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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of Investment and Technology Promotion (Kingdom of Bahrain) Project title: UNIDO Investment and Technology Promotion Office (ITPO)

Bahrain Project ID number: 190327 Area/Location/Countries: Global Thematic priority: HC2 Advancing Economic Competitiveness HC21 Investment, Technology, and SME Development Planned start-finish date: 1 January 2020 – 31 December 2024 Duration: 5 years Government Co-coordinating agency: Ministry of Finance and National Economy Project Inputs:

Project Total: USD 8,104,410

Support Costs (10%): USD 810,441 Grand Total: USD 8,914,851

Brief description: The main purpose of this project is to continue promoting domestic and foreign investment through the provision of added value support services to existing and potential entrepreneurs/investors in order to contribute to the industrialization efforts of Bahrain and developing countries and to the establishment of a private sector-led economy by identifying and mobilizing the financial, technological, and other resources required for the establishment of business partnerships. This will be achieved through redressing industrial development imbalances by bridging investment and technology gaps for MSMEs most in need as well as by identifying new bankable opportunities for investors and technology suppliers to find potential partners. In doing this, ITPO Bahrain will complement the efforts of the global community to promote investment and technologies with sustainable and development impact towards developing countries as outlined in the 2030 Agenda, in particular Goal 9 “Building resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”, against the backdrop of challenges and opportunities related to Industry 4.0.

Approved: Signature: Date: Name and title: On behalf of …………….: ___________________ __________ ___________________ On behalf of UNIDO: ___________________ __________ __________________

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Table of Contents

A. CONTEXT .................................................................................................................... 3

A1. Project Purpose/Problems to be addressed ........................................................... 3

A2. Baseline Scenario .................................................................................................. 3

A3. Main Target Groups .............................................................................................. 7

A4. Stakeholders ......................................................................................................... 7

A5. Synergy ................................................................................................................. 7

B. UNIDO APPROACH ...................................................................................................... 8

B1. Rationale .............................................................................................................. 8

B2. Comparative Advantage ...................................................................................... 11

B3. Inception Phase ................................................................................................... 12

B4. Sustainability Strategy ......................................................................................... 12

B5. Gender Mainstreaming Strategy .......................................................................... 12

B6. Environment and Social Assessment .................................................................... 13

C. THE PROJECT ............................................................................................................ 14

C1. Objective ............................................................................................................. 14

C2. Expected Outcome .............................................................................................. 14

C3. Outputs and Activities ......................................................................................... 15

C.4 Project Logical Framework ................................................................................... 18

C.5 Risks and Mitigation measures ............................................................................ 20

C.6 Institutional Arrangements and Coordination Mechanism ................................... 20

D. BUDGET ITEMS ......................................................................................................... 21

D.1 Counterpart inputs .............................................................................................. 21

D.2 UNIDO inputs ...................................................................................................... 21

E. BUDGET .................................................................................................................... 21

F. MONITORING, REPORTING AND EVALUATION .......................................................... 24

G. PRIOR OBLIGATIONS AND PREREQUISITES ................................................................ 25

H. LEGAL CONTEXT ........................................................................................................ 26

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A. CONTEXT A1. Project Purpose/Problems to be addressed

Economic growth is a crucial component for building a globally competitive economy, with a productive, prosperous middle class that enjoys high-wage jobs and good living standards; which will also lead to the achievement of the SDGs. Investment and technological progress go hand in hand. Addressing the challenges and opportunities represented by the fourth industrial revolution calls for investment beyond plant and machinery. Foreign direct investment (FDI) in particular is an important driver of industrial performance, as it is expected to directly improve industrial productivity growth by infusing new capital, technologies and managerial know-how into economies, and by improving the average skill and efficiency levels of industries. Therefore, in order to attain growth, the developing countries and those with economies in transition need to mobilize investment - both domestic and foreign - as well as modern technologies, so as to expand their productive assets and increase their core competencies and competitiveness. However, the flows of investment and technology to developing countries have not materialized to the extent expected. This situation largely reflects the problems arising from government and market failures and weaknesses in institutional capacity, which together make for a business climate not conducive to investment and technology promotion. The approach of this project is therefore to address these government and market failures in a systematic manner, so as to alleviate some of the problems faced by developing countries and those with economies in transition in this area against the backdrop of the fourth industrial revolution. The services provided within the framework of this project have been designed in such a way as to address the specific needs of Bahrain and developing countries according to their respective stage of industrial and technological development. A2. Baseline Scenario

Bahrain pioneered the Middle East’s oil production in 1932, thus establishing the region’s initial framework for the petroleum industry. This emerging petroleum industry enabled Bahrain to modernize its economy by moving beyond traditional industries such as pearl diving and fishing. Aware or the commodity’s finite nature, the Kingdom sought to diversify its economy at an early stage and consequently established itself as a leading regional financial centre with a highly regarded regulatory system. According to the World Bank’s 2019 “Doing Business” report, Bahrain ranks 62 in the world for the ease of conducting business, and the World Economic Forum’s 2018 “Global Competitiveness Report” ranks it 50th. Accordingly, to Bahrain’s Economic Development Board (EDB) the Kingdom’s GDP has grown successfully over the past several years to reach $37.75 Billion in 2018. Due to its liberal economic policies and a clear roadmap that aims to achieve prosperity for society, the country’s economy continued its upward trajectory in 2018 with a real GDP growth rate estimated at %1.8. The Non-oil sectors, manufacturing industries, and the financial sector have achieved %2.5 growth rate during 2018.

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Bahrain ranks 50th in the world based on the 2018 Index of Economic freedom published by the Heritage Foundation. The country also has a strong workforce, boasting 95.7% literacy with 64% at working age, and contributing to economic diversification and development. The GDP in Bahrain saw an annual growth of 3.8% from 2014 to 2017, led by positive movements in the non-oil sectors which contributed to 82% of Bahrain’s GDP. Overall, the non-oil sectors posted an average annual growth rate of 4.4% during the same period, whilst the oil sector reported a 0.7% reduction in growth. The GDP contributions of each sector are as follows: 16.8 % Financial Services; 16.7 % Oil and Gas; 14.1 % Manufacturing; 12.7 % Government Services; 7.6 % Transportation and Telecommunication; 7.4 % Construction; 6.3 % Social and Personal Services; 5.9 % Real Estate and Business Activities; 4.5 % Trade; 2.5 % Hotels and Restaurants; 1.8% Electricity and Water; 3.6% Other. However, this success in diversifying the economy was not reflected in terms of revenue, as the revenues from the oil sector still managed to hit 75% of total government revenues in 2017. The overall growth in the non-oil sector indicates the ambitions of Bahrain to diversify its revenue streams. MSMEs play an important role in the Bahraini economy, the Ministry of Industry, Commerce and Tourism (MOIC) reported that 6,102 new Commercial Registrations were issued in 2018, an increase of 16% compared to 2017. This increase was attributed to a 29% increase in CRs issued for Individual Establishments, with a slight decrease of 0.3% for those CRs issued to companies. This brings the total number of active CRs in Bahrain to 82,597, a 22% increase from 2017. Bahrain also benefits from a liberal economic policy and women’s empowerment initiatives. The ratio of female to male participation in the labour force is roughly equal across all age groups, with women just edging in front of men. As indicated above, the strong financial sector in Bahrain permits it to play a vital role in promoting outward investments keeping in mind the sluggish international market trends towards investment, thus allowing Bahrain to play a major role in alleviating poverty through sound investments in developing and least developed countries. Despite the positive results achieved by Bahrain in terms of inward and outward investment in the last few years, much is still to be done with regards to the promotion of domestic investment and the facilitation for MSMEs to set-up partnerships and attract foreign direct investments. The Government of Bahrain in its Economic Vision 2030, which was launched in October 2008 by His Majesty King Hamad bin Isa Al Khalifa, is a comprehensive economic vision for Bahrain, providing a clear direction for the continued development of the Kingdom’s economy and, at its heart, is a shared goal of building a better life for every Bahraini. The guiding principles of the Economic Vision 2030 are sustainability, competitiveness, and fairness.

Sustainability

A considerable share of the country’s growth over the last two decades was driven by the public sector. This model is running out of steam, as government finances become tighter

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and competition increases in a global economy. By 2030, the private sector should be able

to drive economic growth in Bahrain independently. Bahrain's Vision sees the economic prosperity built on a firm foundation. Government finances will adhere to the principle of sustainability, upholding a system that is stable and forward-looking. Bahrain will use its resources to invest in the future, improving its human capital through education and training, particularly in the field of applied sciences. In a world where modern technology and new competitors from across the globe are continually shortening product lifetimes, entrepreneurship, and innovation will ensure the sustainability of a vibrant private sector. But economic growth must never come at the expense of the environment and the long-term well-being of Bahrainis. No effort will be spared to protect Bahrain's environment and preserve the kingdom's cultural heritage.

Competitiveness

Bahrain will attain a high level of competitiveness in a global economy. Increased productivity comes about much more naturally in a competitive environment, driving economic growth, profitability, and wages. Only high and continuously improving productivity will enable businesses to increase their employees' wages. Higher productivity requires people with the right skills for each position. To be Competitive; Bahrain will go to great lengths to educate their people, retain qualified staff, and attract foreign workers with the skills that are lacking. The key is to make Bahrain a great place to do business for both local and foreign companies. Many factors combined to make a country attractive to investors in high-value-added industries: a high-quality public service, a cutting-edge infrastructure, and an appealing living environment are among.

Fairness

Bahrain's Vision is that the country’s future economic success will impact society more widely, creating a broad base of prosperity. Every individual can make a worthwhile contribution to society, given the means and presented with the opportunity. For fairness to be nurtured, all transactions made by both the public and private sectors must be

transparent. Free and fair competition should prevail, with private and public activities taking place in the open, whether they concern employment, land for public auction or the outcome of a tender. The role of Bahrain is to provide the legal and regulatory framework that ensures the protection of consumers and fair treatment for business owners – including foreign investors. This means stamping out corruption and seeing that laws are justly enforced. Fairness in society means that all are treated equally under the law, in accordance

to international human rights; and that everyone has equal access to services, namely education, and health care, and that the needy are supported via adequate job training and a targeted social safety net. These three guiding principles are in line with the Sustainable Development Goals (SDGs). High economic growth, government finance, improving human capital, fairness, and highly competitive markets will contribute to achieving a variety of SDGs. These goals are considered as the government's current priorities and are linked to the executive actions of the present Government Action Plan (GAP) for 2019-2022 looks to achieve the following general objectives that are relevant to the mandate of this project;

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1. Invest in the citizen through enhancing, improving and sustaining the government services in education, health and other sectors

2. Maintain a safe and stable society 3. Enhance sustainable development to achieve fiscal balance and maintain positive

economic growth 4. Drive the private sector to become the biggest developmental actor, and to create

quality opportunities for citizens and investment 5. Establish rules of optimal use of resources and ensure its sustainability for future

generations 6. Sustain social and economic development by adopting legislations and initiatives

supporting family stability and achieving gender equity 7. Continue financing development projects and infrastructure, enhancing growth and

serving citizens 8. Redefine the role of the public sector, from the main driver to a regulator and

partner, developing and facilitating government procedures 9. Support creativity, excellence and the role of women, youth and sports in all

government programmes and initiatives. The government will seek to achieve these objectives with the following priorities:

1. Upholding the values of the state and society 2. Financial sustainability and economic development 3. Supporting an enabling environment for sustainable development

The “Financial sustainability and economic development” priority falls in line with the mandate and scope of this project; as it aims at

- Promoting the role of the private sector as a main driver for growth - Diversifying the local economy by supporting prioritized economic sectors (oil,

manufacturing, financial services, logistics, tourism, communication and IT). - Enhancing the legislative and regulative environment for sectors enabling economic

growth. - Reinforcing and develop an investment environment to encourage investment,

innovation and entrepreneurship. - Attracting foreign investments and experts to support a sustainable economy. - Improving the international exhibitions and fairs industry to make the Kingdom a

regional and international hub for exhibitions and gatherings. - Enhancing cultural programmes contributing to promote cultural tourism sector. - Continuing to improve the link between Bahrain and regional and international

markets. - Enhancing food security and encourage investments in this sector. - Reinforcing tourism in the sports, health and education fields to be one of the sources

of the national economy, and encourage the private sector to invest in these fields. - Supporting the labour market and enhance the role of emerging, small and medium

enterprises enabling economic growth

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A3. Main Target Groups

The target beneficiaries are private enterprises, institutions and governments in developing countries and economies in transition as the project will support their efforts in increasing investment and technology flows. The project would also benefit the private sector in Bahrain, which will be provided with opportunities to enter new otherwise inaccessible markets through an array of value added services provided through the project. A4. Stakeholders

The main stakeholder of the project will be the Government of Bahrain, represented by the Ministry of Finance and National Economy; in addition to a number of secondary stakeholders namely the Ministry of Industry, Commerce and Tourism, the Economic Development Board, the SME Fund (TAMKEEN); the Bahrain Chamber of Commerce; Supreme Council for Women, Supreme Council for Environment, a number of financial institutions, Universities, and others. A5. Synergy

Besides the continuous synergies with other ITPOs located in the People’s Republic of China (Beijing and Shanghai), Germany, Russia, Japan, Nigeria and the Republic of Korea, ITPO Bahrain will benefit from technical linkages with other UNIDO services of the Departments of Trade, Investment and Innovation, Environment, Energy, Agri-Business, External Relations, Partnerships, Policy, Research and Statistics and others; as well as with the UNIDO Field and Regional Offices. Furthermore, ITPO Bahrain will seek complementarities with ongoing UNIDO projects under the Programme for Country Partnership (PCP), which is currently being implemented in Cambodia, Ethiopia, Kyrgyzstan, Morocco, Peru and Senegal. The PCP constitutes the backbone of UNIDO’s multi-stakeholder approach to accelerate the achievement of inclusive and sustainable industrial development (ISID). The PCPs respond to national industrial development challenges by bringing together all relevant stakeholders − the government, development finance institutions (DFIs), the private sector, academia and other development partners − to unlock knowledge, expertise, technology, as well as the finance and investment necessary to spur ISID. ITPO Bahrain will work closely in forming synergies with other UN Agencies and regional development organizations and funds; as they are directly relevant to the mandate of ITPO Bahrain; this entails the following organizations; ESCWA, Islamic Cooperation Youth Forum, Dubai Expo 2020, Arab Bank for Economic Development in Africa, Arab Organization for Agricultural Development, Union of Arab Banks, Union of Arab Chambers, Franchise Association for the Middle East, UN Environment Program (West Asia Office), G5 Sahel, and others.

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B. UNIDO APPROACH B1. Rationale

The Lima Declaration, signed by all UNIDO Member States in December 2013 towards “Inclusive and Sustainable Industrial Development (ISID)”, recognizes that industrialization is a driver of development as it increases productivity, contributes to job creation and generates income. The Declaration also acknowledges the challenges that many countries continue to face, such as “unemployment and poor access to financial resources”. Therefore, in its efforts to contribute to ISID, UNIDO focuses on “enhancing productive capacities in a way that supports the structural transformation of the economy; encourages economic growth and the creation of decent jobs, particularly, in the small and medium-sized enterprise sector”. The Lima Declaration states that ISID recognizes that “economic growth is driven by entrepreneurship, continuous economic diversification, growing trade relations, industrial upgrading and technological innovation”. Effective economic development can be achieved through ISID promoting economic empowerment and the creation of decent jobs for all, including youth and women. Therefore, UNIDO promotes inclusive economic development contributing to maximizing job creation and a competitive private sector through entrepreneurship development, access to financial services, sectoral studies, investment promotion, upgrading of companies, technical and institutional capacity building. UNIDO’s investment/technology/promotion strategy has a two-fold target. On the one hand, it focuses on the capacity-building needs of institutions that are main players in the various aspects related to investment and technology promotion. On the other hand, it addresses the needs of enterprises at the various phases of the investment and technology promotion cycle. As part of this strategy, UNIDO operates its Network of Investment and Technology Promotion Offices (ITPOs) and has consistently developed, over many years of experience in industrial development and investment, an array of methodologies and tools. UNIDO Network of ITPOs is an exclusive feature of UNIDO’s investment and technology promotion program to foster industrial partnerships. It brings industrial investment and latest technology to those countries most in need of a promotional helping hand. At the same time, it opens up new bankable opportunities for investors and technology suppliers to connect with potential partners in developing countries. ITPOs make MSMEs in their host countries aware of business opportunities in developing countries. Their involvement includes development of investment projects, match making, assistance in negotiations and investment project completion. ITPOs guide potential investment and technology partners from their host countries and from developing countries in the identification and finalization of investment and technology agreements, acting as impartial brokers. In doing so, ITPOs offer a full package of advisory services, such as information on opportunities for international investment ventures and technology acquisition/transfer, organization of technology exhibitions and investment events at national, regional and international levels, business and institutional delegations to and from the host countries and delegate program. Through ITPO Bahrain UNIDO is well

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positioned to be aware of the needs and offers of investors in developed countries and to match them with investment partnership proposals from developing countries. The main focus of UNIDO ITPO Bahrain will be the promotion of inward and outward investment in selected sectors such as Industry 4.0, renewable energy and clean technology, water technologies, agribusinesses, health and wellness, aluminium, tourism infrastructure etc., leading to a more diversified economy and lesser reliance on oil revenues. Additional emphasis will be exerted to stimulate scientific research and technological innovation and technology management, which interfaces production with technology. ITPO Bahrain intends to develop and strengthen linkages with financial institutions from Bahrain and the region (Bahrain is considered the financial hub for the Middle East) in order to mobilize and facilitate financial resources for MSMEs in Bahrain and selected developing countries. The project also foresees ITPO Bahrain’s provision of support to institutions dealing with entrepreneurs in the region (such as Chambers of Commerce and Industries, developmental organizations and funds, financial institutions, commercial banks, line ministries, universities, and consultancy firms dealing with entrepreneurs) through upgrading their capabilities to utilize UNIDO’s tools and methodologies for MSME development. Assistance will be provided directly to start-ups as well as existing entrepreneurs/investors for developing their bankable investment profiles, provision of financial linkages and technological tie-ups in order to become more competitive and unleash innovation. ITPO Bahrain jointly with UNIDO Headquarters and relevant counterpart institutions will be engaged in the identification and formulation of industrial partnership opportunities. These partnership proposals often do not fully answer the questions related to commercial profitability criteria and need to be supported at different phases of Investment and Technology Promotion. The ITPO, therefore, will contribute to filling this gap through fostering the industrial cooperation between Bahrain and the developing countries, which eventually would lead to the establishment of joint investments. According to its mandate, ITPO Bahrain will be actively involved in the implementation of UNIDO’s strategy in the field of investment promotion and technology diffusion and at the same time being in line with the Kingdom’s vision 2030 and the GAP 2019-2022. Hence; it will;

1. Facilitate the attraction of foreign investments and technology through the

mobilization of domestic investment and enterprise development by assisting local

investors/entrepreneurs along the investment project lifecycle and creating linkages

with financial institutions and local partners.

2. Source financial support and linkages for MSMEs through the various financial

schemes available in Bahrain and beyond

3. Promote bankable investments and technology transfer through the UNIDO ITPO

Network (cash investment, technology & know-how, market access)

4. Assist existing enterprises in upgrading/growth by assessing their needs and defining

the appropriate interventions through counseling and business advice in order to

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create a sound basis for the promotion of domestic investment thus leading to the

mobilization of foreign direct investments.

5. Build contacts with enterprises in Bahrain willing to consider a business venture with

a partner in a developing country or a country with economy in transition or to

provide inputs for such a venture;

6. Assess investment opportunities with a view to determining whether a partner can

be found in Bahrain that will be able and willing to supply the foreign resources

sought;

7. Utilize the contacts with enterprises in Bahrain for the promotion of industrial

partnerships by informing such enterprises of relevant proposals and of the foreign

resources sought by their local partners; by providing information on individual local

partners and on the climate for investment and technology transfer in the recipient

countries concerned;

8. Bring local and foreign investors/entrepreneurs into direct contact through UNIDO’s

meetings/forums and through any other appropriate means with a view to their

commencing negotiations on cooperating in the implementation of the project;

9. Support and assist both parties in their negotiations and in completing the

preparation of a viable strategy, up to the stage at which the parties can conclude a

written agreement to implement the project;

10. Assist investors/entrepreneurs in implementing the initial stage of business

partnerships by providing project development facilities, if available, on a co-

financing basis;

11. Advise potential business partners on financing possibilities from national and

international financing institutions involved in financing industrial projects;

12. Assist developing countries in identifying the interest of potential foreign

entrepreneurs/investors on potential bankable investment opportunities and in the

incentives offered by those countries, by receiving delegations representing both the

public and private sector and arranging direct contacts between the members of

these delegations and the industrial and financial communities of the host countries;

13. Assist developing countries in building and strengthening national capabilities

required for the establishment of industrial partnerships by hosting delegations from

developing countries and arranging direct contacts between the members of these

delegations and the industrial and financial communities of Bahrain;

14. Provide on-the-job orientation programs to delegates within the “Delegate

Programme”, as well as to assist them in the promotion of a portfolio of bankable

industrial investment opportunities originating from their home countries;

15. Gather, present and disseminate information on specific manufacturing facilities

which enterprises in Bahrain seek to establish in developing countries through a

business partnership with a local entrepreneur; to assist in identifying local partners

and help both parties to conclude an agreement;

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16. Disseminate information on UNIDO’s service packages, to cooperate with UNIDO

Headquarters of any interest/feedback thereon and to assist in the mobilization of

resources for their implementation;

17. Disseminate information on and promote UNIDO’s methodologies, tools and

publications;

18. Develop and implement programs and initiatives that are conducive to the

achievement of the objectives of ITPOs.

B2. Comparative Advantage

Since its inception, in response to the demands of its member states, UNIDO has been involved in the promotion of foreign investment and technology transfer. The organization operates in this field both as a catalyst and promoter of industrial partnerships, stimulating and guiding the sponsors and promoters of investment and technology projects in the initial phase of project formulation and assisting them in the search for potential partners in developing, emerging and industrialized countries.

UNIDO has been the first international organization to promote foreign investment to developing countries (and to the former centrally planned economies) and is the only one with a comprehensive expertise in industrial development, including policy advice, impact assessment of new technologies, technology transfer, quality and environmental concerns, and private sector development. Furthermore, UNIDO is impartial, neutral and non-profit oriented thus representing an “honest broker”.

UNIDO's hands-on experience with the various facets of investment promotion, application of new technologies and technology transfer has led to the development of methodological instruments and tools. Some of those instruments have high visibility and have become landmarks of UNIDO, being used by governments, banks, companies, etc. UNIDO's main services support public and private institutions, domestic enterprises, and investors at various levels of intervention (policy, institutional and enterprise) throughout the partnership development process. UNIDO's approach is not limited to the promotion of FDI, but encompasses the mobilization of other resources, including technology, market access, quality and environmental concerns, and helps develop the domestic entrepreneurial base. UNIDO has access to industrial related organizations and institutions, investment and technology opportunities, financing institutions, consultants, local companies in developing, emerging and industrialized countries. UNIDO has demonstrated its ability to focus its services on providing support to developing countries and economies in transition in their efforts to accelerate socio-economic development with regard to:

creation of a competitive economy (measured in terms of growth and structural transformation);

productive employment (measured in terms of employment, gender distribution, wealth generation);

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strategic positioning of industry within the development strategies of the developing countries;

building capacities in industry support institutions to deliver services to industry (particularly to MSMEs);

contributing to the economic empowerment of youth and women regionally and internationally, through the development of eco-systems that encompass incubation management systems, business counselling and mentoring programs.

This mandate given to UNIDO reflects its experience, achievements and capabilities and makes UNIDO best qualified to deliver the services of this project. ITPO Bahrain’s interventions are clearly in line with Government policies. Through the promotion of inward and outward investment and technology transfer ITPO Bahrain is well positioned to contribute to the Bahraini Government’s drive to diversify the economy and to develop Bahrain as a regional hub for Renewable and Clean Technology industries. B3. Inception Phase

UNIDO ITPO Bahrain was established in 1996 on the basis of an indefinite period agreement between the Government of the Kingdom of Bahrain and UNIDO and since then has operated and provided its services on a continuous basis. The implementation of this project will benefit from already established operational procedures therefore no inception phase is foreseen. B4. Sustainability Strategy

ITPOs are designed to be an ongoing operation and presupposes a stable institutional set-up in order to be effective. Investment promotion and technology transfer from Bahrain into developing countries, especially into the challenging and untapped markets in Africa, requires the careful and continuous selection of suitable projects, technologies and financing mechanisms. Building stable working relationships and trust with entrepreneurs, technology owners, investors and partner institutions on all levels is therefore an important element of ITPO Bahrain’s mission. B5. Gender Mainstreaming Strategy

Gender equality and the empowerment of women are key to UNIDO’s goal of achieving inclusive and sustainable industrial development (ISID), as mandated by Member States in the Lima Declaration adopted in December 2013 (GC.15/Res.1) and highlighted in SDG 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”. The multiplying effect of industrialization on all other areas of development contributes to the entire 2030 Agenda, and also supports SDG 5: “Achieve gender equality and empower all women and girls”. Furthermore, the Government Action Plan (2019-2022) outlines that women empowerment is a focus area and this has been taken into consideration in the design of this project. To address the issue within the project’s mandate, the promotion of gender equality and the empowerment of women will be pursued during the implementation of all project activities, as well as in the design and funds mobilization efforts which might be undertaken by ITPO

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Bahrain. The project will seek to engage local gender-specific/women’s groups, associations and/or gender focal points in ministries or other governmental institutions to participate in the activities of the UNIDO ITPO Bahrain. It shall be considered to facilitate B2B meetings and other sorts of matchmaking activities especially for women entrepreneurs/ women-led businesses in the various events organized or co-organized by ITPO Bahrain; for example, World Entrepreneurs Investment Forum; International Women's Entrepreneurial Challenge Foundation; B2B International Businesswomen's Investment Forum and Exhibition International Youth Innovation Summit; and others. The project will promote initiatives that will contribute to continuity and enhancement of gender equality, in particular to promote the inclusion of women in productive activities. The project aims to ensure that women and men equally benefit from investment promotion; capacity building and other activities of the project, equal participation of women and men in both project management arrangements and as beneficiaries, partners and key stakeholders of the project, as well as ensuring coordination among key development actors to further enhance gender mainstreaming and promote gender equality and empowerment of women. In case new programmes will be developed in the framework of this project, a gender analysis will be conducted in line with UNIDO's Policy on Gender Equality and the Empowerment of Women. Access (or rather non-access) to finance is a topic of particular relevance to many women, especially in developing countries/ economies in transition. ITPO Bahrain acknowledges this persistent inequality. ITPO Bahrain will take into consideration the different gender roles and herewith connected their needs and barriers in regard to accessing ITPO Bahrain’s services (timing, safety and security). For instance, the review of investment regulatory and policy frameworks (Activity 4.8) will include a gender perspective to help identify possible gender-specific barriers to participation for men and women. In the framework of the monitoring efforts, the ITPO Bahrain will collect sex-disaggregated data, especially data on women led and/or women owned enterprises. A minimum target of 40% has been set for participatory activities and baseline data, including on women and women-led/-owned enterprises, will be collected during the first six months of the project. Furthermore, according to UNIDO best practices all communication activities will use gender inclusive language. Using gender-inclusive language means speaking and writing in a way that does not discriminate against a particular sex, social gender or gender identity, and does not perpetuate gender stereotypes. Given the key role of language in shaping cultural and social attitudes, using gender-inclusive language is a powerful way to promote gender equality and eradicate gender bias. ITPO will attempt to achieve equal representation of men and women in visual materials as doing so can help break down gender stereotypes; may foster greater engagement, and may promote stronger identification with ITPO activities. B6. Environment and Social Assessment

As per UNIDO ESSPP, the project was classified as a category C project, but all potentially resulting industrial projects shall undergo separate Environmental and Social screenings. The project will focus on the promotion of sustainable technologies and responsible investment thereby paying special attention to environmental impacts and productivity

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improvement interventions to increase energy efficiency, including through the application of ENMS (energy management systems), UNIDO methodology and tools such as TEST (Transfer of Environmentally Sound Technologies) and others. The project will focus on SMEs and start-ups in developing countries and countries with economics in transition which have a significant role in job creation and income generation, thereby contributing to poverty alleviation, social inclusion and inclusive industrial development. Furthermore, SME development has been shown to have a positive impact on indirect employment creation due to the effects that business expansion has on the value chain. In regard to the social aspect, project activities are meant to improve the general situation of SMEs in developing countries and economies in transition, which means to strengthen their productivity, increase market access and, as a consequence of SMEs profitability, improve the working and the economic conditions of workers.

C. THE PROJECT

C1. Objective

The objective of ITPO Bahrain is to contribute to the industrial development and economic growth of developing countries and countries with economies in transition by identifying and mobilizing the technical, financial, managerial and other resources from Bahrain for the implementation of industrial investment and technology partnerships and to enhance investments with a developmental impact towards these countries. C2. Expected Outcome

Private enterprises, institutions and IPAs, existing and potential entrepreneurs/investors in developing countries will increase investment and technology flows benefitting from the support and services of ITPO Bahrain through capacity building, promotion and conclusion of industrial partnerships, increased technology and investment flows and knowledge. Among the business community in Bahrain and in the region, awareness of developing countries as potential destinations for investment and technology transfer will be further enhanced; first-hand information on investment climate, regulations and requirements will be disseminated and specific bankable investment opportunities in these countries will be promoted. Due to assistance and guidance to potential partners in industrial ventures and technology transfer throughout the whole investment cycle - from project identification through appraisal to implementation - with the support of UNIDO’s widely recognized tools and methodology, the possibility for concluding industrial partnerships between enterprises from developing and industrialized countries will be increased.

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C3. Outputs and Activities

1. Investment Promotion – Support services provided to potential investment partners and relevant institutions

2. Technology Transfer – Sustainable Technologies identified and promoted towards developing countries/economies in transition

3. Synergetic Collaboration – Mutual support provided within the ITPO Network and UNIDO HQ Technical Departments, as well as with UN Agencies and programmes in the host country

Output 1. Investment Promotion – Support services provided to potential investment partners and relevant institutions

Activities Responsibility

1.1 Identify and promote bankable industrial investment opportunities in developing countries to potential investors.

ITPO Bahrain

1.2 Assist enterprises from Bahrain and from developing countries in the identification, evaluation and negotiation of joint investment projects, including the organization of B2B meetings

ITPO Bahrain

1.3 Disseminate information on investment climate and investment opportunities, newsletters and other communication media targeting potential investors

ITPO Bahrain

1.4 Organize/contribute to investment related events, B2B and B2G events, business missions to support match-making and promote investment opportunities from developing countries/countries with economies in transition

ITPO Bahrain, ITPO network

1.5 Develop and support developing countries in institutionalizing domestic investment programs leading to the mobilization of FDI and technology transfer projects

ITPO Bahrain

1.6 Facilitate policy advice to Bahrain and developing countries/countries with economies in transition towards ensuring a conducive domestic and foreign investment ecosystem

ITPO Bahrain

1.7 Facilitate access to credit and equity participation for potential domestic and foreign investors in cooperation with Development Finance Institutions (DFIs), export credit agencies, impact investors, start-up programmes and accelerators and other project preparation facilities.

ITPO Bahrain

Output 2. Technology Transfer – Sustainable Technologies identified and promoted towards developing countries/economies in transition

Activities Responsibility

2.1 Maintain and actively develop a database of appropriate technologies and projects to be introduced for the benefit of developing countries

ITPO Bahrain

2.2 Maintain and actively develop a database of appropriate and relevant investment projects in Bahrain and developing countries for investment and technology partnerships

ITPO Bahrain, Advisors, IPAs and local institutional partners

2.3 Verify usefulness and technical and financial viability of the identified technologies and projects for application in respective country of destination in a scientific and economic manner by

ITPO Bahrain

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partnering with external technical advisors and specialized institutions

2.4 Provide information and advice to interested parties in Bahrain and in developing countries/economies in transition regarding opportunities for transfer of technology and knowhow.

ITPO Bahrain

2.5 Organize seminars/workshops, and/or study tours to promote sustainable technologies to potential beneficiaries

ITPO Bahrain, ITPO Network

2.6 Organize, participate in and/or contribute to national and international technology fairs with business delegations, including the organization of B2B and B2G meetings

ITPO Bahrain, ITPO network

Output 3. Synergetic Collaboration – Mutual support provided within the ITPO Network and UNIDO HQ Technical Departments, as well as with UN Agencies and programmes in the host country

Activities Responsibility

3.1 Liaise with other ITPOs to share investment and technology transfer opportunities from developing countries

ITPO Bahrain, ITPO network

3.2 Liaise with other Bahraini and regional stakeholders of ITPO Bahrain, to identify additional opportunities for projects and implement joint initiatives.

ITPO Bahrain

3.3 Closely interact with other UN agencies and regional partners to implement joint initiatives/projects/events to promote sustainable development

ITPO Bahrain

3.4 Contribute to joint initiatives (TC projects and global fora) with UNIDO HQs (technical departments and field offices)

ITPO Bahrain

3.5 Contribute to advocacy, communication and other joint activities of the ITPO Network

ITPO Bahrain, ITPO network

3.6 Contribute to institutional learning by organizing and participating in capacity and skills trainings, as well as by dissemination of resources and tools to stakeholders

ITPO Bahrain, ITPO network

3.7 Contribute to /organize joint activities and events with other UN organizations and regional partners

ITPO Bahrain

3.8 Contribute to ITPO Network’s international and regional B2B and Global Fora events and to yearly ITPO Heads Meeting.

ITPO Bahrain, ITPO Coordination

Output 4. Capacity building and enhancing the ecosystem for domestic investment for leveraging foreign direct investment

4.1 Develop and support developing countries in institutionalizing domestic investment programs leading to the mobilization of FDI and technology transfer projects

ITPO Bahrain

4.2 Contribute to institutional learning by organizing and participating in capacity and skills trainings, as well as by dissemination of resources and tools to stakeholders

ITPO Bahrain

4.3 Develop joint innovation and investment promotion activities with local SMEs and public/private entities, incl. organization of awareness raising events and exhibitions, development of specialized platforms and techno parks of open innovation, etc.

ITPO Bahrain

4.3 Organize seminars/workshops, and/or study tours to promote sustainable technologies to potential beneficiaries

ITPO Bahrain

4.5 Develop an internship programme and organize internships for students of Arab/Gulf countries in order to develop a sound

ITPO Bahrain

17

knowledge base on sustainable industrial development and raise awareness about UNIDO’s mandate

4.6 Develop a training and methodological center in cooperation with AICEI public and/or private academic institutions to foster innovative technology promotion activities, enhance technological development of industry and strengthen local capacities to attract investment for industrial projects.

ITPO Bahrain

4.7 Organize/contribute to investment related events, B2B and B2G events, business missions to support match-making and promote investment opportunities from developing countries/countries with economies in transition

ITPO Bahrain

4.8 Undertake review of investment regulatory and policy framework in Arab/Gulf countries to identify potential bottlenecks and remedial actions

ITPO Bahrain

4.9 Contribute to joint initiatives and identify opportunities to implement joint Investment Promotion Projects with other ITPOs

ITPO Bahrain

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C.4 Project Logical Framework

RESULTS KPI'S / INDICATORS TARGETS MEANS OF VERIFICATION ASSUMPTIONS

OBJECTIVE

Contribute to the industrial development and economic growth of developing countries and countries with economies in transition

- number of actors reporting economic gains (additional income, savings, productivity gains) as a result of UNIDO's intervention

- number and rate of firms reporting technology upgrade and innovation as a result of UNIDO interventions

- number and rate of firms reporting an increase in exports as a result of UNIDO's intervention

- number of new green manufactured products as a result of UNIDO interventions

- number of firms reporting improved access to productive assets (electricity generation capacity, intermediate goods etc.) as a result of UNIDO intervention

1500 500 200 150 150

periodic interviews with project beneficiaries - site visits - records of supply use - company’s annual reports/statements of financial position - statistics

OUTCOME

Enhanced private sector cooperation between Bahrain and developing countries/economies in transition involving investment projects and/or transfer of sustainable technology.

- number of new technologies developed as a result of UNIDO interventions

- number of countries reporting the adoption of new technologies as a result of UNIDO interventions

- number of firms reporting the acquisition of new technologies as a result of UNIDO interventions (data shall indicate whether the technologies stem from women or men-led enterprises/or composition of executive board in terms of board members’ sex)

- number of bankable proposals elaborated by firms as a result of UNIDO interventions

- number of new bankable proposals financed by banks as a result of UNIDO interventions (data shall indicate whether the proposals stem from women or men-led enterprises/or composition of executive board in terms of board members’ sex)

- value ($) of co-financing by countries as a result of UNIDO interventions

- value ($) of new investments leveraged by UNIDO interventions (firms and non-firm actors)

- number of intermediary institutions/service providers replicating UNIDO-supported practices

- number of actors gaining awareness/knowledge/skills as a result of UNIDO interventions on public and private investments and financial arrangements ( sex-disaggregated (target: 40% female participants)

50 15 500 of which 20 - 30% women 750 500 of which 40-50% women 1 million USD 500 million USD 40 500 of which 40 to 50% women

- reports by project beneficiaries - company’s annual reports/statements of financial position - periodic interviews with project beneficiaries - site visits - records of supply use

- Government commitment and support is provided - Bahrain private sector’s interest in engaging in business in

developing countries - Developing countries/economies in transition are open to

engage with Bahrain investors and technology providers - Some level of political and economic stability in target

country

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RESULTS KPI'S / INDICATORS TARGETS MEANS OF VERIFICATION ASSUMPTIONS

Output 1: Investment Promotion – Support services provided to potential investment partners and relevant institutions

- # investment seminars/fora/ missions organized - # of meetings arranged - # of delegates hosted, sex-disaggregated (target: 40% female

participants) - # of investment opportunities identified/ promoted (data shall

indicate whether the opportunities stem from women or men-led enterprises/ or composition of executive board in terms of board members’ sex)

- # of training workshops completed - # of participants, sex-disaggregated (target: 40% female

participants) - # of women entrepreneurs’ access to finance improved

50 1000 50 of which 40 to 50% women 1500 50 500 of which 40 to 50% women 500

- reports by project beneficiaries - company’s annual reports/statements of financial position - periodic interviews/surveys with project beneficiaries - site visits - records of supply use - media reports

Investors see local and foreign markets as opportunity and are interested in investing in developing countries/ countries with economies in transition some level of political and economic stability in target country Incentives/services offered in Bahrain and target country

Output 2: Technology Transfer – Sustainable Technologies identified and promoted towards developing countries/economies in transition

- # of technologies identified and promoted (data shall indicate whether the technologies stem from women or men-led enterprises/or composition of executive board in terms of board members’ sex)

- # of study tours organized (target: 40% female participants) - # of delegates hosted, sex-disaggregated (target: 40% female

participants) - # technology fairs/ meetings organized - value ($) of equipment/technology transferred by UNIDO - # database established incl. a gender marker to help guide GEEW-

conscious investors

500 of which 40 to 50% women 50 of which 40 to 50% participants are women 50 of which 40 to 50% women 20 100 million USD 5

- reports by project beneficiaries - company’s annual reports/statements of financial position - periodic interviews/surveys with project beneficiaries - site visits - records of supply use - media reports

technology suppliers will be interested in promoting their technologies in developing countries/ countries with economies in transition technology suppliers have access to risk mitigation measures technology suppliers offer service packages incl. trainings and spare parts Existing technology gaps are identified and addressed

Output 3: Synergetic Collaboration – Mutual support provided within the ITPO Network and UNIDO HQ Technical Departments, as well as with UN Agencies and programmes in the host country

- # of ITPO Heads Meeting and other Network related initiatives participated in

- # of joint activities with UNIDO’s Headquarters conducted - # of UNIDO Headquarters missions supported - # of joint activities with UN System - # of joint activities with Bahraini and regional institutions - # of promotional activities using gender-inclusive language - # of events attended or organized to promote UNIDO, its services

as well as SDGs. - # (and kind of) of communication and outreach campaigns

conducted using gender-inclusive language - # of media contacts established (HQ and field)

20 10 10 10 50 All activities 20 10 50

- Media reports - line ministries and support institutions - Conference papers/etc. - list of media contacts

UNIDO takes all necessary measures to ensure a vital exchange and collaboration within the ITPO network Other UN agencies and international organizations are open for collaboration UNIDO’s technical departments are interested in engaging with ITPO Bahrain and develop joint activities

Output 4. Capacity building and enhancing the ecosystem for domestic investment for leveraging foreign direct investment

- number of countries reporting the adoption of UNIDO tools and methodologies

- # of training workshops completed - # of participants, sex-disaggregated (target: 40% female

participants) - # of study tours organized (target: 40% female participants)

25 25 500 of which 40 to 50% women 20 of which 40 to 50% of participants are women

- reports by project beneficiaries - company’s annual reports/statements of financial position - periodic interviews/surveys with project beneficiaries - site visits - records of supply use - media reports

Government commitment and support is provided Developing countries/economies in transition are open to engage with Bahrain investors and technology providers Some level of political and economic stability in target country

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C.5 Risks and Mitigation measures

Assumptions Description of risk Likelihood and remedial measures

The Government of Bahrain is ready to fully support the operational management of the ITPO and full execution of the planned outputs

Reduction of support by host government due to major shift in government policies towards MSME development and investment & technology promotion

(low) Continued dialogue with the government to ensure commitment to the project

The counterpart institutions are demonstrating a full commitment to the delivery of agreed activities within the execution of the planned outputs

The counterpart institutions are not capable to demonstrate a full commitment to the agreed activities due to changed strategical priorities and/or reduction of financial, technical and resources capacities

(low) Continued dialogue with the counterpart institutions to ensure their commitment to the delivery of agreed activities

It will be possible to identify and deploy international and national experts of requisite qualifications and experience requested for the implementation of the project

It will be difficult to identify and deploy international and national experts of requisite qualifications and experience due

(low) UNIDO will engage an international staff as the ITPO head of Office and further increase international expertise by engaging experts and consultants drawing from its ITPO network and the UNIDO consultants’ database. In addition, full-time National Project Officers and General Staff with requisite qualifications would support the Head of Office to ensure efficient and effective management of the ITPO with respect to production of outputs, implementation of activities and managing inputs.

C.6 Institutional Arrangements and Coordination Mechanism

ITPO Bahrain was subject to an Independent Evaluation for the project cycle 2017 to 2019; the final report is currently undergoing final editing. The evaluation has concluded that the ITPO Bahrain overall assessment is 5.5 out of 6. As per one of the main recommendations set forth by the Independent evaluation, UNIDO ITPO Bahrain will be operating on a 5 year project cycle. This has already been discussed and agreed upon with the Government of Bahrain. ITPO Bahrain is managed under the overall guidance of the Chief of the Investment Promotion Division (PTC/TII/INV), and under the direct supervision of the ITPO Coordinator, which both form part of the Department for Trade, Investment and Innovation (PTC/TII). Close synergies will be established with other ITPOs worldwide, as well as with other PTC/TII/INV business areas through the ITPO Coordination Unit at Headquarters, as required. Collaboration with other TII Divisions and UNIDO technical departments will be sought under the overall guidance of the Office of the Department Director.

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The annual work programme (AWP) of ITPO Bahrain will be in line with UNIDO’s annual management priorities and considers inputs from UNIDO Headquarters’ divisions, programmes and projects, as well as from stakeholders in the host country. The AWP will be prepared under the overall coordination and guidance of the ITPO Coordination Unit and the Directorate of Programme Development and Technical Cooperation.

D. BUDGET ITEMS D.1 Counterpart inputs

The Ministry of Finance and National Economy of Bahrain shall place at the disposal of UNIDO a special purpose contribution for the continuation of the activities of the UNIDO Office, on the basis of a mutually agreed budget. UNIDO shall administer the special purpose contribution in accordance with its financial rules and other applicable regulations. D.2 UNIDO inputs

UNIDO’s Trade, Investment and Innovation Department (PTC/TII/INV) will provide backstopping, guidance, expertise, administrative support and monitoring to ITPO Bahrain as well as coordination with other ITPOs worldwide and UNIDO headquarters. The Head of UNIDO ITPO Bahrain shall be appointed by the Director General of UNIDO after consultation with the host Government in accordance with UNIDO regulations, rules, and procedures. Other staff, as may be required for the operations of the office, shall be appointed by UNIDO in accordance with the same rules and regulations. The ITPO Head will manage and supervise the operations of ITPO Bahrain and, with the assistance of the office’s staff, will ensure the smooth implementation of the project activities and functioning of the office. Other UNIDO inputs include access to UNIDO methodology, tools and networks, specifically: All financial accounts and statements shall be expressed in Euros and there shall be no accounting or reporting in other currencies. For the purpose of recording receipts and/or payments, all transactions shall be converted into Euros at the official United Nations accounting rate of exchange applicable at the date of receipt and/or payment. In conformity with the United Nations financial rules and regulations, a separate account shall be established by UNIDO, wherein all expenditures relative to the project shall be recorded. The project account shall also be charged with an amount equivalent to 10 percent of all expenditures to cover the programme support services provided by UNIDO in the implementation of the project. UNIDO will provide access to its established network of ITPOs worldwide as well as its methodology and tools to carry out investment promotion activities, including screening and analyses of investment projects.

E. BUDGET

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The project follows the results-based management budget structure. In order to be able to respond to changing conditions and so as to ensure swift implementation, UNIDO may make budgetary adjustments, not foreseen in the project document, according to its rules and regulations: UNIDO will inform the donor about changes between budget components in case that shifts between outputs greater than 15 per cent become necessary. UNIDO will submit a revised budget for approval by the donor, showing and explaining the required changes. Changes between budgetary components are not to affect the total budget made available for the project. A budget showing cash and in-kind contributions will be established and agreed upon for each period.

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

Outcome:

Output 1: Investment Promotion – Support services provided to potential investment partners and relevant institutions 190327-1-01-01

1100 International experts 30,000 30,000 30,000 30,000 30,000

150,000

1500 Project travel 20,000 10,000 10,000 10,000 10,000

60,000

1700 National experts & admin staff 374,086 385,309 396,868 408,774 421,037

1,986,073

3000 In-service training, workshops -

3500 International Meetings 100,000 20,000 100,000 20,000 100,000

340,000

4500 Equipment -

5100 Miscellaneous 25,000 25,000 25,000 25,000 25,000

125,000

Sub-Total Output 1 549,086

470,309 561,868

493,774 586,037

2,661,073

Output 2: Technology Transfer – Sustainable Technologies identified and promoted towards developing countries/economies in transition 190327-1-01-02

1100 International experts 30,000

30,000 30,000

30,000 30,000

150,000

1500 Project travel 20,000

10,000 10,000

10,000 10,000

60,000

1700 National experts & admin staff 374,086

385,309 396,868

408,774 421,037

1,986,073

3000 In-service training, workshops -

4500 Equipment -

5100 Miscellaneous 25,000

25,000 25,000

25,000 25,000

125,000

Sub-Total Output 2 449,086

450,309 461,868

473,774 486,037

2,321,073

Output 3: Synergetic Collaboration – Mutual support provided within the ITPO Network and UNIDO HQ Technical Departments, as well as with UN Agencies and programmes in the host country 190327-1-01-03

1100 International experts 10,000

10,000 10,000

10,000 10,000

50,000

1500 Project travel 5,000 5,000 5,000 5,000 5,000

25,000

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1600 Staff travel 10,000

10,000 10,000

10,000 10,000

50,000

1700 National experts & admin staff -

5100 Miscellaneous 2,000 2,000 2,000 2,000 2,000

10,000

Sub-Total Output 3 27,000

27,000 27,000

27,000 27,000

135,000

Output 4: Capacity building and enhancing the ecosystem for domestic investment for leveraging foreign direct investment (non-core) 190327-1-01-04

1100 International experts 40,000

40,000 40,000

40,000 40,000

200,000

1500 Project travel 20,000

20,000 20,000

20,000 20,000

100,000

1700 National experts & admin staff 35,000

35,000 35,000

35,000 35,000

175,000

3000 In-service training, workshops 40,000

40,000 40,000

40,000 40,000

200,000

4500 Equipment 5,000 5,000 5,000 5,000 5,000

25,000

5100 Miscellaneous 10,000

10,000 10,000

10,000 10,000

50,000

Sub-Total Output 4 150,000

150,000 150,000

150,000 150,000

750,000

Output 5: Project Management and Monitoring 190327-1-51-01

1100 International experts 242,462

249,736 257,228

264,945 272,893

1,287,264

1100 International experts at HQ 10,000

10,000 10,000

10,000 10,000

50,000

1500 Project travel 20,000

20,000 20,000

20,000 20,000

100,000

1600 Staff travel 5,000 5,000 5,000 5,000 5,000

25,000

4300 Premises 135,000

135,000 135,000

135,000 135,000

675,000

4500 Equipment 42,000 2,000 2,000 2,000 2,000

50,000

5100 Miscellaneous 2,000 2,000 2,000 2,000 2,000

10,000

Sub-Total Output 5 456,462

423,736 431,228

438,945 446,893

2,197,264

Output 6: Independent mid-term and terminal evaluation 190327-1-53-01

1100 International evaluator 20,000

20,000

1500 Project staff travel 5,000 5,000

1700 National evaluator(s) 15,000

15,000

5100 Miscellaneous -

Sub-Total Evaluation - - - - 40,000

40,000

TOTAL 1,631,634

1,521,353 1,631,964

1,583,493 1,735,967

8,104,410

Programme Support Cost (10%) 163,163

152,135 163,196

158,349 173,597

810,441

GRAND TOTAL 1,794,797

1,673,488 1,795,160

1,741,842 1,909,564

8,914,851

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F. MONITORING, REPORTING AND EVALUATION

UNIDO shall furnish the Government of Bahrain with a report on the activities and achievements of the ITPO at the end of the project cycle. The project will be monitored according to the indicators listed in the logical framework, undergo reviews in accordance with the country and regional needs and report to a Steering Committee. While regular project progress reports will be prepared (minimum 3 per year) as per UNIDO procedures, the ITPO will also prepare brief reports for the Steering Committee on request. The main functions and responsibilities of the Steering Committee (SC) will be to: (i) monitor and review progress of the ITPO activities; (ii) approve work programmes; (iii) ensure the effective coordination between all key stakeholders; (iv) advise on the effectiveness the on-going activities, including any adjustments that need to be made to solve any pressing issues facing the effective functioning of the ITPO. The SC will be made up of representatives from UNIDO and from the Ministry of Finance and National Economy. The UNIDO Department Director and the responsible equivalent senior manager of the Ministry will co-chair the SC. Additional members of the SC are: Chief of the Investment Promotion Division and ITPO Coordinator or designated officer as well as representatives from the Ministry of similar rank to the UNIDO delegation. The Head of ITPO acts as the SC Secretariat. The SC will take place annually and for cost-efficiency reasons may be done via teleconference.

Type of M&E activity

Responsible Parties

Budget EUR

Time frame

M&E design and tools to collect and record data (performance indicators)

ITPO Head and ITPO Investment Promotion Experts

0 The targets will be defined at the start of project (within the first 6 months)

Preparation of Annual Work Programme (to be submitted at the end of November)

ITPO Head, ITPO Investment Promotion Experts, Project Manager (ITPO Coordinator) (HQ), Programme Committee

0

To be cleared by ITPO Coordination Unit and submitted to the Government of Bahrain at least one month before each year of project implementation, for onward transmission and approval by the Government of Bahrain. *Could be subject to adjustments to UNIDO’s management priorities.

Periodic Review Meetings with Permanent Mission of Bahrain to UNIDO

Project Manager (ITPO Coordinator) (HQ), Chief of UNIDO Africa Regional Programme (HQ), PTC Managing Director (HQs)

0

1-2 times per year

25

Type of M&E activity

Responsible Parties

Budget EUR

Time frame

Regular gathering and analysis of data against performance indicators monitoring and analysis of performance indicators

ITPO Head, Project Manager (ITPO Coordinator) (HQ), ITPO Investment Promotion Experts

0

On a regular basis in order to bolster the management of the project to provide inputs for project progress/activity reports and UNIDO reports and for the purpose of evaluation exercises

Preparation and review of progress reports (end of April and end of September) and annual report (end of the year)

ITPO Head, Project Manager (ITPO Coordinator) (HQ) Programme Committee

0

Progress reports to be submitted to ITPO Coordination Unit. Progress Report 1 at the end of April, Progress Report 2 at the end of September and Annual Report (3) at the end of the year. Annual reports are to be submitted to the Government of Bahrain at least one month before each year of project implementation, for onward transmission and review.

Visits to project site Project manager and UNIDO HQ staff as required

TBD When required

ITPO Heads meeting

ITPO Heads, Project Manager, Steering Committee; UNIDO HQ

ITPO travel

budget

Once a year to assess project progress and performance ad any other factors related to implementation

Joint Project Evaluation

Project Manager, UNIDO HQ, independent external evaluators

40,000 Joint evaluation to be conducted at least six months before the end of the project cycle (2024)

TOTAL indicative cost 40,000

G. PRIOR OBLIGATIONS AND PREREQUISITES

The Government of Bahrain has expressed interest in implementing this project and in making the necessary funds available. UNIDO’s assistance is subject to the continuing commitment of the country and the other stakeholders towards project’s vision and objectives. The project is also designed on the premise that the Government of Bahrain will maintain the political will to promote investment and technology transfer to developing countries and countries with economies in transition.

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Another essential prerequisite for this project is that the Government’s counterparts ensure adequate planning and involvement in designated project activities, especially by means of availability and participation of national staff in the envisaged capacity building activities throughout project’s implementation.

H. LEGAL CONTEXT

The Kingdom of Bahrain agrees to apply to the present projects, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 3 August 1978 and entered into force on 18 March 1979.