160138 Project Title: Integrated Stabilization, Economi

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project number: 160138

Project title: Integrated stabilization, economic recovery and reconstruction support for displaced persons and returnees in Iraq (Phase 2)

Thematic area code Poverty Reduction and Peace-Building

Starting date: March 2017, upon arrival of funds

Duration: 12 months

Project site: Northern Iraq and Kurdistan Region

Government Co-coordinating • Ministry of Labor and Social Affairs – KRG entity: • Governor’s Office – Erbil • Ministry of Planning – Joint Coordination Council and Erbil Refugee Council. Executing agencies/ cooperating agencies: Project Inputs (USD): USD 739,778.76

Support Cost: USD 96,171.24

Grand Total: USD 835,950 (including programme support costs)

Brief description:

The project aims to support stability, economic recovery and reconstruction support for communities affected by the conflict in Iraq. The project is a continuation of the previously funded project 150328 entitled “Integrated stabilization, economic recovery and reconstruction support for displaced persons and returnees in Iraq” that aims at supporting the stabilization and economic recovery of Iraq through vocational skills training, SME support and community based infrastructure support. This phase II will focus on the humanitarian and development challenges brought upon by the Government of Iraq’s effort to liberate Mosul city from ISIL.

The aim of this project is to promote resilience and economic stability in newly liberated areas and corridor of the Ninewa (and/or Erbil, Kirkuk and Saladin Governorate) by supporting MSMEs and strengthening the capacity of government institutions to deliver vocational training for IDPs, refugees and returnees. The project will focus on two sub sectors to achieve the above goals: (1) supporting MSMEs in the newly liberated areas; (2) strengthening the capacity of government institutions to provide livelihood support and vocational skills training for IDPs, refugees and host communities.

This project is in-line with the priorities of the cluster for emergency livelihoods and social cohesion and complies with the Humanitarian Response Plan for Iraq.

TABLE OF CONTENTS

A. CONTEXT ...... 4 B. REASONS ...... 6 C. THE PROJECT ...... 7 C.1. OBJECTIVES ...... 7 C.2. APPROACH AND MAIN INTERVENTIONS ...... 7 C.3. TARGET BENEFICIARIES AND AREAS ...... 8 C.4. RELEVANCE TO NATIONAL AND INTERNATIONAL DEVELOPMENT STRATEGIES...... 10 C.5 UNIDO RBM CODE AND THEMATIC AREA CODE ...... 12 C.6. EXPECTED OUTCOMES ...... 12 C.7. VISIBILITY ...... 13 C.8. PROJECT ACTIVITY TIMELINE INCLUDING OUTPUTS AND ACTIVITIES ...... 14 C.9. INDICATIVE BUDGET ...... 16 C.10. IMPLEMENTATION ARRANGEMENTS ...... 17 C.11. REPORTING ...... 18 C.12. REVIEW AND EVALUATION ...... 18 C.13. HARMONIZATION WITH DEVELOPMENT PARTNERS ...... 18 C.14. SUSTAINABILITY ...... 18 C.15. PARTNERSHIPS ...... 19 C.16. RISKS ...... 19 C.17. PRIOR OBLIGATIONS AND PREREQUISITES ...... 20 C.18. LEGAL CONTEXT ...... 20 Annex 1. Log-Frame ...... 21 Annex 2: Basic Features of the Organizational Structure of the Project ...... 23 Annex 3: Budget Breakdown per Output ...... 24

A. CONTEXT

The conflict with the Islamic State of Iraq and the Levant (ISIL) has had profound humanitarian consequences for the population in Iraq. Nearly one-third of Iraq’s population, 10 million people, needs help. Three million Iraqis have fled their homes and 3 million more are living under the control of ISIL. The conflict, violence and human suffering in Iraq is unprecedented and the situation is classified as an L3 emergency. The most vulnerable are women, children and youth. As the conflict continues in Syria and Iraq, the presence of ISIS forces has left many of the youth vulnerable to recruitment and violent extremism as a result of poverty and desperate living conditions. Immediate action is required to address these needs and provide immediate support for displaced persons and returnees seeking to return to their homes.

The pace of displacement over the past three years is nearly without precedent. In 2014, 2 million civilians were displaced in Iraq; in 2015, an additional 1.4 million were forced to flee. During the past year, more than 650,000 people in areas impacted by the conflict with the Islamic State of Iraq and the Levant (ISIL) have been newly displaced. Every one of the nine major military campaigns during 2016 has created new waves of displacement. Over 3 million Iraqis are currently displaced, living in 3,700 locations across the country; more than one million displaced and refugees are in the Kurdistan Region1. In 2017, depending on the intensity and length of fighting in Mosul, Hawiga and Tel Afar, as many as 1.2 million additional civilians may be forced from their homes.

The Government of Iraq aims to liberate the Ninewa Governorate as soon as possible. The Joint Coordination Center of Iraq and UNHCR, estimates that as much as 500,000 new IDPs will seek safe haven in the Kurdistan Region alone. It is essential to strengthen capacity of government institutions to offer quality vocational training that can lead to employable skills as well as contribute to economic revitalization of areas that have been destroyed during military operations. These government training institutions can play a key role to contribute to stabilization efforts in Iraq.

The humanitarian situation is expected to worsen until families are able to re-establish their livelihoods and consolidate their households. Although military gains against ISIL are expected in the early part of the year, measurable improvements in humanitarian conditions are likely to be registered only late in 2017. In many sectors, improvement is not expected until well into 2018. Based on assessments conducted in the last months of 2016, 2.9 million people are currently food insecure, forced to rely on severe and often irreversible coping strategies. Inter-agency and cluster assessments confirm that 10.3 million people require health care, 8.9 million protection support and 8.3 million water and sanitation. About 4.7 million people need shelter and household goods while 3.5 million children need education support. Social tensions are expected to impact at least 4.7 million people.

1 Humanitarian Response Plan 2017 Iraq 4

*Humanitarian Response Plan 2017

The trauma caused by this conflict will impact individuals for years to come. It is important for psychosocial support to be prioritized by the Government of Iraq. By restoring training institutions this will create a learning environment and physical space that will allow people that have been exposed to trauma a sense of “normalcy “as they begin to rebuild their lives. It is expected that people fleeing from Ninewa will be most vulnerable due to the long period of brutal occupation by ISIL.

*Humanitarian Response Plan 2017-01-09

The aim of this project is to promote resilience and economic stability in newly liberated areas. The priority for this project is the newly liberated areas of Ninewa (depending on the security situation and demining of the areas, the newly liberated areas of Kirkuk and Saladin Governorate may also be considered to avoid delays in implementation) by supporting MSMEs and strengthening the capacity of government institutions to deliver vocational training for IDPs, refugees and returnees. The project will focus on two sub sectors to achieve the above goals: (1) supporting MSMEs in the newly liberated areas; (2) strengthening the capacity of government institutions to provide livelihood support and vocational skills training for IDPs, refugees and host communities.

B. REASONS

UNIDO has been operating in Iraq since 2004 and has implemented over $80 million USD in the country. The projects range from livelihood recovery, micro-enterprise support, trade capacity building, revitalization of productive industrial infrastructure, support to the agro-industry sector, private sector development, public-private development partnerships and extensive vocational training. UNIDO has a significant amount of experience in post- crisis project implementation, for instance, in Iraq, Sudan, South Sudan, Lebanon, Jordan, DRC, Ivory Coast, Somalia, Djibouti, Afghanistan, Indonesia, etc. In these projects, the

6 organization has consistently shown that it can provide effective means and realistic prospects for the rehabilitation of destroyed industrial infrastructure, employment creation, improvement of household income levels, and poverty reduction. The proposed project will build on the experiences and numerous lessons learned from earlier UNIDO post-crisis projects, especially the ones that have been implemented in Iraq.

C. THE PROJECT

C.1. OBJECTIVES

Development objective

Immediate stability, economic recovery and reconstruction support for communities affected by the conflict in Iraq.

Specific objective

Improved social and economic stability for 150-200 families (approximately 750-1000 persons) in the Northern and Kurdistan region of Iraq.

Outputs

1. Restored economic activity for destroyed, partially-damaged and / or poorly equipped micro, small and medium sized enterprises (MSME).

2. Strengthened capacity of VTCs to deliver vocational training for IDPs, refugees and host communities.

C.2. APPROACH AND MAIN INTERVENTIONS

In this respect, the project will focus on stability measures, which offer immediate short-term gains and long-term resilience focused programming that will assist the affected communities to better cope with the impact of the crisis. This project will build on gains made in the first phase and its main interventions will include:

a) MSME Support: Revitalizing economic activity

The project will aim to restore productivity of enterprises, which have been damaged, partially- damaged or had their equipment looted during military operations to liberate territory from ISIS. A rapid industrial survey will be conducted. This will be achieved by taking action to restore the ability of MSME to function. The main objective of this intervention is to get enterprises back to work again as fast as possible. By restarting these enterprises business owners will be able to restart production, provide services / goods and re-employ employees that may have been laid off due to the conflict or damage to assets / infrastructure. The intervention will deploy Geographic Information Systems (GIS) to ensure that the industrial areas are clearly mapped and priorities are discussed directly with the business owners and local authorities. The project will take an inclusive approach to the survey to ensure that owners of enterprises can fairly define their needs during the selection process.

a) Strengthening of existing VTCs in Northern Iraq.

The project will leverage on its experience working in Iraq and other relevant government and non-governmental partners; by making use of already well-established training facilities under the authority of the Ministry of Labor and Social Affairs - KRG. This established national vocational training structure will enable UNIDO to mobilize quickly to provide focused and targeted skills training. The project will aim for sustainable gains by investing in local government training institutions to diversify the training that they offer, which better matches market needs. This capacity to adapt is necessary due to the difficult economic circumstances that are present in the country.

The project will establish a series of vocational training courses, which will continue to be delivered at the institution following project closure. As to ensure that project investments continue to support vocational education in Iraq in a sustainable manner. The project will invest in market driven training that will help beneficiaries gain immediate income.

In view of not duplicating rehabilitation/development efforts, the project will aim to coordinate with international organizations that are working to support similar objectives. Specifically, the project will coordinate and take part in the Emergency Livelihood Cluster and other humanitarian programmes of the UN system funded by Japan.

A detailed overview of the project activities organized in a Logframe Matrix is provided in Annex 1.

C.3. TARGET BENEFICIARIES AND AREAS

The overall assistance package will provide immediate support to approximately 750-1000 persons – direct and in-direct (1 person supports average family size of 5). It is expected that approximately 150-200 persons will receive vocational skills training, 10-15 micro and small scale enterprises will be supported and one government institution will receive a series of capacity building support. In summary, the targeted beneficiary groups are as follows:

• Displaced persons and returnees: The project will target internally displaced persons and returnees that are located in Central and Northern Iraq. This will include displaced persons from the governorates of Anbar, Ninewa and Saladin.

• Micro and small scale enterprises: The project will focus on restoring damaged or partially-damaged enterprises in liberated areas. The priority will be for the Ninewa Governorate and its districts that have been cleared from ISIL. Depending on the security situation and demining of the areas, Saladin and Kirkuk areas will also be considered.

• Public sector: The Ministry of Labour and Social Affairs (MOLSA) will gain capacity to improve the quality and delivery of vocational training which is driven by market

needs and offering graduates employable skills. This will include human resource development activities for instructors of MOLSA.

• Gender: The project strategy will seek to promote gender equality through the association of women in all aspects of the project interventions. Considering that mainly women are taking care of the household and children, they will be encouraged to participate in the training courses either by designing courses that allow flexible time commitments (i.e. morning classes or short-duration courses), training locations that are easier to access and / or safe transportation arrangements to participate in the courses.

The proposed geographic area will target areas in the Erbil and Ninewa Governorate. However, the initial project assessments will determine further geographic expansion where the project may extend support and technical assistance. The target locations will be determined with the relevant security requirements of the UN Country team and the relevant demining of the newly liberated areas in Ninewa Governorate (proximity of Mosul) with UNMAS.

Note: The Ninewa Governorate will be the first priority for MSME support depending on the security situation. The project will aim to assess areas that on the fringes of KRI and have already been cleared. These areas may include Bartella, Makhmoor and Hamdaniyah. Access to these areas will be determined by relevant local and international security authorities with the assumption that security control is defined and demining has been completed for civilians to return.

Note: Area of detail for Al Hamdaniyah.

C.4. RELEVANCE TO NATIONAL AND INTERNATIONAL DEVELOPMENT STRATEGIES

The project has been designed to assist the Government of Iraq to work towards the various national and international commitments for support of internally displaced people due to the ongoing conflict in the country. It is consistent with the Sustainable Development Goals specifically with End poverty in all its forms everywhere (Goal 1), Achieve gender equality and empower all women and girls (Goal 5), Promote sustained, inclusive and sustainable economic growth, full and productive and decent work for all (Goal 8), and Build

10 resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (Goal 9)2.

For the country context, the project is in line with the Humanitarian Response Plan 2017 for Iraq more specifically in the cluster for emergency livelihoods and education. The objectives of this project comply with the criteria for the first-line response measures.

*Humanitarian Response Plan 2017

2 https://sustainabledevelopment.un.org/?menu=1300 11

For the Mosul (Ninewa Governorate) context, the project is In line with the emergency response

The project is also within the policy framework and priority of the Government of Japan. Specifically, the project is within the framework of:

§ At the 42nd G7 summit in May 2016, hosted by Japan, the G7 have explicitly declared that they “commit to assist the frontline states in creating education and employment opportunities for refugees in order to empower them as future assets contributing to the stability and prosperity of host communities”

§ During the G7 Summit, the Government of Japan has committed to an assistance package for the Middle East region from 2016-2018, including human resource development programs for 20,000 people, in order to prevent the expansion of violent extremism and build a “tolerant and stable society” in the region.

C.5 UNIDO RBM CODE AND THEMATIC AREA CODE

• Results Based Management (RBM)code: • Thematic area code: Poverty Reduction and Peace-Building

C.6. EXPECTED OUTCOMES

The expected outcome of the project is to contribute to the stability and economic recovery for communities affected by the conflict in Iraq. The project aims to restore small businesses, support employment efforts and reduce possible disharmony between host and displaced communities resulting from poverty, psychosocial trauma and bad living conditions.

More specifically the outcomes are as follows:

• A total of 150-200 persons will receive vocational and/or technical skills training • A total of 10-15 micro and small scale enterprises will be restored and upgraded 12

• A total of 1-2 government institution will receive capacity building support.

C.7. VISIBILITY

The project will deploy a number of actions to ensure visibility of the project in the host country and contribution from the Government of Japan. These actions will include preparation of press releases, use social media to disseminate updates of the project, place stickers on all equipment provided by the project, host formal ceremonies and invite officials from the Embassy of Japan and Government of Iraq (i.e. special ceremonies, graduations, equipment handovers, etc.), sign-boards for main project sites (i.e. schools or enterprises) and preparation of project video that can be distributed on you tube internationally.

Note: All equipment procured will have this sticker to ensure visibility for the GoJ

C.8. PROJECT ACTIVITY TIMELINE INCLUDING OUTPUTS AND ACTIVITIES

The expected outputs and activities are summarized below and are provided in the LogFrame with related indicators and means of verification (Annex 1):

Activities Year 1

Output 1. Restored economic activity for destroyed, partially-damaged and poorly equipped micro, Q1 Q2 Q3 Q4 small and medium sized enterprises (MSME).

1.1 Identify the MSMEs and enterprises to be upgraded and reconfirm their needs incl. GIS mapping of damaged industrial areas.

1.2 Develop for each selected MSMEs an upgrading plan, including technology inputs and associated trainings.

1.3 Develop technical specifications for equipment. (i.e. procurement and acquisition processes).

1.4 Implementation

1.5 Delivery of training courses as required / necessary.

1.6 Monitoring of training courses

1.7 Monitoring of works and corrective measures.

1.8 Report, evaluate and hand-over.

Output 2. Strengthened VTCs and Delivery of vocational training for IDPs, Refugees and Host Q1 Q2 Q3 Q4 Communities.

2.2 Planning for delivery of training according to needs assessment

2.3 Planning of TOTs and capacity building activities

2.4 Implementation of Capacity Building activities

2.5 Identification of equipment and other inputs needed

2.6 Preparation of all TORs and Specifications for procurement

2.7. Procurement of all necessary equipment and services

2.8. Monitoring and corrective measures

2.9 Produce PR materials for donor visibility

C.9. INDICATIVE BUDGET

The project financial and technical assistance requirements are summarized in the table below.

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 referenced in Annex 4.

Total BL Item Description Unit Unit Cost Qty Budget US$

1. PERSONNEL 1.1 Project Management Unit

11-00 Programme/Project Specialist Mths 7500 12 90000 17-00 Project Officer - SME Support Mths 2900 12 34800 17-00 National Project Coordinator Mths 2900 12 34800 National Expert - Vocational 17-00 Mths 2900 12 34800 Training Technical Expertise (Engineering, 11-00 Mths 10000 6 60000 Vocational Training, Gender etc.) 11-00 Partnership Adviser - Japan Mths 5750 6 34500 17-00 Project Assistant - HQ Mths 2000 12 24000 17-00 Admin Support Field Mths 1600 12 19200 17-00 IT Support (Training Labs) Mths 1700 12 20400 17-00 Project Driver Mths 1100 12 13200 Sub-Total - 1.0 Personnel 365700 2. CONTRACTS & SERVICES 21-00 Training Support Services LS 60000 1 60000 Internet Services for 21-00 LS 2300 12 27600 Office/Maintenance Institutional Training Support 21-00 LS 40000 1 40000 (Training for Instructors) Sub-Total - 2.0 Contracts 127600 3. TRAINING & CAPACITY BUILDING 30-00 Vocational Training for 150-200 LS 60000 1 60000

Sub-Total 3.0 Training & Capacity Building 60000 4. EQUIPMENT* Equipment to support micro- 45-00 Ea 60000 1 60000 enterprises 45-00 Vocational Training Equipment Ea 40000 1 40000 45-00 IT Equipment LS 7500 1 7500 Sub-Total 4.0 Equipment 107500 5. OPERATION COSTS 51-00 Shipping and Customs Clearance LS 5000 1 5000 Fuel for vehicle including 51-00 LS 1000 12 12000 insurance + maintenance Misc. (courier services, printing 51-00 LS 16979 1 16979 materials, etc.) Advocacy / Communications 51-00 LS 15000 1 15000 Initiatives

Sub-Total 5.0 Operations Cost 48979 6. TRAVEL Travel for project staff (local and 15-00 LS 20000 1 20000 international flights) UNIDO monitoring missions 16-00 LS 5000 2 10000 (2/year)

Sub-Total 6.0 Travel 30000 7. PROGRAMME / PROJECT SUB-TOTAL 739779

8. UNIDO AGENCY SUPPORT COSTS (13%) 96171

9. PROJECT BUDGET TOTAL 835950

*Equipment types and specifications will be determined during the needs assessment phase of the project.

C.10. IMPLEMENTATION ARRANGEMENTS

A multidisciplinary team will be formed, which will include a Programme/Project Specialist, Project Officers, engineers and vocational training experts. This technical team will lead the project in close partnership with the local authorities. A resident project management team will be established in Erbil to direct the implementation of activities identified during the rapid assessment phase and to ensure that all work is completed in-accordance with the defined project plan. The project will also aim to have a gender-balanced team including the possible recruitment of a gender expert to advise on the gender sensitive implementation of activities such as trainings and development of training programmes.

The Programme/Project Specialist (PPS) will be recruited by the Project to head the PMU. The PPS will be responsible for the overall management of the project and the coordination of its activities in line with the counterparts’ priorities and ensuring proper cooperation with other on-going programmes in the country. The National Project Coordinator will be overseeing the day to day operations in the field. Please see Annex 2 for the overall structure of the project.

C.11. REPORTING

This project will adhere to the following reporting schedule.

1. Report I: 3 month progress report incl. work plan - estimated delivery: May 2017 2. Report II: 3 month progress report incl. work plan – estimated delivery: August 2017 3. Report III: 3 month progress report incl. work plan – estimated delivery: Nov 2017 4. Report IV: 3 month progress report incl. work plan – estimated delivery: Feb 2017 5. Final project / terminal report

C.12. REVIEW AND EVALUATION

• Monitoring of the project activities will include data collection and analysis arrangements, baseline information, programme of work and budget expenditures. Data collection will be sex-disaggregated. • Geographic Information Systems (GIS) will be leveraged in the assessment and implementation of the MSME component. Mapping data will be used to present specific details on the beneficiaries and their exact locations in Iraq.

C.13. HARMONIZATION WITH DEVELOPMENT PARTNERS

In view of not duplicating rehabilitation/development efforts, the project will aim to coordinate with international organizations that are working to support similar objectives. Specifically, the project will coordinate with UNDP’s Stabilization Project Management Team responsible for the Facility for Immediate Stabilization in Iraq and other Japan funded projects in the region.

C.14. SUSTAINABILITY

The empowerment of host and displaced person communities is aimed at reinforcing self- reliance for beneficiaries to provide for themselves and not rely on aid agencies. In all stages, the project will aim at building confidence, meeting actual needs and ensuring that all stakeholders are part of the decision-making process – therefore ensuring the sustainability of planned project interventions.

The project will build as much as possible on already existing national vocational training infrastructure to keep long-term financial requirements as low as possible to continue with project activities beyond the project life-cycle. The involvement of and commitment to the project by the training centers from the onset is of paramount importance. It should be

18 noted that the project are funded with an emergency context to achieve fast and immediate results for the country.

C.15. PARTNERSHIPS

The project will aim to establish technical partnerships with the private sector and /or technical institutions in Japan. The aim of these partnerships is to provide human resource development for the project’s institutional partners. This may be in the form of study tours, use of technical expertise or technology transfer (i.e. equipment) from Japan. However, due to the high risk operating environment in Iraq, UNIDO’s part project experience shows that industries are reluctant to engage with Iraq. This stems from of a variety of reasons, which include: personnel safety, security / political instability and lack of economic opportunities due to the downturn from military operations as well as oil prices.

To ensure that all efforts are made to establish partnerships with industry in Japan, a partnerships advisor will be recruited in Japan to engage with industry, facilitate partnerships, disseminate information about Iraq and establish a platform for knowledge exchange (i.e. study tours).

C.16. RISKS

Specific risks are to be considered during the entire duration of the project. The current economic and political instability of the surrounding areas of Northern Iraq is noted as one of the key risks. Below is the table of the project risks.

Risk Risk Mitigating factors Level § Security Situation and § The project will maintain regular Medium Stability - The security contact with government agencies situation in Erbil, coordinating the security situation Northern Iraq is stable at in Erbil and targeted areas, local the moment. authorities and UN mission to maintain situational awareness. § Political Stability of § The project will continuously High Northern Iraq. – The monitor the political situation and political situation is fragile make calculated decisions as due to current conflict changes takes place in the and crisis incl. ISIL in the country. fringes of the KRI. § Economic instability and § The project will ensure that all Medium cultural considerations – stakeholders are within due to the current low consideration to become economic growth in the beneficiaries. The intervention region, unemployment is aims to promote the social high, and the influx of harmony between the influx of displaced persons are displaced people and host creating tension within communities.

the job market.

C.17. PRIOR OBLIGATIONS AND PREREQUISITES

Not applicable.

C.18. LEGAL CONTEXT

The Government of the Republic of Iraq 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 and entered into force on 20 October 1976.

Annex 1. Log-Frame

Duration: 12 Months Project areas: Northern Iraq (Kurdistan) Project beneficiaries: Host Communities and Displaced persons Narrative Summary Objectively Verifiable Indicators Means of Verification Important Assumptions Development objective - Full support and Immediate stability, economic recovery and ownership by all reconstruction support for communities affected by the relevant stakeholders. conflict in Iraq. - The political and Specific objective - Number of people engaging in - M&E Reports economic stability of Improved social and economic stability for 150-200 income generating activities - Training Reports the region does not families (approximately 750-1000 persons) in the - At least 750-1000 persons or - Labor Assessment deteriorate Northern and Kurdistan region of Iraq. (150 – 200 households) and Surveys benefit from the project (one - Government person supports the average Reports family size of five people) Outputs - A total of 150-200 persons will - M&E Reports - Institutions are receive vocational and/or - Training Reports committed to develop 1. Restored economic activity for destroyed, technical skills training (40% - Labor Assessment such services in a partially-damaged and poorly equipped micro, women) and Surveys sustainable manner - small and medium sized enterprises (MSME). - A total of 10-15 micro and - Government The availability of new small scale enterprises will be courses sparks an 2. Strengthened VTCs and Delivery of vocational Reports restored and upgraded (40% interest in students that training for IDPs, Refugees and Host Communities. women) are willing to engage in income generating - A total of 1-2 government institution will received activities - capacity building support. The displaced people and host communities - A total of 5-10 government staff received capacity are willing to be trained - building support (30-40% The upgraded MSMEs

women) are able to produce more revenue to hire additional workers

Activities Output 1: Restored economic activity for destroyed or partially-damaged micro, small and medium sized enterprises (MSME) and delivery of Vocational Training for Refugees and IDPs.

1.1 Identify the MSMEs and enterprises to be upgraded and reconfirm their needs incl. GIS mapping of damaged industrial areas. 1.2 Develop for each selected MSMEs an upgrading plan, including technology inputs and associated trainings. 1.3 Develop technical specifications for equipment (i.e. procurement and acquisition processes). 1.4 Implementation (i.e. equipment installation). 1.5 Delivery of training courses as required. 1.6 Monitoring of training courses. 1.7 Monitoring of works and corrective measures. 1.8 Report, evaluate and hand-over.

Output 2: Rehabilitation and Upgrading of VTCs in Iraq through delivery of capacity building training, equipment and support (TOTs, New Training Programmes, Management of VTCs, etc.) for the Ministry of Labor and Social Affairs and other relevant government institutions

2.1 Conduct training needs assessment for Vocational Training and MSMEs in newly liberated areas (i.e. labor market conditions, training institutions, technical requirements, instruction capacity, training infrastructure, gender analysis, government counterparts, etc.) 2.2 Planning for delivery of training per needs assessment 2.3 Planning of TOTs and capacity building activities 2.4 Implementation of Capacity Building activities 2.5 Identification of equipment and other inputs needed 2.6 Preparation of all TORs and Specifications for procurement 2.7. Procurement of all necessary equipment and services 2.8. Monitoring and corrective measures 2.9 Produce PR materials for donor visibility

Annex 2: Basic Features of the Organizational Structure of the Project

UNIDO Government Partners

Relevant ministries, stakeholders and UN coordinating agency

Ministry of Labor and Social Affairs – KRG Project Management Unit Day-to-day management Governor’s Office – Erbil and Ninewa Programme/Project Specialist JCC and ERC Technical Assistance, etc.

National Project Technical Experts Coordinator

National Experts and Administrative Staff

Annex 3: Budget Breakdown per Output

Output 1 Budget line Description Total USD 11-00 International experts 92,250 15-00 Local travel 15,000 16-00 Staff travel (monitoring missions) 5,000 17-00 National experts 58,800 21-00 Contractual services 27,600 30-00 Training 20,000 45-00 Equipment 60,000 51-00 Sundries (i.e. operations) 24,489 Agency support costs (13%) 39,408 Sub-Total Output 1 342,547

Output 2 Budget line Description Total USD 11-00 International experts 92,250 15-00 Local travel 5,000 16-00 Staff travel (monitoring missions) 5,000 17-00 National experts 122,400 21-00 Contractual services 100,000 30-00 Training 40,000 45-00 Equipment 47,500 51-00 Sundries (i.e. operations) 24,490 Agency support costs (13%) 56,763 Sub-Total Output 2 493,403