UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of Tunisia

Project number:

XX/TUN/12/XXX – SAP No. 120357

Project title:

Facilitating youth employment through entrepreneurship and

enterprise development in vulnerable regions of Tunisia: El Kef,

Kairouan, Kasserine and Sidi Bouzid

Thematic area code: EC1 Poverty Reduction through Productive Activities

Proposed start: November 2012

Duration: 2.5 years

Project site: El Kef, Kairouan, Kasserine, Sidi Bouzid (4 regions of Tunisia)

Government

co-ordinating agency:

Ministry of Industry and Commerce

Agency for the Promotion of Industry and Innovation (API)

in cooperation with:

Ministry of Employment and Vocational Training

Ministry of Regional Development and Planning

Project alliance

partners:

US Agency for International Development (USAID)

Hewlett-Packard (HP)

United Nations Industrial Development Organization (UNIDO)

Government of Italy (GOI)

Project inputs:

USD 1,327,434 (USAID)

USD 272,727 (Hewlett Packard (HP)1

EUR 760,177 or USD 1,000,500 (Government of Italy GOI)

Support costs:

USD 172,566 (USAID – 13%)

USD 130,065 (GOI – 13%)

USD 27,273 (HP – 10%)

Grand Total: USD 1,500,000 (USAID)

EUR 859,000 or USD 1,130,565 (GOI)

USD 300,000 (HP)

1 HP’s contribution for Tunisia credited to current UNIDO-HP TFINT11015 project

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Table of Contents

PROJECT SUMMARY ................................................................................................................... 3

PROJECT BACKGROUND INFORMATION .................................................................................... 3

A. KEY PROBLEMS TO BE ADDRESSED .................................................................................... 4

B. REASONS FOR UNIDO ASSISTANCE .................................................................................... 5

C. THE PROJECT ...................................................................................................................... 7

C.1. Project objective .......................................................................................................................... 7

C.2. UNIDO approach .......................................................................................................................... 8

C.3. Target beneficiaries ................................................................................................................... 12

C.4. Project outcomes and beneficiaries .......................................................................................... 12

C.5. Gender aspects .......................................................................................................................... 14

D. PARTNER LINKAGES ......................................................................................................... 14

Hewlett Packard ................................................................................................................................ 14

USAID ................................................................................................................................................ 14

Government of Italy .......................................................................................................................... 15

E. PARTNERS AND ROLES ..................................................................................................... 16

Core Partners .................................................................................................................................... 16

Tunisian Counterparts ....................................................................................................................... 17

F. SUSTAINABILITY ............................................................................................................... 19

G. RISKS ................................................................................................................................. 20

H. MONITORING, REPORTING AND EVALUATION ................................................................ 20

I. COMMUNICATIONS ......................................................................................................... 21

J. INTELLECTUAL PROPERTY ................................................................................................ 22

K. PRIOR OBLIGATIONS AND PREREQUISITES ...................................................................... 22

L. LEGAL CONTEXT ............................................................................................................... 22

ANNEX A: PROJECT IMPLEMENTATION TEAM ......................................................................... 23

ANNEX B: NATIONAL AND REGIONAL COMMITTEES ............................................................... 27

ANNEX C: BUDGET SHEET SUMMARY ...................................................................................... 28

ANNEX D: LOGICAL FRAMEWORK ............................................................................................ 29

ANNEX E: PROJECT TIMELINES ................................................................................................. 34

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PROJECT SUMMARY

The project is expected to generate concrete and sustainable employment opportunities for Tunisian

youth at this critical juncture in their history. Specifically, the project will create job opportunities for

young people in four disadvantaged regions of Tunisia - el Kef, Kairouan, Kasserine and Sidi Bouzid -

by fostering directly and indirectly the creation of new, and growth of existing, enterprises. The

project approach is in line with the strategy of the Government of Tunisia to promote private sector

development through Small and Medium Enterprise (SME) creation and growth in vulnerable

regions.

The project will build on a set of UNIDO programmes and methodologies to promote enterprise

creation and growth fostering entrepreneurship among young people in four vulnerable regions in

Tunisia. The project aims at two main outcomes: one focusing on the quality of services provided to

mainly young entrepreneurs by local institutions and the second focusing on direct support to

existing or potential projects with high employment potential in the four selected regions. The first

component will enhance the knowledge and delivery capacity of regional and local business support

and training institutions relating to critical areas around enterprise creation and development. The

second component will provide direct technical assistance to targeted enterprises, in particular in

the sector of agribusiness and environmental, and other driving sectors in the four regions.

Overall, the project aims to reach roughly 10,000 aspiring and existing entrepreneurs as end-

beneficiaries, including many young people. At least 2,000 jobs (including direct, indirect and

temporary) are expected to be created through the project and many more livelihoods enhanced.

PROJECT BACKGROUND INFORMATION

The project is an alliance between the Government of Italy, HP, USAID and UNIDO.

The present project covers all outputs and activities proposed for financing by three donors, the

Government of Italy, HP and USAID. In agreement with donors, each project output is proposed to

be financed by one donor to meet donors’ main interests and to facilitate financial management and

reporting on the progress of activities.

While the present project is submitted for USAID and GOI contributions, HP’s contribution has

already been credited to the current UNIDO-HP partnership project TFINT11015 covering Tunisia

among other countries.

The current project document has been designed to meet donors’ requirements as well as UNIDO’s

requirements.

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A. KEY PROBLEMS TO BE ADDRESSED

National Unemployment

The January 2011 Tunisian revolution and ensuing unrest throughout the country brought into focus

the need for more inclusive growth and better governance. Addressing the high rate of

unemployment is seen as key to this effort.

The unemployment rate in Tunisia is estimated at 46%, representing an estimated 800,000

individuals. Of these, 70% are under 30 years of age and over 20% (170,000) are university

graduates. Unemployment affects 30% of young women (23-29 years) which are often already in

precarious jobs and 24% of young men.

Unemployment impacts some regions of the country more than others. The areas most aggrieved

are those which also suffer from social disparities and economic exclusion: the regions of South,

Central and North West. For example, whereas the national average of unemployment rate among

university graduates is estimated at 23%, disaggregated data by region show alarming rates for

certain regions: Beja (31%), Gabes (39%), Gafsa (47%), Jendouba (40%), Kairouan (38%), Kasserine

(39%), Medenine (33%), Tataouine (39%), Tozeur (43%) and Sidi Bouzid (41%).

A large segment of the employed population also suffers from great instability and insecurity

(economic and social). According to IMF, the informal economy contributes to 34% to the GDP.2

Tunisian unemployment is attributed to a number of factors, including:

� The public sector’s limited capacity to employ the local workforce, especially young

graduates.

� The limited size of private sector and its inability to create a sufficient number of work

opportunities for the workforce, and in particular for graduates;

� A mismatch between the skills required by private sector and those offered by young

graduates.

The government is well aware of these issues and is working to address unemployment in the

poorest regions of the country. During the transitional period (2012-2013) Tunisia aims to resume a

robust economic growth (around 5% per annum) and initiate the necessary political, social and

economic reforms required to uplift socio-economic conditions in the country.3

Private Sector Development in the Central North West

The current project proposal targets the Central North West Regions of Tunisia which are essentially

rural provinces where the average urbanization rate reaches 32% and agriculture occupies more

than 30% of the workforce. The main crops in this region are olive, fruits (apricots, apples, pears,

almonds), cereal and vegetable crops.

The difficulty of young people, including graduates, to enter the job market in these areas is mainly

due to the limited development of the private sector. The region had only 4,693 private companies

in 2009, representing 7% of the total number of listed industrial companies. In addition, only 322

firms of these 4,693 private companies employed over 10 employees. Disaggregating by sector, 35%

2 IMF November 2011 MENA Oil importers: Meeting social needs, restoring economic confidence

3 Reference: Economic & Social Program, The Yasmin Plan, September 2011, Republic of Tunisia, Finance

Ministry

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of these 322 companies were operating in the food industry (113 firms), 25% in textile and clothing

(81firms) and 21% in wood working and manufacturing wood products (67companies). The service

sector is in turn dominated by small retail and government. Between 2005 and 2009, the Central

North West regions recorded a net creation of 529 companies against 5,556 in the North-East

region.

The low productive dynamic of the private sector can be attributed to:

• A business environment not conducive to entrepreneurship and enterprise creation (e.g.

under-developed basic infrastructure; insufficient business development support; a risk-

averse banking sector);

• The absence of well organized value chains resulting in unequal income distribution between

producers and non-organized suppliers, including an evident lack of agreements among

suppliers to obtain potential cost savings (on the supply, transportation, distribution, etc.);

and

• A weak entrepreneurial culture among the young graduates

B. REASONS FOR UNIDO ASSISTANCE

The project will build on UNIDO’s expertise and experience in the creation and development of

enterprises, entrepreneurship programmes and clean production and resource efficiency. The

project is also based on UNIDO’s partnership programme with Hewlett Packard focusing on HP’s

Learning Initiative for Entrepreneurs, an entrepreneurship and IT training programme for

entrepreneurs.

The project draws on solid partnerships in Tunisia developed by UNIDO, in particular with the

Agency for the Promotion of Industry and Innovation (API), the National Agency for Employment

(ANETI), CTAA (Technical Centre for Agro-Food), Packtech (Packaging Technical Centre), the National

Institute For Standardization and Industrial Property, CITET (International Centre for Environmental

Technologies), CTAA (AgroFood Technical Centre), CETTEX (Textile Technical Center) and CNCC

(Leather and Tannery Technical Center).

Linkages with other projects in Tunisia

There is considerable opportunity to build on this expertise and ensuring networks to increase the

impact and visibility of this project. Specifically, the project will build on and create linkages with:

• The results achieved so far by the MDG-F joint program “Engaging Tunisian Youth for the

MDGs” (FMTUN09002) for enterprise creation and development in Gafsa, el Kef and Grand

Tunis. So far under this program:

o More than 400 young trainers trained in relevant employment topics;

o More than 500 youth trained or coached;

o More than 300 enterprises created by young entrepreneurs;

o More than 140 local agents trained on cultural orientation and juridical manuals for

migration;

o More than 10 analyses, feasibility studies etc. on green jobs developed; and

o Three regional action plans on youth employment developed

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The project will build on the experience and lessons learned from the implementation of the

MDG-F programme in Gafsa, el Kef and Grand Tunis taking into account the following

aspects:

- Young entrepreneurs (25-40 years) assisted (mostly university graduates) lack experience in

management, communication and technical subjects

- Young entrepreneurs lack knowledge of the business environment and the competence in

making a market analysis (including the difficulty to find appropriate market data)

- Young entrepreneurs do not command all elements of their project which refrains them

from engaging into negotiations with banks

- Lack of own funds by young entrepreneurs

- Need of business coaching after launch of business

- Lengthy administrative procedures in all phases of business creation/not favourable business

climate in the targeted regions

• The Transfer of Environmentally Sound Technology in the South Mediterranean Region

(MED-TEST), funded by GEF and the Italian Government and implemented by UNIDO in

Tunisia, Morocco and Egypt. In Tunisia the project targeted three industrial sectors: Textile,

Agro-food and Leather. An investment plan was put in place for 15 companies corresponding

to an estimated 3.3M USD of annual savings and an average ROI of less than 1.5 years, with

spin off in terms of employment, quality and market opportunities.

• The National Cleaner Production Center Project strengthening national capacities for cleaner

production in Tunisia and developing a regional network of cleaner production centers in the

MENA region; linkages will be made between the piloted companies under the NCPC and the

TEST programme to showcase their experience in cleaner production

• The planned UNIDO project to promote the market access increase of local agro-products

focusing on the regions of Kasserine and Sidi Bouzid, to be financed by SECO Switzerland

• The UNIDO-driven Youth Networks in the Mediterranean basin (e.g. Italian Youth

Entrepreneurs Network) that will culminate on the occasion of the “Youth Conference on

Productive Work for Youth in Tunisia and the MENA region”. The conference will be held in

Tunisia in November 2012 and will see the participation of over 400 people, mostly youth,

from the countries of the MENA region. The Networks are supported by a web-based

platform that aims to increase youth participation and involvement in political dialogue

around critical thematic areas such as employment, entrepreneurship and access to funding

for young entrepreneurs. The event is also expected to promote foreign and national

investments.

• The project will build on UNIDO funded research in the field of Youth Employment and

Entrepreneurship that is currently being implemented in Tunisia and Egypt.

• Finally, the project will directly build on the implementation of the HP LIFE programme in

Tunisia. From January until September 2012 more than 100 aspiring and existing

entrepreneurs have been trained on HP LIFE in 8 training sessions and more than 50% of LIFE

trainees obtained business counselling to progress in the implementation of their projects.

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Sector-Specific Interventions

While this project targets enterprises and entrepreneurs with strong prospects and solid-

employment generating opportunities, there is strong rationale for some focus on agribusiness and

environmental management. These sectors already generate considerable economic activity in the

country and offer solid market potential and opportunities from an investment perspective. Studies

from the Food and Agriculture Organization (survey on national agro-industries in Tunisia (2011),

UNIDO research on the identification of investment opportunities in Tunisian regions (2010) and an

ILO study on the green job capacities/competencies in Tunisia (2011) underscore the significance of

these sectors.

For example, the FAO survey argues that the agro-food industries sector in Tunisia occupies an

important place in Tunisia’s economy and has a favourable framework to consolidate its

development as well as favourable future market prospects. All statistic information available

suggests that food demand in Tunisia continue to grow under the influence of demographic changes

and improvements in income, especially for processed products. Similarly, the Agreement signed

with EU and other countries provide export opportunities. In recent years, the Tunisian Agro-Food

Industry has registered improvements in all of its economic indicators. This result appears through

the dynamism of investments in this sector and the consolidation of its contribution to increased

production and employment. The agro-food industry ranks first among the manufacturing industries

in terms of investments, and ranks third in terms of value added contribution.

The UNIDO study on the identification of investment opportunities in selected Tunisian regions

confirms favourable investment opportunities in agri-business and energy (renewable energy) in the

region of el Kef, for instance, which is one of the four targeted regions in the project. The

identification of selected projects for investments is a result of studying the entrepreneurial and

general environment of selected regions, a SWOT analysis, a study on the opportunities and

constraints of the different sectors of the regions and national sectoral reports. The ILO study on

green jobs in Tunisia, states that the Government prepares for the transition to a green economy by

increased investments respectively by seeking to establish an investment climate conducive to green

economy particularly by encouraging green projects for energy efficiency and renewable energies,

waste recycling and waste water treatment, protection of natural resources. To meet the future

needs by the green economy, the study outlines the relevance of integrating environmental training

modules in the curricula of training institutions and Tunisian entrepreneurs’/enterprises’ access to

environmental training to tackle their environmental challenges.

To ensure a demand driven approach, the project will conduct a market assessment/analysis at the

outset to provide evidence to the demand for skills in the above proposed sectors and to narrow in

on enterprises and opportunities with greatest prospects.

C. THE PROJECT

C.1. Project objective

Development objective

Create job opportunities for young people in four vulnerable regions, by developing new and existing

companies. The objective contributes to poverty reduction through productive activities, one of

UNIDO’s thematic priorities.

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The project seeks to contribute to the achievement of the following Millennium Development Goals

(MDGs):

• MDG 1: “Eradicate extreme poverty and hunger”, and more specifically its target 1b:

“Achieve full and productive employment and decent work for all, including women and

young people”

• MDG 3: Promote gender equality and empower women

• MDG 7: “Ensure Environmental sustainability” which is also in line with the objectives of the

UN Conference on Sustainable Development (UNCSD or “Rio+20”) to ensure universal access

to modern energy services, to double the rate of improvement of energy efficiency, and to

double the share of renewable energy in the global energy mix.

The development objective is in line with the Tunisian Government’s strong commitment to respond

to the challenge of youth unemployment, through decentralized interventions in lagging regions

(Center-West) and in line with its orientation to move towards a greener economy. Moreover, the

Government has clearly set as priority the reinvigoration of the Private Sector, in particular SME

creation and development, as an engine for the economical renaissance of lagging regions.

Following direct consultations of UNIDO with Government representatives (Ministry of Industry,

Ministry of Regional Development and Planning, Ministry of Employment and Vocational Training,

API and ANETI) in April 2012, and based on initial dialogue with Regional Governors, the project

appears to be highly aligned with the Government’s priorities and is expected to enjoy strong

Government support. This support helps assure the sustainability of the project and its approach.

C.2. UNIDO approach

In order to support the Government of Tunisia in its efforts to create employment, especially among

youth and women, UNIDO will stimulate entrepreneurship development and enterprise creation and

growth with special regard to the agribusiness and environmental management (e.g. cleaner

production, resource efficiency) sectors in the Center West regions of Tunisia: El Kef, Kasserine,

Kairouan and Sidi Bouzid. To further strengthen the support provided to SMEs, a strong capacity

building component will be offered to national and regional service providers.

The project is divided into two key components covering selected programmes and methodologies

from UNIDO and HP to reach the project outcomes:

Component 1

In component 1 two different methodologies will be applied:

a) Enterprise Creation, Development, and Growth

b) UNIDO TEST

The enterprise creation, development and growth approach, generated by an holistic and

comprehensive intervention aims at intervening at various levels (Macro, Meso and Micro) in order

to maximize the development effect and impact, thus promoting the sustainability of the

intervention.

In the Tunisia context, this methodology will focus specifically on the Meso and Micro level, by

intervening at the level of support structures (capacity building) and by assisting, through different

channels, directly the entrepreneurs both for creating and expanding enterprises.

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To better meet the needs of direct beneficiaries in the four vulnerable regions of Tunisia, the project

will develop three areas of intervention:

1. Capacity building of service providers located in the target areas through Training of Trainers

(ToT). A preliminary diagnosis will identify support structures’ priority needs, with particular

emphasis on the development of non-financial services 4(i.a. business plan, marketing and sales,

communication and advocacy, financial literature for new entrepreneurs, counselling and coaching).

This intervention aims at strengthening the capacity of support structure (both public and private)

to effectively support young graduate (s) with projects creation (new businesses) and existing

entrepreneurs to develop and improve their projects in the target areas.

To conclude, a certification process for counsellors will be developed within this area of

intervention: in fact, counsellors are currently not operating in Tunisia; the Government has

expressed its interest in develop this working profile, particularly in the emerging regions (lesson

learnt in project Youth Employment and Migration MDG-F project in Gafsa, El Kef and Gran Tunis).

Designed in partnership with an Italian University, this intervention aims at training and certifying a

group of 'counsellors' (coaches) identified among the representatives of the supporting structures,

associations, civil society and private consultants.

Part of the training will support 40 young promoters / matrices identified (s) and project ideas (see

intervention 3)

2. Awareness raising exercise to promote entrepreneurship and business creation

a) A series of seminars will be organized throughout the project in the four target regions. These

seminars will be hosted in universities and Training Centres; they will address young unemployed,

student (s), contractors, potential / existing businesses.

The objectives of this exercise is to present to a wide audience will the following:

1. information on entrepreneurial culture and opportunities for enterprise development, including

access to adequate financial mechanisms for young people;

2. orientation towards the more competitive economic sectors

3. indication of available services for young (potential/existing) entrepreneurs for enterprise

creation and development.

3. Direct technical assistance to 40 projects with a high potential for job creation, creation and

business expansion identified particularly in the areas identified as priorities in the target regions.

The technical assistance component consist of three phases, as follow:

Phase 1. Identification and selection of projects

The first phase will identify a portfolio of 80 projects (20 per region) with significant potential for

youth employment creation.

Criteria for selection are: potential for employment, investment costs, and relation with the selected

value chain, innovation, environmental impact, and the overall impact on local economic

development.

Phase 2. Technical assistance

The details of the TA will be finalized once the 40 projects are selected; a preliminary diagnosis will

be performed to assess the real needs of existing businesses and start-up projects. This diagnosis is

particularly focused to identify and / or boost the potential of job creation.

In this phase business plans and or expansion plans will be developed at the enterprise level;

4 BDS in most instances are the providers of non-financial services

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technical assistance and mentoring / coaching will be also guaranteed, through direct (and indirect)

assistance through UNIDO networks of experts, consultants and staff.

At this level of the intervention, UNIDO will apply to selected companies the TEST methodology:

TEST combines the essential elements of tools like Resource Efficiency & Cleaner Production (RECP),

Environmental Management Systems (EMS) and Environmental Management Accounting (EMA) as

part of Corporate Social Responsibility (CSR), applied on the basis of a comprehensive diagnosis of

enterprise needs (Initial Review).

As a result of the customized integration and implementation of these tools and their elements, the

key output is the adoption of best practices, new skills and management culture, enabling the

company to carry on the improvement journey towards sustainable entrepreneurship.

TEST is building on management of change and addresses not only the operational level of a

business, but also the managerial and strategic levels, along the following lines:

• At the operational level, TEST gives priority to resource efficiency & pollution prevention

techniques (RECP) in production processes, followed by transfer of cleaner technologies and

pollution control solutions (end-of-pipe). Existing processes are optimized by implementing no-cost

and low-cost measures with a short pay-back period (PBP), before a portfolio of high investment

needing measures is put in place.

• At the level of management systems, EMS and EMA tools are used to establish the necessary

information management system on relevant material, energy and related financial flows in order to

link together the strategic and operational level of the business. The EMA reveals to top

management the real costs of production, including hidden environmental costs like non-product

output costs. The EMS provides procedures and resources to ensure that the outputs of the RECP

audit are implemented, sustained and further developed.

• At the strategic level, TEST places environmental management within the broader strategy of

environmental and corporate social responsibilities (CSR) by leading companies towards the

adoption of sustainable enterprise strategies.

Phase 3. Access to finance

Technical assistance will also address the issue of funding. Particular attention will be devoted to

supporting projects selected in accessing adequate forms of funding, in Tunisia and abroad.

Moreover, UNIDO will mobilize its network of UNIDO ITPO to increase the access to equity funding,

merging and/or acquisitions network and other channels.

Component 2:

HP’s Learning Initiative for Entrepreneurs (LIFE): Entrepreneurship and IT training

programme in the scope of the UNIDO-HP partnership

The project will support the creation and expansion of successful enterprises through HP’s Learning

Initiative for Entrepreneurs (HP LIFE) programme which delivers an integrated ICT (information and

communication technology) and entrepreneurship curriculum to young people around the world, in

partnership with local training centers.

The LIFE curriculum, developed by the Micro-Enterprise Acceleration Institute in partnership with

HP, teaches aspiring and existing entrepreneurs the practical use of IT to solve common business

challenges faced by entrepreneurs. The curriculum contains five entrepreneurship levels and four

thematic business modules which can be selected as needed by the entrepreneur.

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The HP LIFE programme currently operates through 340 Training Centers in 49 countries and has

reached over 1.2 million people worldwide through training, access to IT and online activities.

Through the programme 43,000 people obtained jobs and 20,000 new businesses were established.

In 2011, HP LIFE achieved widespread recognition as a leading programme in the area of

entrepreneurship education and workforce readiness. The announcement of HP LIFE in US President

Obama’s Startup America Partnership in January 2011 was one of a number of high profile events in

which the programme was showcased. A recent evaluation study of the HP LIFE programme (April

2012) was conducted by the Education Development Center, Inc. (EDC) under the EQUIP3 Leader

Award funded by USAID. It confirmed the HP LIFE programme to be effective in improving

participant outcomes in terms of income, employability, and the efficiency of business operations.

Since 2008, UNIDO has been partnering with HP to extend the reach and impact of the Learning

Initiative for Entrepreneurs across Africa, Latin America and the Middle East. UNIDO and HP are also

engaged in shared activities with the Education Development Centre, Inc. (EDC) to promote the

programme in Asia. Since 2008 the UNIDO-HP-EDC partnership achieved the following results:

• Set up 122 LIFE centers in 15 countries

• Certified more than 270 trainers

• Trained more than 50,000 students

• Created over 20,000 jobs

The 15 participating countries include Algeria, Brazil, China, Columbia, Egypt, India, Kenya, Morocco,

Nigeria, Saudi Arabia, South Africa, Tunisia, Turkey, UAE and Uganda.

Following the well-established HP LIFE programme model in the scope of the UNIDO-HP partnership,

this project will equip eight training centers with a set of technology (15 notebooks, 1 printer, 1

projector per center) in the four regions (two per region) partnering with the Agency for Promotion

of Industry (API) and other institutions. Two HP LIFE training of trainers (ToT) will then be conducted

to build a network of new LIFE trainers in the four regions who will in turn provide capacity building

to aspiring entrepreneurs and existing entrepreneurs during the project duration and beyond. In

addition, in cooperation with the API business incubators the project will provide 146 HP LIFE

trainees (those with viable business plans/projects) additional deep-dive support (business and

financial counselling) to foster the creation of enterprises. In the second phase of the project HP LIFE

will train a number of Tunisian LIFE master trainers (10-12) to further expand the LIFE trainer

network and to sustain the programme.

The HP-LIFE programme offering face-to-face training is a component of the MDG-F joint

programme “Engaging Tunisian youth in the MDGs” operating in El Kef, Gafsa and Grand Tunis. That

said, the experience of UNIDO and HP of this programme implementation offers notable benefits

that will help inform, and increase the impact and efficiency, of this proposed project. The benefits

include strong networks (including in el Kef, a target of this proposed project), already translated

face-to-face LIFE curriculum (which is currently available in French and Arabic), and well-established

support of key government institutions for the HP LIFE programme.

In parallel, the soon-to-be-launched HP LIFE global online training platform will be rolled out in

Tunisia nationwide through collaborations with partners at regional and national level including

government and private institutions and universities. As a first step, the modules will be translated

into both French and Tunisian Arabic and adapted to a local market. An environmental training

module using IT tools will then be developed for the new online HP LIFE curriculum to increase the

awareness and knowledge of entrepreneurs in environmental issues including to make optimal use

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of inputs, reduce costs through energy and wastage minimization, and respect for water quality

issues, for example.

Through the online platform it is expected that roughly 7,000 entrepreneurs will be reached

throughout the country and many more beyond as a direct response to this project.

HP LIFE impact assessment tool

The HP LIFE impact assessment tool will serve as an important means to gather results from both

entrepreneurs and trainers. This tool, developed by HP and the Education Development Center

(EDC) enables easier and more efficient monitoring, evaluating and reporting by integrating trainees’

learning activities with the programme’s reporting functions. Examples of information that could be

tracked and assessed include:

- Access to training

- Basic demographic profile of users (age, gender etc.)

- Satisfaction among users (including trainees, trainers, organizations/centers)

- Skills gained (including IT, business concepts)

- Impact of training:

o Businesses started as a result of training

o Jobs created / enterprises expanded

o Employment secured by job-seekers

o Specific impact on businesses (efficiencies, customer base, etc.)

- Local/regional training capacity development / technology capacity development

- Longitudinal comparisons (including pre- and post-training surveys; follow-up prompters for

reporting (e.g. 6 months post)

- Modules completed; pages viewed; etc.

- Repository of success stories accessible to the HP LIFE online community / community of

entrepreneurs established

- Project awareness

C.3. Target beneficiaries

The target beneficiaries of the project are mainly aspiring entrepreneurs (promoters) as well as

existing entrepreneurs in the four regions of Tunisia. Specifically, the project aims to reach roughly

10,000 aspiring and existing entrepreneurs, including many youth and a 50% share of women. At

least 2,000 jobs (including direct, indirect and temporary) are expected to be created through the

project and many more livelihoods enhanced. Synergies will be created with other complementary

programmes active in the country.

C.4. Project outcomes and beneficiaries

The project aims to reach the following two outcomes estimated to impact end-beneficiaries as

follows:

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Outcome 1: Assisted business support structures/institutions provide relevant and quality services

to youth

The project will enhance the knowledge and delivery capacity of regional and local business support

institutions, training centers, universities, and vocational training institutes relating to critical areas

around enterprise creation and development.

• 800 youth will attend enterprise creation training

• 1,000 aspiring entrepreneurs will attend enterprise promotion seminars

• 8,400 aspiring and existing entrepreneurs will be empowered with IT tools in business to

increase their business efficiency and growth through the HP LIFE training (1,400 in face-to-

face and 7,000 via the HP LIFE online training platform)

• 146 LIFE trainees will receive business counselling following their LIFE trainings

• 400 entrepreneurs will be trained on IT tools for environmental issues in business

The project aims to produce at least 400 jobs (including direct, indirect and temporary) through

outcome 1.

400 jobs will be created through the provision of practical training programmes to thousands of

aspiring entrepreneurs involving enterprise creation trainings and the Learning Initiative for

Entrepreneurs HP LIFE to reach 1,400 students face-to-face as well as individual business counselling

for at least 146 aspiring entrepreneurs. 400 jobs is estimated on the impact and result of the HP LIFE

global programme.

In line with the HP LIFE regional report for Africa, Brazil and the Middle East early 2012 a total

number of 5,505 students were trained on HP LIFE face-to-face, 448 businesses were established

(8%) and 1,145 (20%) trainees obtained employment. The HP LIFE outcome evaluation report of April

2012 found that the HP LIFE training is effective in improving participants’ outcomes in terms of

income, employability and efficiency of operations based on a survey of HP LIFE current and past

trainees in China, India, Kenya, Nigeria and South Africa.

Outcome 2: New and existing enterprises improve their business performances and create jobs

The project will provide direct technical assistance to targeted enterprises with high employment

creation opportunities driving sectors in the four regions.

• 60 SMEs will receive direct technical assistance by UNIDO experts with the final aim to

create sustainable and decent jobs

• 10 projects will be presented to national and international investors for equity or direct

investment, engaging as appropriate ongoing projects in Tunisia

The project aims to produce at least 1,600 jobs (including direct, indirect and temporary) through

outcome 2.

The related logical framework is in Annex D. The suggested project timelines are provided in Annex

E.

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C.5. Gender aspects

The project will build on a gender analysis in Tunisia. A gender specialist, hired under preparatory

assistance financed by the Italian contribution, has initiated a gender analysis and will be hired again

in the inception phase of the project to provide operational guidance on gender related issues.

D. PARTNER LINKAGES

The project also advances and builds on the priorities and programming of the key alliance partners.

These areas are described below.

Hewlett Packard

The focus outlined in this proposal is highly consistent with HP’s business and social innovation

objectives and will serve as an important proof point of HP’s commitment to entrepreneurship and

education in the region and beyond. This project also supports a complementary strategic pillar:

sustainability. Indeed, in late 2011 HP’s Office of Global Social Innovation merged with the

environmental sustainability office to enable a more integrated approach to HP’s engagement

worldwide.

The project also reinforces HP’s commitment to this region where it has recently launched a

strategy to accelerate growth in Africa. HP’s expansion in Africa through the opening of new offices

will support the development of a strong IT industry, which will underpin sustainable economic

growth, helping to create employment, stability and life-changing opportunities across the

continent. In Tunisia, HP announced the opening of a customer help center that is expected to

create 800 jobs.

Finally, this project symbolizes the importance HP places on partnerships, including in support of

Africa’s IT and education sectors. For example, HP is investing in a series of collaborations and

initiatives with governments, universities and local communities to achieve the shared goal of

driving responsible, sustainable growth. HP signed MOUs with leading universities in expansion

countries to help prepare local university students with the skills and experience required for a

career in the IT industry.

USAID

USAID is committed to support public-private collaboration that at once improves development

outcomes and supports US commercial interests. It is in part because HP applauds and indeed

subscribes to this approach that USAID and HP signed a Memorandum of Understanding (MOU) on

September 23, 2011.

Like other Alliance Partners, USAID is visibly committed to support enterprise development

including, very specifically, entrepreneurship. USAID has invested substantially in higher education to

produce workforce with the relevant skills to support country development goals. Similarly, USAID

and the United States Government more broadly have indicated strong support for Tunisia’s

economic and democratic aspirations.

This project will align strongly with USAID engagement in Tunisia. For example, USAID is planning a

major economic growth project in the high-growth information and communications technology

15

(ICT) sector to support small and medium enterprise development, as well as skills training and job

placement in local firms. USAID is planning several higher education partnerships between U.S.

colleges and Tunisian technical/vocational training institutes; these partnerships will also engage

local private sector companies to expand employment opportunities for institute graduates.

This ICT initiative offers strong potential for linkages with this project and other Alliance partner

initiatives outlined above. Moreover, through this project additional connections will be pursued

with other US Government initiatives:

• The www.ednaccess.com platform, the Embassy toolkit (and its country-specific iterations)

and the Global Entrepreneurship Initiative (GEI) quarterly newsletter offer opportunities for

greater dissemination of the project objectives as well as being useful resources for

entrepreneurs that are reached through this program. This proposed project can help

facilitate additional linkages and impact of these US-inspired platforms.

• The US-North Africa Partnership for Economic Opportunity network of US and North African

business leaders, entrepreneurs, civil society and public sector leaders aims to foster job

creation, regional cooperation, and entrepreneurship, with a focus on youth. Given the

presence of a Tunisian PNB-NAPEO Advisory Board, there is a potential to use this proposed

Alliance project as a springboard for cross-border collaboration across the Magreb region.

• The USG supported youth council platforms in Africa provide an opportunity for linkages

with the new HP LIFE eLearning solution. Youth councils could be interested to position this

as a relevant resource for current or aspiring young entrepreneurs that they aim to support.

Similarly, the networks developed under this project could help drive interest to the GEI.

• There are also potential synergies with the US Department of State’s Global Innovation

through Science and Technology (GIST) initiative. This initiative, aiming to spur economic

advancement through science and technology-based innovation in countries across the

Middle East, North Africa, and Asia, is already scheduled to offer start-up “Boot Camps” in

Tunisia this July 2012. Efforts to develop synergies between these initiatives could yield

considerable pay-offs in terms of reach, impact and visibility of the two programs.

• Other regional events the US State Department is planning, such as the one coming up in

Abu Dhabi, in December offer a means to share best practices and enhance the visibility of

this project.

• The ImagiNation supported e-mentorship program could be integrated including by tapping

the talents and expertise of HP’s employees to support entrepreneurs in Tunisia and

elsewhere, especially in light of the HP LIFE volunteer program that already exists.

• The USAID is also a supporter of the Center for Entrepreneurship and Executive

Development (CEED/SEAF) activities with an interesting focus on access to finance. This

network will also be explored for connections to this project.

Government of Italy

Since 2004 the Italian Ministry of Foreign Affairs (MoFA) has been giving high priority to those

interventions focused on supporting local production and the promotion of industrial and

commercial relations between entrepreneurs of both countries. The MoFA promotes the growth of

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the private sector and its competitiveness as a sustainable way to create productive and decent

employment and attract foreign investment in Tunisia.

The latest strategies for protecting natural resources and protection of the environment (Rio, Kyoto

Protocol, programs to combat desertification) are also viewed as greatly important to interventions

on the environment, especially to combat desertification and protect the marine and coastal areas.

The major initiatives in Tunisia in progress that are funded by the Ministry of Foreign Affairs, Italy

and that will support the success of this current initiative are:

• Industry and Handicraft: credit line for SMEs;

• Agriculture and Fishing:

o Creation and rehabilitation of date palm groves in the region of Rjim Maatoug

o Socio-economic protection and enhancement of environmental resources in the

North-West Region (Tabarka)

o Oasis Chenini – sustainable management of natural resources

o Actions to support vegetable production

• Environment:

o Reforestation of the mountains of Tataouine

o Construction of three landfills for municipal solid waste and its transfer centers in

the governorates of Mahdia, Tozeur and Zaghouan

E. PARTNERS AND ROLES

Core Partners

The proposed collaboration is between USAID, HP, and UNIDO and the Government of Italy

As the primary implementing partner, UNIDO will be responsible for the overall management and

implementation of the program through the involvement of UNIDO Headquarters’ staff and UNIDO

field staff. UNIDO will establish a clear governance mechanism to ensure timely and regular

reporting to the Alliance Partners. The UNIDO business model also encourages close consultation

with donors on strategic decisions in order to maximize cross fertilization among partners of know-

how and good practices. UNIDO is committed to draw close linkages between the project and other

UNIDO, USAID and other related projects in Tunisia to increase the impact of this project. The role of

UNIDO and its team is elaborated in Annex A.

HP-Sustainability and Social Innovation (SSI) is responsible to provide its cash contribution of USD

300K to UNIDO and offers access to its flagship program HP LIFE to support this project. Consistent

with its shared value approach, HP SSI will also remain a committed and engaged partner

throughout the project duration. HP SSI can be counted on to provide inputs on key project

milestones, communications and outreach strategies and products, for example.

With respect to HP LIFE specifically, HP is offering as part of this partnership access to the existing

face-to-face LIFE curriculum5 as well as the new HP LIFE online platform currently in development

55 LIFE curriculum was developed by MEA-I.

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with Education Development Center, Inc. (EDC). HP will also look to cover the related costs of

hosting the solution on any cloud platform. Playing a leadership role on HP LIFE related activities,

the HP team will draw from LIFE materials and approaches developed in other countries which can

be adapted for the Tunisian context and will explore how the HP LIFE Ambassadors program could

also work actively to leverage the successes and undertakings experienced in Tunisia for

dissemination and adaption in other countries. In this regard it will provide regular updates to the

Alliance Partners and provide opportunities for co-branding and collaboration in other countries as

well which could extend the project impact and visibility beyond Tunisian borders.

HP SSI has a strong interest to create synergies with other international and prominent thought

leaders in entrepreneurship and will be actively looking to identify and forge related collaboration in

support of the program, working closely with USAID and UNIDO.

USAID, as the key donor/funding agency, will provide a portion of the cash funding (USD$1,500,000).

In addition, USAID will be invited to provide inputs on key project milestones and tap its extensive

networks for communications and dissemination. Moreover, linkages with other USAID and USG

initiatives in Tunisia will be sought.

The Government of Italy is providing financial assistance to the project. The Italian Cooperation in

Tunisia will be actively engaged during the duration of the project. The Italian Cooperation will also

guarantee that other Italian funded projects in Tunisia are synergetic, whenever possible with the

project.

Tunisian Counterparts

Tunisian counterparts in both the public and private sectors will play an important role in the success

of this project. Based on various consultations both national and regional partners are keenly

supportive of this initiative.

In line with the Government of Tunisia’s decentralization plan, it is proposed that UNIDO establish a

National Steering Committee (NSC) as well as one Regional Technical Committee (RTC) in each of the

four selected regions. The purpose would be to provide guidance to maximize impact, reach and

sustainability of project activities. These bodies would not be decision-making bodies but rather

established to provide inputs on an occasional basis and to generate greater buy-in and ownership

of the project’s activities. The core decision-making authorities would lie with Alliance Partners.

The proposed list of national and regional committee members and draft terms of reference are

included in Annex B. Certain Tunisian partners will play particularly key roles in this project:

Ministry of Industry and Commerce: main government counterpart of the project, this ministry will

be part of the NSC, and through its regional representative will take part in the RTC. Under clear

indication of Mr. Ridai Klai (Director of Industrial Infrastructure) the project will seek cooperation

with the Complex Industrielle Competitive (CIC) where present in a region (CICs are created through

a Public Private Partnership mechanism to assist the development and growth of SMEs including by

identifying on-going and potential projects and attracting investors).

Ministry of Regional Development and Planning: given the regional dimension of the project

(decentralized at regional level) the involvement of this ministry and its regional antennas is crucial.

As a member of the NSC, the ministry will also provide access to qualitative and quantitative

18

information on the regions touched by the project (intelligence unit). Its antennas in the region will

be part of the RTC (regional technical committee).

Ministry of Employment and Vocational Training: member of the NSC; through its antenna in the

regions (centres d’ affaires, etc.) will be instrumental in the implementation of the project,

particularly for the promotion of entrepreneurship among young people and for provision of training

in identified areas (Enterprise development, etc.) .

Consortia of Technical Centers: provide training of trainers to selected institutions on the adapted

MED-TEST; participation in the RTC where possible; provision of technical assistance to the

Identification Team during the companies identification process; provide technical capacity building

to companies when required.

CITET: Training of Trainers (ToT) of adapted MED-TEST, it will provide technical assistance to

identified projects in the field of environment or projects integrating environmental aspects and

cleaner production technologies.

Agence de Promotion d’Industrie (API): main counterpart of the project at regional level; member

of the NSC and through its regional antennas member of the RTC; assistance in the identification of

the beneficiaries companies (i.e. through the intention of investments record); main partner for HP

LIFE activities building on API’s LIFE trainer network and valuable experience in HP LIFE training

implementations in Tunisia since 2008; the project will closely work with business incubators at the

governorate level (HP LIFE; Green business plan module); incubation through the business

incubators to identified projects

Agence Nationale pour l’Emploi et le Travail Indépendant (ANETI): ANETI is in charge of animating

the job market at national and regional level through a network of regional offices of employment

and self-employment. ANETI will be the recipient of the Green Business Plan ToT; member of the

RTC; partner in HP LIFE activities building on its LIFE trainer network and LIFE training experience in

Tunisia

Centres d’affaires d’intéret public économique (CAIPE): The Centres d’affaires aim to facilitate the

implementation of projects and offer required services to promoters or investors to launch their

projects. The centers will be recipients of the Green Business Plan ToT; members of the RTC (see also

Ministry of Employment and Vocational Training) and potential partners in HP LIFE.

Instituts Supérieurs des Etudes Technologiques (ISET): The higher institutions for technological

studies are situated in all four regions targeted by the project; ISET will be a recipient of the Green

Business Plan Training of trainers and the capacity building training in the promotion of culture

among young entrepreneurs.

Complexes Industrielles Competitives: where installed, the CIC can play an instrumental role in the

identification of the companies; member of the RTC (where possible).

Centres de Jeunes Dirigeants d’Entreprises (CDJ): The CDJ representative will take part in the RTC

providing an independent and pragmatic vision towards the committee in view of its role of

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representing young entrepreneurs vis-à-vis the Government and the financial sector; their technical

expertise will play a crucial role in determining the final selection of projects.

Conféderation des Entreprises Citoyennes de Tunisie (CONECT): As a new organisation in Tunisia,

CONECT will be member of the RTC and will participate in the final selection of projects. Currently, CONECT has

offices in Kairouan and in Kasserine and plans to launch new offices in the other regions addressed in this

project.

F. SUSTAINABILITY

This project by design intervenes at two levels: the first set of interventions aiming at building the

capacity of local support institutions at governorate level; and the second set aims to improve both

the productive capacity of identified companies in the selected lagging regions, while building the

capacity of private sector consulting firms (technical assistance) and /or CSOs as business

development service providers. These help lay the groundwork for activities that will be sustained

beyond the project’s duration and sustainable results in the interim.

The programme will reinforce the support structure by improving the quality of services provided

and expand their portfolio (green business plan and HP LIFE). By increasing the quality and the

portfolio of services that can be provided by local support structure it is expected that the ultimate

beneficiaries (young people and entrepreneurs) will also benefit from that; the central government

should than be inclined to continue and strengthen the support both in terms of budget support and

human resources support to the local institutions. Moreover, by capitalizing on HP’s multi-million

dollar investment in an on-line HP LIFE interactive curriculum, the dependency on any one set of

trainers for in-person training is reduced.

The programme will also partner with private BDS (business development service- consulting firms

or NGOs) providers that will be contracted to provide specific technical assistance to selected

companies. By engaging them in the project, their income/revenues are expected to increase and

other companies in the lagging regions may be drawn toward using these BDS thus promoting

private sector development in the regions.

The focus on regional interventions is well-founded. Tunisia has witnessed for years a centralization

process that weakened local support institutions of the Government. In the aftermath of the Jasmin

revolution, the transitional government of Tunisia identified as a priority the strengthening and

capacity building of local support structure.

Prior to this proposal preparation, UNIDO ensured the engagement and support of the Government

of Tunisia, mainly the Ministry of Industry and Commerce, the Ministry of Vocational Training and

Employment and the Ministry of Regional Development.

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G. RISKS

This project is assessed to be of low risk (see Figure 1)

FIGURE 1

Description of risk Likelihood and remedial measures

Counterparts (government agencies, technical

institutions, NGOs) inputs not provided or

delayed

Low, as UNIDO has been closely cooperating

with the project counterparts (API, ANETI,

technical institutions) over the past few years on

other projects and a regular contact is

maintained by UNIDO field office with these

institutions

Low level of participation from targeted

entrepreneurs, youth, women and targeted

support institutions

Low/medium, as local partner institutions are

selected based on their access to entrepreneurs,

youth, women, project promoters

Youth reject the training, counselling and

technical assistance, as they are more interested

in the financing

Low, as the project communicates at the outset

the business counselling and technical assistance

as a means to access finance

Difficulty in identifying and finding projects of

young promoters Low/medium – a suitable communication

campaign will be done to meet

expectations/interests of young promoters and

cultural aspects

H. MONITORING, REPORTING AND EVALUATION

The project will be subject to a reporting, review and evaluation process in line with the prevailing

UNIDO policies and procedures and be responsive to partner/donor inputs and reporting

requirements.

In short, an M&E team will at the outset propose a strategy for the entire projects’ activities and

work with national counterparts to develop their own. The Alliance Partners will then be consulted

to ensure the M&E is aligned with its reporting needs. The UNIDO project management team will

prepare quarterly progress reports and a final report at the end of the project to share with donors.

Indicators for tracking the objective, outcomes and outputs as well as their means of verification are

included already in the Logical Framework (see Annex E). Progress and final reports will include

reporting on the project indicators. UNIDO is committed to designing an M&E framework that

among other metrics will track and assess the impact of programming on men versus women.

The HP LIFE impact assessment tool as described in Component 2 of the UNIDO approach will be

applied for monitoring, evaluating and reporting the HP LIFE training results.

Throughout the project, continuous communication between the local counterpart institutions,

UNIDO Tunisia/Headquarters and the donors will ensure a smooth and successful implementation.

In addition, progress in project activities will be reviewed jointly, according to specific needs for

reviewing.

21

I. COMMUNICATIONS

Once the project is approved, a draft communications plan will be developed and agreed to by all

partners. The Plan will articulate strategies to target a handful of key audiences including at the

national and international levels and stakeholders both external and internal to the project.

At a general level, communications objectives with external partners will aim to:

- Promote and explain the project, including its objectives and expected outcomes to secure

engagement, involvement and support for project activities of key stakeholders including

end beneficiaries.

- Engage with target audiences, (e.g. young, unemployed, trainers, other donors/program

implementers/financial institutions), helping to create and build a Tunisian-wide community

successful entrepreneurs, mentors etc

- Demonstrate the abilities and positive participation of the donors (USAID, GOI and HP) and

the implementing partner (UNIDO) as relevant agents in building the private sector driven

economy in Tunisia and in offering a model for replication elsewhere in the country and

beyond Tunisia’s borders.

- Develop a cadre of stories and case studies shared between all donors and partners which

can be held or promoted on multiple communication platforms.

Preliminary thinking around objectives and possible response strategies are summarized below:

Communication Objectives/External

Strategies

1. To promote and explain the project,

including its objectives and expected

outcomes to target audiences and

stakeholders

a) Develop and agree overall plan

b) Use social media to engage students,

entrepreneurs and

c) Traditional media communication for

specific stakeholder groups

2. Engage with target audiences (e.g.

young, unemployed, trainers, other

program implementers/funders) within

the project – Creating and building a

Tunisian-wide community, (and beyond)

of these entrepreneurs, mentors, etc

a. Develop, agree and implement

comprehensive digital media plan which

promotes the program through

websites, Facebook page and other

opportunities

b. Strategic networking and outreach to

forge synergies between this project and

other projects investing in systemic and

enterprise/individual specific support

around entrepreneurship

3. Demonstrate the abilities and positive

participation of the donors (USAID, GOI,

HP) and the implementing partner

(UNIDO) as relevant agents in building

the private sector driven economy in

Tunisia

a. Use press and social media to position

the program and partners with

consistent messaging

b. Present at key global conferences with a

coordinated presentation

4. Develop a cadre of stories and case

studies shared between all donors and

partners which can be held or promoted

on all communication platforms

a. Encourage the “feeding in” and sharing

of stories which can be used by partners

and beneficiaries by providing a simple

“story tool format”

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Linked to the issue of governance an internal communication plan targeting project partners will also

be developed to:

- Maintain regular updates and information exchanges so issues and opportunities are met in

an efficient and effective manner.

- Ensure relevant, internal stakeholders per organization are provided with timely

information, data and stories so any critical decisions can be made as required for the

project.

Upon project approval, UNIDO will initiate the drafting of a launch plan. It could include:

- Development of a media kit (one pager on the project; one pager on the donors and their

activities in Tunisia; one pager on UNIDO; possible joint press release on the launch)

- Participation of partners at a launch event in Tunis (e.g. around the Youth Forum in

November 2012) and possible press conference on the occasion of the official launch

- Use of digital media such as: blogs, tweets, and project/partner Facebook pages

The USAID communications and branding policy will apply as per the MOU with HP and cooperative

agreement with UNIDO, in due regard for the Parties respective legal, policy and procedural

requirements.

J. INTELLECTUAL PROPERTY

Provisions relating to intellectual property will be finalized with the grant/cooperative agreement.

K. PRIOR OBLIGATIONS AND PREREQUISITES

The implementation of the project can start as soon as UNIDO’s and the donors’ respective instances

have approved this project document and the donors have transferred the funds agreed upon i.e. in

cash including support costs:

EUR 859,000 by the Government of Italy

USD 1.500,000 by USAID

USD 300,000 by Hewlett Packard

L. LEGAL CONTEXT

The Standard Basic Cooperation Agreement signed by the Government of Tunisia and UNIDO on 11

May 1994 in Vienna effective on 20 January 1995 will apply to the subject project.

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ANNEX A: PROJECT IMPLEMENTATION TEAM

By design, this project requires an important investment on human resources, both technical than

managerial positions; given that no procurement is de facto foreseen, the project is centred on

capacity building and skills development through direct technical assistance; to pursue such

approach, it is necessary and instrumental to invest in human resources both national (regional

coordinators, technical experts) and international (CTAs, backstopping officers, international

experts).

UNIDO project coordination arrangements

A close cooperation and regular communication between UNIDO HQ project managers and involved

experts and UNIDO Tunis Representative and field staff will ensure an effective project coordination

and implementation. All experts recruited in the field (international and national) will report to

UNIDO Tunis Representative and project managers.

The proposed project implementation team will include the following positions:

UNIDO International Expert for Enterprise Creation and Growth (part time): International Expert;

he/she will provide guidance, technical assistance and managerial support from UNIDO HQs to the

team in Tunisia. He/She will manage and monitor all project activities related to enterprise creation

and development which comprise the recruitment of experts, preparation of sub-contracts, financial

monitoring of activities and ensure the alignment with UNIDO methodologies and apporachss of

trainings and workshops. He/She will ensure that the project is implemented in the new UNIDO

programme management system using SAP – this system provides greater accountability,

transparency and reporting to the donors at any given implementation stage. The backstopping

officer will be constantly involved in the implementation of the project, thus guaranteeing

managerial support and alignment with UNIDO and donors’ implementation strategies. The expert

will directly liaise with the UNIDO Representative in Tunisia, the CTAs, the donors and the regional

project coordinators.

Terms of reference: The required profile of the expert is both technical and managerial with strong

knowledge of Youth Entrepreneurship, Enterprise Creation and Development, and generally Private

Sector Development. The expert should also possess a relevant project management experience,

possibly in North African countries. The expert will be requested to actively participate and animate

the interaction among several different partners and institutions: therefore proven communication

and intercultural communication competencies are required.

Reporting: The expert will report to Donors and the UNIDO Representative in Tunisia.

UNIDO International Expert for HP LIFE (part time): International expert, he/she will provide

guidance, technical assistance and managerial support for all HP LIFE project activities from UNIDO

HQs to the project team in Tunisia. He/She will manage and monitor all project activities related to

HP LIFE which comprise the recruitment of project experts, preparation of sub-contracts, financial

monitoring and organization of local/regional HP LIFE training events (MTOT, TOTs, LIFE trainings for

entrepreneurs) and workshops in close coordination with the National Project Coordinator for HP

LIFE. He/She will ensure that the project is implemented in the new UNIDO programme

management system using SAP – this system provides greater accountability, transparency and

reporting to the donors at any given implementation stage. The expert will directly liaise with the

UNIDO Representative in Tunisia, the CTA for USAID, the donors and the national project

coordinator for HP LIFE. The backstopping officer will be constantly involved in the implementation

24

of the project, thus guaranteeing managerial support and alignment with UNIDO and donors

implementation strategies.

Terms of reference: The expert should have proven project management experience, strong

knowledge of entrepreneurship and IT training programmes, preferentially in North African

countries. Knowledge of youth entrepreneurship, the HP LIFE programme and curriculum and French

will be an asset. The expert will be requested to actively participate and animate the interaction

among different project partners and institutions; therefore proven communication and intercultural

communication competencies are required.

Reporting: The expert will report to Donors and the UNIDO Representative in Tunisia

International Expert (Italy) based in Tunisia: International expert based in Tunisia responsible to

technically support and oversee all project activities financed by Italy. The expert will be in charge of

supervising, providing guidance and supporting the network of Regional project coordinators.

He/She will also be the interface between the project and the National Steering Committee, as well

as national partners and donors. The expert will directly liaise with the UNIDO representative in

Tunis, the backstopping officer in Vienna UNIDO HQ and regional project coordinators. He/She will

be responsible to present the project and inform the national counterparts on the various stages of

implementation, and will be in charge of providing adequate information vis-à-vis the National

steering committee. He/she will create linkages between the project and other Italy financed

projects in Tunisia. The expert will be responsible to overlook the project subcontractors at national

level. The expert will be engaged in the communication, advocacy as well as monitoring and

evaluation strategies (excluding HP LIFE).

Reporting: The expert will report directly to the UNIDO Representative in Tunisia and to UNIDO

backstopping officers/experts at HQs.

International Expert (USAID) based in Tunisia: International expert based in Tunisia responsible to

technically support and oversee all project activities financed by USAID. The expert will be in charge

of supervising, providing guidance and supporting the network of Regional project coordinators.

He/she will be the interface between the project and the National Steering Committee, as well as

national partners and donors. The expert will directly liaise with the UNIDO representative in Tunis,

the backstopping officers in UNIDO HQs and regional project coordinators. He/She will be

responsible to present the project and inform the national counterparts on the various stages of

implementation and will be in charge of providing adequate information vis-à-vis the National

steering committee. He/she will create linkages between the project and other USAID financed

projects in Tunisia. The expert will be responsible to overlook the project subcontractors at national

level and the expert will be engaged in the communication, advocacy as well as monitoring and

evaluation strategies, including HP LIFE.

Reporting: The expert will report directly to the UNIDO Representative in Tunisia and to UNIDO

backstopping officers/experts at HQs.

Project assistants: 2 project assistants, one at UNIDO HQs and one at UNIDO field office will manage

the administrative, logistical and procurement project needs.

Reporting: The project assistant in the field office directly reports to the international experts

(USAID, Italy) and the UNIDO Representative in Tunisia. The project assistant at UNIDO HQs directly

reports to the Backstopping Officers/Experts at HQs.

25

Regional project coordinator (x 4, one per region): each regional coordinator expert will be in charge

of coordinating project activities at the regional level; ensuring the correct flow of information

among the project partners at regional level; providing an interface between the beneficiaries, the

regional partners and the Project Coordinator; monitoring implementation of the project; providing

guidance to project experts and subcontractors at regional level. He/she will also facilitate the

preparation of the Regional Technical Committee meeting, in close collaboration with the Regional

Governor.

Reporting: The Regional project coordinators will report to the CTAs, the UNIDO Backstopping

Officers and the UNIDO Representative in Tunisia.

National project coordinator (HP LIFE): national expert in charge of coordinating and supporting HP

LIFE project activities in all four regions, monitoring LIFE training implementations at the LIFE

training centers, promoting the use of the HP LIFE online training platform and supporting the

development of the HP LIFE environmental training module. The national project coordinator should

have relevant working experience in entrepreneurship/IT programmes and enterprise creation and

development. Knowledge of the HP LIFE curriculum and working experience as a trainer will be an

asset. The national project coordinator for HP LIFE will directly report to the UNIDO Backstopping

Officer for HP LIFE and will liaise closely with the International experts (Italy, USAID) based in Tunisia

and the Regional project coordinators

Reporting: The National project coordinator for HP LIFE will report to the international expert

(USAID), the Backstopping Officers and the UNIDO Representative in Tunisia.

Environmental (TEST) and Green Business Plan Module (Certification) developers

The team formed by an international expert and a national expert will develop a module that could

ultimately lead to a certification on Green Business Planning – certification that would be taken up

by regional Institutions to University and TVET students, young entrepreneurs and SMEs. It will be

based on UNIDO successful experience of the MED-TEST. The team will also be responsible to

provide ToT to regional entities such as incubators staff, ISET, centre de formation professionelle,

ANETI antennas, among others.

Reporting: The Environmental and Green Business Plan Module developers will report to the

international experts (USAID, Italy) the Backstopping Officers and the UNIDO Representative in

Tunisia

Projects identification team

UNIDO will recruit a national expert to identify potential or existing enterprises in the selected

regions. The team is responsible to gather information on new and existing high potential

enterprises in the four selected regions; at this stage consultation with local and regional SMEs

promoting bodies is instrumental. The expert will produce a least of 120 potential projects to be

submitted to the each Regional Technical Committee for review and endorsement.

Reporting: The Environmental and Green Business Plan Module developer will report to the

international experts (USAID, Italy), the Backstopping Officers/Experts at UNIDO HQs and the UNIDO

Representative in Tunisia

Technical Assistance Team (max. 5 experts): The project will allocate funds to provide direct

technical assistance (market assess, feasibility study, business plan development, etc.) to the

selected projects; to provide TA the project will identify a group of technical experts in those sectors

26

where the selected projects operate to provide direct technical assistance. (under output 2.2 and

2.3). The experts would be hired on a part-time basis and would cover all four regions.

Reporting: The Technical Assistance Team will report to the International Experts (USAID, Italy), the

Backstopping Officers and the UNIDO Representative in Tunisia

Monitoring and Evaluation Expert: One international and one national expert will develop an M&E

strategy for the entire project; tools and good practices from partners will be captured and applied

when possible. The national expert will also assist API to develop a strategy as main counterpart, to

better structure their M&E approach/strategy. The time-tested existing global M&E system for HP

LIFE trainings and programme impact will be applied in Tunisia. The HP LIFE project coordinator in

close collaboration with the HP LIFE national coordinator will support the application of the global

HP LIFE M& E system in Tunisia in the framework of the project.

Reporting: The Monitoring and Evaluation Experts will report to the international experts (Italy,

USAID), the Backstopping Officers/Experts and the UNIDO Representative in Tunisia

Communication and Advocacy Expert: two national experts will be responsible to develop a

communication strategy to promote the project vis-à-vis various audiences [e.g. national and

international audience, development community, youth, etc]

Reporting: The Communication and Advocacy Experts will report to the International experts (Italy,

USAID), the Backstopping Officers/Experts and the UNIDO Representative in Tunisia.

27

ANNEX B: NATIONAL AND REGIONAL COMMITTEES

National Steering Committee (NSC) The NSC will be established to advise on the overall implementation of project activities to include

its alignment from a technical aspect and its alignment with the priorities of the Tunisian

Government and with the strategies of the Donors. The NSC will be composed of UNIDO as a

convener and facilitator and representatives of:

Government of Italy

USAID

HP

Ministry of Industry

Ministry of Regional Development and Planning

Ministry of Employment and Vocational Training

Regional Technical Committees can also be invited to take part in the NSC if suggested by the core

members. The Committee will meet twice a year.

Regional Technical Committee In line with the Government of Tunisia’s decentralization strategy the project implementation

structure will be decentralized at regional level. To ensure the correct implementation of the project

a Regional Technical Committee will be formed by:

• Regional Governor (convener and chairperson)

• API representative (main counterpart)

• Representatives of MoI and MoE (Bureau regional d’emploi)

• Regional project coordinators

• Other service providers where and when needed (centres des affaires, ANETI, etc)

Terms of reference of the RTC

The Regional technical committee will be tasked to:

• Discuss implementation issues of the project and provide assistance whenever feasible

• Help ensure the project is aligned with regional development strategies

• Take stock of results and impact of the project

• Prepare reports to the National Steering Committee

• Garner support for the project with multiple stakeholders

28

ANNEX C: BUDGET SHEET SUMMARY (in USD)

Budget lines Description budget-lines Total in USD Italian UB share in USD HP share6 in USD USAID share USD

11-00 International Experts 672,200 335,000 7,200 330,000

13-00 Project assistants 78,000 72,000 1,000 5,000

15-00 Project expert travel

(national/international)

52,300 27,500 24,800

16-00 Staff travel

(national/international)

15,000 10,000 5,000

17-00 National experts 836,778 314,000 25,000 497,778

21-00 Sub-contracting

(institutions)

512,527 78,000 62,727 371,800

33-00 In-country trainings and

workshops

179,056 93,000 86,056

45-00 Equipment 217,800 41,000 176,800

51-00 Miscellaneous 37,000 30,000 7,000

Total net (without

support costs) 2,600,661 1,000,500

272,727 1,327,434

91-00 Support costs7 329,904 130,065 27,273 172,566

Total cash (incl.

support costs) USD 2,930,565 USD 1,130,565 USD 300,000 USD 1,500,000

6 HP will additionally provide in-kind contributions in terms of travel, personnel costs and intellectual property (HP LIFE), estimated at USD 410,000 7 Support costs: 13% USAID, 13% GOI, 10% HP

29

ANNEX D: LOGICAL FRAMEWORK

Intervention logic Objectively verifiable

indicators Sources of

verification Assumptions Donors/Budget in USD

Development

goal / impact

Create job opportunities for young people in

four vulnerable regions, by developing new and

existing companies

• # of jobs for youth created (KPI

11) increased by 5% in 2014 in

the targeted project regions.

• Share of jobs created for young

females will be 50%

• Employment surveys

• Quantitative data from

Governorates and

employment centres

Outcome 1 Assisted business support structures/institutions

provide relevant and quality services to youth

• # of SMEs accessing support

institutions’ services increase

of 25% by end 2014

• Users’ survey

• Institutions’

quantitative reports

• Institutions have

absorptive capacity

• Business environment

remains conducive to

enterprises

development

Outcome 2

New and existing enterprises improve their

business performances and create jobs

• Improved resource efficiency

(material, water, waste,

energy)

• # jobs created

• At least 50% of assisted

companies adopt the TEST

methodology

• Firm surveys

• Statistics on business

registration

• Employment record

• Political situation in

Tunisia remains stable

and private and public

sectors continue to

employ young people

and investors expand

their portfolio of

projects

• Financial institutions

invest in SMEs

development incl.

green productive

sectors

COMPONENT 1 Methodologies:

Enterprise creation and development

UNIDO TEST

Output 1.1

Market assessment completed at the project

outset to ensure for a demand driven approach

• Local demands

assessed/analyzed by sectors

• Report/market

assessment

• Availability of qualified

national expert

USAID:$10,000 total

$10,000 national expert

Output 1.2

Support institutions are strengthened in the field

of enterprise creation, growth and

competitiveness

• At least 16 entrepreneurship

promotion seminars (4 per

region x 2 each year) will be

• M&E reports from

support institutions

• M&E reports

• Institutions are able to

provide support to

higher number of

Italy: $129,000 total

$43,000 (entrepreneurship

30

organized by local capacitated

partners and Universities,

reaching out to a minimum of

800 youth of which 50% are

women

• At least 40 youth of which 50%

have received training on

enterprise creation

• At least 40 existing enterprises

received technical assistance

for business growth – among

these enterprises a significant

share will be managed by

women

projects (human

resources are available)

promotion seminars)

$50,000

(training enterprise

creation)

$36,000 (regional experts)

Output 1.3

Environmental training contents developed and

provided to training institutions and private

experts in the four regions

• At least 16 experts from

support institutions and 16

private experts trained and

have applied the green

business plan (a significant

share of experts are women)

• Training reports

• M& E reports

• Institutions are able

to include the

modules into their

curricula

• Private experts are

motivated to facilitate

the training

Italy: $ 30,000 total

$12,000 (development of

the environmental training

module)

$18,000 ( regional experts)

Output 1.4

115 projects are selected by National Steering

Committee and experts to receive training,

support and technical assistance

• At least 40 starts up identified

• At least 75 expansion projects

of existing enterprises

identified

• List of projects selected

• Progress reports of

experts/institutions

providing counselling

and technical

assistance

• M&E reports

• Projects (on-going,

new) with high

employment potentials

are available in the

selected lagging

regions

Italy: US$30,000 total

$12,000 (experts for

identification of projects)

$18,000 (regional experts)

Output 1.5

115 selected projects in the selected regions

assisted (40 start ups for training and counselling

and 75 existing enterprises have received direct

and adequate technical assistance including the

UNIDO TEST methodology)

• 40 SME action plans

formulated (for the start ups)

among which a significant

share of SMEs are managed by

women

• 40 growth plans developed (for

existing enterprises)

• At least 15 enterprises receive

TA on TEST methodology

• Action plans

• Bank

reports/institutions’

financial reports

• Enterprises’ surveys

• Data on water and

energy consumption

provided by SMEs prior

and after use of TEST

methodology

• The TEST methodology

can be applied in the

selected SMEs in the

targeted regions

• SMEs are interested in

participating in the

TEST

Italy: US$ 280,000

$78,000 (training and TA

TEST)

$40,000 (int. experts TEST)

$15,000 (int. experts for

technical assistance)

$75,000 (experts TA)

$72,000 (regional experts)

USAID: US$293,000

$120,000 (int’l experts

31

including $10,000

evaluation expert)

$10,000 (expert travels)

$119,000 (TA experts)

$44,000 (subcontracts

technical centers for TA to

enterprises

Output 1.6

Assistance is provided to selected projects to

access adequate funding and linkages with

UNIDO networks (i.a ITPO)

• US $ mobilized by the selected

projects

• The selected entrepreneurs receive

the funds

• Financial agreements

• RTC reports

• API report

• M&E reports

• Companies are able to

mobilize collateral and/or

guarantees

Italy: US$ 28,000

$6,000 (regional experts

$10,000 (financial scheme

experts)

$12,000 (regional experts)

COMPONENT 2 Methodology:

HP LIFE (UNIDO-HP partnership )

Output 1.78

Enhanced capacity of eight training centers to

provide LIFE trainings

• Selected 8 training centers

equipped with technology to

provide trainings for

entrepreneurs

• Center reports

• Equipment in place

(Equipment delivery

confirmation)

• Training institutions

have a suitable training

room available

HP: US$ 177,800 total

$176,800 (notebooks,

printers, projectors)

$1,000 (project assistants)

Output 1.8

Young entrepreneurs access IT tools in business

training and business counselling for enterprise

creation and business efficiency

• 32 local trainers trained on IT

tools in business (HP LIFE)

• 10-12 HP LIFE master trainers

trained

• At least 1400 youth trained

F2F on IT tools for business

• At least 146 LIFE trainees

obtained business/financial

counselling to facilitate the

creation of their own

enterprise

• Share of women entrepreneurs

is about 50%

• MTOT and TOT Training

reports

• Bi-annual HP LIFE

center surveys

• Training centers

reports

• Employment records

Training institutions are

capable to support the

indicated number of

youth;

Young people are IT savvy

to access and manage the

tools

USAID: US$ 429,578

total

$82,000 (int’l experts

including $10,000 evaluation

expert)

$268,778 (national project

coordinator, national experts

for LIFE trainings and business

counselling)

$75,000 (LIFE MTOT and

TOTs)

$3,800 (project travel)

8 Outputs 1.7 and 1.8 are complementary, but financed by different donors

32

9 Output 1.11 will be closely linked to Output 1.12

Output 1.9

Development of an environmental training

module for the online LIFE curriculum

• Environmental training

module developed in

French/Tun. Arabic

• Integration of

environmental module

into online LIFE platform

• Abt. 400 entrepreneurs

access LIFE

environmental module

(abt. 50% are women)

Online reporting

Training centres surveys

and reports

Integration of LIFE environmental

module into online LIFE

curriculum technically feasible

Sufficient access to online

learning for entrepreneurs.

USAID: US$ 177,800 total

$30,000 (int’l experts)

$35,000 (national experts for

development of training module)

$102,800 (design & online

integration of environ. training

module for LIFE)

$5,000 (staff travel)

$5,000 (project assistant)

Output 1.10

Online HP LIFE platform adapted and launched • Online training platform

available in

French/Arabic

• Abt. 7,000

entrepreneurs access

LIFE training online

platform

Online reports

Training centres surveys

Launch of global HP LIFE online

platform is as planned

USAID: US$ 405,056 total

$98,000 (int’l experts)

$60,000 (national experts)

$150,000 (subcontract training

platform)

$86,056 (trainings, workshops)

$11,000 (expert travel)

Output 1.119 Communication and promotional activities on

HP LIFE

• Promotional activities

(press, video production

etc.) implemented on

HP LIFE online training

tools

• Media reports, press

releases

• Interest of media to cover HP

LIFE and institutes / networks

to promote HP LIFE online

HP: US$84,927 total

$10,000 (int’l evaluation expert)

$15,000 (national experts)

$59,927 (video production,

press, media)

COMPONENT 1 Methodologies:

Enterprise creation and development

UNIDO TEST

COMPONENT 2 Methodology:

HP LIFE (UNIDO-HP partnership )

Output 1.12

Communication and marketing strategy is

developed and implemented

• At least 4

promotional/awareness

raising events

implemented

• At least 4 different media

kit s are developed for

different audiences

• Press Release

collections

• M&E reports

• Interest of media to cover the

events

Italy: US$ 56,000

$30,000 (comm. strategy and

media coverage)

$20,000 (national comm.

experts)

$6,000 (regional experts)

USAID: US$ 12,000

$12,000 (national comm.

33

Output 1.13 Management, Monitoring and Evaluation of

project

• The project activities are

implemented according to

the timelines set in the

project document

• M&E reports

• Reports for NSC

Italy: US$ 409,500

$170,000 (international

project expert)

$90,000 (technical support

HQ)

$20,000 (international

Evaluation expert)

$20,000 (national M&E

expert)

$72,000 (2 project assistants:

one at HQs, one in the field)

$10,000 (staff travel)

expert and misc.)

HP: US$ 10,000

$10,000 (national comm.

expert)

34

ANNEX E: PROJECT TIMELINES

Outputs Months

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Output

1.1

Market assessment

completed at the project

outset to ensure for a

demand driven approach

x x

Output

1.2

Support institutions are

strengthened in the field of

enterprise creation, growth

and competitiveness

x x x x x x x x x x x x x x x x x x x x x x x x x x x x

Output

1.3

Environmental training

contents developed and

provided to training

institutions and private

experts in the four regions

x x x x x x x x x x x x x x

Output

1.4

80 projects are selected by

National Steering Committee

and experts to receive

training, support and

technical assistance

x x x x

Output

1.5

115 selected projects in the

selected regions assisted (40

start ups for training and

counselling and 75 existing

enterprises have received

direct and adequate

technical assistance including

the UNIDO TEST

methodology)

x x x x x x x x x x x x x x x x x x x x x x x x

Output

1.6

Assistance is provided to

selected projects to access

adequate funding and

linkages with UNIDO

x x x x x x x x x x x x x x x x x x x x x

35

networks (i.a ITPO)

Outputs Months

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Output

1.7

Enhanced capacity of eight

training centers to provide

LIFE trainings

x x x

Output

1.8

Young entrepreneurs access

IT tools in business training

and business counselling for

enterprise creation and

business efficiency

x x x x x x x x x x x x x x x x x x x x x x x x x x x

Output

1.9

Development of an

environmental training

module for the online LIFE

curriculum

x x x x

Output

1.10

Online HP LIFE platform

adapted and launched x x x x x x x x x x x x x x x x x x x x x x x x x x

Output

1.11

Communication and

promotional activities on HP

LIFE

x x x x x x x x x x x x x x x x x x x x x x x x x x x

Output

1.12

Communication and

marketing strategy is

developed and implemented

x x x x x x x x x x x x x x x x x x x x x x x x x x x X

Output

1.13

Management, Monitoring

and Evaluation of project X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X