ADDIS ABABA CITY ADMINISTRATION TECHNICAL AND

VOCATIONAL EDUCATION AND TRAINING (TVET)GULELE SUB-

CITY TVET OFFICE INSTITUTIONAL QUALITY ASSURANCE CORE
PROCESS QUALITY AUDIT

PROJECT PROPOSAL ON ESTABLISHING NEW POLYTECHNIC

FINANCIAL PROPOSAL FOR OPENING NEW POLYTECHNIC

(TECHNICAL VOCATIONAL UNIVERSITY)

BERHANU TADESSE TAYE

SUBMITTED TO: GULELE SUB-CITY FINANCE AND ECONOMIC

DEVELOPMENT OFFICE

SUBMITTED BY GULELE SUB-CITY TVET OFFICE

COMMENCING A NEW POLYTECHNIC TVET COLLEGE IN

GULELE SUB-CITY TVET OFFICE AT ADDIS ABABA CITY
ADMINISTRATION PARTICULAR PLACE OF THE PROJECT
IS WOREDA 8 AND 9.

OWNER OF THE POLYTECHNIC PROJECT: GULELE SUB-CITY

TVET OFFICE (GOVERNMENT)

March 13 2007

Addis Ababa Ethiopia

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 Table of contents
1. Project Schedule ................................................................................................................................... 7
1.1. Executive Summary ....................................................................................................................... 7
2. Background of the project .................................................................................................................... 9
3. Project Initiation and Rationales ......................................................................................................... 10
4. Vision:.................................................................................................................................................. 11
5. Mission: .............................................................................................................................................. 11
6. Objective and scope of the project ..................................................................................................... 11
6.1. The Specific objectives: ............................................................................................................... 12
7. Beneficiaries ........................................................................................................................................ 12
8. Project Output .................................................................................................................................... 12
9. Target Market ..................................................................................................................................... 13
10. The first phase of the training started by giving services like:.................................................... 13
11. Project Team Members................................................................................................................... 14
12. Organizational structures the polytechnic...................................................................................... 15
13. Project Budget Estimation and Allocation ...................................................................................... 15
14. Project Controlling and Monitoring Activity ................................................................................... 16
15. Challenges of the Project ................................................................................................................ 16
16. Possible Solution ............................................................................................................................. 16
17. Implementation .............................................................................................................................. 16
18. Project Sustainability ...................................................................................................................... 17
19. Strategic Plan .................................................................................................................................. 17
20. Policy and stratégies Ethiopian on TVET ......................................................................................... 17
21. Financial strategy ............................................................................................................................ 19
22. Project Budget Estimation and Allocation and Source of financial summery ................................ 21
23. Project Time Management ............................................................................................................. 22
24. Project Cost Management .............................................................................................................. 23
25. Project Quality Management .......................................................................................................... 24
26. The three process associated with PQM are: ................................................................................. 24
27. Project Risk Management ............................................................................................................... 24
28. Source of Fund and Income ............................................................................................................ 24

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29. Monitoring and Evaluation Procedure............................................................................................ 25
30. Handover Plan ................................................................................................................................. 25

Tables

Table 1: Team Members, Their Qualifications and their Experience

Table; 2: Financial Summery

Table; 3: Description of Constructions Building Library and Sheds

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 Project Profile

Project title: Gulele Sub-City Woreda 8 and 9 polytechnic

Project Location :Gulele Sub-City TVET office at Addis Ababa city

administration particular place of the project is Woreda 8 and 9.

 Project Duration:for construction it takes 3 consecutive year and one year

for training programme
 Town: Addis Ababa
 Sub-city: Gulele Sub-City TVET office
 Wereda: 08 and 09
 Region: Addis Ababa City Administration
 Country: Ethiopia,

P.o.box: ---------

Tele. No:011-1-11085

Mobile 0911-086066

Fax No: =251011-1-11085

E-mail: gullelletvetoffic@yahoo.com

 Nature or type of organization: Governmental, nonprofits making

Organization
 Level of proposed TVET training: level 1, level2, level3, level4, level5
and degree level also short term training according to market demands.
 Size of the institution (College): 98m2
 Expected enrolment for the programme: 2500 per annum

Project Goals:

 Key outcome targets of ESDPIV TVET increasing enrolments of both

trainers and trainees decentralization of vocational education.
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 Stakeholder Analyses:
 Project sponsor:
-Government, Addis Ababa University technology faculty and Local
Community
 Customers
-Trainers, Trainees, Administrative workers, Surrounding Community,
district leaders
 Users of the project outputs
-Industries, entrepreneurs, Government, Trainees, special needs
(Specially youth)

Name of authorized representative of the applicant:

 MekonnenHailesilasse; head
+251911061274 (Ethiopia)
 -BerhanuTadesse;position advisor and assistant project head
+251911086066

Project manager and project team

-MekonnenHailesilasse; positionoffice head and project managers
-BerhanuTadesse;position advisor and assistant project managers
-EnattihunEmira; outcome based training coordinator
-G/medhinBezu; project supporter

 For capital expenditure 321,705,423 Ethiopian Birr

Project Budget Estimation and Allocation

 Recurrent expediter 29,509,718 Ethiopian Birr

 Total amount of Fund Requested 100% from Government finance
351,216,141.

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 I. Proposed training areas:
1. Agricultural sector; animal production, agric-cooperative services, animal
health, natural resources development and conservation,
2. Cultural, Tourism and sports sector; libraryand information, record and
archive, tourism; catering operation, confectionery, baking and pastry
making, sports; athletics officiating instruction; food ball officiating.
3. Health sector; advanced ambulance service and emergency care,
environmental health extension, cleaning, waste diversion, waste handling,
health extension management, health information administration,
4. Economic infrastructure sector; air transport, aircraft avionics
maintenance, basic aircraft hangar line maintenance customer service
management, energy; power generation operation, power generation and
system installation and maintenance, power system operationmanagement,
information and communication technology hardware and network
servicing,IT service management , industrial automation and control
technology management. Railway construction and transport management,
basic railway electrical and control works, railway tunnel construction and
maintenance;basic railway electrical and control works, rail communication
and maintenance works, sub grade and trackside civil works and
maintenance, road constructionand transport, basic infrastructure
operations, bridge construction and maintenance, automotive body repair,
automotive electrical/electronic, servicing automotive engine servicing;
urban development and construction bar bending and concreting, building
electrical installation,General metal manufacturing,carpentry,
construction management, purchasing and property management, greening
infrastructure, solid waste management, water and irrigation
construction
5. Industry development sector;bamboo and bamboo products, cement
production, basic cement products metal engineering, sugar and sugar
products, textile and garments
6. Labour affairs and social service sector, community service work,
children and old age care service.

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 II. Proposed new departments

Since the project will have different activities such as the first on is three years
construction paired the second one is only one year delivery of special or tailor
made training programs, intend to offer training which is not available in our
country college and university like basic level of Railway technology highly
demanded in the current transportation service sector and supporting
airlines training bring trainees from all parts of African countries even from
other continent, now a days Ethiopia trains this sector sent to abroad, air
transport training has positive aspect by others because most of the trainers come
from African countries this best practice should be broaden in our educational
institute, in addition to providing evening courses offered to the general public,
consultancy service, testing of recruits (candidates for enterprises), organizing
trade fair, the student in the polytechnic will learn during training produce, such
as garments, wooden and metal furniture, tools, construction work, building
maintenance, furniture production, or service centre (for example a coffee shop
and restaurant ), Kab club practices, hair dressing service, automotive--garage
maintenance and driving license training service, pump car wheel (tyres),Key
outcome targets of this project increasing enrolments of both trainers and trainees.

1. Project Schedule
1.1.Executive Summary
Sustainable economic development and TVET are interdependent. Economic
growth is a basic condition for the reduction of unemployment and poverty.
However, it does not automatically lead to more jobs and less poverty. It can only
contribute to poverty reduction if broad sections of society find productive work
which offers a decent wage (BMZ, 2005). This can be achieved only if different
policies and mechanisms, which focus on employment and broad access to work
and TVET, can be implemented. Economic development cannot take place without
the development of human resources. Therefore, well-qualified professionals must
be trained in order to raise the competitiveness of companies, countries, and
regions.

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According to Ethiopian Sector Development Plan IV (ESDPIV) the main objective
of the TVET sub-sector is to train middle level human power and transfer
demanded technologies, and by doing so, to contribute to poverty reduction and
sustainable development. The main challenges such as Society in general and
implementing bodies in particular have low awareness about the benefits of TVET,
Stakeholders’ participation in the management and delivery of TVET is
inadequate, TVET trainers lack capacity and competence, There is lack of capacity
by TVET experts to implement the new TVET strategy, The monitoring and
evaluation systems is inadequate,

TVET institutions have low capacity in adopting and transferring

technology.Labor market information system to assess labor market demand is
inadequate, The system for information sharing and coordination between the
regions and the federal level is weak, There is a shortage of teaching materials
especially in OS Newly developed, Utilization of resources and equipment is
inefficient, TVET institutions are not always adequately equipped, There is low
capacity to assess and certify TVET candidates

Expected program outcomesby combating the above challenges, TVET providers

and institutions strengthened to be centers for technology capabilities’
accumulation and transfer, TVET institutions capable of providing support to the
incubation and establishment of MSEs as well as upgrading and strengthening
existing MSEs, Quality of TVET (formal and non-formal) improved at all levels
and made responsive to the needs of the labor market, A comprehensive,
integrated, outcome based and decentralized TVET system for Ethiopia
established, Relevant TVET offers which are crucial to national development
expanded, Institutional set-up to manage the TVET strategy and deliver TVET
programs reinforced, A sustainable financing system for TVET with efficient and
cost-effective delivery systems and management structures developed, Equal
access of females and rural communities and people with special needs to TVET
ensured and empowered

Key outcome targetsTVET enrolments will increase to 1,127,330 in 2007, Number

of TVET trainers will increase from 15,943 in 2002 to 24,492 in 2007, Number of
TVET institutions will increase from 825 in 2002 to 1,137 in 2007, Number of
trained technology adopters will be 3000 in 2007, Number of transferred

8
technologies will be 1000 in 2007, Copied/imitated 950 in 2007, Improved 50 in
2007. No of incubated MSEs for technology transfer will increase from 600 to
3000 in 2007, 2670 micro-enterprises with capital acquired up to 20,000 Birr, 300
small scale enterprises from 20,000 to 500,000 Birr, 30 medium size entreprises
above 500,000 Birr, Number of technologies transferred will be 1000 in 2007
(Copied/imitated 950 in 2007 Improved 50 in 2007). Number of trainees organized
in MSEs will increase from 78,248 in 2002 to 563,665 in 2007, Number of new
MSEs established will increase from 7,771 in 2002 to 56,367 in 2007, Number of
occupations with occupational standards increases from 250 in 2002 to 390 in
2007, Number of occupations with assessment tools will increase from 211 in 2002
to 390 in 2007, Number of accredited assessment centers will increase from 174 in
2002 to 500 in 2007. % of competent/certified candidates will increase from 20 %
in 2002 to 60 % in 2007, Number of accredited assessors will increase from 1860
in 2002 to 5000 in 2007, Number of enterprises involved in co-operative training
will increase from 1208 in 2002 to 9,174 in 2007, Share of trainees accommodated
by co-operative training will increase from 206,945 in 2002 to 1,127,330 in 2007.
Number of enterprises conducting in-company training will increase from 13 in
2002 to 293 in 2007. Share of TVET managers at national, regional and
institutional level in modern management techniques trained will be 100 %, Share
of enrolments of females will increase from 46 % in 2001 to 50 % in 2007,
Number of institutions in rural areas will increase by 100 % in 2007, Share of
enrolments of students with special needs will increase by 100 % in 2007, Number
of TVET trainees placed in MSEs will increase to 23,920 in 2007.Hence, Railway
construction and air transport management highly demand in labour market hence
government and private institution should open satisfy their customers.

2. Background of the project

Since education is considered the key to effective development strategies, technical
and vocational education and training (TVET) must be the master key that can
alleviate poverty, promote peace, conserve the environment, improve the quality of
life for all and help achieve sustainable development. Technical and Vocational
Education and Training (TVET) system plays in achieving Ethiopia’s targets to
overcome poverty. Under the over arching goal of poverty eradication, Ethiopia’s
economic development strategy aims at fostering fast economic growth, fair and

9
equitable distribution of incomes, the development of a competent and open
economy, and long-term reduction of the country’s dependence on ODA (official
development assistance).

Ethiopia has made considerable progress towards universal primary education and
continues to work hard to ensure relevance and quality at each educational level.
As an increasing number of young people graduate from general education, it is of
utmost importance to provide them with options for further education and training
which increase their employability. In this context it is important to build a
demand-driven, flexible, integrated and high quality TVET system.

The Government of Ethiopia (GoE) recognises the need to involve all stakeholders
in the planning, policy making, training delivery and monitoring and evaluation of
the TVET system. The on-going reform seeks to increase the engagement of the
private sector – both of private TVET providers and enterprises as future
employers of TVET graduates – and to provide students and trainees with
knowledge, skills and abilities relevant for the world of work.

One of the biggest challenges ahead is the sustainable financing of the reform
process and of the actual operation of the TVET system. Based on the core
principles for financing laid out in the National TVET Strategy, The principles are
laid down in the draft Financing Framework for TVET in Ethiopia (September
2006). These principles are not intended to reduce public spending, but to share the
burden and readjust the roles that the public sector, the private sector and
households play in TVET financing. The main principles of the new TVET
Financing Framework are diversification of funding sources, increased
involvement of the private sector, and increased efficiency.

3. Project Initiation and Rationales

After the fall of the Derg regime, the new government of Ethiopia has been making
tremendous efforts to restructure the educational system of the country. A new
Education and Training Policy has been launched and implemented all over the
country. More over, the government set out a decree, No.80/2005 in 2005, and
10
established Technical and Vocational Education and Training (TVET) institutions
to respond to the huge problems of unemployment and poverty. The establishment
of the TVET institutions has so far contributed a lot in the country in general and
in Addis Ababa in particular. For further implementation of policies and strategies
qualified manpower at all levels is a must. Policies with good intentions fail due to
lack of qualified people to implement them. This is mainly true in countries like
Ethiopia. This must be given serious considerations. Cognizant to the above
mentioned reasons, the justification for the establishment of polytechnic in Addis
Ababa is to meets the government goal of producing competent middle level
professionals that would meet the demands of the industrial labor market. Railway
construction and air transport management highly demand in labour market hence
government and private institution should open satisfy their customers.

4. Vision:To become the centre of Excellency and ensure enrolment of

all the people of the Gulele sub city and any demanded in our country
and African as a whole are economically strong and pulled out of
property.

5. Mission: speed the regional development rate up through the

provision of quality, equitable and relevant education and training to
all citizen of the sub-city.

6. Objective and scope of the project

The overall objective for establishment of the new college in Yeka sub city is

 To fill the gap for the skilled manpower demand of the concerned industry.

 Because of the marketable skill they acquire, graduates shall be competent,

motivated, adaptable and innovative work force andhence shall be employed
as soon as they graduate.

 These kinds of graduates shall play a pivotal role in the industry, regional
and national efforts of poverty reduction.

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  Governmental and private organizations can find qualified labour for easily
from the local labour market.

 To examine incentives provided by the sub-city and woreda (local

6.1.The Specific objectives:

governments in income generating activities of public TVET colleges).

 To assess how colleges are collecting and utilizing in generating income

department.

 To identify and solve the major problems encountered related to income

generating activity.

7. Beneficiaries
The immediate beneficiaries of the project would be industries, service sectors, on
one hands and youth (trainees,), adult, special needs any citizen who have been
suffering from skill gaps resulting in incompetence, under employment as well as
unemployment will acquire employable skills from the project, also trainers,
families, community surrounding the sub-city, the city government, the private
industry sector getting skilled manpower in the market, government and the society
at large.

8. Project Output
Since the project will have different activities such as delivery of special or tailor
made training programs, evening courses offered to the general public,
consultancy service, testing of recruits (candidates for enterprises), organizing
trade fair, Sale of products produced by students during the training, such as
garments, wooden and metal furniture, tools, construction work, building
maintenance, furniture production, Sale of wood trees, sewing of school uniforms,
typing services, etc), or service centre (for example a coffee shop and restaurant ),
Kab club practices, hair dressing service, automotive--garage maintenance and
driving license training service, Letting and lending out of buildings, equipment
and machinery, Commercial use of equipment (e.g. Internet facilities in computer
lab), Special events, such as Cultural celebration and opening days with
fundraising activities, dancing evenings, film show, out- door and in-door games

12
etc. all these activities will result in different out puts. But out puts can be
categorized as tangible items and intangible services.

9. Target Market
Railway construction and air transport management highly demand in labour
market hence government and private institution should open satisfy their
customers.Since the tangible goods and intangible services are intended to be
offered to the marker, it requires need assessment even before producing such
products and incurring costs of producing. So much so that, the trainees, trainers,
administrative workers of the college, and the surrounding community, are
qualified as potential market.

1.4 Target Group: urban development surrounding community including teachers

and students

 Formal education by level 1up to 5 including degree level and international

10. The first phase of the training started by giving services like:

scholarship

 After observing market demand train short term training

 Evening course

 Giving training for enterprises

 Renting sport fields for different activities

 Renting graduation gowns

 Renting of the institution facilities (halls for meeting and wedding

ceremony)

 Renting machineries

 Renting buildings/blocks

 Income from the college music band

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  Cafeteria service for outsiders.

Others could be preparing trade fairs and special events, asking voluntary
fund raisers and also by selling scraps (unneeded metals, woods etc).

11. Project Team Members

Our project is run by a team of people who serve in different specific roles.
These are:

1) Project managers

MekonnenHailesilasse; head

+251911061274 (Ethiopia)

-BerhanuTadesse; position advisor and assistant project head

+251911086066

2) Team members

-MekonnenHailesilasse; position office head and project managers

-BerhanuTadesse;position advisor and assistant project managers

-EnattihunEmira; outcome based training coordinator
-G/medhinBezu; project supporter and members
-EsheteBelete;members
-MesganuDeresa;members
-ZewduTesfay;members

Project manager, whose job is to manage the project to success. He/she is in charge
of the project, responsible and often accountable for the success of the project.
Project team members are professionals and well experienced. They are believed to
be interested, energetic and helpful. The team members of this project are recruited
from Gulele TVET office and they are 7 in number.

14
12. Organizational structures the polytechnic
According to the international polytechnic and universityOrganizational strictures
shall be matrices organization hence this polytechnic is at initial stage the next
table

Table 1: Team Members, Their Qualifications and their Experience

No. Team Members Qualification Quan Years of

tity experien
ce

1. Project manager MA in professional vocational 1 10

education and management

2. Deputy manager MA in general business 2 8

management

3. Department MA/BSC in different fields that 6 5

heads the institution provides

4. Trainers BSC in different fields that the 200 -

institution provide

5 Staff From mangers to janitors 300 -

Total number of the team 509

13. Project Budget Estimation and Allocation

 For capital expenditure 321,705,423 Ethiopian Birr
 Recurrent expediter 29,509,718 Ethiopian Birr

 Total amount of fund requested 100% from Government finance

351,216,141
 Annual contingency budget for any uncertainty 15% 45 million

15
14. Project Controlling and Monitoring Activity

While project is being executed, monitory and evaluation process is implemented

in each and every phase of activity.

Monitoring and controlling consists of those process performed to observe project

executive so that potential problems can be identified in a timely manner and
correction action can be taken when necessary to control the execution of the
project.

15. Challenges of the Project

 Lack of professional to conduct the training and education since we are
bring those professionals either from abroad or send our trainees to abroad.

 Experts may not be motivated.

 New technology innovation may obsolete the existing equipments.

 Shortage of budget to hire the right experts from abroad.

16. Possible Solution

Determine the required skill sets before recruiting the team. Find out if any formal
training may fill the knowledge gaps, plan and secure the necessary training funds
and times. Discussion will be held with the team if knowledge gaps can be filled by
informal training. Train the team members in missing skills/experience to
accomplish the work package. The project will meet the criteria by using SMART
goals.

17. Implementation
The implementation of the project is undertaken through participatory approach
which involves society, government and other sectors from the start up to the end of
the project.

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 18. Project Sustainability
The project is being implemented under favorable policy environment and
government and community commitment. The government has established strong
organizational structures to manage and administer the various aspects of the
project and educational functions. There is also high control over the construction
of new buildings and proper usage of funds that found from government allocation
giving responsibility for each department and have internal audit section that will
control all financial activities of each department.

19. Strategic Plan

Polytechnic will have totally four years strategic plan i.e. three year for
construction of the institute which will be the first year 2008-20010 build the
construction. After the building will be finished the polytechnic program the
training and education program will be start in 20011 by admitting trainees each in
air transport, railway, construction technology, leather technology, wood work and
carpentry and metal work technology etc. Similarly in 2010, applicant trainees will
be admitted in each department.

20. Policy and stratégies Ethiopian on TVET

TVET strategy of 2001 will guide the content of components and activities to be
deployed under ESDP IV together with new orientations, such as to strengthen the
role of the TVET sector in technology capability, accumulation and transfer. In
particular, TVET institutions are also expected to play a stronger role in providing
support to the incubation and establishment of MSEs as well as upgrading and
strengthening existing MSEs.A combination of strategies relating to the legal
framework for TVET (TVET Proclamation under way), the organizational set up
and the development of managerial capacities throughout the system will be
deployed. A review of the TVET is suggested for policy development, update and
the formulation of new guidelines regarding technology, transformation and
cooperative training. Raising awareness will be conducted within the broader
society as well as among stakeholders on the benefits of TVET.At the systems
level, the capacity of TVET agencies and councils will be developed so as to
reinforce their role in policy development, implementation, monitoring and

17
evaluation of the TVET system. Labor market intelligence, research capacity and
EMIS will need to be strengthened so that national and regional authorities can
fully play their role in policy development and systems coordination.

With a view to creating a comprehensive, outcome based and flexible TVET

system, the development of occupational standards, assessment tools, and
certification based on labor market analysis, benchmarking and stakeholder
consultation will be continued. Curriculum content will be designed and teaching
materials prepared in line with occupational standards, assessment tools and
certification requirements. In this respect, priority sectors will be emphasized in
order to concentrate efforts and be better connected to market and increase
relevance. It is also foreseen to provide support and enhance the capacity of centers
of competencies (COCs).

TVET programs will be modularized and institutions equipped with ICT in order
to make the TVET offer more flexible in its delivery in terms of entry and exit
levels, Career guidance structures will be strengthened so as to obtain a better
match between individual aspirations, the available TVET offer and labor market
prospects, The TVET system will expand its offer via public and private provision
of training programs. An increasing number of TVET trainers will be trained in
line with the new TVET trainers qualifications framework and TVET trainers will
be provided opportunities for professional development. Private providers of
TVET will play a stronger role in the delivery of the TVET system. Incentives will
be provided by the government and support through access to occupational
standards, certification guidelines and model curricula and material. Regional
accreditation systems for private TVET providers will also be strengthened, TVET
institutions are expected to become agents of technology capability and transfer to
micro- and small enterprises (MSEs). With this in mind, it will be necessary to
include this new function in the pre-service and in-service training of TVET
trainers, taking care of females’ participation.

Equity will receive greater attention under ESDP IV. In particular the participation
of females in management and training positions needs to be strengthened so as to
ensure an increasing number of role models for female students. Females will be
encouraged to join non-traditionally female professional training. Preferential
access will be provided to students from disadvantaged regions and students with

18
special needs.In order to ensure a sustainable system of financing, income
generating schemes and cost sharing by users will be enhanced and an effective
utilization of training machines and equipment promoted.

The Ethiopian government sees education and training as an important factor in the
process of human resource development in order to break the vicious cycle of
poverty that the country has been entangled in. Cognizant of this fact, the
government promulgated a number of social and economic policies since it came
to power in 1991. One of these policies is the current Education and Training
Policy (hereafter ETP) that came into effect as of 1994.

21. Financial strategy

TVET programs are expensive by nature and their sustainability requires effective
management and administration. Funding is also a structural problem in the TVET
sector, particularly in the public system. Costs of TVET will remain high, if it is to
be provided as centre based training, which is still the predominant mode of TVET
delivery in Ethiopia. As with most other countries, public TVET programs in
Ethiopia are usually more expensive than general education, requiring lower than
average teacher/student ratio and substantial capital and recurrent expenses
incurred through practical training. As a consequence of budgetary constraints,
most urban public TVET programs are under-funded while rural public TVET
programes suffered from poor facilities and shortages of training materials.

One major challenge of the current TVET reform in Ethiopia is to develop

sustainable financing mechanisms to guarantee a stable funding of the system and
its gradual expansion in line with Ethiopia’s development needs. The National
TVET Strategy has suggested that the financing challenge would be addressed by a
combination of cost saving mechanisms, generation of external resources into the
TVET system and diversification of funding sources for public TVET
programmers.

In its new financing framework for TVET, the Ethiopian government seeks to
recover a substantial share of recurrent costs of public institutions through more
systematic income-generating activities. Furthermore, unit cost in public TVET
institutions is rather high, because institutions are under-utilized and often run

19
under capacity. On the other hand, some – particularly urban – TVET institutions
are overcrowded, which compromises the quality of training provided.

The new financing framework therefore calls for increased capacity utilization
through non-formal training activities, and increased efforts by the management of
public training institutions to develop tailor-made TVET offers for industry and
businesses and to deepen the relationship with the private sector. The issue of
overcrowded TVET institutions is proposed to be addressed through introduction
of performance-based budgeting and through improved management capacity of
institutions at all levels of the TVET system.

Following the TVET Proclamation and the TVET Financing Strategy published by
MoE tuition fees (cost-sharing) and improved financial management regulations
for public TVET institutions were introduced in many states. As a result, cost
recovery through tuition fees and income generating activities has increased. Yet,
proceeds are rather limited. It appears that on average, fees may contribute some 5-
10% and IGA some 10% of the overall institutions budget. Another mechanism to
improve the resource base is cost-saving through increased efficiency in the
delivery of training. Studies have shown a substantial potential for increasing
efficiency in TVET institutions by modernizing management structures and
procedures, granting more financial autonomy to the institutions, and income
generating effort. It must be noted that internal revenue generation shall be the
main source of finance for TVET institutes and to transfer their technological
development to consumers with continuity. The system will need to generate
sufficient resources for public TVET provision and for the intended reinforcement
of its governance and management structures, as well as to develop necessary
support services. This diversification will be approached in a way that government
budgetary allocations and funds provided by foreign donors are gradually
supplemented by contributions from direct beneficiaries of TVET without putting
too much burden. Incentives will be developed to encourage employers to
contribute to the cost of TVET through scholarships, donation of equipment, and
other means.

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22. Project Budget Estimation and Allocation and Source of financial
summery
Total amounts of budget Governmental 351,216,141. Ethiopian Birr

Table; 2: Financial Summery

Types of expenditure Amount Ethiopian Can’t Remark

Birr
1 For capital expenditure 321,705,423

a Constructions 18 129,000,000 --
b Purchasing Equipment 147,705,423 --
and machineries
c Other capital --
expenditure
d Contingency 15% 45,000,000 --
2 Recurrent expediter 29,509,718

a Teachers salaries and Birr 12,605,376 --

staff family
b Purchas of supplies Birr --
c Car maintenance and Birr 16,034,600 --
Transportation vehicle
punches
d Electric Birr 273,859 --
e Water Birr 377,550 --
f Telephone Birr 218,333 --
General total 351,216,141

Table; 3: Description of Constructions Building Library and Sheds

No Departments Type quantity Total amount of Remark

construction expenditure
1 Office deans G+12 1 28,000,000
registrar, finance,
plan, human
resources
2 Agriculture G+4 1 12,000,000
department
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3 Health G+4 1 12,000,000
department
4 Economic G+4 1 12,000,000
infrastructure
department
5 Industry G+4 1 12,000,000
development
6 Labour affairs G+4 1 12,000,000
department
7 Culture and G+4 1 12,000,000
tourism
8 Sheds and guard G+1 9 21,000,000
home and offices
9 Libraries G+1 1 7,000,000
10 Fence and castle 1 1,000,000
General total 18 129,000,000

 For capital expenditure 321,705,423 Ethiopian Birr

 Recurrent expediter 29,509,718 Ethiopian Birr
 Total amount of fund requested 100% from Government finance
351,216,141
 Annual contingency budget for any uncertainty 15% 45 million

23. Project Time Management

Time estimates and planning.

Accurate time estimation is a skill essential for good project management. It is

important to get time estimates right for two main reasons:

1) Time estimate drive the setting of deadlines for delivery and planning of
projects and hence will impact on other people’s assessment of your
reliability and competence as a project manager.

2) Time estimate often determine the pricing of contracts and hence the
profitability of the contract (project in commercial terms).

Often people under estimate the amount of time needed to implement projects.
This is true particularly where the project is not familiar with the task to be

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 carried out. Unexpected events or unscheduled high priority work may not be
taken in to account.

24. Project Cost Management

Effective project cost management allows each project to be specific and unique
because that project entails costs and requires specific funding. However, no
matter whether you lead a software development project (IT project cost
management) or construction project management (construction project cost
management) you should consider. Project cost management as a process that
consists of the three steps.

The process of managing project costs is activity for estimating costs,

developing project budget and controlling spending. The project cost
management process has the following key steps.

A. Cost estimation: it is the project cost management process step when the
project manager cooperates with the financial department to estimate costs
required for purchasing all necessary good/services and undertaking
necessary activities to deliver the project. Project cost estimation is
conducted at the planning phases. The project manager uses project costs
management software to develop spread sheets and make calculation in
order to reach correct decision.

B. Budget Determination: at this step of the cost management process cost

spread sheets develop the budget framework and determine the budget. The
project manager can use project cost management software to work in
collaboration with the financial department to determine items of the budget
and sources of funding and to allocate the budget. The step entails close
cooperation with the project sponsor.

C. Spending control: it is the step of the project cost management process

where the allocated budget reviewed and spending is tracked. The project
manager, takes responsibility for control spending and to ensure that the
budget allocation is optimized and costs are fully covered with the planned
and allocated budget.

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25. Project Quality Management
 Project quality management is all about the energy of continuous
improvement of the project and the principal of project delivery using a
quality management approach play a key role in assuring the project meets
the customer requirements.

26. The three processes associated with PQM are:

1) Quality Planning: quality planning identifies the standards which are
relevant to the project and now to assure standards are achieved. This is a
key process of the planning process group.

2) Perform Quality Assurance: performing quality assurance is the execution of

the quality activities during project execution.

3) Perform Quality Control: it is the monitoring deliverables to evaluate

whether they comply with the projects quality standards and to identify how
to permanently remove cause of unsatisfactory performance. This process
occurs as a part of the monitoring and controlling process group.

27. Project Risk Management

Project risk management can be defined as “the systematic excision and
monitoring of tasks to detect, analyze and optimize project risks.

Youth Work TVET College assumes a risk from both physical and natural
hazards. Physical risks could be shortage of raw materials suppliers for
production, theft, machinery blockage. Natural hazards like flood fire, etc. In
order to avoid such risks the company set optional way (contingency plan). To
avoid these problems the college enters an insurance policy and settles an
optional sup0plier of raw materials.

28. Source of Fund and Income

As the project stated a grant total of 4, 146, 900 birr is required for allocating
resource and contingency budget, to launch a year training program in Youth
TVET College. The source of funding is expected to be raised from

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 government, MIDROC, UNICEF, other local and international donors that have
strong goal of assisting development activities in Ethiopia.

29. Monitoring and Evaluation Procedure

Youth Work TVET College abides to work in accordance to its declared value,
namely transparency. With that, it will have the system of internal audit that
will assess the financial performances of the college every year, as per the
annual implementation plan. The project is also monitored by the project
committee; this committee is responsible to give support and check whether
there is shortage of facilities and tries to fulfill what is required for the project.
And the evaluation of the project will be handled by the committee; the
evaluation will be conducted whether the project meets the objectives with the
time set and budget allocated. Besides, it will have an external auditing system
that will check financial status, once in every year of performance.

Internal control system extends beyond cash; it includes physical and record
keeping controls over all the assets of the TVET. One part of this system
assures that appropriate planned acquisitions are made, received in good
condition billed at correct amounts and paid for all time. In the TVET what we
mentioned in the organizational structure top executive are usually involved
directly in controlling generating income in each of these activity. Thus, in
safeguarding the TVET internal control.

30. Handover Plan

The project manager shall prepare detail project handover plan which will be
developed from handover plan include in the technical advisory group end stage
document. Since this typical educational sector not ended the committee will
provided for the newly hired professional. The plan will be distributed to all
relevant parties.

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