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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project number: 180203 Project title: Employability for women and youth in the State of

Palestine through supporting the garment and textile value chain

Thematic area code Poverty Reduction and Peace-Building Starting date: February 2019, upon arrival of funds Duration: 12 months Project site: Palestine- Northern West-Bank Government Co-coordinating entity: Ministry of National Economy Executing agencies/ cooperating agencies:

UNIDO

Project inputs: USD 395,069 Support costs (13%) USD 51,359 Grand total USD 446,428

Brief description: The past months have seen a dramatic increase in violence in the occupied territories and mainly on the fence between Gaza Strip and Israel. Poor economic perspectives and rising unemployment are, alongside extremism and political motives, key drivers of the current situation. What is more, reprisals and toughening of the Israeli political line bode ill for any political solution to the conflict and for the stabilization of the situation in the short term.

Job creation in the the Palestinian territory is considered an urgent humanitarian intervention to overcome the income stressed areas and counterbalance weak economic growth, threats to social stability and the rise of violence. Indeed, youth unemployment in the Gaza Strip and the West Bank is extremely high and calls for immediate and urgent relief through employment opportunities. In such a complex context, development and humanitarian assistance are best to be addressed concurrently, so results would be achieved, maximized, and sustained.

Protecting young people in the most disadvantaged regions from the pull of criminality, extremism and illegal migration is pivotal to local and regional stability. Concern is also rising that, in absence of formal economic opportunities, young Palestinians are more likely to resort to negative coping strategies – in extreme cases including drugs, alcohol and violent groups. It is thus crucial to improve livelihood and job opportunities in the West Bank, particularly for the youth, and support the development of a local value chains in a once-flourishing economic sector.

Therefore, the project will focus on supporting the garment and textile creative industry in the Northern region of the West Bank and at national level, as well as enhancing the technical, enterprise and employability skills of the youth in the textile sector.

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TABLE OF CONTENTS A. CONTEXT .............................................................................................................................. 3 A.1 UNEMPLOYMENT: THE MAIN ECONOMIC PRIORITY .......................................................... 3 A.2 SECTOR FOCUS: THE GARMENT AND FASHION INDUSTY .................................................. 3 B. REASONS FOR UNIDO ASSISTANCE ...................................................................................... 4 C. THE PROJECT ........................................................................................................................ 5 C.1. OBJECTIVE ......................................................................................................................... 5 C.2. APPROACH ......................................................................................................................... 5 C.3. TARGET BENEFICIARIES AND AREAS .................................................................................. 6 C.4. RELEVANCE TO NATIONAL AND INTERNATIONAL DEVELOPMENT STRATEGIES ............... 6 C.5 UNIDO RBM CODE AND THEMATIC AREA CODE ................................................................ 7 C.6. EXPECTED OUTCOMES ...................................................................................................... 7 C.7. OUTPUTS AND ACTIVITIES ................................................................................................. 8 C.8. GENDER MAINSTREAMING IN PROJECT OUTCOMES ........................................................ 8 C.9. VISIBILITY ........................................................................................................................... 9 C.10. PROJECT ACTIVITY TIMELINE ......................................................................................... 10 C. 11. OUTPUT-BASED BUDGET .............................................................................................. 11 C. 12. IMPLEMENTATION ARRANGEMENTS ........................................................................... 11 C. 13. MONITORING, REPORTING AND EVALUATION ............................................................. 12 C. 14. HARMONIZATION WITH DEVELOPMENT PARTNERS .................................................... 12 C. 15. SUSTAINABILITY ............................................................................................................ 13 C. 16. RISKS AND MITIGATION STRATEGIES ........................................................................... 13 C. 17. LEGAL CONTEXT ............................................................................................................ 14 Annex 1. Log-Frame ................................................................................................................ 15 Annex 2: Budget Breakdown per Output ............................................................................... 17

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A. CONTEXT A.1 UNEMPLOYMENT: THE MAIN ECONOMIC PRIORITY The Palestinian economy remains weak and highly vulnerable to both internal and external risk factors. While the Gaza Strip is still far from recovering from the devastating war of 2014 with intense humanitarian pressure on the rise alerting for urgent attention to enhance conditions on the ground always surrounded with uncertainty, the economic situation in the West Bank (WB) shows bleak prospects. In the third quarter of 2017, 2016, GDP has shown weak growth in the WB as it was down approximately 2.25% compared to the previous year and the trade deficit reached (68%). The worsening political situation and growing external and internal disturbances have had a direct impact on the Palestinian economy. The current Palestinian economy ranks low among world economies, and it is highly susceptible to instability, despite the availability of human and natural resources (with limited access in area C) and the high productivity of Palestinian society and individuals. Unemployment at national level is 27.7% and amounts to 18% in the West Bank and 43.9% in the Gaza Strip for the year 2017. The figures are even higher among the younger populations (over 60% in the Gaza Strip) who, deprived from any economic opportunity, might fall under poverty and become prone to negative coping strategies, such as: crime, extremism and illegal migration. The recent escalations of violence and reprisals, especially in the Gaza Strip, and the absence of near peace prospects bode ill for economic recovery, livelihoods and social stability. The rate of labour-force participation for Palestinian women remains among the lowest in the region, at 19.1 per cent in 2017. While female participation in the labour market has increased over the past few years, unemployment rates are higher among women than men. In the second quarter of 2017, the unemployment rate among women rose to a staggering 71.5 per cent in Gaza and reached 36.2 per cent in the West Bank. The gender wage gap also persisted, with the average daily wage for Palestinian women reaching 83 new Israeli shekels (NIS), compared with NIS 114 for men. The unemployment rate for youth aged 20–24 years continued to rise, reaching 46.3 per cent in the second quarter of 2017, with unemployment rates of 38.3 per cent among young men and 72.7 per cent among young women. The existing conditions on the ground would be best addressed by seeking to achieve self-reliance, and promoting economic development of targeted communities, while implementing and in parallel needed emergency humanitarian assistance especially in the Gaza Strip. Against this background, it is crucial to sustain job creation in the Palestinian territory and building resilience among Palestinian communities, which are increasingly subject to external shocks that threaten their livelihoods. The project will focus on supporting the garment and textile creative industry in the Northern region of the West Bank and connect to other areas at national level, as well as enhancing the technical, enterprise and employability skills of the youth in the garment and textile sector. A.2 SECTOR FOCUS: THE GARMENT AND FASHION INDUSTY The Ministry of National Economy of the State of Palestine has prioritized and highlighted the strong potential of the garment and textile sector and developed a dedicated National Export Strategy with the aim of building “an export-oriented economy with high socioeconomic impact by specializing in higher-end and niche products, through a targeted, concerted, and decisive acquisition of the needed skills, technologies, and market intelligence.”

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Indeed, the industrial sector—including the extractive, processing, and handicrafts branches—is the second most important sector. It contributes 13.1% to the GDP, amounting to nearly one billion dollars as it comes second after the services sector in GDP. The extractive industry, which includes quarrying and processing, is mainly concentrated in the cities of Nablus, Ramallah, and Hebron and contributes 12% to the total industrial output of Palestine. Besides, the extractive industry, handcrafts are the largest industrial sector and include trades such as garment and textiles, footwear, ceramics, pottery, olive wood, seashells, colored glass, soap, leather tanning, embroidery, and manufacturing of bamboo products. As of 2000, the garment and textile sector was a major pillar of the Palestinian economy (3rd largest sector in the West Bank). However, a combination of political and economic factors, both internal and external, have led the sector to lose half its domestic market share, two-thirds of its enterprises, 60% of its sales, and over three- quarters of its waged workers. As such, the garment and textile sector is in crisis and requires deliberate, transformative action if it is to survive and thrive again. The garment and textile sector in Palestine is a labor- intensive sector with a majority of women workers. In Jenin, as an example, there are 70 enterprises employing over 1,700 workers of which 85% are female entrepreneurs/workers. The case is similar in all the northern governorates of the West Bank (Qalqilia, Nablus, and Tul Karem). Therefore, women and youth in general will be paid special consideration, as the support to the garment and textile sector is a way to address under and unemployment of women and youth.

B. REASONS FOR UNIDO ASSISTANCE UNIDO has extensive experience in assisting both in the development of the industrial sector and the establishment of rural/urban economic associations and production groups. The Organization has also gained extensive experience working in conflict and post-conflict areas and has successfully implemented several industry support projects, most notably in Iraq, Sudan, Afghanistan, Lebanon, etc. UNIDO has been actively involved in similar projects with projects covering a wide range of technical assistance interventions, such as vocational training, cluster building and value chain development. UNIDO has been supporting governments and other institutions in technological capacity-building initiatives, offering strategies aimed at supporting the government’s developmental goals, and the sharing of knowledge and best practices to promote MSMEs/private sector development in manufacturing industries, with particular emphasis on improving the competitiveness of enterprises that would lead to job creation for vulnerable populations. Furthermore, the project will highly benefit from the experience accrued by UNIDO in similar initiatives in Palestine with focus on value chain development, such as the on-going project entitled: “Development of Clusters in Cultural and Creative Industries in the Mediterranean” funded by EU and Italy, and the Italy-funded project “Upgrading of the footwear value chain in Hebron”. In this context, UNIDO is already supporting the development of integrated value chains in three sectors: (i.) the handicrafts sector in Bethlehem; (ii.) the furniture sector in Nablus and (iii.) the leather shoe value chain in Hebron. Among other activities, the project is involved in providing training to young workers and designers as well as technical assistance to enterprises with the aim of improving their processes and products offer and, thus, access new markets and create job opportunities. UNIDO has been implementing projects in the garments and textile sector for years. Indeed, the paradigm change from the simple assembling of garments to “full package” services (design, fabric

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sourcing, trims and logistics) requires additional skills and knowledge and therefore specialized training.

UNIDO supports both conventional and informal producers of textiles and garments with advice on adequate technology, product diversification and identification of market opportunities. Product development is facilitated through the establishment of design centres. UNIDO’s technical assistance seeks to increase productivity and boost exports in the garments and textile sector, therefore improving beneficiariy country’s position in manufacturing value addition, manufactured exports and global competitiveness and creating jobs for the most vulnerable. UNIDO assists national counterparts in identifying regional and international market opportunities, in upgrading enterprises and introducing modern technologies and in building managerial capacity.

C. THE PROJECT

C.1. OBJECTIVE The overall objective is to enhance and promote economic resilience and social stabilization of the vulnerable population in Palestine through increased economic opportunities and job creation C.2. APPROACH In line with the established objectives, the proposed project should achieve the following results: (i) Technical capacities and access to new markets of Palestinian garment and textile value chain has been upgraded (ii) A “Garment and Fashion Design Center” has been established for sustainable service provision to the garment and textile value chain The project implementation methodology proposed is tested and has proven to be successful in realizing the desired impact and targeted results in a relatively short-term period. UNIDO has been implementing this methodology in Palestine (and other regional countries) with specific focus on creative and cultural industries. This methodology has already started to yield concrete results in the support provided to the Handcrafts Sector in Bethlehem and the Furniture Sector in Nablus through the Creative Mediterranean program funded by the EU and Italian Cooperation and implemented by UNIDO. • Existing SMEs in the garment and textile sector of the Northern West Bank are upgraded,

provided with technical assistance and upgrade, structured along complete value chains in order to increase formal employment opportunities.

• The capacity of SMEs in the garment and textile sector the Northern West Bank are developed and expanded through creative product development as a tool, to meet local and international market demand. Market access is also improved through the elaboration and implementation of relevant marketing and communication strategies.

• Skills acquisition and entrepreneurship development pertinent to the creative garment and textile in the Northern West Bank are developed.

• Access to services- from training to business development services and networking events- will be improved through the establishment of a “Garment and Fashion Design Center”

All activities, especially training materials, will be designed with a gender sensitive approach, making sure that men and women specific needs and constraints are taken into account during implementation. Moreover, women associations, like the Business Woman Forum- Palestine- will be consulted and invited to participate and collaborate for the implementation of technical training activities in order to ensure participation.

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The “Garment and Fashion Design Center” will seek synergies with the Palestine Creative Hub established by UNIDO through EU- Italy funding. It will also seek synergies with the Italian funded project implemented by UN-Women and ILO on decent work for women in West Bank and Gaza Strip. A detailed overview of the project activities organized in a Log frame Matrix is provided in Annex 1. C.3. TARGET BENEFICIARIES AND AREAS Direct beneficiaries of the project are garment and textile producers, entrepreneurs, designers and vulnerable youth and women in the Northern West- Bank

• 20 to 30 SMEs • 100 entrepreneurs/designers • 150 vulnerable young men and women

Indirect beneficiaries are:

• Beneficiaries’ families • Local retailers • Institutional clients (contractors) of the garment sector (uniforms for hospitals, schools,

Palestinian security forces, etc.) • Garment and textile producers, entrepreneurs, designers and young men and women from

other geographical areas, particularly from the Gaza strip, benefitting from the training and services sustainably provided through the established “Garment and Fashion Design Center”

The project aims for the involvement of women, as shown in the age and sex-disaggregated KPI identified. It is estimated that women will represent at least 50% of the project direct beneficiaries. C.4. RELEVANCE TO NATIONAL AND INTERNATIONAL DEVELOPMENT STRATEGIES The project is consistent with the United Nations Sustainable Development Goals (SDGs): • SDG5: by making sure that at least 50% of project beneficiaries are women and adapting the

action to women specific needs in terms of training and entrepreneurship support. The project aims for the involvement of women, as shown in the age and sex-disaggregated KPI identified. It is estimated that women will represent at least 50% of the project direct beneficiaries. Women as a targeted beneficiary group will be directly introduced with training and linkages to producers and market opportunities created through the project implementation. It is intended for the project to consult and collaborate with business women associations for promoting participation and solid engagement of women at the various activities of the project.

• SDG8: by providing decent work and job opportunities to vulnerable populations. UNIDO has been implementing similar projects in the State of Palestine with targeted support to the government other local institutions in technological capacity-building and upgrading initiatives and the sharing of knowledge and best practices to promote MSMEs/private sector, with particular emphasis on improving the competitiveness of enterprises that would lead to job creation for vulnerable populations. UNIDO stresses on the introduction of measures for the implementation of critical decent job conditions and occupational health and safety standards at the beneficiaries’ workshops.

• SDG9: by reinforcing the productive capacities of Palestinian garment and textile industries in a

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sustainable manner. UNIDO support governments and other institutions in technological capacity-building initiatives, offering strategies aimed at supporting the government’s developmental goals, and the sharing of knowledge and best practices to promote MSMEs/private sector development in manufacturing industries, with particular emphasis on improving the competitiveness of enterprises that would lead to job creation for vulnerable populations. This is directly linked to the application of UNIDO’s Industrial and Sustainable Industrial Development (ISID) principles and support for enhancing the garment and textile industry in the Northern West Bank targeted by the project. This confirms the provisions of the Lima Declaration and the relevance of ISID for the new global development architecture. ISID is credited with promoting value addition, realizing productivity gains and returns to scale, creating jobs and income, enhancing international competitiveness and trade, building efficient and effective productive capacity, supporting economic diversification, and building green industries. This structural transformation unleashes an enormous development potential as it features close linkages to infrastructure development, innovation and the efficient and sustainable use of resources, as well as to a wider range of other sustainable development priorities.

• SDG11: by promoting resilience and social inclusiveness in regions affected by the overall instability in the West Bank UNIDO concentrates its efforts on the development of industries through the tailored activities of the project: increasing the participation of women and youth in design, production and market facilitation activities. UNIDO will aim at supporting the transformation of enterprises from the informal sector to the formal sector, with a special focus on simplifying and improving access to services offered by the project and sustained after its conclusion at the partners level. It also strives to improve women’s participation in entrepreneurial activities as outlined in the activities By recognizing that gender equality and the empowerment of women have significant positive impacts on sustained economic growth and sustainable industrial development, which are drivers of poverty reduction and social integration, UNIDO intends to follow a gender mainstreaming approach in the various project activities.

C.5 UNIDO RBM CODE AND THEMATIC AREA CODE HC1: Creating Shared Prosperity HC13 Human Security and Post-Crisis rehabilitation

C.6. EXPECTED OUTCOMES The overall objective is to enhance and promote economic resilience and social stabilization of the vulnerable population in Palestine through economic opportunities and job creation The specific objective is that the garment and textile sector in Palestine has improved competitiveness, market access and employability for young women and men.

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The expected results of the project consist in (1) Upgrading Palestinian garment and textile value chain’s technical capacities, enhance competitiveness and access to markets (2) Establishing a “Garment and Fashion Design Center” for sustainable service provision to the garment and textile value chain C.7. OUTPUTS AND ACTIVITIES The expected output and activities are summarized in the table below and accompanied by a LogFrame with the adequate indicators and means of verification (Annex 1):

Output 1: Technical capacities and access to new markets of Palestinian garment and textile value chain has been upgraded

No. Activities Responsible party

1.1 Undertake a gender-sensitive assessment of capacities and needs for designers and garment workshops in terms of: (i) skills needs; (ii) design and product development capacities; (iii) business management capacities; (iv) market opportunities

UNIDO

1.2 Design and implement comprehensive training programs based on the assessment of needs including a study tour for selected participants to an internationally renowned fashion institution

UNIDO

1.3 Develop and implement promotional and marketing strategies and materials following a market outlook.

UNIDO

1.4 Assist selected designers and workshops/entrepreneurs to consolidate business linkages with international markets through the participation to fashion weeks/trade-shows and the establishment of B2B and networking linkages

UNIDO

Output 2: A “Garment and Fashion Design Center” has been established for sustainable service provision to the garment and textile value chain

No. Activities Responsible party

2.1 Develop a business plan for the center in order to ensure sustainability, including a communication strategy

UNIDO

2.2 Procure technical equipment in order to establish the services identified in the business plan

UNIDO

2.3 Train the trainers and managers of the center UNIDO 2.4 Develop and implement a calendar of activities and services for the

center UNIDO

2.5 Establish linkages and partnerships with local and regional institutions, projects and service providers to establish the center as a one-stop shop for the garment and fashion design sector in Palestine

UNIDO

C.8. GENDER MAINSTREAMING IN PROJECT OUTCOMES

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The proposed project will pay special attention to ensure gender balanced representation and participation in project activities and decision-making process. A gender-sensitive approach will be taken during the value chain assessment and during the evaluation of the project including sex-disaggregated data collection and analysis. Moreover, garment and textile skills training and entrepreneurship development training will be designed to meet the specific needs of women in reference to the national “Cross-Gender Sector strategy”. In addition, synergies will be built with other international initiatives and local associations targeting women economic empowerment throughout all the implementation period and activities to ensure maximal impact. The proposed project will target that 50% of the project beneficiaries will be female and all performance indicators will include sex-disaggregated data. C.9. VISIBILITY The project will deploy a number of actions to ensure visibility of the project in the host country. These actions will include preparation of press releases, use of social media to disseminate updates of the project, hosting of formal ceremonies with officials from the Embassy of Japan and the State of Palestine (i.e. inauguration of the “Garment and Textile and Fashion Design Center”), stickers on equipment used for training activities ensuring the visibility of the Government of Japan.

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C.10. PROJECT ACTIVITY TIMELINE

Activities Year 1 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Output 1: Technical capacities and access to new markets of Palestinian garment and textile value chain has been upgraded

1.1 Undertake a gender-sensitive assessment of capacities and needs for designers and garment workshops in terms of: (i) skills needs; (ii) design and product development capacities; (iii) business management capacities; (iv) market opportunities

1.2 Design and implement comprehensive training programs based on the assessment of needs including a study tour for selected participants to an internationally renowned fashion institution

1.3 Develop and implement promotional and marketing strategies and materials following a market outlook.

1.4 Assist selected designers and workshops/entrepreneurs to consolidate business linkages with international markets through the participation to fashion weeks/trade-shows and the establishment of B2B and networking linkages

Output 2: A “Garment and Fashion Design Center” has been established for sustainable service provision to the garment and textile value chain

2.1 Develop a business plan for the center in order to ensure sustainability, including a communication strategy

2.2 Procure technical equipment in order to establish the services identified in the business plan

2.3 Train the trainers and stakeholders of the center 2.4 Develop and implement a calendar of activities and services for the center

2.5 Establish linkages and partnerships with local and regional institutions, projects and service providers to establish the center as a one-stop shop for the garment and fashion design sector in Palestine

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C. 11. OUTPUT-BASED 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: UNIDO will inform the donor about changes between budget components. In the case that shifts between outputs greater than 15 per cent become necessary, UNIDO will submit a revised budget for approval by the donor, showing and explaining the required changes. Changes between budgetary components are not to affect the total budget made available for the project. Budget Breakdown per output is provided in Annex 2. Budget Narrative

- 11-00 Cost to cover the recruitment of international experts - 15-00 Project travel: which includes for the whole duration of the project: (1) DSA for project

travel of personnel assigned to the project and other nationals that may be involved in the project (but excluding International Experts).

- 16-00 Split missions of HQ’s technical personnel for the supervision and monitoring of the project activities.

- 17-00 Administrative support staff for the project including a full-time national coordinator. - 21-00 Subcontracts for service providers, including the conduct of the value chain assessment,

the development of the training materials, the elaboration of the “Garment and Fashion Design Center”’s business plan and the development of marketing materials

- 30-00 Cost for participatory training and workshops including a study tour for selected participants to a renowned fashion institution

- 43-00 Rent of an office in Ramallah for the project team in a cost-shared basis with other UNIDO projects

- 45-00 Purchase of equipment including a car and technical equipment and furniture for the “Garment and Fashion Design Center”

- 51-00 Miscellaneous costs including running costs and communication materials costs. C. 12. IMPLEMENTATION ARRANGEMENTS The project will be implemented in partnership with the Ministry of National Economy as the main counterpart. The project will contract, as needs arise, qualified and specialized national and international experts. The main monitoring tools will be the project progress reports, which will provide detailed information on progress against milestones and financial performance. The project will have the overall responsibility for the appropriate use of the donor funds. In accordance with UNIDO’s administrative rules and regulations, the project will take responsibility for decisions regarding staff recruitment, contractual agreements, technical assistance, backstopping and project supervision, procurement, monitoring and reporting.

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In principle, standard UNIDO procurement modalities of international open competition for goods and services will be followed. However, geographically limited competition for Japanese suppliers might be used if deemed appropriate for the implementation of certain project activities and provided that the necessary budget is available. C. 13. MONITORING, REPORTING AND EVALUATION The project will be subject to reporting, review and evaluation process in line with the prevailing UNIDO’s policies and procedures. Auditing: The trust fund will be subject exclusively to the internal and external auditing procedures laid down in the financial regulations, rules and administrative instructions and directives of UNIDO. Whether or not an audit of a specific project will be performed is usually subject to risk assessments by either the External Auditor or UNIDO’s Internal Oversight Services. Reporting: UNIDO will keep the donor informed about the progress of the project and will provide a final narrative report as well as a final financial statement within six months after the completion of the project. Monitoring of the project activities will include data collection including age and sex-disaggregated data and analysis arrangements, baseline information, program of work and budget expenditures. Evaluation: Independent evaluations of projects are initiated for projects larger than EUR 2 million (excl. psc.); when required by and agreed with the donor; when projects encounter major implementation problems or serious disagreement between stakeholders. For this project, the project management unit will prepare a final report within three months after operational completion, a terminal report will be prepared to assess, in a concise manner, the extent to which the project scheduled activities have been carried-out, the outputs produced, and the progress achieved towards the project objectives. It will also present recommendations for any future follow-up action arising out of the project. The final self-evaluation report will include a conflict/gender sensitivity approach of the implementation to draw lessons learnt. After being approved by the counterpart, the report will be sent to the donor with copies to project counterparts for their information and appropriate actions. Remaining funds: Upon submission of the final financial statement, any surplus remaining in the trust fund will either be returned to the donor or disposed of as requested by the donor C. 14. HARMONIZATION WITH DEVELOPMENT PARTNERS UNIDO will ensure throughout the project that close cooperation with other organizations operating in the project area is in place. UNIDO shall adopt a holistic approach joining efforts with the other organizations. The involvement of Japanese NGOs, research or other institutions, including specifically fashion institutions, in the project activities may be considered if needed and in line with the project activities. As previously mentioned, the project will collaborate with other projects and initiatives implemented in the area like the UNIDO Creative Mediterranean project funded by the EU and Italy, the UNIDO

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Leather Shoe cluster in Hebron, funded by Italy, the Decent work for Women initiative by UN-Women and ILO funded by Italy, among others… Moreover, the project will seek synergies with relevant partners of the textile and garment value chain in the Gaza strip in order to invite relevant actors to participate to the training and maximize the scope of the initiative. C. 15. SUSTAINABILITY The project approach is needs-based and sustainability will be ensured by integrating the technical assistance into the institutional local framework and by increasing the number of active beneficiary MSMEs from the garment and fashion design sector throughout the value chain to benefit from the development services and promote linkages to existing and further developed organizational networks. Moreover, a “Garment and Fashion Design Center” will be created to ensure sustainability of the project and technical assistance services after it ends thanks to the anticipated high involvement of local institutions, in order to organize their activities and to provide ad hoc services (in a coordinated manner) for MSMEs development. The “Garment and Fashion Design Center” will serve as the development laboratory to ensure sustainability of the impact of the project’s interventions after its conclusion. A business plan will be developed for the Center in order to ensure sustainability as per the recommendations of UNIDO Evaluation on post-crisis interventions (February 2015). A training of trainers will be organized, as well as the development of tailored training materials will ensure the quality and sustainability of the training services provided by the center. Moreover the project will improve the entrepreneurship capacity of the MSMEs and designers (project’s direct beneficiaries) and will involve the local development players by linking their business with the organized networks of MSMEs. The project will coordinate closely with the key private sector development stakeholders to ensure continuity of support and ownership to ensure the sustainability of services and development of the centre. C. 16. RISKS AND MITIGATION STRATEGIES Specific risks are to be considered during the entire duration of the project. The below table outlines specific risks related to this project incl. mitigation measures:

Description of risk Risk rating Mitigation measures Security of the area High UNIDO will stand in close

coordination with the relevant security institutions, mainly following Standard Operating Procedures (SOPs) of UNDSS, to continuously assess the security risk in the target area

Overall economic activity is not enough to offer formal jobs to the youth, having an impact on youth working conditions

High The counterparts need to constantly view the results in terms of formal job creation in order to adapt and create new possible social measures or programs to tackle informality

Women do not participate as anticipated in project activities

Moderate UNIDO will work closely with women associations, design

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and training institutions and other initiatives in order to raise awareness on the benefits of the project among women

Support institutions would not be able to sustain the activities upon the completion of the program

Moderate The program would set up sufficient safeguards, such as ensuring demand-based services development and physical investments, instituting practice of charging fees for all technical services, etc. to facilitate cost recovery in service provision by the end of the program duration

C. 17. LEGAL CONTEXT BASIC TERMS AND CONDITIONS GOVERNING UNIDO PROJECTS (Annex 3)

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Annex 1. Log-Frame Project title: Employability for women and youth in the State of Palestine through supporting the textile and garment value chain

Duration: 12 months | Project area: Northern West Bank, Palestine | Project beneficiaries: Garment and textile value chain actors including vulnerable youth and women

Structure Assumptions Indicators Target Means of Verification

Overall Goal: To enhance and promote economic

resilience and social stabilization of

the vulnerable population in

Palestine through revitalized

economic opportunities and job

creation.

The security and political

situation does not deteriote

• Increased income amongst

population of the project area as

measured by consumption level

• Variation in unemployment rates

(disaggregated for women and

youth)

• To be defined during

inception phase

• IOM, UNHCR and other

relevant international

organizations statistics.

• Palestinian Statistics

Authority

Specific Objectives: Improved capacity and enhanced

competitiveness, access to markets

and employability for young women

and men in the garments and textile

industry in the Northern West Bank

The economic and business

climate enables access to

markets and sufficient job

creation

• Increase in sales (local vs exports)

• Increase in exports

• New products developed

• To be defined during

inception phase

• Terminal report

• M&E reports

• Surveys

• Data collection

Expected outputs

1 Technical capacities and access to

new markets of Palestinian

garments and textile value chain

have been upgraded and enhanced

The implication of all

relevant stakeholders in the

implementation of the

project is high

Beneficiary companies are

willing to innovate, access

new markets and formally

hire young people and

women

• Number of beneficiaries trained

(disaggregated for women and

youth)

• Number of new products

developed

• Number of trade-shows

participations

• Number of promotional materials

developed

• Number of business linkages

established

• 1 value chain assessment

prepared

• 250 (50% women; 50%

under 30)

• At least 1 per SME (20-30)

• At least 1 collective

• At least 2

• At least 2

• 1 value chain assessment

prepared

• Activities reports

• M&E reports

• Surveys

• Data collection

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Activities under Output.1

Activity 1.1: Undertake an assessment of capacities and needs (including a gender specific analysis) for designers and garment workshops in terms of: (i) skills needed; (ii)

design and product development capacities; (iii) business management capacities; (iv) market opportunities

Activity 1.2: Design and implement comprehensive training programs based on the assessment of needs including a study tour for selected participants to an internationally

renowned fashion institution

Activity 1.3: Develop and implement promotional and marketing strategies and materials including a market outlook.

Activity 1.4: Assist selected designers and workshops/entrepreneurs to consolidate business linkages with local and international markets for enhanced access opportunities

through the participation to fashion weeks/trade-shows and the establishment of B2B and networking linkages

2. A “Garment and Fashion Design

Center” has been established for

sustainable service provision to the

garments and textile value chain

The implication and

ownership of the national

counterpart and stakeholders

is high

There is a need of services

that can be offered by the

technical center

• 1 business plan developed

(yes/no)

• Number of trainers trained

• Number of beneficiaries trained

in the center (disaggregated for

women and youth)

• Number of awareness events

organized

• Yes

• 10

• 150 (50% women, 50%

under 30)

• At least 3

• Activities reports

• M&E reports

• Surveys

• Data collection

Activities under Output 2

Activity 2.1: Develop a business plan for the center in order to ensure sustainability, including a communication strategy

Activity 2.2: Procure technical equipment in order to establish the services identified in the business plan

Activity 2.3: Train the trainers and managers of the center

Activity 2.4: Develop and implement a calendar of activities and services for the center

Activity 2.5: Establish linkages and partnerships with local and regional institutions, projects and service providers to establish the center as a one-stop shop for the garment

and fashion design sector in Palestine

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Annex 2: Budget Breakdown per Output

BL Description 2019 2020 Total (USD)

Outcome: Improved capacity to innovate, access to markets and employability for young women and men in the textile industry in the Northern West Bank

Output 1:Technical capacities and access to new markets of Palestinian garments and textile value chain has been upgraded

11 International experts 10,000 2,500 12,500 15 Project travel 2,400 600 3,000 16 Staff travel 1,600 400 2,000 17 National experts & admin staff 22,000 5,500 27,500 21 Subcontracts 15,656 3,913 19,569 30 In-service training, conferences, workshops 90,000 22,500 112,500 43 Premises 3,200 800 4,000 45 Equipment 3,600 900 4,500 51 Miscellaneous 9,200 2,300 11,500 Sub-total Output 1 157,656 39,413 197,069

Output 2: A “Garment and Fashion Design Center” has been established for sustainable service provision to the garments and textile value chain

11 International experts 6,000 1,500 7,500 15 Project travel 2,400 600 3,000 16 Staff travel 1,600 400 2,000 17 National experts & admin staff 22,000 5,500 27,500 21 Subcontracts 8,400 2,100 10,500 30 In-service training, conferences, workshops 6,000 1,500 7,500 43 Premises 3,200 800 4,000 45 Equipment 99,600 24,900 124,500 51 Miscellaneous 9,200 2,300 11,500 Sub-total Output 2 158,400 39,600 198,000 TOTAL 316,056 79,013 395,069

Programme Support Cost (13%) 41,087 10,272 51,359

GRAND TOTAL 357,143 89,285 446,428