
in dialogue with FTA and the TVET agency for the review of policies including the certification.

Typical challenges of commercial vehicles operations in Ethiopia can be summarized as follows:

− High rate of crashes, resulting in 65 deaths per 10,000 vehicles; overloading which
accelerates the deterioration of roads and hence public expenditure; congestion which
results in high logistics costs for the private sector which can be reduced by having
professionally trained drivers;

− The current training and testing standards of commercial vehicle operation do not meet
the requirements; moreover, standards are not periodically reviewed and revised on a
regular basis;

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 − An FTA report indicates that 87 percent of vehicle accidents in 2012 were due to driver’s
incompetence, which is again related to sub-standard drivers’ training institutions. FTA
established a training workshop equipped with simulators for use by government-owned
transport companies, though the capacity of instructors is limited;

− Absence of an association for commercial vehicle and heavy duty machinery training
schools in Ethiopia which could provide inputs for detailed training curriculum for its
members, evaluate schools based on adherence to the Model curriculum and undertake
dialogue with the government for improved policy on training incentives for private
companies;

− The very few driving schools in Addis Ababa have facilities for proper professional
training; and

− There are only very few professionally trained trainers at the moment. In the existing
drivers’ schools, experienced drivers are selected to be instructors, though the experienced
drivers are not necessarily good teachers.

− A standard for commercial vehicle driver training instructors exists but requires
improvement in order to meet international standards.

Taking into consideration the above, Volvo, Sida, Selam and UNIDO in collaboration with
government institutes and other partners will support the establishment of a training institute for
Commercial Vehicle Drivers (CVD) at Selam vocational training center in Ethiopia. This will
provide an important step in meeting the demand of private sector transport companies in the
country.

3. Strategic fit with Sweden’s development country strategies

The current Swedish country strategy for Ethiopia, covering the period 2016-2020, includes a
focus on improved opportunities for productive employment with decent working conditions,
particularly for women and young people, an area which is at the centre of the project proposal.

Since 2010, when Sida’s Business for Development (B4D) was decided, there has been increased
effort to develop efficient mechanisms to collaborate with the private sector and a number of
instruments have been developed. The suggested Private Public Development Partnership is a
response to these efforts and fully in line with the PPDP-guidelines. In addition, the project
contributes to a more favourable business climate for sustainable and inclusive commercial
activities where the private sector is allowed to participate more broadly and gradually translate
this space into an actor demanding for accountability and influencing policy.

The project is also responding to Ethiopia’s increased focus on economic growth as described in
the first Growth and Transformation Plan (GTP) which focused on “building an economy which
has a modern and productive agricultural sector with enhanced technology and an industrial sector
that plays a leading role in the economy; to sustain economic development and secure social
justice; and, increase per capita income of citizens so that it reaches the level of those in middle-
income countries.”

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According to the government’s technical and vocational training strategy (TVET), Public and
Private Partnership (PPP) is stressed as the means to fully utilize the experiences and capacities
of the private sector to improve the quality and relevance of TVET; it will increase resources
invested in TVET; it will improve supply and hence accessibility of the system; and partly
relieving government from the burden of TVET delivery which would enable the government to
concentrate its resources and efforts on its regulatory and supportive functions.

As a project, it fulfils all the key criteria for B4D and it has been prepared with adherence to the
guidelines for PPPs. The Project has a strong element of action-learning in line with B4D’s
approach, reflected in applying different models for vocational training in terms of partnerships,
and as an explicit system for results-based learning.

4. Project

The overall objective of the project is to create productive employment opportunities for
Ethiopian youth, both young women and men, in commercial vehicle driving and improve the
shortage of skilled labor in transport enterprises.

The project will ultimately reduce road traffic accidents and improve the health of the truck
drivers around the country. It will also contribute to the efforts of the government in transforming
the driving schools in the country.

The training school will provide up to five years of training for up to 40 regular trainees
annually. It will also undertake short term modular training for at least 480 drivers annually from
different companies around the country. The revenue generated from the fees charged for the
short-term modular training will be an important contribution to making the school financially
sustainable. An effort shall be made to particularly target females as trainees and as trainers. It
has also been realized that the GoE desires the output of the project to be a mix of skilled trainers
and drivers with an emphasis on the former. According to the FTA there is a demand for up to
100 trainers annually. This desire is motivated on account of its ability to have a larger impact –
the more trainers are graduated, the bigger the impact of the project on the sector. The training
programme will take the indicated desire into account. This will be achieved by strengthening
the institutional capacity of Selam training school to deliver up-to-date training courses relevant
to the requirements of modern enterprises which are expanding their operations in Ethiopia.
Considering that an estimated 85 per cent of all automotive vehicles in Ethiopia are second-hand
and at least ten years old (average age of the fleet of the country is 15-20 years), maintenance
and basic mechanic skills are of great importance to commercial vehicle drivers. Such skills will
be taught as part of, or in connection with, the drivers training (level I of the HDECoVA training
at Selam).
The Government of Ethiopia, represented by the FTA, is currently in the process of revising the
standards for drivers of heavy duty vehicles. It is therefore necessary for the training programme
to take the envisaged revised standard into account in designing the training programme and
curricula.

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Figure 1 project implementation model

Project Steering Committee

AB Volvo STVC

Sida UNID
FTA
Local Companies ETA

Regulations Graduates

Private enterprise
Public sector

Certification Project Model Apprentices

Selam Vocational School
Best practices
& policy Demand

Curriculum, trainers, better practices, PPP model,

management etc.
Regulation
Demand

School 1 School 2 School 3 School 4

The project will be a pilot project to showcase a public private partnership in vocational training.
The private sector will be deeply involved in the formulation of the curriculum according to the
need of the enterprises; the government will develop the appropriate regulations and certification
of the trainers and the students. The experiences of the school including the curriculum, the
certification of teachers, selection of students and the management of the schools will be
disseminated to other schools, thereby contributing to supporting the development of appropriate
policy by the government to improve the quality of the vocational training system in the country.

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 5. The objectives

The Project has the following overriding objectives:

1. Provide youth (women and men) with skills that will enable them secure long-term
sustainable income
2. Help strengthen professional commercial vehicle drivers training in the country to meet the
increasing demand of the transport, construction, agriculture and mining industries
(private sector).
3. Support the efforts of the government to scale-up the experience of demand driven,
vocational training and review policies accordingly

6. Expected outcomes

Outcome 1: Productive employment opportunities created for youth in CVD

Expected outputs for outcome 1

The project aims at establishing the first vocational training school for the training of trainers and
CVD in the country to meet the growing demand from private transport companies. The
vocational training school will train 40 trainees each year and more than 480 skills upgrading
short term trainings which will be certified as professional CVDs and more than 20 trainers. An
effort shall be made to particularly target females as trainees and as trainers/teachers.

− A training institute for CVD is established and operational

− New curriculum modules are developed and approved by relevant authorities
− Trainers in CVD are trained to deliver up-to-date training
− Young trainees (40 women and men) are enrolled in the training program and graduate as
CVDs every year
− In addition at least 480 drivers from different transport companies will participate in a skills
upgrading program up to the level required to attain a Commercial vehicle Driving License
(CDL)
− At least 12 other schools (number of students to be determined during the inception period)
in the country use the curriculum of the model school to be established at Selam starting the
second year of the project.

Outcome 2: Reduced road traffic accidents,

The project will strive to introduce mandatory road safety training, such as defensive driving and
awareness campaigns in schools in order to reduce the fatality rates from 65 to 32 in five years’
time according to the target of the government.

Expected outputs for outcome 2

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 − Road traffic safety policy/program developed and implemented
− students (women and men) get skills upgrading training leading to professional
Commercial Driving License (CDL) including eco-driving
− Impact on the environment reduced through training in eco driving and environment
consciousness

Outcome 3: Experience of the PPDP training institute is incorporated in the national

framework in vocational schools and truck drivers’ schools

The project, in collaboration with the FTA, will establish standards for the teachers and students
certification and assist other schools to adapt new curriculum for CVD training based on the
success of this new institute.

Expected outputs for outcome 3

− The government’s strategy for partnership with the private sector in technical trainings
is promoted for scaling up of improved technical trainings and , gender equality to
ensure inclusive growth
− Policy change in CVD and certification of schools completed (the model is also
replicated for other vocational schools)
− The new curriculum is disseminated to other CVD training facilities
− The standard for certification is prepared and presented to stakeholders

Outcome 4: HIV prevalence rate reduced among the truck drivers

The project will work with different partners to support the national integrated network of
interventions for fighting HIV/AIDS; to develop an implementation plan clearly describing the
roles and responsibilities of different actors in fighting the spread of HIV/AIDS among the truck
drivers.

This project will work with transport companies, government institutions and CSOs to provide
truck drivers with improved rest stops locations. The project will also help establish information
centers and service outlets in rest places, and coordinate with authorities at the national and state
levels to include participation of drivers in HIV prevention trainings as a pre-requisite for
renewing and issuing new driving licenses.

Expected outputs for outcome 4

− STD and HIV rates decreased among the CVD who have undergone training

Main cluster of activities (details of the activities are summarized in the logical framework annex
I)

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 7. Target group

The project will have a number of direct and indirect beneficiaries

 The direct beneficiaries are youth estimated to be 870 per year 2 who will be CVD and
certified instructors in the same field and who will have productive employment
 The other direct beneficiaries are: (i) private industries who will have access to the highly
qualified CVD for their competitive business; ii) Selam training Academy which will be
upgraded to be center excellence for CVD; (iii) the Volvo Group will use its private-public
partnerships in vocational training in Ethiopia to promote part of its CSR activities and to
secure access to drivers for its customers; and iv) government institutions, mainly the FTA,
supported by the project to disseminate standards and best practice to other schools.
 AB Volvo and other private transport companies will also benefit as local training will help
strengthen economic development through the better service provision of local enterprises.
The academy will also provide AB Volvo with an effective way to build relationships with
potential employees.
 All other commercial drivers’ schools who will benefit from qualified instructors, new
curriculum and exchange of experience with Selam and adoption of the new model of private
Public Partnership model for training.

Summary of Beneficiaries
The project will train 40 students (12 women and 28 men) every year as new professional CVD
at the Selam vocational school. About 480 men and women from other transport companies
will be trained in skills upgrading program every year to become certified commercial drivers.
The project will also work with 12 other driving schools using the curriculum and testing
standards developed by the project as further detailed in Section 11 (Efficiency) below. These
schools are expected to train ca 300 students as certified CVD s every year. Regarding training
of trainers, total of 20 trainers (6 women and 14 men) will be trained every year at Selam to
become certified trainers. As part of the skills upgrading program, every year 24 CVD trainers
from 12 other schools will be trained as continuing students

2
40 regular students per year for CVD; 20 instructors per year; 480 skills upgrading training for the CVD; 300 students from
other commercial schools using curriculum developed by project, 24 instructors from the other CVD schools.  
 

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 8. Project stakeholders

Selam Technical and Vocational College will be the project owner in Ethiopia. Selam is a non-
governmental organization established 30 years ago with the purpose of helping under-privileged
children and youth through primary and secondary education, as well as vocational training.
Vocational training at the College includes mechanical engineering, metal works, electronics and
auto mechanics. The facilities of the existing training school established under the ongoing Volvo,
SIDA and UNIDO project will be used for training on fundamentals of the CVD.

The Selam Training center will provide the project with the facilities and assign a number of
trainers to work in the training academy team. Selam will also provide basic training material,
utilities for schools, select and manage students and in coordination with local private sector
companies organize internships/apprenticeships for students. Selam trainers’ skills will be up-
graded to ensure full competence to carry out the training activities. UNIDO will also work
closely with the training team to improve their managerial and administrative skills on the day-to-
day operations of the training center.

Selam will also be responsible for putting in place appropriate pre-testing/evaluation mechanisms
of the training to ensure that the required competence levels are achieved by trainees before taking
the test for driver’s license.

Selam has close cooperation with the FTA and Ministry of Transport in Ethiopia and works
closely with the departments in charge of accreditation of private schools and quality control of
the teaching system. Selam in collaboration with the FTA and Ministry of Transport will share the
new curriculum and the experience gained by this project and instructors with other schools.

AB VOLVO is the core private partner company in the project. AB Volvo will, within the limits of
the agreed contribution (as specified in Section 10 below), provide training equipment (two (2)
simulators and four (4) trucks, but excluding fuel, service, maintenance and repair), support for
training of trainers, support for the curriculum development and ensuring the curriculum meets the
industry’s standards and quality control of the training material (e.g. the teaching aides teachers
use), all as agreed by the parties on a case by case basis.

UNIDO is the project manager and brings its international experience in technical vocational
training and will provide the overall project management and implementation, while assuring
prudent use of financial resources at project level. Procurement of equipment and services shall be
carried out by UNIDO, in line with the rules and practices of UNIDO.

Local private companies 3 will contribute with important experience in the CVD issues and
provide fuel, spare parts, service, maintenance and repair and training space for practical training.
The local private company collective will have an observer status in the Project Steering
Committee, representing the (private sector) transport business in Ethiopia. They will also provide
inputs for the development of the curriculum and ensure internships/apprenticeships for students.
3
A workshop on the concepts of the project and the desired type of partnership was organized with representatives from 17
different organizations in attendance. The companies in attendance were companies with large fleets and comparatively long
periods of successful operation in the business. There was a consensus among the workshop participants that the lack of
competence of drivers is a major reason for road traffic accidents in Ethiopia and that the project is highly relevant and timely to
address the problem. All participants confirmed their willingness to be partners in the project by sending drivers for training and
providing in-kind contribution to the project.
17
The Federal Transport Authority (FTA) will play an important role in the development and
review of the new curriculum of Selam, setting standards and testing mechanisms for the CVD
and the dissemination of better practices to other schools. This will also help the FTA to promote
similar PPP projects and programs for result-based and demand driven skills training in the
country and acquiring experience in a new modality of provision of training through PPP. FTA
will engage with Selam and other schools to develop appropriate policy for the certification of
drivers, instructors and schools. The FTA is also responsible for certifying the curriculum of
training academies for CVD.

Embassy of Sweden in Ethiopia will fund the Swedish contribution to the project. Sida will have
the overall responsibility to supervise its contribution for facilities upgrading; national and
international administrative and technical experts; minor equipment provision; and support cost
for UNIDO. It will receive and analyze the reports from the project and participate in the biannual
meetings to review project progress and agree on the strategic direction of the project. The
embassy of Sweden in Ethiopia will play an important role in regularly monitoring the project
activities, advocacy and political support for the project at a higher policy making level.

9. Implementation arrangements

The project will be executed using a common participation framework. This framework aims to
build-up the institutional capacity of Selam training center to improve the day-to-day training
activities of the academy using modern technologies, trainers, curriculum and advance the skill
level to an international level. This model will offer a mechanism for the international project
stakeholders and local partners to jointly plan design and participate in the execution of project
activities. This will ensure that a sound structure is in place for the local project partners to sustain
the training activities of the academy upon completion of the project. The role of each project
partner is critical to the success of the project.

UNIDO will be the project manager and will have the project implementation responsibility
jointly with Selam and in consultation with AB Volvo.. Selam and UNIDO will appoint a project
coordinator who will be responsible for the day-to-day operations. In addition, the
implementation of the project will be guided by a rights-based approach, meaning that central
principles such as participation, transparency, non-discrimination and accountability will be
concretized along implementation. This could, for example, mean that relevant stakeholder
analysis is done in order to involve the right actors when developing the curriculum; that student
intake is guided by non-discrimination; and that structures to ensure accountability are established
and made transparent to the public at large.

In the proposed public and private partnership program (PPP) being piloted in this project, the
private sector will, within the limits set out herein, contribute with the following:

- participate in the formulation and evaluation of the curriculum (Volvo and private local
companies);
- provide training equipment (Volvo and private local companies)
- provide fuel, spare parts, service, maintenance and repair and sites for the behind the
wheel training (private local companies);

18
 - provide an internship/apprenticeship program for the students (both female and male) and,
potentially, financial support to training schools (private local companies).

The objective is that, following a successful pilot of the above program, the government will
promote PPP and the model through changes in policy and regulations.

This will allow the development and implementation of systems that are built on strong and well-
defined partnerships between government, the business sector and NGOs.

The project stakeholders meet once a year and contribute to the project on strategic directions and
support the project activities; ensure the effective cooperation between all key stakeholders; and
advise on the effectiveness of the ongoing activities.

Staffing

The Project will have an internationally recruited Chief Technical Adviser (CTA). The principal
role of the CTA is to:

 Provide advisory support to Selam Academy

 Be in charge of setting up and initially operating the results-based monitoring system
 Manage the assets of the project
UNIDO, with input from AB Volvo, will establish a training school management team. The team
will include the center manager, senior training instructors and support staff. This team will be
responsible for the day-to-day management of the center’s training activities. UNIDO will be
responsible to ensure the smooth operation of the academy by providing all necessary inputs
through Sida funding, including operational costs, procurement of equipment for the training
facilities, rehabilitation works as-required and regular project reporting. UNIDO local project staff
will include a National Project Coordinator (NPC), a finance assistant, a logistics officer, a project
driver and other short-term consultants.

The FTA will play an important role in that it is responsible for (i) certifying the academy, (ii)
setting the minimum level of requirements for curricula, (iii) approving the curricula, (iv) issuing
licenses to graduates and certificates to trainers and (v) by supervising the training process at least
once a year.

During the recruitment of project personnel, gender balance shall be aimed at by UNIDO and the
Project Steering Committee.

The Project Steering Committee (PSC) will be established from all stakeholders for making
executive management decisions during the project implementation and when guidance is
required in the framework of the project document (see Annex IV for full ToR for the Project
Steering Committee). In general, the PSC reviews and approves new partners and detailed plans
of activities and authorizes any major deviation from these agreed plans of activities as further
detailed in Annex IV. .

19
 10. Project budget

An assessment of investment in vocational training should consider both short- and long-term
benefits. While financial inputs at the beginning are considerable, benefits might arise at
different points in time. Benefits may be difficult to quantify and hard to disentangle from other
variables affecting performance and productivity gains for the enterprises. Compared to general
or academic education, the costs of vocational training are substantial (at least double of the
university education excluding the apprenticeship costs) in particular for those occupations that
require heavy equipment and sophisticated infrastructure like the CVD. However, vocational
school graduates, both female and male, are highly desirable in today’s economy, especially in
developing countries. Hence, instead of the question “is it worthwhile to invest in vocational
training” we must ask “How can the provision of vocational training be made most cost-
effective?

The benefits of vocational training can take various forms and arise at different points in time,
during or (far) after the course or training. Individuals enjoy benefits from improved earnings,
increased employment, mobility, capacity for lifelong learning and job satisfaction.

Enterprises’ benefits arise mainly from apprentices’ productivity increases and increased
competitiveness and profit.

The government benefits both in terms of social/political stability through youth employment. In
fiscal terms, education expenses versus increase in tax income from higher earnings from better
trained individuals.

The project, in collaboration with the LKDF, will undertake the cost benefit analysis of the
vocational trainings in developing countries with case studies taking into consideration different
determinants of benefits and costs.
 
The Project budget in USD is given in the table below.
 
PARTNER BUDGET PERCENTAGE
Volvo 870.00 15.98%
Selam 490.00 9.00%
FTA 20.00 0.37%
Local companies 675.00 12.40%
Sida 3,390.00 62.26%
Total 5,445.00 100.00%
 

 
The details of the project budget are attached as annex II.

Selam’s in-kind contributions estimated to be 490.000 to the project are as follow:

20
Assignment of counterpart personnel and administrative staff
 Nominate a Senior Officer who will act as the focal point for the project
 Nominate and then release, as contribution in kind, selected national staff to participate in
the project’s activities and in-service of training programs.
 Other necessary personnel mutually agreed upon as necessary.

Provision of buildings and facilities

 Selam will provide the necessary building for the academy and office space for the Project
Management (the project will renovate/construct the building as required)
 Selam will provide utilities of the building (power generation, water, etc.).

AB Volvo will contribute USD 870,000 to the project through the provision of, within the limits
of the aforementioned contribution, training equipment (two (2) simulators and four (4) trucks4,
but excluding fuel and maintenance, service and repair), support for training of trainers, support
for curriculum development, quality control of training material, all as agreed by the parties on a
case by case basis. Volvo may contribute with spare parts on an as is, as available basis, but have
no obligation to provide spare parts to the project.

For the sake of clarity, (i) Volvo’s contribution to the project is made through the in-kind
contributions exhaustively listed above and is not a monetary contribution; and (ii) the cost for the
aforementioned in-kind contributions shall not exceed an amount of USD 1,762 million, which is
Volvo’s maximum contribution to the project.

Sida will fund 3.39 million USD through UNIDO for training of the beneficiaries, maintenance,
renovation and expansion of the facilities, fuel, spare parts, service, maintenance and repair of
equipment, reporting, project management, monitoring and evaluation and for the stipend of
selected students.

Stipend payments for the most disadvantaged students, both female and male, from different
regions will to facilitate their access to higher quality education and hence productive
employment, an opportunity that could not otherwise be realized. By providing stipends, the
project will enhance rights-based approach and the principle of non-discrimination.

4
The need for trucks for the behind the wheel training is calculated as follows: for the 480
students from other transport companies we calculate a need for 20 hours behind the wheel
training per student. This amounts to 4800 hours of behind the wheel training (480*10=4800).
We calculate to conduct training for 45 weeks each year which amounts to approximately 106
hours per week (4800/45=106.6). Calculating that each truck will be in use 40 hours per week,
we estimate that 2.5 trucks will be required (106/40~2.5). For the 40 regular students to the
academy, we calculate a need for 60 hours of behind the wheel training per year which amounts
to 2400 hours (40*60=2400). Calculating that we will conduct 40 weeks of training for these
students, we estimate to conduct 60 hours per student of behind the wheels training
(2400/40=60). This requires 1.5 trucks (60/40=1.5). In order to reduce the number of trucks and
the fuel needed, procurement of 2 simulators is foreseen.
21
Local private companies will provide fuel, spare parts, service, maintenance and repair, training
space for the behind the wheel training, internships/apprenticeships for students as well as other
in-kind contributions to the project. The local private companies have also committed to send their
drivers for skills upgrading training to Selam on continuous basis.

The Federal Transport Authority will contribute staff time of approximately 20,000 USD
during the development of the curriculum.

Other contributions. Considering that the trucks will be used intensively, considerable
maintenance, service and repair work is expected. To the extent possible, maintenance, service
and repair work for the trucks will be provided internally at the Selam facilities through the
capacity developed in the HDECoVA project. In this case, teachers and students will provide
manpower. This will be a possibility for them to gain important practical experience.

All trucks will have third party insurance as per UNIDO’s international rules and regulations.

11. Sustainability and other issues

 

Sustainability at countrywide level

The project will showcase demand driven design vocational system by creating a model for:-

‐ close communication and linkages of the private sector with the education system,
‐ substantial private sector investment, a collaborative process of curriculum development
for learning at drivers academy and workplaces,
‐ the project will also support the government of Ethiopia to develop appropriate policy for
the certification of schools, students and teachers, promote the PPP model in the
vocational schools creating systemic change in the countries TVET system.
‐ standardization of the production of all teaching and learning materials and plans for
meeting the newly to be established accreditation standards
‐ Developing a national certification system so that trainees and trainers will be awarded
nationally recognized certificates upon completion of their training.
‐ The school will not only produce graduate students but also qualified teachers for its own
and other drivers schools mitigating one of the most crucial constraints faced the drivers
schools in the country; qualified teachers
‐ Portability of skills: the model will offer another effective sustainable way to deliver
training which is tightly linked to all transport companies (not one or two companies) so
that the skills are not captive to a specific firm or small group of firms but to the whole
330 registered transport companies that operate commercial vehicles in the country.

Sustainability of the management of the school

The long term collaboration with private sector companies who will, as a collective, have an
observer status in the Project Steering Committee during the Project execution time and be
represented, as a collective, in the board of directors after the project life time, will increase the
sustainability of the management of the school.
22
In connection with the initiation of the project, UNIDO, in collaboration with the other
stakeholders, will develop an exit strategy which will be implemented with close follow-up of the
board of directors. This will maximize the sustainability of the project achievements.

Financial sustainability
Through this Public Private Partnerships model the school will have resources available to
purchase and maintain state‐of‐the‐art equipment for learning globally competitive driving which
is difficult to obtain in public vocational schools. Sustainable financing of the school through the
contribution of the local private sector by sponsoring students by providing
internships/apprenticeship for the students during studies and job opportunities after their
graduation will reassure the financial sustainability of the school.

In addition to this Selam will generate its own income through short term trainings, certification of
the drivers, annual inspection of cars etc. At the moment, Selam’s schools revenues recover an
average of 63.2 % percent of its expenditure (the school forum Kindergarten to secondary school
recovers 64.7 %, agricultural school 96.1 % and other VTCs, which include the heavy duty
machinery training 28.8%). Selam has also set a target of 100% cost recovery for all trainings by
2020 which is in the life time of the project).

Local ownership
Local ownership is a key element of the Project. Selam will carry on the training beyond the
project period, maintain and continuously upgrade the training, and also provide free of charge the
curricula to other parts of the vocational training system in Ethiopia. Selam is a dedicated and well
managed school with a long track record, and keen to upgrade its training in line with the Project’s
intentions and develop the institute as a center of excellence. To ascertain sustainability, a
business plan will be prepared.

Poverty focus
The project would have a direct focus on poverty in Ethiopia in the sense that Selam has a basis in
providing services and education to under-privileged youth.

Gender
The project will make best efforts to ensure that at least 30 percent of new entrants for the training
program are women. Women are proportionately overrepresented in commerce, accounting, and
courses focusing on textiles and hospitality, and underrepresented in technical training courses.
Taking into account that the proposed training academy will focus on training Commercial
Vehicles, one must recognize that within this area, there must be realistic expectations in terms of
what can be achieved over the medium term for gender balance in an occupational area with
strong male domination. For comparison, in the same occupational group in Sweden, only 10
percent are women.

To ensure that gender considerations are taken into account to the largest extent possible, the
proposed project will include a gender perspective in the baseline study, the development of
23
curricula and the training of trainers. Moreover, when recruiting project management and staff,
UNIDO will undertake efforts to guarantee a fair gender balance and to ensure that recruited
personnel either has existing knowledge on integrating a gender perspective or required capacity
in this area.

Women students will be especially encouraged and an awareness campaign will be developed to
target young women to enroll in the program, providing additional information about the positive
outcomes from gaining vehicle maintenance training, such as greater earnings opportunities. An
example will be a short video promoting successful women trainees in the ongoing program at
Selam that can be presented in local television and radio as a model for encouraging fellow
females to join the training as CVD. In order to attract more women to the training, publication
material will be produced featuring female trainees such as a promotional video in which
successful women trainees in the ongoing programs at Selam feature. Radio and local newspapers
will also be used.

The project will also organize information sessions with all applicants who have registered for
education at SCV about the positive outcomes from commercial vehicle training which will
include familiarization of the candidates to the kind of occupation they are going to undertake
after graduation. The project will also give information directly to family and friends to the extent
possible as this group of people has a strong influence on applicants' decision making. Applicants
will also be given the opportunity to reselect the department they register with after they have had
time to consider the information provided to them and opportunity to discuss it in detail with
family and friends. The project will use and build upon the experiences from the Training
Academy in Heavy Duty Equipment & Commercial Vehicles in Ethiopia (HDECoVA) project in
collaborating with the World Bank Gender Innovation Lab (WB-GIL).

There will be a gender consultant who will be involved in the process of gender mainstreaming in
this project supported by the gender focal point at the UNIDO HQ. All baseline and monitoring
data will be gender/sex-disaggregated. Periodic reports will also provide the performance of the
project in gender mainstreaming. This will lead to transformation of the institutional structures in
the vocational training system in Ethiopia to be more just and equal for both men and women. The
LKDF facility will document the experiences for sharing with other institutes.

In addition, the training academy will introduce obligatory sensitization courses to raise awareness
regarding sexual harassment and similar gender issues to stop traditional gender stereotypes from
being a barrier to the success of female participants. It should be noted, however, that the students
trained in this project are expected to work as commercial vehicle drivers or heavy duty
equipment operators. Hence, they might be required to be away from home for extended periods
of time. The project management will organize information session to familiarize interested
applicants with the challenges connected to their future occupations. Special support will be
extended to female applicants.

The project will assure the workplace needs of women at Selam are addressed. For example,
Selam will ensure that gender-separate locking and sanitary facilities are provided at the
workshops and class rooms; and that gender separated changing rooms are provided with inside
and outside locking mechanisms. The project will also negotiate with enterprises where women
will be employed to fulfill similar requirements for the women. Moreover, the project will provide

24
training to all students about sexual harassment and related issues. Traditional gender stereotypes
should not be a barrier to women participants.

The drivers’ school will adopt a gender strategy that is based on the following actions:

1. Educate on sector profitability - on greater earnings opportunities in traditional male

occupations;
- Building on and expanding the experiences gained in the HDECoVA project on
how to reach potentially interested female trainees, at the beginning of each
enrollment period the school will (1) advertise in local and social media to attract
new applicants (i.e. through newspapers and street ads but also through
participating in local radio shows and on Facebook). (2) Produce and show a
video promoting successful woman trainee in the ongoing program at Selam. (3)
Candidates will be invited to promotion meetings where role models (i.e. female
trainers and current and former female trainees) speak about what it is like to train
at HDECoVA and what benefits it brings.

2. Offer complementary courses specifically to female graduates that will give them
additional opportunities to find jobs within the heavy duty industry (e.g. not as drivers,
but in administration);
- Trainees can take complementary courses in subjects such as IT and
administration (accounting, marketing, human resources, personnel, inventory and
fleet management).
3. Sensitize potential employers on equality of opportunity and advantages of gender-
balances in the work place
- Building on the network of private companies developed through cooperative
training in HDECoVA and eventually developed in the Drivers’ school network
of companies taking part of the cooperative training
4. Sensitization of family and friends that affect choices;
- Provide information on the benefits of the positive outcomes from commercial
vehicle and construction machinery operators training also directly to family and
friends; by inviting them to information sessions or by contacting them
personally.
5. Provide clear information on safety and security of facilities (as already addressed
above);
6. Adapting training programs for the benefit of both female and male students - ensure that
material is void of gender stereotypes; train management, teachers, career guidance
professionals, and general staff, to avoid gender stereotyping;
7. Use of affirmative action measures in entry requirements to Drivers’ school training.
- Building on the experiences gained in HDECoVA; fine-tuned and appropriate
selection criteria will be developed to serve this purpose.

25
Environmental and climate impact
The positive environmental impact as a result of interventions is very high. Professional CVD will
have skills of economic driving; contribute to the less congestion of a road, which reduce fuel
consumption and hence reduces CO2, emissions. As skills are disseminated certain positive effects
will also occur as vehicles and equipment are better maintained and managed hence are less
polluting. Data on fuel consumption and CO2 emissions will be collected for each trainee; at the
start and the end of their training. Levels will be compared with international levels and national
averages and changes over time will be analyzed and reported to the stakeholders.

This reduction in pollution and savings in fuel will be presented to all stakeholders to highlight the
benefits of eco-driving which will be part of the training. An Environment Impact Assessment
(EIA) will be undertaken during the project implementation to determine the reduction in CO2
attributable to the eco-driving practices taught as part of the drivers’ education at the school.

Youth
The project has a strong focus on youth with special focus on the new students, thus fulfilling
Sida’s new focus in this respect. Trainees are, with few exceptions, youths aged between 18-25
years old when admitted to the training course. The selection of the trainees will be done by an
open, inclusive and transparent mechanism. Selection of criteria will be developed at the
beginning of the project which will guarantee the selection of students from different geographical
regions, gender and targeting the poorest students with the required entry level. The opportunity
will be advertised through radio, newspapers and television for sufficient time to ensure that the
most appropriate beneficiaries can apply. The criteria for the selection should be approved by the
PSC before the announcements.

Potential market distortions

The high and unsatisfied demand for CVD in Ethiopia significantly reduces the risk of market
distortions favoring AB Volvo or any other private company participating in the Project. Skills
are not brand specific and are transferable to other brands of vehicles and equipment, and the
change of employers is common among skilled technicians.

As a result, human resources created by the project will rapidly be absorbed by more than 330
transport companies and associations with 69 000 trucks. Any potential market distortions will
nevertheless be closely monitored. For example, the record of the productive employment of
graduates six months after graduation will be monitored and reported. While participating local
companies and their agents are expected to provide internships/apprenticeships and also
employment opportunities, there will not be any form of tying employment to these companies.

Since there is no institute in the country which provides such kind of training for the private
sector, it is assumed that there will not be market distortions (i.e. the project will not create unfair
competition with other CVD service providers).

26
Efficiency
In addition to at least 520 students trained by the Selam school every year, the project will work
with at least 12 other private CVD schools to introduce, free of charge, the new curriculum of the
model school.

The private CVD schools might not have basic training equipment for the mechanic education
(level I of the HEDCoVA training at Selam) which is a precondition for enrolling for CVD
training. To mitigate this problem, the project will introduce a special basic theoretical training
program at Selam (level I HEDCoVA) and practical training required to complete this level will
be given at the local partner companies of the project in the form of internship/apprenticeships for
the 40 students participating in the full programme. The students will then continue at private
licensed CVD schools which will use the new CVD curriculum developed at Selam under the
supervision of the project office.

In this way as many as 300 additional students (to be determined at the inception period) will be
trained in 12 schools around the country.

The project will also work with the FTA and the TVET agency, in developing the school to be
able to fulfill the required standards set for all driving schools. A special continuing training CVD
trainer will be provided for at least 24 teachers per year from private CVD schools who will be
qualified CVD trainers.

Regular meetings will be organized for the managers of the private CVD schools, TVET agency,
FTA, insurance companies, Traffic police to learn the experience of the Model school (Selam) and
improve the efficiency of the CVD schools in the country, develop/propose policy
changes/improvements and solve the problems CVD schools face in adapting best practices.

This “industrial” training mentioned above, together with the setting of qualification standards for
the commercial vehicle driving license and CVD trainers will improve the CVD training in at least
12 other schools.

Feasibility
The project is clearly feasible as it has chosen a well performing vocational school with very good
standards as a partner, and it is supported by a company with world-wide presence, including
having well established training methodologies.

Selam has considerable experience in vocational training which also generates income to cover
training costs. The finance of Selam is audited and the results of the audit are presented to the
board of directors. There are two boards of directors. The international board is based in
Switzerland which monitors the overall management of the organization and mobilizes resources
for the children’s cause.

There is also national board of directors composed of private sector actors, high profile
individuals and the founder of the organization. The management of the organization reports to
both the national and international board of directors. At the moment the organization has more
than 3,000 students from kindergarten to the vocational school in different fields.

27
UNIDO has a good record of engaging in PPP with multinational companies, such as Microsoft,
Tesco and HP. UNIDO has the capacity to coordinate all the stakeholders during the project and
will prepare a business plan before the end of the first year for approval by the PSC.

Both Selam and UNIDO have a very good relationship with the government of Ethiopia. In 2014,
Ethiopia was selected as pilot country for support from UNIDO for accelerated industrialization in
the context of new Inclusive and Sustainable Industrial Development (ISID) with more interaction
between UNIDO and the Ethiopian government authorities.

12. Risk and risk management

Risks and their mitigating strategies are provided in Annex III. Risk will be monitored and
updated through-out the project period by UNIDO and reported to the stakeholders as a means of
performance-based management. Please see annex III for risks and mitigating means.

13. Monitoring and evaluation

The M&E system will be established with the project stakeholders using criteria, indicators, and
means of verification derived from the project logical framework. In addition to the Logframe,
the project will collect the base line data for measuring the results. It will include data collection
and analysis, gathering of baseline information, and the preparation of work-plan and budget
expenditures assessments. The results will be measured against the base line data and indicators to
be collected from reports, information and data generated by other public and private
institutions/companies. These measures in addition to bi-monthly tripartite project monitoring
meetings by representatives of AB Volvo, UNIDO and Selam will be key management tools so as
to ensure the effective and efficient implementation of the project.

The monitoring of the activities and financial disbursements will be the responsibility of the
project management team. The project management team will prepare regular progress reports on
project activities detailing progress achieved in terms of the scheduled program of work, the
problems and constraints emerging over the period, and recommendations for correcting them. In
addition, a detailed annual work plan will be prepared and will be revised twice a year, identifying
activities to be implemented. Each report will be sent to the donors, with copies being sent to the
national counterparts for their information, review and recommendations for any appropriate
action that needs to be taken.

Also, as part of the standard monitoring activities of the organization, UNIDO technical staff will
make field visits to the academy twice yearly and prepare reports detailing the project’s progress,
achievements/findings and lessons learned. These field reports will be made available, upon
request, to the donor as well as to other collaborating projects and partners.

Review meetings by the Project Steering Committee will also be held once every six months and
on an ad hoc basis if required by any of the Project Steering Committee members. A project
progress report, assessing, in a concise manner, the extent to which the project’s scheduled
activities have been carried-out, the outputs produced, and the progress made towards achieving
the project objectives will be prepared and distributed two weeks ahead of each review meeting.
The Project Steering Committee members will analyze the report and will make recommendations
for any future follow-up actions required to improve project performance.
28
As the scaling-up of the project activities is an important pillar of the project, UNIDO will make
sure that proper monitoring will be undertaken by project staff and that best practices are
disseminated to other schools and changes/improvements in policy will be achieved through
dialogue between the public and private institutions. UNIDO will also allocate adequate funds
and personnel for monitoring. The results of the monitoring activities will be shared to all the
Project Steering Committee members through regular report, and on the webpage of the project on
a continuous basis.

Independent Evaluation
The project shall be subject to an independent mid-term evaluation two years after the actual
project start date. The terms of Reference for the evaluator will be agreed upon by the PSC. This
mid-term review will analyze the physical, financial and impact indicators. It will also recommend
updates in the Logical framework and the indicators in addition to complementary measures
required to improve the achievement of the project’s expected objectives/impact to the PSC.

The project will also be subject to an independent evaluation upon completion. The project
evaluation will be based on assessments of project results and impacts in accordance with logical
framework prepared.

The evaluations (mid-term and final) will be commissioned by UNIDO in consultation with the
other Project Steering Committee members. A budget for this is included in the overall budget.

Relevance
Given the low level of productive employment and needed economic transformation of Ethiopia
for sustained and rapid poverty reduction and the pivotal role skilled human resources play in this,
the project is highly relevant. Furthermore, the project is an example of a new generation
development assistance, mobilizing the local and international private sectors in terms of financial
and technical resources, know-how and market linkages.

14. Time frame and scheduling

The duration of the project is 5 years. The timeframe would allow graduation of four batches of
students and to adjust any training module based on the performance of the CVDs who graduate
from the school. The suggested implementation schedule for the various activities under each
program component will be prepared during the inception period.

Months
Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 Organization of the project office
1.1 Office space and facilities
organized
1.2 TOR for the NPC and the
manager of the institute and the
international coordinator finalized
1.3 Competent national and

29
 international project coordinator
recruited
1.4 Recruited staff undertakes
training on UNIDO’s project
management and mandatory courses
on Ethical conduct and Fraud
awareness.
1.5 Office logistics (vehicle procured;
furniture; desks and tables )
1.6 Reach agreement on the
modalities of the engaging instructors
as trainers
1.7 Candidate instructors selection
criteria established and recruited
1.8 Other project staff recruited at HQ
and the field
2 Allocation of land for the
training (practical training)
2.1 Design for the rehabilitation of the
workshop preparation tender
documents finalized
2.2 Allocation of land and training
space for the drivers
2.3 Tendering and evaluation tender
and awarding
3 Prepare baseline study/data
and inception report
3.1 Collect base line data and
improve the indicators based on the
study (with LKDF)
3.2 Establish realistic and clearly
measurable indicators
3.3 Prepare the inception report and
validate by the stakeholders in the
first six months of the year
4 Development of training
programs
4.1 Agree on the training programs
during the meeting Selam, Volvo and
UNIDO)
4.2 Preparation list of required
training courses
4.3 Consultation with all
stakeholders on the (long and short
term training programme)
4.4 Training programs (curriculums)
preparation in consultation with all
stakeholders
4.5 Consent of draft training
programs with GoE Authorities
5 Training of trainers
5.1 Identification/Selecting of local
candidates for instructors positions
5.2 Contract the candidate instructors
5.3 Training and certification of
instructors
6 Trainees
30
 6.1 Agree on the selection criteria of
the trainees
6.2 Public announcement for
application trainees
6.3 Selection of candidate trainees
6.4 Start training on fundamentals
7 Equipment
7.1 Identify the equipment and
finalize the process of shipment of
the training equipment (agree on the
procedures)
7.2 Shipment of the equipment
7.3 Customs clearance
7.4 Installation of equipment
8 Working with other drivers
schools
8.1 Identify minimum of 12 schools
and have series of meetings with
them (number TBD during inception)
8.2 Reach agreement on the plan
(road map) with the schools to use
the curriculum
8.3 Prepare report on the utilization
of the curriculum by other schools
8.4 All stakeholders reach an
agreement before starting activities
of year 2
9 PPDP experience of selam
incorporated in the national
framework
9.1 MOU with the government
authority for dissemination best
practice in the national framework
9.2 Agree on milestones to for
scaling up of the best practices
9.3 Assemble key stakeholders from
public and private and NGOs to
discuss policy
changes/improvements
9.4 Report on the progress of the
policy dialogue before the second
year of the project
10 Prepare a plan for the
sustainability of the school
10.1 Prepare a management and
financial sustainability plan
10.2 Organize a workshop and
present the plan to the stakeholders
10.3 Agree on the plan before the
starting the activities of the second
year
11 establish professional
association of the drivers schools
(not only for heavy duty trucks)
11.1 Undertake sensitization
workshops on the importance drivers
schools association
31
 11.2 Draft by-laws for the association
11.3 Solicit membership and have
inaugural meeting of the associations
before the end of the first year

15. Legal context and contractual arrangements

UNIDO will enter into agreements (to which this project document will become an attachment)
with all the various partners (including Sida, Volvo, Selam and the local private companies) and
the partners obligations will be in relation only with the entities they have signed agreement
with. Separate agreements include:

 a Grant Agreement for the project between SIDA and UNIDO.

 a Project Agreement for the project between Volvo and UNIDO.

The Government of the Federal Democratic Republic of Ethiopia agrees to apply to the present
project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between
the United Nations Development Programme and the Government, signed on 26 February 1981
and entered into force on 5 November 1984.

16. Other requirements

All stakeholders and other partners to the project must adhere to the principles of the United
Nations Global Compact.

The use of the Volvo brands by the other stakeholders in this project is subject to Volvo’s prior
written consent in each specific case and shall be made in compliance with Volvo’s, from time to
time applicable, brand and communication policy.

32
Annex I PROJECT DESIGN MATRIX

During the initial stage of the project, base line data will be collected and the project design matrix (Logframe) will be updated with more
specific targets.

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

Objective
to create employment opportunities for Ethiopian youth in
truck driving and improve the shortage of skilled labor in
transport, mining and construction industry; reduced
accidents and occupational hazards in the road transport
and construction sectors
Outcome 1
employment opportunities created for youth in CVD
using the rights based approach
Output 1.1
A training institute for CVD established and operational
A1.1.1: put in place the management system (recruit
international and national staff, considering
gender balance where possible)
A.1.1.2: design and refurbish classrooms
A.1.1.3: establish the PSC
Output 1.2
Number of Jobs created as certified commercial driver End of the project report
for young women and men in the commercial vehicle
driving ; improved road safety, and public health (from
STD)
 480 trainees from private transport companies’ Annual progress reports and
graduate in skills upgrading program, disaggregated periodic report
by sex ( after the second year )
 40 students (12 women and 28 men) graduate every
year as new profession CVD, (starting from 2nd year)
 Ca 300 students graduate from at least 12 CVD
schools every year, disaggregated by sex (starting
from year 3)
 20 CVD trainers (6 women and 14 men) trained and
become certified trainers at Selam every year
(starting from second year)
 24 CVD trainers (women and men) will be trained per
year for at least 12 CVD schools as continuing
students starting from year 2.
 85% of the graduates from the institute got productive
employment within six months of their graduation,
disaggregated by sex
The school is fully operational within the first year of the Periodic Project report Agreement reached on division
project of labor between partners
Project management team and facility in place Periodic Project report International consultants are
available to take assignment in
the country

33
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
New curriculum modules developed and approved by Curriculum developed in the first 6 months of the project Bi-annual report Government is involved at all
relevant authorities stages of the development and
hence approval is easier to get
A.1.2.1: establish task force from all stakeholders for Curriculum developed and validated by stakeholders Periodic project report
curriculum development
A.1.2.2 recruit experts Int’l and nat’l to review the
existing curriculum (benchmark with
international standards)
A.1.2.3 Consult private sector for the needs
A.1.2.4 prepare the curriculum including eco-driving)
and validate it by stakeholders and FTA
Output 1.3 −
trainers in CVD trained to deliver up-to-date training - 20 trainers; at least 30% of them women in CVD Annual progress report Trainers are willing to work as
trained every year (TBD after the curriculum) (after instructor on full time basis
the second year) and international trainers are
- 24 trainers trained as continuing students from other available on time
schools in the country to become certified trainers
(after the second year)
-
A.1.3.1 develop competency level required by the Periodic project reports
institute
A.1.3.2 Determine number of teachers for each
specialization
A.1.3.3 recruit/assign teachers
A.1.3.4 Organize Training of Trainers ( ToT)
A.1.3.4 provide the Trainers with skills upgrading
program
Output 1.4
Young trainees ( 40 women and men) graduate in CVD − 40 students (12 women and 28 men) graduate every Annual report The sector /profession remains
year as new profession CVD, (starting from Year attractive in the country
2)
− 300 students graduate from private CVD schools
using the curriculum developed by Selam ,
disaggregated by sex (starting from year 3)
A.1.4.1 Select students for regular intake (starters)
A.1.4.2 reach agreement with private sectors on the
modalities of short term training
A.1.4.3 Provide training as per the curriculum and the
agreement with the private sector
Output 1.5

34
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
Students of the institute undertake internship program in - 40 (12 women and 28 men) participate in internship Periodic report At least 10 companies are
private transport companies during their training period programs in at least 10 transport companies during their willing to participate in the
training period ( after the second year) internship program

A.1.5.1 identify the transport companies with capacity to

coach interns during internship
A.1.4.2 reach agreement with companies on the
modalities support they can provide for the
students
A.1.4.3 undertake the internship program with proper
evaluation and feed back to the school to
improve the training courses
Outcome 2 − −
Traffic accident reduced − Traffic incidents by the CV are reduced by 50% in five Periodic and annual reports −
years’ time (among the trained drivers) on the number incidents in
− Midterm results (In third year of the project the companies involved in the
performance of the newly trained drivers is measured project and companies
and shows significant improvement in incident reports hiring drivers trained at
compared to non-trained ones ) Selam

Output 2.1
students (women and men) get skills upgrading training
leading to professional Commercial Driving License
(CDL) including eco-driving
480 CVDs, disaggregated by sex, are trained and licensed private sectors will have tax and
each year from different transport companies and obtain Annual report other incentives to train their
professional license ( after the 2nd year) drivers

A.2.1.1 identify skills gap among the drivers

A.2.1.2 develop modular training for the skills upgrading
A.2.1.3 reach agreement with transport companies on the
curriculum and the timing of training
A.2.1.4 undertake training program for skills upgrading up
to licensing and annual mandatory trainings and tests

Output 2.2
Road traffic safety policy/program developed 50% reduction of traffic incidents among the trained FTA annual report MOH, MOE FTA, and media
drivers by the end of the project ; incidents segregated by Company survey report outlets are willing to cooperate
gender and work together
Mid-term :- after one year of graduation the traffic
incident rate reported by the trained drivers is less by 50%
of the non-trained drivers

35
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
A.2.3.1 identify actors who will play important role in
road safety training awareness campaigns (CSOs, FTA,
schools, TV, Radio etc
A.2.3.2 develop a detailed program for training awareness
for general public in collaboration with TV radio and
newspapers ( to be implemented by the government and
NGOs)
A.2.3.3 develop a program for school children awareness
and incorporate it in school programs (to be implemented
by schools)
A.2.3.4 evaluate the awareness campaign and adapt
accordingly

Output 2.3
Impact on the environment reduced through training in eco Reduced fuel consumption and maintenance costs is Fuel consumption report Companies are willing to
driving and environment consciousness reported by the transport companies (data segregated s by Companies using document their fuel
by gender) trained drivers consumption segregated by
trained staff and non-trained
staff..
A.2.4.1 undertake the baseline study on the volume of
Co2 emissions from trucks
A.2.4.2 include an ECO driving in the curriculum
A.2.4.3 Organize an environment awareness workshop for
all concerned
A.2.4.2 Once agree by all, make eco-driving training
mandatory for the CDL
Outcome 3 −
The experience of the PPDP training institute is − By the end of the project at least 12 schools in the End of the project report The FTA/GoE remain
incorporated in the national framework in related country have been certified to deliver training committed to the
truck drivers schools and the vocational training according to new curriculum improvement in the sector
schools at large − Mid term result ( 12 schools have adapted the
curriculum of Selam )
− PPP model for the management of vocational training
schools ( Selam model) applied in at least 10
vocational schools irrespective of their specialization
− Mid‐term result (10 schools have started the
partnership with Private sector to improve the
management system)

Output 3.1 −

36
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
Policy change in CVD and certification of schools − Appropriate CVD licensing and certification Project report FTA is willing to assign focal
made and implemented introduced implemented Appropriate policy Signed MoU points for the project and
governing the qualification CVD trainers is plays important role in the
introduced and implemented policy formulation
− Midterm result (new Government policy enacted on
the qualification of Drivers and trainers)
− MoU signed with the government of Ethiopia to
introduce the new curriculum and certification of
CVD drivers and trainers after the project has
identified schools during the inception period
− (completed before the midterm )
−
A.3.1.1 assess the existing policy framework for the −
CVD in the country and bench mark with best
practices
A.3.1.2 establish mechanism (policy framework) for
the dissemination of the curriculum to other schools
as a precondition for certification
A.3.1.3 Assist the government in the standardization
of the qualification of the trainers and drivers
A.3.1.4 assist the government in enforcing the
standards and (rules and regulations) for the
certification) including mandatory annual training for
renewal CDL
A.3.1.5 assist the government to develop policy for the
incentives to transport enterprises to train (upgrade
the skills of their CVD
Output 3.2 −
The new curriculum developed is disseminated to −
other CVD
A.3.2.1 together with the government (FTA) asses the − At least 70% of the CVD schools adapt the curriculum MoE and MoTR provide
capacities of the existing schools for the CVD to absorb and best practices from the project (20 % at midterm) incentives and adapt the
the new curriculum − The FTA has standardized the curriculum and tests after curriculum in the national
A.3.2.2 organize a stakeholders workshop 2.5 years of the project. vocational training framework
fordiscussing the new curriculum
A.3.2.3 Agree on time frame for the application of the
new curriculum in all schools willing to adapt the
curriculum
A.3.2.4 assist the schools by providing instructors
(national and international to training the instructors
of the schools to help them adapt the curriculum

37
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
Output 3.3 −
− Association of the schools for CVD established and
The government’s policy/strategy for collaborating functional (already by Midterm)
with the private sector is revised to include scaling up
− Policy dialogue with the government undertaken leading
of experiences, gender equality and measures to ensure
to the scaling of experiences in other schools and MoE and MoTR provide
inclusive growth’
collaboration with private sector for inclusive growth incentives and adapt the
(before midterm) curriculum in the national
vocational training framework
− At least 70 % of the schools are certified according to
the new framework to undertake CVD training and
provided License to drivers (20% by Midterm)
A.3.3.1 Assist the private CVD schools to form
association and continue dialogue for the review of
policies including the certification schools
A.3.3.2 Assist the government and other stakeholders
to agree on the minimum requirement for the
certification of schools to issue driving licenses
A.3.3.3 Assist the schools interested to meet the
minimum requirement for the certification
Outcome 4
HIV prevalence rate reduced among the truck drivers New HIV infections among the truck drivers is reduced All stakeholders FTA, MOH,
by 70% at the end of the project, disaggregated by sex local governments, CSOs are
(Midterm result to be determined during the inception willing to work together
period) understanding role of CVD in
HIV transmission
Output 4.1
STD and HIV rates decreased among the CVD The HIV new prevalence/infection rate among the Annual HIV test All project partners are
new trained CVD is reduced by at least 70%, (anonymous) result willing at the transport
disaggregated by sex(Midterm result to be determined (Data) of the drivers that hubs to improve the
during the inception period) took part in the training situation on the ground
(rest places etc)
A.2.2.1 undertake study to quantify the latest prevalence
rates of the HIV among the Truck drivers
A.2.2.2 identify the transport Hubs along the main roads
and asses the conditions for the transmission of
the STD and HIV
A.2.2.3 organize the awareness programs and in
consultation with the local government bodies
and CSOs
A.2.2.4 Improve the conditions in resting places in
collaboration with the local governments and

38
Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks
the CSOs and transport companies
A.2.2.5 determine the effectiveness of the awareness
program and adapt the provision mechanism
accordingly

39
Annex II Budget

BL Description Year 1 Year 2 Year 3 Year 4 Year 5 Total

Outcome 1: Productive employment opportunities created for youth in CVD using the rights based approach
Output 1.1: A training institute for CVD established and operational
11 International experts
15,000.00 15,000.00 30,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
25,000.00 45,000.00 40,000.00 110,000.00
21 Subcontracts -
30 In-service training, conferences,
workshops 20,000.00 20,000.00 15,000.00 55,000.00
35 International Meetings
20,000.00 20,000.00
43 Premises
150,000.00 50,000.00 200,000.00
45 Equipment -
51 Miscellaneous
30,000.00 5,000.00 25,000.00 25,000.00 85,000.00
Sub-Total Output 1.1
200,000.00 100,000.00 100,000.00 100,000.00 500,000.00
Output 1.2: New curriculum modules developed and approved by relevant authorities
11 International experts
10,000.00 10,000.00 20,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
8,000.00 8,000.00 16,000.00
21 Subcontracts
10,000.00 10,000.00 20,000.00
30 In-service training, conferences,
workshops -
35 International Meetings
4,000.00 4,000.00

40
 43 Premises
40,000.00 40,000.00
45 Equipment -
51 Miscellaneous -
Sub-Total Output 1.2
32,000.00 68,000.00 100,000.00
Output 1.3: trainers in CVD trained to deliver up-to-date training
11 International experts
20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 100,000.00
15 Project travel -
16 Staff travel
8,000.00 8,000.00 8,000.00 8,000.00 8,200.00 40,200.00
17 National experts & admin staff -
21 Subcontracts
20,000.00 20,000.00
30 In-service training, conferences,
workshops 2,000.00 2,000.00 4,000.00
35 International Meetings -
43 Premises
14,400.00 6,700.00 21,100.00
45 Equipment -
51 Miscellaneous
9,600.00 10,500.00 10,500.00 8,500.00 3,600.00 42,700.00
Sub-Total Output 1.3
74,000.00 38,500.00 38,500.00 38,500.00 38,500.00 228,000.00
Output 1.4: Young trainees ( 40 women and men) graduate in CVD
11 International experts
20,000.00 25,000.00 25,000.00 70,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
25,000.00 40,000.00 50,000.00 60,000.00 75,000.00 250,000.00
21 Subcontracts -
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -

41
 45 Equipment -
51 Miscellaneous -
Sub-Total Output 4
25,000.00 40,000.00 70,000.00 85,000.00 100,000.00 320,000.00
Output 1.5: Students of the institute undertake internship program in private transport companies during their training period
11 International experts -
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
21 Subcontracts
6,000.00 14,000.00 22,000.00 22,000.00 20,000.00 84,000.00
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -
45 Equipment -
51 Miscellaneous -
Sub-Total Output 5
6,000.00 14,000.00 22,000.00 22,000.00 20,000.00 84,000.00
Sub-Total Outcome 1
337,000.00 260,500.00 230,500.00 245,500.00 158,500.00 1,232,000.00
Outcome 2: traffic accident reduced
Output 2.1: students (women and men) get skills upgrading training leading to professional Commercial Driving License (CDL)
including eco-driving
11 International experts
25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 125,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
45,000.00 45,000.00 45,000.00 45,000.00 52,000.00 232,000.00
21 Subcontracts -
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -
45 Equipment -

42
 51 Miscellaneous -
Sub-Total Output 2.1
70,000.00 70,000.00 70,000.00 70,000.00 77,000.00 357,000.00
Output 2.2: Road traffic safety policy/program developed in collaboration with NTF
11 International experts
50,000.00 25,000.00 75,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
60,000.00 52,000.00 112,000.00
21 Subcontracts -
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -
45 Equipment -
51 Miscellaneous -
Sub-Total Output 2.2
110,000.00 77,000.00 - 187,000.00
Output 2.3: Impact on the environment reduced through training in eco driving and environment consciousness
11 International experts
10,000.00 15,000.00 20,000.00 20,000.00 20,000.00 85,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff
26,000.00 26,000.00 30,000.00 30,000.00 30,000.00 142,000.00
21 Subcontracts
4,000.00 9,000.00 20,000.00 20,000.00 20,000.00 73,000.00
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -
45 Equipment -
51 Miscellaneous -
Sub-Total Output 2.3
40,000.00 50,000.00 70,000.00 70,000.00 70,000.00 300,000.00
Sub-Total Outcome 2

43
 220,000.00 197,000.00 140,000.00 140,000.00 147,000.00 844,000.00
Outcome 3: The experience of the PPDP training institute is incorporated in the national framework in related truck drivers schools
and the vocational training schools at large

Output 3.1: Policy change in CVD and certification of schools made and implemented
11 International experts
20,000.00 20,000.00 40,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
21 Subcontracts
15,000.00 10,000.00 15,500.00 15,500.00 56,000.00
30 In-service training, conferences,
workshops -
35 International Meetings -
43 Premises -
45 Equipment -
51 Miscellaneous -
Sub-Total Output 3.1
15,000.00 10,000.00 35,500.00 35,500.00 96,000.00
Output 3.2: The new curriculum developed is disseminated to other CVD and HDMO
11 International experts
14,000.00 10,000.00 24,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
21 Subcontracts
5,000.00 5,000.00
30 In-service training, conferences,
workshops -
35 International Meetings
2,000.00 6,000.00 8,000.00
43 Premises -
45 Equipment -
51 Miscellaneous
1,000.00 36,000.00 16,000.00 3,000.00 56,000.00
Sub-Total Output 3.2 -

44
 8,000.00 36,000.00 36,000.00 13,000.00 93,000.00
Output 3.3: The government’s policy/strategy for collaborating with the private sector is revised to include scaling up of
experiences, gender equality and measures to ensure inclusive growth’
11 International experts
12,000.00 20,000.00 20,000.00 5,000.00 10,000.00 67,000.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
21 Subcontracts -
30 In-service training, conferences,
workshops 1,000.00 20,000.00 23,000.00 10,000.00 13,000.00 67,000.00
35 International Meetings -
43 Premises -
45 Equipment
19,000.00 32,000.00 51,000.00
51 Miscellaneous -
Sub-Total Output 3.3
32,000.00 72,000.00 43,000.00 15,000.00 23,000.00 185,000.00
Sub-Total Outcome 2
47,000.00 90,000.00 114,500.00 86,500.00 36,000.00 374,000.00
Outcome 4: HIV prevalence rate reduced among the truck drivers

Output 4.1: STD and HIV rates decreased among the CVD
11 International experts
-
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
21 Subcontracts -
30 In-service training, conferences,
workshops 20,000.00 20,000.00 20,000.00 20,000.00 70,000.00 150,000.00
35 International Meetings
15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 75,000.00
43 Premises -
45 Equipment
15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 75,000.00
51 Miscellaneous -
Sub-Total Output 4.1

45
 50,000.00 50,000.00 50,000.00 50,000.00 100,000.00 300,000.00
Sub-Total Outcome 4
50,000.00 50,000.00 50,000.00 50,000.00 100,000.00 300,000.00
Ouctome 5: Project Management, M&E
Output 5.1: Project Management, Monitoring and Self-evaluation
11 International experts
14,000.00 12,500.00 26,500.00
15 Project travel -
16 Staff travel -
17 National experts & admin staff -
30 In-service training, conferences,
workshops 1,100.00 25,000.00 11,000.00 7,900.00 45,000.00
43 Premises
22,900.00 22,900.00
45 Equipment
26,000.00 26,000.00
51 Miscellaneous
29,600.00 29,600.00
Sub-Total Output 5.1
- 50,000.00 25,000.00 25,000.00 50,000.00 150,000.00
Output 5.2: Independent mid-term and terminal evaluation
11 International evaluator
75,000.00 75,000.00
15 Project staff travel -
17 National evaluator(s) -
51 Miscellaneous
25,000.00 25,000.00
Sub-Total Output 5.2 Independent Evaluation
- - 100,000.00 100,000.00
Subt-Total Outcome 3
- 50,000.00 25,000.00 25,000.00 150,000.00 250,000.00
TOTAL
654,000.00 647,500.00 560,000.00 547,000.00 591,500.00 3,000,000.00
Programme Support Cost (13%)
85,020.00 84,175.00 72,800.00 71,110.00 76,895.00 390,000.00
GRAND TOTAL
739,020.00 731,675.00 632,800.00 618,110.00 668,395.00 3,390,000.00

46
Annex III Risks and Risks Management
Risks Likelihood Threat to Risk management
1= minimal the project
5= high 1= marginal
5= killing
Political instability; Changes 4 1 Since the project owner is
in the government partners mainly an NGO and
during the project implementing partners are
implementation period UNIDO and AB VOLVO;
the project will continue to
function while initiating new
partnership with the
Government counterpart. The
role of the government
partners are certification and
approval of the curriculum
which will not be affected by
instability.
The local partner organization 1 4 Strict performance
not performing to expectations assessment throughout the
due to, for example change of program by UNIDO and
management, local politics other stakeholders.
etc.
Built in option to change the
management of the project in
the case of poor performance
Achievements are not 3 4 The project will establish a
maintained after end of project business plan before the end
due to, for example, limited Significant, of the first year.
local resources, shifting especially in a
priorities in local partner resource poor in-built mechanisms for
organizations, etc. nations such as generating revenues in the
Ethiopia form of specialized training
for companies

Systematic efforts to create

linkages to employers to
foster commitment
The demand for trained 1 4 Results-based reporting
persons in the courses much Low – the regularly with surveys among
less than expected in local current trend is employers and tracer studies;
labor markets the reverse in
Ethiopia Adapt the training according
the required skills
Corruption and other forms of 1 2 SELAM a small organization
misuse of resources by local with transparent accounting
organizations system. UNIDO well
developed system for
47
Risks
Turn-over of trainers high due 3
to their attractiveness on the
labor market, leading
shortage and high cost
training of the trainers
48
Likelihood Threat to Risk management
1= minimal the project
5= high 1= marginal
5= killing
transparency in accounting
and procurement and proper
follow-up and reporting will
minimize this risk
2 Selam and UNIDO will
continue to train the trainers
to in regular basis and support
for to trainers continuing
education. Attractive and
competitive package for the
trainers specially good
working environment and
skills upgrading program.
Recruit the right motivated
staff with interest in teaching
and willing to learn new
advanced technology
preparedness by the project to
train additional trainers
 Annex IV - ToR for the Project Steering committee

Public Private Partnership (PPP)

Training school for Commercial Vehicles Drivers

PROJECT STEERING COMMITTEE (PSC)

Terms of Reference
I. Overall responsibilities

The Project Steering Committee (PSC) is the group responsible for making executive
management decisions for the project when guidance is required by the project
management, including decisions of the items listed in V below.

Based on the annual work plan, the PSC reviews and approves detailed plans of
activities and authorizes any major deviation from these agreed plans of activities. It
is the authority that signs off the completion of each detailed plan of activities as well
as authorizes the start of the next detailed plan of activities.

II. Specific roles and responsibilities of the Project Steering Committee:

The PSC is established in the context of Public Private Partnership (PPP) Training
schools for commercial vehicles drivers.

The PSC meetings will be guided by the approved project document. The PSC will
have the following responsibilities:

A. DURING THE PROCESS OF RUNNING THE PROJECT:

1. Take decision on important matters, including but not limited to the items set
out in clause V below;
2. To provide overall guidance on the Project’s general direction and priorities,
in light of evolving circumstances;
3. To review the deployment of the project resources for approved annual work
plan and to advise on priority uses;
4. To review the project’s annual progress reports, as submitted by the UNIDO
Project Manager with a view to making recommendations on future activities
and potential adjustments;
5. Review and approve the annual work plans;
6. Review the project’s mid-term evaluation report and related management
response; and
7. Assess and decide on major project changes.

B. FOR THE PROCESS OF CLOSING THIS PROJECT:

1. Review and approve the final project report; and,
2. Make recommendations for follow-up actions.
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 III. The Composition of Project Steering Committee:

Proposed list of participants includes representatives of:

1. SWEDISH Embassy in Addis Ababa (representing SIDA)

2. UNIDO
3. AB VOLVO
4. SELAM
5. Federal Transport Authority (FTA)

The local private companies shall have an observer status in the PSC and are allowed
to have three representatives present in each PSC meeting (however, for the sake of
clarity, the local private companies do not have any vote). Further, representatives of
other development partners, companies or organizations can be invited as observers
subject to the approval of the PSC in each specific case. The Project Manager will be
the Secretary to the PSC, preparing the agenda beforehand and summary minutes
afterwards.

PSC members join the committee for the full duration of the project. Members may
allocate alternates which will be approved by the acting chairperson. When assigning
PSC members, gender balance shall be considered.

IV. Modus Operandi

The PSC will meet physically on a bi-annual basis, although ad hoc face-to-face or
electronic (via e-mail) meetings in between may be convened upon any member of
the PSC.

There will be an annotated agenda, with necessary documentation circulated two

weeks in advance, and minutes will be prepared and circulated two weeks after each
meeting. The minimum required quorum for any meeting is six members. Each
representative has one vote and decisions will be made by consensus.
Notwithstanding the above, the decisions referred to in clause V below shall always
be approved by UNIDO, Volvo and the Swedish Embassy in Addis Ababa
irrespective of whether they participate in the PSC meeting or not. During every PSC
Meeting, the UNIDO Project Manager will provide an update on progress and
challenges of the project.

UNIDO will be in charge of the project quality assurance and shall secure a prudent
use of the monetary and other contributions to the project. The organization will
provide objective and independent project oversight and monitoring as well as
facilitate relations with other development partners and the Swedish International
Development Cooperation Agency (Sida).

V. Decisions by the PSC

The below decisions shall always be taken by the PSC:

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 1. Approval of all local private companies partners participation in the Project
(including the terms for participation in the project for such local private
company)
2. Approval of additional PSC members
3. Appointment of the chairperson of the PSC
4. Approval of:
Final Project plan and Budget (and amendments thereto)
- KPIs for the project
- Material project changes
- Annual work plans (and amendments thereto)
- The Business Plan for the post project phase (and amendments thereto)
- The Final Project Report

In addition to the above, each PSC member shall have the right to request that local
private companies’ or other partners participation in the project is promptly terminated
if there is a valid ground for such termination including but not limited to:

(i) non-compliance with the agreed terms for participation;

(ii) non-compliance with the principles laid down in the Global Compact;
(iii) non-compliance with the requirements in herein specified policies and
guidelines (including the VOLVO branding guidelines); and
(iv) corruption or other non-ethical practices.

The other PSC members may not deny such a request if there is a valid ground for
termination in accordance with the above or otherwise and the parties shall jointly seek
to replace the local private company or partner with another local private company or
partner on a need basis.

VI. Information and Reports to be provided to the PSC

The following information shall be provided to the PSC on a need basis:

1. Major incidents and problems

2. Disputes with local private companies or other partners
3. Ethical aspects concerns related to the Project (including corruption, non-
compliance with Global Compact etc)
4. Political stability concerns

The following reports shall be provided to the PSC during the project phase:

5. Project progress reports (bi-annually)

6. Budget compliance reports (bi-annually)
7. Expected KPIs and output realization reports (yearly)
8. Climate impact reports (annually)
9. Field visit reports (annually)
10. External audit reports (mid-term and following completion)

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 11. Business Plan Progress reports (annually)
12. Final report (in connection with the finalization of the project)

VII. Post project management of school

For ascertaining the independent management of the school after the end of the
project, a business plan will be prepared by the project before the end of the first year
for the financial sustainability of the school. A board of directors from the
representatives of the private sector and other stakeholders will be established to
continue the operation of the school and to provide services in Selam. This board of
directors will have the same mandate after the end of the project as the project
steering committee during the project lifetime.

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