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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of the Arab Republic of Egypt

Project number: 170251

Project title: Inclusive and sustainable development of the tomato value chain in Egypt

Thematic area code:

HC1 Creating shared prosperity HC11 Agribusiness and rural development

Starting date:

Duration: 24 months

Project site: Egypt

Government counterpart agency:

Ministry of Agriculture and Land Reclamation Ministry of Trade and Industry

Executing agency / cooperating agency: United Nations Industrial Development Organization (UNIDO)

Donor Government of Italy – Italian Agency for Cooperation and Development

Project inputs:

- Inputs: 1,769,911.50 EUR

- Support costs (13%): 230,088.50 EUR

- Counterpart inputs:

- Grand Total: 2,000,000 EUR

In-kind contribution:

Brief description

The proposed project aims to support the development of an inclusive and sustainable tomato value chain in Egypt by increasing value-addition and by enhancing technical capacities of youth, thereby enhancing their employability and job/business opportunities.

While Egypt is among the top producers of fresh crops in the world, the level of processing still remains low in terms of volume (around 10%) and quality (e.g. safety measures and product range) compared to other competitors. The example of tomatoes is even more striking. Egypt produces about 8 million tons of fresh tomatoes per year and is the world’s fifth largest producer, which can be attributed to its suitable climate, dual seasonality, and fertile lands. However, only 3–4% of the tomato crop is processed. The processing sector suffers from a lack of integration with the supply chain. This starts with primary producers, who are not fully aware of the potential for additional income they could benefit from by engaging in contract farming for the processing industry. At factory level, the opportunities to enhance production and add value are quite evident. This could be achieved by engaging in contract farming to ensure a better supply and increase production capacity, as at the moment they are operating at a maximum of around 60–70% of their capacity. Secondly, by improving skills of workers, technicians and managers to ensure a consistent quality and safety of final products. Finally, the processing tomato factories should be introduced to innovative products, such as new recipes and semi-processed products for the food service industry, including HORECA (Hotel/Restaurants/Cafés etc.).

The proposed initiative is therefore focusing on creating a Pilot Training and Service Center primarily serving the tomato processing value chain by linking primary producers with the processing industry, by offering a set of services for the existing and new tomato processors to develop their business starting by upgrading labour skills through specialized training courses and by introducing innovative products and/or processes to compete in the internal and external markets.

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LIST OF ACRONYMS

AEC Agriculture Export Council

AERDRI Agricultural Extension and Rural Development Research Institute

AERI Agricultural Economics Research Institute

AICS Italian Agency for Cooperation and Development

APC Agriculture Pesticides Committee

ARC Agricultural Research Center

BDS Business Development Services

CFI Chamber of Food Industries

CFI Chamber of Food Industries

EBRD European Bank for Reconstruction and Development

EDA Export Development Agency

EOS Egyptian Organization for Standardization

FAITC Food and Agro-Industry Technology Center

FAO Food and Agriculture Organization

FEC Food Export Council

FEI Federation of Egyptian Industries

GAPs Good Agricultural Practices

GDP Gross Domestic Product

GTI Green Trade Initiative

HACCP Hazard Analysis and Critical Control Points

HEIA Horticulture Export and Import Association

HRI Horticulture Research Institute

ICE Italian Trade Commission / Italtrade commission

IDA Industrial Development Authority

ILO International Labor Organization

IPM Integrated Pest Management

ISO International Organization for Standardization

ITC International Trade Center

MALR Ministry of Agriculture and Land reclamation

MSMEDA MSMEs Development Agency

MSMEs Micro, Small and Medium Enterprises

MTI Ministry of Trade and Industry

NCW National Council for Women

NFSA National Food Safety Authority

PSC Project Steering Committee

PVTD Productivity & Vocational Training Department

SDGs Sustainable Development Goals

SDS Sustainable Development Strategy

SMEs Small and Medium enterprises

TDMEP Trade and Domestic Market Enhancement Programme

PTSC Pilot Training and Service Center

TVET Technical Vocational Education Training

UNACOMA Association for Manufacturers of Agro-Industrial Machinery

UNIDO United Nations Industrial Development Organization

WPTC World Processing Tomato Council

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A. CONTEXT

A1. Project Purpose

To support the development of an inclusive and sustainable tomato value chain in Egypt by increasing value-addition and by enhancing technical capacities of youth, thereby enhancing their employability and job/business opportunities.

A2. Baseline Scenario

Agriculture is one of the largest sectors in Egypt, employing around one-third of the Egyptian labor force (32%) and representing 13% of GDP, while agro-industry constitutes 2% of GDP and employs 6% of the national labor force. Both sectors have great scope for improvement in both the quantity and quality of final products for local and external markets. In particular, while Egypt is among the top producers of fresh crops in the world, the level of processing still remains low in terms of volume (around 10%) and quality (e.g. safety measures and product range) compared to other competitors in the same market segment.

The example of tomatoes is even more striking. Egypt produces about 8 million tons of tomatoes per year and is the world’s fifth largest producer, which can be attributed to its suitable climate, dual seasonality, and fertile lands. However, only 3–4% of the tomato crop is processed.

The processing sector suffers from a lack of integration with the supply chain. This starts with primary producers, who are not fully aware of the potential for additional income they could benefit from by engaging in contract farming for the processing industry. This would reduce the risk of price fluctuation in the fresh market and also help processors to plan better and reduce waste. On another note, value-added operations can also provide additional job opportunities, including for women, with limited investment, while taking full advantage of Egypt’s mild climate throughout the year from North to South.

At factory level, the opportunities to enhance production and add value are quite evident. This could be done firstly by processors engaging with local producers' cooperatives and associations, to ensure a better supply and increase production capacity, as at the moment they are operating at a maximum of around 60–70% of their capacity. Secondly it could mean the introduction of innovative products, such as new recipes and semi-processed products for the food service industry, including HORECA (Hotel/Restaurants/Cafés etc.).

Another important element in upgrading the Egyptian agro-value chain would be the improvement of labor skills to ensure the consistent quality and safety of final products. In Egypt, there are no specific training courses or educational facilities specialized in the agro-food sector, while secondary school and university curricula are still quite academic, with little emphasis on factory operations, food safety measures, quality control or any other market-driven requirements.

Finally, two other relevant comparative advantages of Egypt’s agro-industry are worth mentioning. These are the recent devaluation of the Egyptian pound, which makes Egyptian products more competitive in export markets, and Egypt’s excellent geographical location in proximity to European, African and Gulf markets.

A.2.1 Tomatoes in Egypt: an overview of fresh and processed tomato production

Egypt is consistently the fifth largest tomato producer worldwide, with a 3.4% share (see Table 1 for recent data). However, most of the produce is sold fresh in the local market, with a negligible 0.1% exported fresh.

Production is characterized by low productivity (ranking 56th worldwide) compared to other regional competitors, like Turkey. The main issues relate to seed utilization, which are tailored to neither the fresh nor the processed sector, and a lack of mechanization and/or vertical cultivation, mainly due to the heavy fragmentation of cultivated land.

In addition, Egypt also has a very favorable climate for tomato cultivation all year round from Upper to Lower Egypt. This consists of two main seasons, winter and summer, as well as a short season in between called Nili.

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Table 1: Top 10 Producers of Fresh Tomatoes (2016)

Country Production Quantity of Fresh Tomatoes (Tons)

Share in Global Production

China 56,423,811 24% China, mainland 56,308,914 24% India 18,399,000 8% United States of America 13,038,410 6% Turkey 12,600,000 5.4% Egypt 7,943,285 3.4% Italy 6,437,572 2.7% Iran (Islamic Republic of) 6,372,633 2.7% Spain 4,671,807 2% Brazil 4,167,629 1.7% Total 186,363,061 80% World 233,466,175 100%

Source: FAOSTAT

With regards to processed tomatoes, only 3–4% of the total produce is used for further processing. Egypt is therefore lagging way behind in global rankings, contributing only 0.9% to the processed tomato market (ranking 17th in 2017). Meanwhile, other top producers such as the USA, China, Italy, Spain and Turkey are leading the sector for both fresh and processed tomatoes.

Table 2: Top 10 Producers of Processed Tomato by Production Quantity in Thousand Tonnes (2016–2017)

Country 2016 Share in Global Production

2017* Share in Global Production

California (USA) 11,470 30% 9,520 25% Italy 5,180 14% 5,200 14% China 5,150 14% 5,600 15% Spain 2,950 8% 3,300 9% Turkey 2,100 6% 1,900 5% Portugal 1,507 4% 1,554 4% Brazil 1,450 4% 1,450 4% Iran 1,150 3% 1,200 3% Chile 800 2% 1,080 3% Total 31,757 83% 30,804 82% World 38,072 100% 37,355 100%

Source: World Processing Tomato Council (WPTC). *Preliminary estimates.

It should be noted that the leading processed tomato categories1 are:

tomato paste, purée, and soup (HS code 200290)

canned tomatoes whole or pieced, peeled or unpeeled (200210)

tomato sauces and ketchup (HS 21032)

tomato juice (HS 200950)

The only category where Egypt has significant levels of production and export is tomato sauces and ketchup, with 1.8% of exports worldwide (ranking 9th).2

The key players here are 22 tomato-processing factories, mostly making tomato paste, tomato sauces and ketchup, with a total daily capacity of 7,500 ton/day of fresh tomatoes and with an average operation of 90 days per year. An additional 40 small companies pack tomato paste only.

1 It is estimated that in the 2015/2016 financial year, the 13 main production and trading countries (seven in the

EU, China, the USA, Turkey, Iran, Chile and Ukraine) exported approximately 5.98 million tonnes of finished products in the three leading tomato categories (including tomato paste representing 56%, and canned tomatoes and tomato sauces & ketchup representing 22% each). Paste is the main tomato product, both in production volume and in commercial value: in 2016, annual exports of tomato paste generated more than USD 3.35 billion (EUR 2.8 billion) of the USD 5.98 billion (EUR 5.4 billion) generated by this market (56%). 2 ITC Trade map

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Indeed, the demand for processed tomato products in major import markets is still increasing and diversifying due to demographic changes (such as aging populations, single-component families, immigration, shifting gender roles etc.).3 This is requiring the food industry to adapt quickly and to provide healthier and more consumer-oriented goods. A segment which is increasing is HORECA, where semi-processed products in larger packaging are used.

These developments provide a good opportunity for the Egyptian tomato processed sector to tap into different market segments, unleashing its potential from production to processing, by better integration and innovation in its value chain, adding greater value at each step, building the capacities of new and existing workers, and highlighting new opportunities for investment.

The Green Trade Initiative (GTI), a previous UNIDO project funded by the Italian-Egyptian Debt for Development Swap Program, sought to support agribusiness export and identified the main obstacles hampering the development of the tomato processing value chain as follows:

limited linkages between supply and processing factories causing disruption in industrial production (resulting in factories operating at 60–70% of their capacity); low quality of raw material; high losses in the logistics chain from field to factories (up to 40% of the tomato production);

inconsistency in quality and safety of final products, mainly due to limited knowledge of workers and middle management of food safety and hygiene requirements and practices; sub-optimal production workflow and practices;

limited number of products due to inadequate knowledge of export market trends, which translates to barely existent innovation in products (e.g. new processing techniques, new packaging formats etc.) and range of value-added products.

The proposed project will fill the gap identified during the implementation of the GTI, respectively, through:

enhancing and creating linkages between supply and processing factories;

improving the quality of tomato production and processing techniques;

strengthening and building technical skills of workers/technicians and managers in the processing factories;

improving marketing strategies in order to tap into new markets. All these activities will be realized in such a way as to tangibly improve the capacities of farmers and processors to build a strong, robust and sustainable tomato value chain.

With regards to labour, the food processing sector plays an economically important role in Egypt. It is considered to be one of the vital labour-intensive sectors which is able to create productive employment opportunities, whether directly in the sector itself or in its supply chain. It constitutes 25% of total employment in the manufacturing sector, with a share of women between 13–15% (22% for fruit and vegetable processing only).4

Based on a recent survey5 in the Egyptian food sector, at factory level, employers identified insufficient technical knowledge of their employees as well as of prospective candidates in the following areas:

food safety and hygiene and quality – including testing and certification for international markets;

quality assurance and sourcing high quality inputs/raw materials;

innovation – including research and development and new product development;

production – both linked to quality and food safety and hygiene, and with a focus on production management and maintenance;

marketing – particularly international marketing, but also domestic marketing and distribution, and managing international distribution channels.

The same survey recommends therefore to address efforts at all levels of production/processing regarding safety and hygiene matters, with a particular focus on capacity-building towards food

3 Barilla Center for Food and Nutrition, 2012. Eating in 2030: Trends and Perspectives.

https://www.barillacfn.com/m/publications/eating-in-2030-trends-and-perspectives.pdf 4 ILO, 2015. Skills for Trade and Economic Diversification (STED) in Egypt: the Case of the Food Processing

Sector. The project will integrate the information regarding labor division, gender and age during the inception phase through a baseline and within A1.2.1. on skills gap analysis. 5 Ibid.

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laboratory technicians, food processing technicians and food quality assurance specialists, as key figures at plant leve6l.

A.2.2 Coherence and relevance with Egyptian national strategies and SDGs

The agro-industrial sector is among the strategic sectors identified in Egypt Vision 2030, Egypt’s Sustainable Development Strategy (SDS), as it is a main driver for socio-economic development in the country, tackling both export competitiveness as well as employment creation (with special regards to youth).

The Ministry of Trade and Industry (MTI), in its recent program for the period 2016–2020, placed the agribusiness sector as a core industry for Egypt to reach the targets set for export, employment, value-addition and SME development. The Chamber of Food Industries (CFI) and the Food Export Council (FEC) also drafted their respective strategies in line with the Ministry’s priority actions. A comprehensive Food sector strategy is being also drafted, led by MTI and supported by the European Union through Trade and Domestic Market Enhancement Programme (TDMEP).

Furthermore, the Ministry of Agriculture and Land Reclamation (MALR), in its Sustainable Agricultural Development Strategy Towards 2030, highlights as priority areas the application of Good Agricultural Practices (GAPs), the integration of the value chain with the industrial segment and the promotion of value-addition at field level (especially in Upper Egypt).

The project is also in line with the Sustainable Development Goals (SDGs), as it aims for inclusive and sustainable economic development within the Egyptian agro-industrial sector. In particular, it falls within SDG 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation and Infrastructure), while also contributing to SDG 1 (No Poverty), 2 (Zero Hunger), 12 (Responsible Consumption and Production) and 17 (Partnerships for the Goals).

With reference to SDG 17, it will be very important for the project to actively involve the private sector in Egypt and Italy, not only as beneficiaries but also as partners, to ensure the relevance and sustainability of the actions implemented. As the main knowledge agents, they would help to promote the exchange of technical expertise, innovation and effective adaptation to market and consumer trends, as well as boosting investment.

A3. Main Target Groups

The project intends to improve the processed tomato value chain focusing on skills development from the field to the factory. The establishment of a specialized Pilot Training and Service Center (PTSC) dedicated to the agro-food sector, with a fully functional production facility, will allow to offer new and specialized training to workers, technicians and managers as well as a range of new Business Development Services (BDS) to the processing sector, with a focus to the processed tomato value chain. This is primarily to enhance quality and food safety throughout the value chain, as well as introducing new products, production techniques (e.g. oven drying, semi-processing, etc.) and supporting new investment opportunities. This will benefit not only the producers but also workers already employed in the sector, job seekers and young entrepreneurs.

The project’s activities will target the following groups, reaching out to at least 1,500 direct beneficiaries, indicators are disaggregated by gender and age in the LF, while disaggregated targets will be identified during the inception phase:

Primary producers and agricultural cooperatives / farmers’ associations, that will benefit from technical assistance and capacity-building with regards to GAP application, new tomato varieties, value-addition operations at field level and better market linkages; (Target: 1,000 primary tomato producers)

Workers employed in processing factories or unemployed workers (especially youth), whose skills will be enhanced in tomato production techniques, food safety and quality control in food processing, to improve their performance and/or job opportunities in the agro-industrial sector; (Target: 300 employed or unemployed workers)

Processing factories, including youth-led start-ups, benefitting from trainings provided by the new training facility for the agro-processing industry, as well as from the introduction of new products/production techniques for processed tomatoes based on local and export market requirements; (Target: 20 factories)

6 These kind pf technicians have usually a bachelor degree or higher. Women are quite well represented in this

category. However both men and women need enhanced skills and awareness about international food safety and quality requirements.

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Public and private institutions and research centers supporting the agro-industrial sector, which will benefit from the exchange of knowledge with the newly established training facility, including being involved in capacity-building activities for their staff with the support of international expertise; (Target: 4)

New investors, who will benefit from the establishment of a model tomato processing plant for testing investment opportunities (Target: 10)

Specific quantitative targets for the aforementioned groups of beneficiaries will be validated during the project’s inception phase, including a gender-sensitive baseline survey.7

Moreover, as the proposed project puts the promotion of sustainable and inclusive growth at its center, particular emphasis will be placed on addressing economic and social inclusiveness and active involvement of vulnerable groups (less affluent, women, youth and rural communities). The project will contribute to improving the farming environment (safe use of chemicals), developing sector specific technical and entrepreneurial opportunities, and the ability to capture business opportunities in national and international markets, thus contributing to better and more secure livelihoods for target beneficiaries and their households.

Final consumers, especially in the national market, will also indirectly benefit from the proposed project as a result of the efforts to improve local processing of food both in terms of safety and quality.

The proposed project is focusing on the tomato value chain only, however it also aims at proposing a model of value chain integration for processed horticultural crops which can be extended afterwards to other crops, such as artichokes, pomegranates, peppers, etc. On one side, primary producers will be more encouraged to engage in contract farming with processors, based on a positive example. On the other side, the processors can fully utilize the established Pilot Training and Service Center facility and its human resources to improve their workers’ performance and adopt better production techniques. The pilot center would also facilitate, where necessary, contacts between agro-industries and agricultural cooperatives / farmers’ associations. The pilot center will provide support to both new and existing investors to get access to available financial facilities.

A4. Stakeholders

The proposed project, in line with UNIDO’s mandate, will adopt a multi-stakeholder approach, building on the recent experience gained through the Green Trade Initiative8.

UNIDO will promote the active engagement of the Ministry of Trade and Industry and the Ministry of Agriculture and Land Reclamation as main counterparts, alongside their affiliated institutions, to align the project to national policies and strategies. The initiative will closely collaborate with the private sector and related representative bodies to ensure adherence to market and consumer needs, proposing a public-private partnership to support the newly established service / training facility, with the aim of benefitting the whole Egyptian agro-industry sector.

Here below a summary of the main institutions supporting the agro-food sector. Their specific engagement in the project will be better defined during the inception phase.

MTI and its affiliated specialized institutions relevant for the project and the agro-industrial sector:

o Food and Agro-Industry Technology Center (FAITC)

o Federation of Egyptian Industries (FEI) and Chamber of Food Industries (CFI)

o Export Development Agency (EDA) and the Food Export Council (FEC)

o MSMEs Development Agency (MSMEDA)

o Productivity & Vocational Training Department (PVTD)

o Industrial Development Authority (IDA)

o Egyptian Organization for Standardization (EOS)

MALR and its affiliated specialized centers and institutes, namely:

o Agricultural Research Center (ARC) and the Horticulture Research Institute (HRI)

o Agriculture Pesticides Committee (APC)

7 Further details in B3. Inception Phase. 8 Further details about GTI in B2 Comparative advantages

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o Other relevant centers and departments such as the Agricultural Economics Research Institute (AERI) and the Agricultural Extension and Rural Development Research Institute (AERDRI)

o Agricultural cooperatives and associations

o Local agricultural directorates

Other relevant Egyptian institutions will be also engaged during the project to complement specific actions such as:

o National Food Safety Authority (NFSA), to ensure alignment of training with recent legislative

requirements in the country

o National Council for Women (NCW), which has recently initiated supporting actions for women

in agriculture to enhance their safety, while increasing their skills to ensure a better income

o Relevant technical schools, institutes and vocational training centers to identify possible

beneficiaries (youth, trainers and consultants)

o Laboratories providing services for the food sector, to engage in specific training for quality

control and analysis for factory operators

o Financial and banking institutions to further scale-up and support investment opportunities in

the processed tomato sector

Similarly, synergies will be established with Italian public and private sector, being Italy a worldwide leader in the tomato processing industry both as manufacturer and as a technology provider.

Collaboration will be fostered to support transfer of know-how at all stages of the value chain, as well as to promote market access for Egyptian processors and possible business and investment opportunities for the private sector of both countries.

Worth mentioning among the most relevant Italian supporting institutions:

o Italian Trade Commission (ICE) in Egypt and in Italy

o Association for Manufacturers of Agro-Industrial Machinery (UNACOMA)

o Similar centers providing services and trainings to agro-industry, such as Agro-Industria

Ricerca Ecosostenibilità (AGIRE), Centro Servizi Avanzati per l'Agro-Industria (CSAGRI),

Stazione Sperimentale Industria Conserve Alimentari (SSICA), Scuola Centrale di Formazione,

Ente Nazionale ACLI Istruzione Professionale (ENAIP)

o Relevant fairs and exhibitions (e.g. Veronafiere, Macfrut and Tuttofood)

A5. Synergies

The proposed project will strengthen the network already fostered during the Green Trade Initiative9, as as well as previous projects implemented by UNIDO in the country within the agro-industrial sector10. The acquired experience and in-depth knowledge of agriculture production in Egypt will also ensure a fast mobilization of the project in the field, through direct linkages with local counterparts, including cooperatives and associations, lead farmers, agricultural directorates, extension services and suppliers, and by replicating successful experiences in new varieties cultivation and technical guidelines, among other things.

UNIDO will ensure coordination with other development projects, through sector-wide working groups, such as the Development Partners Group for the agribusiness sector, as well as through direct collaboration during implementation to increase efficiency and avoid overlapping. There are various projects which are currently involved in developing the agro-processing value chain that are worth mentioning. These include:

- EU-Joint Rural Development Project (Italy), intervening in Minya Governorate, one of the major

production area of fresh tomato in Egypt and hosting a good number of agro-processing

factories

- Food Loss and Waste Reduction and Value Chain Development for Food Security in Egypt and

Tunisia (funded by Italy, implemented by FAO), previously collaborating with UNIDO, within

GTI project, on logistics losses reduction of perishable crops and value addition through

farmers’ cooperative

- FAS-Future Egypt Food Security and Agribusiness Support (USAID), supporting fresh and

processed agro-value chain in Upper Egypt

9 Further details about GTI in B2 Comparative advantages 10 Further details about previous and on-going initiatives in B2 Comparative advantages

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- Upper Egypt Local Development Program (World Bank), which includes specific action around

tomato value-addition in Qena and Sohag Governorates.

- EBRD Value Chains and Competitiveness Programme, providing investment grants and

advisory services to locally owned SMEs within value chains with a specific focus on

agribusiness. Grants are focusing on purchasing machinery, tools, and equipment, introducing

new products and/or improving product standards, adding value to the product or service,

marketing and services, or enhancing resource/energy efficiency;

- TVET Reform Project (EU), targeting secondary schools, including agricultural schools, to

upgrade curricula and link them to private sector to enhance job opportunities

The project will also collaborate with local financial institutions to validate investment opportunities and the availability of financing schemes and soft loans,11 especially directed to youth, start-ups and/or acquisition of equipment and technology.

B. UNIDO APPROACH

B1. Rationale

Past projects implemented by UNIDO in the agro-industrial sector showed that the disparity between primary production and further processing, low degree of value-addition, weak productive capacity, high post-harvest losses, and lack of technical knowledge and market information are the bottlenecks of the processed tomato value chain. Similar obstacles are encountered in other agro-processing value chains in Egypt, with differing degrees of significance. However, the proposed approach and actions could be further replicated and extended beyond specific application to the processed tomato sector.

The overall objective of the project is to improve the economic performance of the processed tomato value chain in Egypt, based on the comparative advantages of the agricultural and processing sectors in the country, with outstanding agricultural conditions, easy access to high-end markets (Europe and Gulf states) and double seasonality, coupled with industrial facilities already equipped to produce a good range of processed products.

The project intends to enhance the tomato value chain by streamlining linkages between primary producers and processors in a sustainable manner, through a demand-driven approach to meet emerging market needs in terms of quality and safety. Similarly, processors will be encouraged to innovate their operations in order to increase their export performance and/or reach new segments in the local market.

The initiative is designed to produce positive effects across three areas of sustainability:

Economic: increasing revenues for all stakeholders in the value chain by enhancing tomato

production quantity and quality, through better products and production techniques, cost-

effectiveness, reduction of losses, capacity-building for employees of the tomato processing

sector as well as job seekers (including youth) improving their chances to grow in their current

job or access better employment opportunities.

Social: at field level, new joint activities (such as contract farming, packaging, drying, etc.) will

foster the engagement of women in productive activities, and increase income for smallholder

producers to improve their livelihoods, whilst reducing their risks and increasing their

resilience.12 Women are mostly employed in post harvesting and preparation/packaging of food and

horticultural products in general. Up to 70% of workers in these fields in rural communities are women,

based on previous experience in the country on tomato, grape and date value chain. The project will

further foster women participation through demonstrative unit and tailored technical training, including

business analysis awareness

Environmental: GAP application, in particular a better use of pesticides, will not just improve

production but also provide a healthier environment for producers and for rural communities,

as well as safer food. Reduced losses will also help diminish agro-waste and create a more

efficient use of natural resources, including an efficient use of water.

The first proposed action will be towards primary producers, in order to raise awareness among them of the

opportunities of the processing sector, which could offer a more stable source of income throughout the season, avoiding the unpredictability of the sale of fresh tomatoes. Producers currently still consider

11 For example, soft loans have previously been granted by the Italian Government for the acquisition of equipment

and technology, in collaboration with the Ministry of Trade and Industry and the Egyptian banking sector. 12 Agriculture for Impact, 2014. Small and Growing: Entrepreneurship in African Agriculture.

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processors as their last option for selling, while in top processing countries, such as Italy and Turkey, contract farming and advance production planning are widespread, successfully feeding the industry with a stable volume of produce, on time and with minimal losses or unsold crops. In Egypt, this model has been applied by Heinz. However, processors are still reluctant to directly engage with producers, resulting in suboptimal supply to factories and affecting the final product’s quality.

In this regard, UNIDO has recently promoted contract farming during the GTI project and facilitated negotiations with processors for both artichoke and tomato producers through local cooperatives and farmers’ associations13. As the project represents a neutral party, it contributes to lowering the mistrust among producers and processors, guiding them through the process and proposing technical advice and evidence to reach a sustainable partnership for both, not just in terms of a fair price but also in terms of supplying reasonable quantities in a reasonable timeframe.14

Production also needs to meet the demand from processing factories in terms of quality (varieties should be to a certain extent aligned, e.g. long or plum tomatoes, and logistics practices should be enhanced to reduce losses) and safety (safe use of pesticides, through GAP application, linking with pesticides applicators15). Therefore, the need for specific technical assistance has been envisaged.

Within the GTI project, UNIDO also positively tested value-addition at field level in collaboration with local agricultural organizations, by providing simple techniques of sorting and drying in open air, with minimal investment in terms of infrastructure and with a positive impact on employment through additional seasonal workers employed (80% women) and on income generation.

This experience will therefore be applied in selected areas in Upper and Lower Egypt and connections with processors will be fostered to further add value to tomatoes (e.g. sun-dried tomato in oil), highlighting the benefits of having a supply of semi-processed material twice a year.16

Within the second component of the project, the support to the processing sector will be twofold, and gender-balanced addressing both workers (new and existing) and entrepreneurs, to strengthen their capacities in meeting market needs in quality, safety and product innovation, thus improving the performance of the processed tomato sector.

At the moment in Egypt, there are no specific programs to develop the skills of workers and technicians in the food sector. As mentioned previously, employers have complained about the lack of knowledge of their workers and technicians as well as the difficulties in fulfilling vacancies in technical positions. A specialized Pilot Training and Service Center for tomato processing, including a demo production line, will be established and equipped within a selected institution/association.17 The project will define training curricula in collaboration with local private sector and international expert guidance to improve capacities of workers, technicians and supervisors, targeting and reaching women and men equally.

Envisaged topics are:

Food safety and hygiene in a processing factory;

Main steps of tomato production: sorting, blanching, cutting, concentration, filling,

pasteurization, packing and labelling;

Sourcing of raw material through contract farming, including traceability elements;

Quality assurance and control;

Production line maintenance and optimal workflow;

Efficient use of water and energy in tomato processing operations.

Other ad hoc trainings could also be organized at factory sites to address specific production techniques, such as Individual Quick Freezing (IQF) or other advanced technologies, alongside the technical supervision of trainers from the center. The continuous interaction and engagement with the private sector, through exchange of knowledge, in-kind contribution such as availability of facilities for

13 The projects will engage as well women owned companies, some already identified in previous intervention,

and associations/cooperatives led by women in rural areas through the collaboration with NCW. 14 One of the most common mistakes in contract farming negotiations is to oversell capacities of supply, trying to

gain a better price, however this can backfire very quickly and often causes the end of business relations. 15 GTI supported the launch of a national program to train professional pesticides applicators led by the Agricultural

Pesticides Committee, affiliated to MALR (Ministerial Decree 974/2017, art. 4 “All persons applying agricultural pesticides must have a pesticide applicator license issued by Agriculture Pesticide Committee (APC). The license is granted to pesticide applicators carrying diploma after passing APC specialized training programs directed for such matter. The license is to be renewed every four years’). At the moment around 1,500 beneficiaries have completed the intensive training. 16 Major competitors in the Mediterranean region (Tunisia, Turkey and Italy) can dry only once a year, but they are

competitive in pricing and consistent volume and quality. 17 For more details on selection of training center location see below B3. Inception Phase.

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ad hoc training, guided visits, and introduction of successful trainees for employment opportunities, will also allow the center to regularly evaluate the relevance of trainings and adapt them where necessary to the needs of different clients segments, especially youth and women

The project will support the center in regular results-based reporting, including rapid surveys among employers and possibly tracer studies.

The center will also serve existing and new entrepreneurs (identification of beneficiaries will take in consideration gender and age) willing to invest and/or expand in tomato processing through:

Awareness of recent market and consumer trends and opportunities;

Practical development of new products and recipes;

Product standards;

Potential for trial production and/or analysis;

Technical consultations at plant sites;

Pre-feasibility studies for small-medium tomato processing factories;

Technology symposia;18

Access to financing facilities;

Technical support to upgrade existing or new enterprises in the sector.

The project will draft a business model for the center, which will act as a training and service center, including recovery of costs through additional training curricula covering similar agro-processed products, selling of products, and other paid services. The business model will also have to consider possible synergies with existing institutions, such as academia and research centers – particularly agricultural and engineering – for additional expertise, Food Export Council and Export Development Agency for market information, related advisory services and trade promotion, MSMEDA for financial expertise and access to soft loans, Chamber of Food Industries for licensing and related permits, as well as the National Food Safety Authority for continuous updates for trainers on legislative reforms.

UNIDO will also advise on the governance of the service center, promoting a public-private partnership to ensure relevance to the sector’s needs and to the strategic priorities of the government, in terms of supporting better jobs for youth. Gender balance will be considered as per set target.

To complement technical services offered by the established center, access to markets will be facilitated through existing initiatives promoted by FEC/EDA, local relevant fairs and exhibitions (e.g. Food Africa) and other donor projects. This includes trade fair participation, as well as export coaching programs developed by GTI and currently implemented by the Foreign Trade service center of EDA, and by GIZ’s19 SMEs support program, to avoid duplication and build on national capacities. UNIDO will support connection with selected buyers through its network of international experts.

B2. Comparative Advantage

UNIDO has a long and positive track record in Egypt in the agribusiness sector. The ETRACE20 project promoted traceability systems for horticultural exporters, while EMAP21 and the GTI supported, respectively, export development value chains related to medicinal and aromatic plants and eight fruit and vegetable products (including tomato).

Through these experiences, UNIDO gained a thorough acquaintance with institutions related to the agribusiness sector, both at a national and local level. During the GTI in particular, UNIDO supported beneficiaries in trials of new crop varieties, as well as promoting production guidelines in line with GAPs and market access through contract farming. During this project, UNIDO started to raise awareness with primary producers of the benefit of adding value (through sorting, cutting, drying etc.) and engaging new buyers such as processors, to have a more stable income throughout the season. Both activities generated new job opportunities, especially for women employed in the post-harvest handling, and increased income.

18 The technology symposium formula has been successfully applied within GTI, by inviting Italian manufacturers

in Egypt to both present their machinery, coupled with a technical presentation on advanced technology and/or practices. The Italian Trade Commission, together with the Chamber of Food Industries can further facilitate the activity, as Italy is a world leader in tomato production lines. 19 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). 20 UNIDO established the Egyptian Traceability Center for Agro-Industrial Exports (ETRACE), which was funded

by the Italian-Egyptian Debt for Development Swap Program from 2006–2010. 21 EMAP was an agro-industrial development initiative aiming at upgrading the Medicinal and Aromatic Plants

(MAP) sector in Egypt.

12

At an institutional level, GTI has collaborated with both the Ministry of Trade and Industry and the Ministry of Agriculture and Land Reclamation on quality improvement, through better use of pesticides, promoting a specialized career for pesticides applicators,22 as well as developing guidelines for safe production and traceability systems. All related knowledge material, including field notebooks and manuals, will be made available for the new initiative. These have been positively tested and applied not only by the GTI, but also by other local institutions and partners such as the Horticulture Export and Import Association (HEIA), the Agriculture Export Council (AEC), as well as being validated by the National Food Safety Authority.

UNIDO is also currently supporting NFSA through SAFE project23, with capacity building program for newly hired staff of the agency, as well technical assistance and guidance in drafting governance regulations and the national Food Safety Law, which will steer all requirements related to the processing sector.

With reference to youth employment and support to MSMEs and start-ups, UNIDO has also recently completed the IMKAN project24, which fostered youth employment by supporting start-ups (mostly in the agro-industrial and agro-waste management sectors) in Upper Egypt, while promoting entrepreneurship, business development skills and small and medium scale investments (including drafting of pre-feasibility studies and investment teasers presented to angel investors and financial institutions).

UNIDO also has an outstanding record of supporting the creation of training centers to support technological advancement and innovation in different sectors, from agribusiness to leather and automotive industries, with good examples of public-private partnership management.25 All of these centers have had as their main focus both innovation and the creation of new and better job opportunities for youth, through building their capacities and linking them with future employers. One significant example is the case of Ethiopia,26 where UNIDO has been supporting the development of agro-industrial parks in close partnership with the government and national and international private partners. This work has focused on creating a hub for agro-industry to foster backward linkages to the production stage and forward linkages to processing, supporting stakeholders with services to upgrade and strengthen the agro-value chains.

With the aim of supporting sustainable business practices, the project will also coordinate its activities with other UNIDO projects related to resource efficiency and sustainable energy, namely:

- SHIP project27 supporting the deployment of solar heat technologies, in identified Egyptian

industrial sectors including food industries, with direct support to eligible factories and linkages to local financial facilities;

- Switch-Med initiative28 which is promoting the Transfer of Environmentally Sound Technologies (TEST) through an integrated method which combines resource efficiency and cleaner production, environmental management systems and environmental management accounting. The regional project is implemented in Egypt through the National Cleaner Production Center.

- Industrial Energy Efficiency project29, which supports the adoption in Egypt of energy efficiency management systems in the industrial sector. The Ministry of Trade and Industry, in recognition of the importance of improving energy efficiency measures, is planning their introduction in all the recent sectorial strategies, including the on-going food sector strategy30.

B3. Inception Phase

22 See previous footnote n. 12. 23 Enhancement of Regional Trade Capacities in Food through a Harmonized Regional Conformity Assessment

and Food Safety System: Arab Food Safety Initiative for Trade Facilitation (SAFE) Project, funded by the Swedish International Development Agency (SIDA) and implemented in collaboration with the League of Arab States from 2014 to 2018. 24 IMKAN for youth employability and entrepreneurship in Upper Egypt was a project funded by the Japanese

supplementary funds in 2016-2017 and implemented in the Governorate of Luxor. 25 https://www.unido.org/news/unido-teams-private-sector-vocational-training-centres-share-industrial-skills-

development-know-how 26 https://www.unido.org/news/open-registration-ethiopias-second-international-agro-industry-investment-forum 27 Utilizing Solar Energy for Industrial Process Heat in Egyptian Industries (SHIP) is funded by the Global

Environment Facility (GEF) from 2015 to 2019. 28 Switch-Med regional project is funded by EU, from 2015 to 2018, and implemented in 10 countries in the Southern

Mediterranean coast. 29 Industrial Energy Efficiency (IEE) project is funded by GEF from 2012 to 2018. 30 See A.2.2 Coherence and relevance with Egyptian national strategies and SDGs.

13

The project will have a three-month inception phase to mobilize project staff, set up a detailed work plan and identify the site/s for implementing the project activities and the site of the training and services facility. The results of this inception phase will be presented at the first steering committee for approval.

The project will identify the site/s of intervention within the areas having potential tomato production, farmers willing to produce varieties for processing, and accessibility to the tomato processing factories.

On the other hand the project will have to identify the location of the Pilot Training and Service Center / demo production facility based on the following criteria:

Accessibility for potential beneficiaries from the agro-industrial sector;

Hosting institution/association: sustainability and willingness to contribute to the operating costs

of the facility and to take over management costs beyond the project’s end, outreach to agro-

processing value chain stakeholders, experience in training in food-related matters (this is

obviously a strong asset), availability of existing human resources, men and women, to be

potentially employed in the center after building their capacities during the project;

Infrastructure: minimum space and utility requirements will be detailed by project experts,

including specific facilities considering women and men’s needs (e.g. bathrooms, praying

rooms, safety, etc.);

Cost-effectiveness: due to the limited available budget, cost-effective options will be given

priority.

An internal committee, formed by UNIDO, MTI, MALR and the Donor will evaluate proposals from hosting institutions. The committee will open a call for interest based on competitive criteria to select an appropriate hosting institution. Based on the selection result, UNIDO, in line with UNIDO procurement rules and regulations31, will then proceed in launching a bid to equip the proposed space, based on terms of reference drafted by UNIDO and agreed upon with MTI, MALR and the Donor in line with the project’s objectives, timeframe and budget. Proposals received will go through due assessment and evaluation.

During the inception phase, the project will also conduct a baseline assessment, including a gender-sensitive analysis of beneficiaries at different levels from production to processing and accordingly validate the indicators, quantitative targets (including specific targets for women), and means of verification in the Logical Framework (see section C1. Project Logical Framework). The validation will be undertaken in close cooperation with the project’s main counterparts, stakeholders and potential beneficiaries. Finally, synergies with project stakeholders at central and field level will also be sought and their contributions to the project will be defined.

B4. Sustainability Strategy

The proposed project has been designed to build upon previous UNIDO projects on agro-industry and agro-value chain projects, namely ETRACE, EMAP, Salasel and the Green Trade Initiative, as well as in-depth knowledge and networks established during the recent GTI implementation.

The project aims to thoroughly involve the private sector, specifically the processing sector, together with all relevant supporting institutions from the Ministry of Trade and Industry and the Ministry of Agriculture, to ensure the effectiveness and sustainability of the specialized Pilot Training and Service Center. The services introduced by the project will be in line with market requirements and private sector demand, hence ensuring sustainability of the action by creating sustainable business opportunities.

The center itself should be integrated into an existing institution and, based on best international practices,32 should be systematically collaborating with the private processing sector for curricula validation, as well as providing a paid service (at market prices) for technical consultations for food processing and acting as a trial facility for production of new recipes, among other things, to ensure its economic sustainability beyond project implementation. In this respect, the project will implement, beside specific courses on tomato processing, training courses on cross-cutting matters such as food safety and quality control, in order to benefit a larger pool of beneficiaries. In conclusion, as mentioned

31 See section E. Budget for more information on procurement procedures 32 Italy has several examples of vocational and service centers for agro-industry, such as: Agro-Industria Ricerca

Ecosostenibilità (AGIRE), Centro Servizi Avanzati per l'Agro-Industria (CSAGRI), Stazione Sperimentale Industria Conserve Alimentari (SSICA). Some secondary technical schools have also successfully coupled education with on-the-job practice, having fully fledge production facilities (e.g. Istituto Tecnico Cerletti) to help youth to directly access the job market.

14

while describing the envisaged business model, the center should be demand and private sector led, and based, as much as possible, on cost-recovery system. The center could also provide tomato processing services to small tomato producers against payment fee, this will insure regular income to the center necessary to cover its running expenses and support the project sustainability after its end.

Within project implementation, partnerships with similar international training and service and research institutes will be also established to foster synergies around innovation and upgrading for the Egyptian agribusiness sector. In particular, as Italy is a world-leader in technology and innovation in the agribusiness sector, and for processed tomatoes specifically, the project will seek from its start to establish linkages with the Italian Trade Commission in Egypt as a gateway to relevant Italian private sector associations such as Confindustria, UNACOMA and other excellence centers for the food industry.

The Pilot Training and Service Center would also be supported from the beginning in engaging with other local supporting institutions33 and complementary development initiatives, in order to maximize its role as a knowledge hub in the processing sector, starting with the tomato sector but, ultimately, extending beyond it. The center should also source part of its expertise from other relevant entities in addition to the private sector, to have more flexibility and avoid duplicating work.

B5. Gender Mainstreaming Strategy

Enhancing the role of women as drivers of inclusive and sustainable industrialization will directly contribute to SDG 5 on gender equality, among others.

The inclusion of women in upgrading the food sector is particularly relevant, as they are already perceived by many employers to be more reliable and have better performance than men in very critical steps in the processing value chain such as sorting, delicate handling or final packing.34 The project will also coordinate with other development partners (ILO) in order to integrate the center’s training offer with gender equality training for managers and company owners, to improve employment opportunities and inclusion of women. Women-owned companies working in the tomato sector or interested to join will be also involved in the project and some of them have been already identified during previous project activitiesFurthermore, as part of its support for the application of Good Agricultural Practices in tomato production, the project will raise the awareness of agricultural workers (including women who are mainly employed in manual work such as harvesting) regarding hazardous risks to human health related to the improper use of pesticides.35 The project management unit will also consider gender-related issues in its planning and implementation of training programs, through a gender-sensitive analysis of the skills gap in the agro-processing sector,36 to be conducted during the inception phase. Existing and potential employment opportunities for women along the value chain will be one of the criteria for the prioritization of segments to be targeted. Attention will be devoted to identifying opportunities for women also in higher segments of the value chain, requesting higher skills and specialization.

Consultations will be conducted with training beneficiaries regarding their preferred time and frequency of training, in consideration of their various roles and needs (e.g. mother, father, breadwinner, part-time laborer, student, etc.). The project will proactively engage women to join the activities, including training programs and becoming trainers, in order to provide them with better skills and employment opportunities.

As mentioned above, during the Inception Phase a gender sensitive analysis will be conducted to identify how the project can best contribute to producing positive gender outcomes.

Finally, efforts will be made for the project team to be gender-balanced. Likewise, gender disaggregated data will be gathered and analyzed to ensure that gender mainstreaming and inclusive development in the project is on track. B6. Environmental and Social Assessment

33 See section A.4 Stakeholders for a complete list of possible public partners. 34 GIZ, 2016. Interventions for Employment Creation in Egypt: a Sector Analysis. 35 National Research Center, Environmental and Occupational Medicine Department, 2013. Pesticides Usage in

Agriculture among Rural Women in Egypt : Specifically, pregnant and nursing women should not be involved in pesticide application, given the greater risks associated in exposing their developing foetus or nursing child to pesticides. 36 Women constitute 13% of the labor force in the food sector, with a peak of 22–25% in the fruit and vegetable

processing sub-sector. The project includes a target of 30% project training courses for labor employed in the processing facilities to further increase their skills.

15

As stated in SDG 12, sustainable patterns of consumption and production are a must to ensure better living conditions for all. This is even more relevant with regard to food, as it affects all the steps of the value chain and beyond, with serious repercussions for the environment, health and nutrition.

Sustainable production in the agro-value chain entails the application of GAPs, which are a comprehensive methodology to cultivate crops while preserving the environment, as well as the health and safety of producers. The main elements are:

Efficient use of inputs, from seeds to chemicals (such as pesticides and fertilizers);

Integrated Pest Management (IPM), which means not only a controlled use of pesticides but also prevention methods to reduce their use, reduce water contamination, preserve plant and soil health, and ensure appropriate storage and disposal of containers or residues;

Irrigation programs adapted to different climates and weather conditions (e.g. promotion of drip irrigation).

All these steps are meant to preserve not only the safety of crops (and of course food) but more importantly the health of all people involved in the production, their families, surrounding communities, and the environment, from the soil to water and air.

Adding value at field level, thus reducing losses and waste, would have a positive impact on the environment in vulnerable communities in Upper Egypt, which is highly exposed to the effects of climate change. One of the main effects of climate change on agriculture crops is the reduced yield and, consequently, reduced income generation for primary producers. In the case of tomato production,37 there is already an estimated reduction in productivity, which could be counterbalanced both by applying best agricultural practices and using appropriate seeds, together with maximizing returns by adding value to the fresh crop, through sun drying for example.

Value-addition also leads the way to social outcome as it provides an additional source of income for producers and related agricultural organizations, and alternative employment opportunities (including for women), especially in vulnerable rural areas. Based on previous UNIDO experiences, most preparations for value-addition need joint activities to be sustainable, such as encouraging the involvement of agricultural and producer organizations and empowering them to embark on new business opportunities.

The capacity-building program, which will be conducted through the service facility, would definitely improve not just the skills of workers and technicians in the processing factories, but also improve their working conditions and safety. Visits conducted by UNIDO to different agro-processing companies, confirmed that operations are often conducted in an unsafe, unhygienic and sometimes even a hazardous way, largely due to a lack of knowledge of the appropriate steps. One typical example is the arrangement of the production line, which often does not follow the proper workflow, forcing workers to move heavy and hot weights (e.g. hot water or hot oil) across long distances between one machine and the next. An appropriate plant organization will at a minimum reduce these unnecessary steps, therefore safeguarding men and women workers’ health and accessibility, saving time and usually being much more energy efficient (through lowering heat dispersion and maintaining a stable temperature in the process), as well as preserving final product quality.

Job seekers, especially youth, would have vastly improved chances to find employment opportunities through the capacity-building program, due to the limited availability of skilled labor in the sector, as confirmed by many employers who are unable to fulfil vacancies for plant operations.

37 UNDP, 2013. Potential Impacts of Climate Change on the Egyptian Economy.

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C. THE PROJECT C1. Project Logical Framework

Results Indicators38 Means of verificaiton

Objective

Improve the socio-economic performance and sustainability of the tomato agro-industrial value chain in Egypt

Improved income opportunities for processed tomato value chain stakeholders

Reduced losses and waste of raw material and natural resources

Increased investments in the processed tomato value chain

Increased job opportunities, also for vulnerable segments such as women and youth

Project reports

Trade & production statistics

Outcome 1

Enhanced integration, innovation and value-addition of the processed tomato value chain in Egypt

Percentage of beneficiaries who increased processed tomato production or fresh tomato production directed to processing (Target: 50%)

Increased availability of skilled labor and technicians

Number of new products/processes tested and introduced in the local and export markets (Target: 10)

Number of new investments identified in the tomato processing value chain (Target: 3)

Number of upgraded BDS used by the agro-food sector

Project reports

Field surveys

Output 1.1

Primary producers (particularly of tomato varieties for processing) have improved production capacity, quality, value-addition and access to market

Activities:

1.1.1 Introduce tomato varieties for processing to target primary producers

Number of primary producers reached by the project (Target: 1000)

Percentage of tomato producers cultivating new varieties for tomato processing industry (Target: 60% of 1,000 project beneficiaries)

Percentage of tomato producers adopting GAPs (e.g. integrated pest management, efficient irrigation, etc.) and

Project reports

Field surveys

Training reports (pre- and post-training knowledge assessment)

38 Indicators will be measured, disaggregating age and gender, as applicable. During inception phase targets will be validated and disaggregated by gender and age.

17

1.1.2 Support target primary producers in applying GAPs for cultivating tomato processing varieties and best logistics practices for handling perishable products 1.1.3 Build capacities of primary producers to add value at field level 1.1.4 Support joint activities among farmers to foster collaboration and maximize mutual benefits 1.1.5 Promote linkages between target beneficiaries (particularly agricultural cooperatives and/or farmers’ associations) and processing industry, through contract farming, cultivation planning, joint activities, etc.

best logistics practices (Target: 70% of project beneficiaries)

Number of processing industries entering in supply relations with primary producers / cooperatives / associations in both Upper and Lower Egypt (Target: 5)

Number of joint activities conducted by primary producers / cooperatives

Output 1.2

Human resources involved in the tomato processing industry have acquired new technical and managerial skills as demanded by the sector

Activities:

1.2.1 Conduct a skills gap analysis of the tomato processing sector in Egypt 1.2.2 In consultation with the private sector and based on the skills gap analysis, define and deliver a comprehensive training program for existing and new industrial workers / technicians / managers to increase their effectiveness and efficiency, as well as provide new qualified skilled labor to the agro-industry 1.2.3 Identify and train a pool of trainers / consultants in efficient tomato processing techniques and production standards to become master trainers as well as consultants for private companies or active associations 1.2.4 Identify an existing institution/association to host the Pilot Training and Service Center, based on criteria of sustainability, outreach capacity and accessibility for clients 1.2.5 Develop a business model for operating and sustaining the Pilot Training and Service Center 1.2.6 Establish and equip a Pilot Training and Service Center within a selected institution

Number of workers/ technicians trained in tomato processing operations (Target: 300, of which at least 40% are women)

Number of consultants / master trainers with upgraded skills to serve the tomato processing industry (Target: 20)

Establishment of a fully functional service center for the tomato processing sector

Number of courses activated by the service center (Target: 10 courses)

Number of partnerships established by the center (Target: 3, one per category)

Project reports

Field surveys

Training reports (pre- and post-training knowledge assessment)

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1.2.7 Support the Pilot Training and Service Center in establishing partnerships with agro-industry representatives, education and training sector, and identified institutions 1.2.8 Promote access to job opportunities for trained beneficiaries through networking with the agro-industrial sector in Egypt

Output 1.3

Existing and new tomato processing factories have introduced innovation in processes and/or products, in line with local and export market demand and standards

1.3.1 Identify critical gaps in Egypt’s agro-industry in increasing and improving processed tomato production (e.g. quality, quantity, access to markets, finance, etc.)

1.3.2 Raise awareness in processing factories of new tomato product trends and production standards in local and export markets

1.3.3 Provide technical assistance to existing and new factories, through Pilot Training and Service Center, on:

- efficient tomato processing operations in factories, to

improve safety and quality as well as to reduce waste and

resource consumption;

- new processed tomato products (such as tomato sauce,

paste, dried, etc.), including practical trials at the Pilot

Training and Service Center, elaboration and

dissemination of production guidelines

1.3.4 Draft and validate pre-feasibility studies for small/medium size tomato processing factories

1.3.5 Promote access to local and export markets for new and existing tomato processors

1.3.6 Provide policy recommendations for upscaling the tomato processing sector and replicate the model of a sustainable traning and service center dedicated to agro-industry

Number of processing industries made aware of new market trends in tomato processing (Target: 60)

Number of processing factories receiving technical consultations to improve tomato processing operations (Target: 20)

Percentage of new/existing processing factories adopting new products and/or techniques (Target: 50% of beneficiaries)

Number of processing factories accessing new buyers (Target: 5)

Number of policy recommendations for upscaling Project reports

Field surveys

Training reports (pre- and post-training knowledge assessment)

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C.1.1 Description of activities

Output 1.1 Primary producers (particularly of tomato varieties for processing) have improved production capacity, quality, value-addition and access to market.

Activities:

1.1.1 Introduce tomato varieties for processing to target primary producers Building on lessons learned and trials conducted in similar initiatives implemented by UNIDO39, the program will introduce to identified agriculture cooperatives and/or farmers’ associations the most important tomato varieties for processing, suitable for the area of intervention of the program.

1.1.2 Support target primary producers in applying GAPs for cultivating tomato processing varieties and best logistics practices for handling perishable products The program, after an initial analysis of the agricultural practices for the tomatoes used in the area of intervention will extend technical assistance, through workshops in classrooms and in the field, relevant Good Agricultural Practices regarding sowing, irrigation, fertilization, integrated pest control, harvesting and the best logistics practices for handling perishable products. The technical assistance will be directed to farmer’s associations / agriculture cooperatives.

1.1.3 Build capacities of primary producers to add value at field level The program will build capacities of primary producers in order to add value at field level to the product (such as sorting, drying, etc.). The workshops, in field and in classroom, will be addressed to farmer’s associations / cooperatives of the area.

1.1.4 Support joint activities among farmers In order to foster collaboration and maximize mutual benefits, the program will support joint activities among farmers such as joint procurement of agricultural inputs, value-addition / preparation units etc.

1.1.5 Promote linkages between primary producers and processing industry

The program will promote linkages between target beneficiaries and processing industry through contract farming, cultivation planning, joint activities, etc. in order to establish a continuous and profitable market that allows industries to receive high quality fresh produce and producers to sell high-performance tomato products with characteristics that the processing industry currently demands. The linkages will be created in two steps:

a) Survey of the industries of the area and the farmers’ association / cooperatives;

b) Creation of supply contracts between farmers and industries.

Output 1.2 Human resources involved in the tomato processing industry have acquired new technical and managerial skills as demanded by the sector.

Activties

1.2.1 Conduct a skills gap analysis of the tomato processing sector in Egypt

The program will conduct a skills gap assessment, including disaggregated data by gender and age of the tomato processing sector in Egypt in order to identify gaps in the value chain, such as technical or logistical aspects of the processing sector, as well as the organoleptic and microbiological characteristics of the produce and their compliance with standards such as ISO and HACCP. The program will also provide technical assistance to the identified industries for the improvement of quality and quantity of the processed food.

1.2.2 Define and deliver a comprehensive training program for existing and new industrial workers / technicians / managers to increase their effectiveness and efficiency, as well as provide new qualified skilled labor to the agro-industry

Taking into consideration the skills gap analysis the program will define and deliver a comprehensive training program for new industrial workers / technicians / managers, in order to raise awareness with workers about the gaps and how building capacity can solve them. The training program will be designed and adapted to different needs (gender and age) in order to increase the effectiveness and efficiency of the industrial workers / technicians / managers,

39 For further details about GTI intervention to support primary producers see in B2 Comparative advantage

20

through intervention measures designed to rectify weaknesses and, where possible, support plant activity optimization.

1.2.3 Identify and train a pool of trainers / consultants in efficient tomato processing techniques and production standards to become master trainers as well as consultants for private companies

The program will identify a pool of trainers / consultants (gender balance should be maintained), among the local farmers’ cooperatives and associations and other local institutions (such as FAITC, ARC, IMC, CFI, University of Cairo and Ain Shams, etc.) , which will be trained in efficient tomato processing techniques and production standards for national and international markets (e.g. ISO, HCCP). The activities can include an exchange of knowledge and experience in Italy, in coordination with Italian industries.

1.2.4 Identify an existing institution/association to host the Pilot Training and Service Center

Undertake a survey of existing institutions and associations that could host the pilot training and service center (PTSC) based on the criteria of sustainability, outreach capacity and accessibility for clients (men and women);

1.2.5 Develop a business model for operating and sustaining the Pilot Training and Service Center

Develop a business model for operating and sustaining the PTSC, factoring in the costs for the realization or adaptation of the infrastructure, the costs of the machines and all the productions costs in the area of intervention, in order to realize a sustainable pilot training and service center.

1.2.6 Establish and equip the Pilot Training and Service Center with a selected institution

The program will establish and equip the training and service center, to host training courses, production trials and demonstrations, and to provide advisory services on tomato processing to the related industry. The PTSC will be arranged in such a way that it can be easily replicated in the selected areas or reproduced by the private sector.

The PTSC will be equipped with a fully functional production facility, will allow to offer new and specialized training to workers, technicians and managers as well as a range of new services to the processing sector, with a focus to the processed tomato value chain. The TSC production facility will represent a model production facility, ensuring quality and safety of production at all levels from raw material to final products. On another note the PTSC should be placed within an institution that can support sustainability and accessibility for the private sector interesting to invest or upgrade their processed tomato business.

1.2.7 Support the Pilot Training and Service center in establishing partnerships with agro-industry representatives, education and training sector, and institutions of the sector

The program will support the PTSC in establishing partnerships with the following:

a) Agro-industry representatives to validate training curricula, collaborate in training

implementation with experts and/or site visits, promote the center’s services, disseminate

profiles of prospective employees;

b) Technical schools, universities and other education facilities to attract youth (men and

women) to be trained and directed to job opportunities;

c) Supporting institutions, such as NFSA, EDA, FEC, Chamber of Food Industries, in order to

promote the center’s services and create synergies and exchange of information and

expertise.

1.2.8 Promote access to job opportunities for trained beneficiaries through networking with the agro-industrial sector in Egypt

This activity aims to promote access to job opportunities for trained beneficiaries through specific networking with the agro-industrial sector in Egypt, thanks to a mapping of the current profiles that the sector needs and youth competencies and internship programs, offering equal opportunity to mena and women.

Output 1.3 Existing and new tomato processing factories have introduced innovative solutions, processes and/or products, in line with local and export market demand and standards.

1.3.1 Identify critical gaps in Egypt’s agro-industry in increasing and improving processed tomato

production (e.g. quality, quantity, access to markets, finance, etc.)

Undertake a survey regarding critical gaps in Egypt’s agro-industry in increasing and improving tomato processing and production. The survey will focus on the production chain from input procurement (input sources, prices, transportation, markets), production (costs, methods,

21

challenges e.g. crop pests and disease) and marketing (transaction costs, marketing methods, marketing channels etc.).

1.3.2 Raise awareness in processing factories of new tomato product trends and production standards in local and export markets

The program will conduct workshops directed at managers and new investors (men and women) in processing factories regarding new tomato product trends and production standards in local and export markets, highlighting opportunities for investment and/or expansion.

1.3.3 Provide technical assistance to existing and new factories, through the Pilot Training and

Service Center, on efficient tomato processing operations and new processed tomato products

The program will provide technical assistance to existing and new factories, through the pilot

training and service center:

a) Efficient tomato processing operations in factories, to improve safety and quality standards

as well as to reduce waste and resource consumption;

b) New processed tomato products (such as tomato sauce, paste, dried, etc.), including

practical trials at the Pilot Training Service Center, elaboration and dissemination of

production guidelines, including appropriate conformity assessment as per international

food and quality standards.

1.3.4 Draft and validate pre-feasibility studies for small/medium size tomato processing factories

The program will support potential investors (preferably youth, men and women) through drafting and validating pre-feasibility studies for small/medium size tomato processing factories with market experts and financial institutions.

1.3.5 Promote access to local and export markets for new and existing tomato processors

The program will undertake a survey in local and export markets identifing best practices in Egypt regarding processed tomato businesses and it will promote access for existing and new tomato processors, in collaboration with other supporting schemes and related institutions40.

1.3.6 Provide policy recommendations for upscaling the tomato processing sector and replicate the model of a sustainable pilot training service center dedicated to agro-industry

The program will provide policy recommendation where required for upscaling the tomato processing sector and will seek to replicate the model to other agro-value chains .

40 Further details in B1 Rationale. Within GTI project, UNIDO has established an extensive network with local supporting institutions, such as FAITC, EDA, FEC, CFI and Italtrade commission to support access to new market opportunities in the country and abroad. Contacts have been established as well with local retailers such as supermarkets and HORECA.

22

C2. Timeline of activities 41

41 The timeline of activities will be reviewed during the inception phase, also to adapt it to cultivation cycle

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

1.1.1 Introduce tomato varieties for processing to target primary

producers

1.1.2 Support target primary producers in applying GAPs for

cultivating tomato processing varieties and best logistics practices

for handling perishable products

1.1.3 Build capacities of primary producers to add value at field

level

1.1.4 Support joint activities among farmers to foster collaboration

and maximize mutual benefits

1.1.5 Promote linkages between target beneficiaries (particularly

agricultural cooperatives and/or farmers’ associations) and

processing industry, through contract farming, cultivation planning,

joint activities, etc.

1.2.1 Conduct a skills gap analysis of the tomato processing

sector in Egypt

1.2.2 Define a comprehensive training program for existing and

new industrial workers / technicians/ managers to increase their

effectiveness/efficiency as well as provide new qualified skilled

labor to the agro-industry

1.2.3 Identify and train a pool of trainers/consultants in efficient

tomato processing techniques and production standards to

become master trainers as well as consultants for private

companies

1.2.4 Identify an existing institution/association to host the Pilot

and Training Service Center, based on criteria of sustainability,

outreach capacity and accessibility for clients

1.2.5 Develop a business model for operating and sustaining the

Pilot and Training Service Center

1.2.6 Establish and equip a Pilot Training and Service center,

within a selected institution

1.2.7 Support the Pilot Training and Service center in establishing

partnerships with agro-industry representatives, education and

trainig sector, and identified institutions

1.2.8 Promote access to job opportunities for trained beneficiaries

through networking with the agro-industrial sector in Egypt.

Year 2

semester 1 semester 2 semester 1 semester 2Objective Outcome Output Activities

Year 1

Output 1.1

Primary producers

(particularly of tomato

varieties for processing)

have improved production

capacity, quality, value

addition and access to

market.

Output 1.2

Human resources involved

in the tomato processing

industry have acquired

new technical and

managerial skills as

demanded by the sector.

Enhanced integration,

innovation and value

addition of the

processed tomato value

chain in Egypt

Improve the socio-

economic performance

and sustainability of

the tomato agro-

industrial value chain

in Egypt

23

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

1.3.1 Identify critical gaps of the Egyptian agro-industry in

increasing and improving processed tomato production (e.g.

quality, quantity, access to markets, finance, etc.)

1.3.2 Raise awareness to processing factories on new tomato

products trends and production standards in local and export

markets, highlighting opportunities for investment/expansion

1.3.3 Provide technical assistance to existing and new factories,

through the Pilot Training and Service center, on:

- efficient tomato processing operations at factories site, to

improve safety and quality as well as to reduce waste and

resources consumption;

- new tomato processed products (such as tomato sauce, paste,

dried , etc.), including practical trials at the service center,

elaboration and dissemination of production guidelines

1.3.4 Draft and validate pre-feasibility studies for small/medium

size tomato processing factories

1.3.5 Promote access to local and export markets for new and

existing tomato processors

1.3.6 Provide policy recommendation for upscaling the tomato

processing sector and replicate the model of a sustainable service

center dedicated to agro-industry.

Year 2

semester 1 semester 2 semester 1 semester 2Objective Outcome Output Activities

Year 1

Output 1.3

Existing and new tomato

processing factories have

introduced innovative

solutions, processes

and/or products, in line with

local and export markets

demand and standards

Enhanced integration,

innovation and value

addition of the

processed tomato value

chain in Egypt

Improve the socio-

economic performance

and sustainability of

the tomato agro-

industrial value chain

in Egypt

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C3. Risks and Mitigation Measures

Result Assumptions & Risks

Project element Risk description Risk type Risk level Assumptions Mitigation measures

Project

The Pilot Training and Service Center will not continue its activities beyond project’s life

Stakeholders Medium/High

The Pilot Training and Service Center is embedded in an existing supporting institution willing to carry on newly introduced services for the agro-industry in Egypt

The Center location will be chosen based on a set of solid criteria maximizing sustainability considerations: accessibility for beneficiaries, willingness of existing institution to host and manage the premises; cost-sharing. Business model, based on international best practices, will be provided by the project, including expected running costs and recovery plan through provision of paid services to the agro-industry sector and/or food production, public-private management structure; Ensuring visibility of center’s activities through all relevant stakeholders and in local media.

Tomato producers and processors show resistance to change

Beneficiaries Medium/Low

Target beneficiaries are cooperative and responsive to innovative techniques introduced

Activities and initiatives will be market-demand driven; Proposed technical solutions will be cost-effective and, if necessary, with moderate in-kind contribution and/or investment; Build on previous positive experience in field production to showcase successful models to generate optimism and replication effect; Linking technical improvements with income increase. Introducing specific training for managers and owners on gender to

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smooth possible resistance and opposition in employing women

Lack of commitment of target beneficiaries in continuing to adopt the practices introduced by the project

Beneficiaries Medium Target beneficiaries are cooperative and responsive to innovative techniques introduced

All new approaches will be market-driven and with a direct positive effect on income/profit of beneficiaries; Market access opportunities supported by the project; Trainings will be provided at market prices.

Limited support from project’s stakeholders

Stakeholders Low

Local counterparts are capable of effectively supporting the process, are cooperative and avail of the services provided by the project

Continuous collaboration and exchange of information with project’s partners, including government counterparts, for improved awareness and capacity; Ensure project visibility at the national level and through local media.

Possible changes in regulations and legislation affecting food production

Stakeholders Low

Continuous collaboration with relevant policy and regulatory bodies, relevant to food production.

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C3. Institutional Arrangements and Coordination Mechanism

The project will have a Project Steering Committee (PSC) which is its highest decision-making body. It will be chaired by representative of the MALR and MTI and it will consist of representatives of MTI, MALR, the Donor, UNIDO, the Chamber of Food Industries and the Food Export Council. Other entities could be invited as observers whenever necessary, such as private sector, women and youth groups, The PSC’s main principle is to provide overall strategic guidance for project implementation and, if needed, assist in mobilizing resources required for project implementation. Composition should be gender balanced.

It will meet every six months. The first meeting will be held within the first quarter of project implementation, after the inception phase, to present the findings of the inception phase and recommendations. The subsequent meetings will be held every six months thereafter. Any member of the Project Steering Committee, however, can request a meeting before the set schedule. Decisions within the PSC will be made by consensus.

The Project Management Team (PMT) headed by the National Project Coordinator will act as the Secretariat of the PSC. The Secretariat will distribute, via email to all PSC members, documents required at the meeting at least 7 calendar days before the scheduled meeting. This will allow members sufficient time to review the documents, such as work plans, progress reports, and a final report.

The Secretariat will also take the minutes of the meetings and distribute to all PSC members. If there is no objection within 7 calendar days after distribution by email, the minutes will be considered as endorsed decisions supporting project implementation.

D. BUDGET ITEMS

D1. Counterpart Inputs

The MTI and the MALR will create all conditions for the project, such as: assigning staff and/or officials who will work directly with the project without any costs to UNIDO; providing necessary data, statistics and information; contributing to capacity-building activities (including providing venue, material, logistics); coordinating with all relevant stakeholders in the government for the smooth implementation of the project; and facilitating the project implementation (e.g. security clearances for training and project activities etc.).

The institution which will be hosting the training and service facility will have to provide the necessary building for the installation of the equipment and training, including classrooms and workshops. It will also have to assign at least one focal point for the center’s activities.42

D2. UNIDO Inputs

UNIDO, as the executing agency, will implement the project.

UNIDO will establish a Project Management Team (PMT) that will work with the Project Steering Committee and all the project partners from the government, civil society and private sector. The PMT is responsible for the implementation of the approved work plans and achievement of the planned project outputs.

The PMT will be composed of:

National Project Coordinator (NPC), responsible for program organization and successful implementation. The NPC guarantees the regular exchange of information among project partners and must be able to cope with the technical, administrative and financial dimensions of the project, including related communications with national counterparts’ representatives and other development partners.

Monitoring & Evaluation (M&E) Officer, as the focal point for monitoring, evaluation and knowledge management. The M&E Officer is responsible, jointly with the NPC, for consolidation of progress reports, will actively support all evaluation-related activities and will be the interface with external evaluation consultants.

National Technical Officer, primarily supervising training facility operations.

The project will recruit a short-term national gender consultant during the inception phase. The consultant should provide adequate training to the project staff on gender issues and management, in

42 More information on selection of location and managing institution in B3. Inception Phase

27

order to assign specific responsibilities to project team members, in line with LF and monitoring and evaluation plan as well43.

The project team will be supported by a finance and administrative assistant and a driver/logistics assistant.

Short-term trainers, consultants, Business Development Services providers, and NGOs will be contracted to carry out other project activities under the supervision of the core project team. They will be functional to bringing the needed services to the beneficiaries, including: technical assistance to producers and processors, training of trainers and beneficiaries, quality control and assurance, institutional capacity-building, and policy advice, among other things.

The project will have a presence in the training facility to monitor project execution and in collaboration with the host institution, at no additional cost for them. Other field staff provided by the Project Management Team supervising Output 1 will be hosted within local institutions such as agricultural directorate / research center premises. Local expertise will be based in the field to allow for inherent capacity development. They will be acting as technical support staff and will be trained and qualified on the job to serve their communities after the project’s end.

UNIDO will also leverage previous agribusiness-related projects for technical material on tomato production and processing (last updated in 2017) and relevant market studies. It will also benefit from the network established with agricultural cooperatives from Upper and Lower Egypt, agro-processors and relevant institutions, which will ensure a smooth start of operations as well as different in-kind contributions in implementing the project (such as contributing to the project visibility through social media, hosting activities, engaging new beneficiaries, etc.). Worth mentioning as well, the previous mapping conducted by GTI on National Quality Infrastructure in Egypt, which highlighted major constraint in terms of quality and safety control in the countries and relevant involved bodies.

UNIDO will also offer continuous technical backstopping from its Department of Agribusiness development, in particular AGR/FSN (Food systems and nutrition division) will lead the support within the inception and implementation phase of the project, especially in i) improving the quality of tomato production and processing techniques; ii) building technical skills of workers/technicians and managers in the processing factories; ii) improving marketing strategies in order to tap into new markets.

Other technical inputs will be required as well as to the following UNIDO technical units:

- TII/SQI (trade, Investment & Innovation/Standards and Quality infrastructure) for all matters related to international quality and food standards

- UNIDO ITPO network to foster technology and know-how transfer and promote investment opportunities, within the tomato value chain

- Energy and Environment Department (PTC/ENEs) to streamline best practices in energy and resources efficiency methodologies in the agro-processing sector developed by UNIDO

E. BUDGET

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. Changes between budgetary components are not to affect the total budget made available for the project.

UNIDO applies a standard rate of 13% for Program Support Costs.

The recovery and use of Program Support Costs are of central importance to the financing and organization of efficient and effective program support services: as provided for in the UNIDO Constitution (Annex II), the cost of program support arising from the implementation of projects funded from extra-budgetary resources are to be reimbursed by the source of financing of such projects, and, only to the extent the latter does not cover the totality of these costs, could be covered by the Organization’s regular budget.

Program support cost revenue is essential to the proper funding of support services. Member States require UNIDO to obtain reimbursement of the cost of the work involved in carrying out activities funded from extra-budgetary sources. The income from reimbursed program support costs is used, through the operational budget, as an integral part of the overall budget of the Organization, as approved by its Member States. This has been requested by the totality of UNIDO Member States.

43 Project staff will complete basic online course; I Know Gender Course on UN Women’s eLearning Campus

(https://trainingcentre.unwomen.org)

28

The application of the all-inclusive 13% support cost reimbursement scheme was approved by UNIDO Member States at the tenth session of the Industrial Development Board based on the proposal by the Director General (Document IDB.10/8, PBC.8/8) which presented the main results of a cost measurement study undertaken by UNDP. The application is also in line with UN General Assembly resolution 62/208 (2007 Triennial Comprehensive Policy Review principle of full cost recovery).

The breakdown of the budget by outputs and years (in EUR) is presented below.

BL Description Year 1 Year 2 Total

Output 1: Primary producers (particularly of tomato varieties for processing) have improved production capacity, quality, value addition and access to market

11 International experts 19,800.00 19,800.00 39,600.00

15 Project travel 4,980.00 4,980.00 9,960.00

17 National experts & admin staff 22,500.00 22,500.00 45,000.00

21 Subcontracts 0.00

30 In-service training, conferences, workshops 119,000.00 119,000.00 238,000.00

45 Equipment 4,200.00 0.00 4,200.00

51 Miscellaneous 4,980.00 4,980.00 9,960.00

Sub-Total Output 1 175,460.00 171,260.00 346,720.00

Output 2: Human resources involved in the tomato processing industry have acquired new technical and managerial skills as demanded by the sector

11 International experts 60,600.00 60,600.00 121,200.00

15 Project travel 8,800.00 8,800.00 17,600.00

16 Staff travel 2,000.00 2,000.00 4,000.00

17 National experts & admin staff 58,698.00 58,698.00 117,396.00

21 Subcontracts 37,500.00 37,500.00 75,000.00

30 In-service training, conferences, workshops 55,000.00 55,000.00 110,000.00

43 Premises 0.00

45 Equipment44 665,000.00 0.00 665,000.00

51 Miscellaneous 9,580.00 9,580.00 19,160.00

Sub-Total Output 2 897,178.00 232,178.00 1,129,356.00

Output 3: Existing and new tomato processing factories have introduced innovative solutions, processes and/or products, in line with local and export markets demand

11 International experts 40,000.00 43,000.00 83,000.00

15 Project travel 5,200.00 5,200.00 10,400.00

16 Staff travel 1,000.00 1,000.00 2,000.00

17 National experts & admin staff 22,962.00 22,962.00 45,924.00

21 Subcontracts 20,000.00 40,000.00 60,000.00

30 In-service training, conferences, workshops 20,000.00 43,000.00 63,000.00

43 Premises 0.00

44 The amount for equipment mentioned here is intended for the functioning of the new training facility, to be

equipped with a tomato production line for at least 500kg/h of fresh produce, based on requested quotations for machineries which could be used also for multiple crops, both imported and, where possible, locally manufactured.

29

45 Equipment 6,300.00 0.00 6,300.00

51 Miscellaneous 12,000.00 11,211.50 23,211.50

Sub-Total Output 3 127,462.00 166,373.50 293,835.50

TOTAL 1,200,100.00 569,811.50 1,769,911.50

Programme Support Cost (13%) 156,013.00 74,075.50 230,088.50

GRAND TOTAL 1,356,113.00 643,887.00 2,000,000.00

As mentioned above (B3. Inception Phase), the project will have a three-month inception phase for validation of the proposed approach and budget, drafting of detailed action plan and to identify the best site of the training facility, in terms of location accessibility, cost-effective infrastructure (such as already providing basic utilities like water and electricity) and willingness and relevance of the host institution to manage it, beyond project closure. The necessary technology to equip the training center will be purchased through PRO services applying a geographical limitation (Italy), while general equipment will be sourced from local manufacturers, in line with UNIDO procurement rules and regulations.

F. MONITORING, REPORTING AND EVALUATION

UNIDO in consultation with MTI and MALR will develop a detailed work plan during the inception phase. A monitoring and evaluation (M&E) system will be established to determine progress towards results, compare actual activities to the work plan, and suggest necessary changes. It will also assess and measure performance indicators and level of achievement of each output/outcome, according to the logical framework, as in section C1. Project Logical Framework (and subsequent changes approved by the Project Steering Committee).

The M&E officer will produce a baseline at the very beginning of the project and will monitor progress and achievements against the indicators. All data will be disaggregated by gender and age. The M&E Officer will ensure that gender-related issues are taken into consideration in the project’s planning and implementation and that disaggregated data by gender are collected and used, ensuring as well a proper assessment of behavioral changes towards greater gender balance,

The project will produce progress reports before each steering committee meeting (planned as bi-annual meetings) and disseminate to all the Project Steering Committee members (at least a week before the meeting). There will be a Project Terminal Report, which will be submitted within 6 months after project completion. UNIDO will regularly report to the Donor of the project.

An independent end-of-project evaluation will be conducted in accordance with the UNIDO Guidelines on Evaluation and an evaluation report will be prepared.

G. VISIBILITY

UNIDO will ensure appropriate visibility to the Donor and to the institutional counterparts throughout implementation of the project and, in particular:

- Public activities and events in Cairo and in other locations of intervention; - Knowledge tools, such as training material, handouts, presentations, etc. and any other studies

and reports produced during the project - Local and international media outreach, such as interviews, articles, etc.

Appropriate application of logo and mention of Donor and institutional counterparts will be planned for all suitable opportunities, in line with respective visibility guidelines.

H. PRIOR OBLIGATIONS AND PREREQUISITES

The proposed project does not envisage any prior obligations and prerequisites to its implementation.

I. LEGAL CONTEXT

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The Government of the Arab Republic of Egypt agrees to apply to the present project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 19 January 1987 and entered into force on 2 July 1987.