Project Administration Manual Project Number: 46535-001 Loan and Grant Numbers: L3309; G0452; G0453 September 2020 Republic of Tajikistan: Strengthening Technical and Vocational Education and Training Project CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 6 A. Project Readiness Activities 6 B. Overall Project Implementation Plan 7 III. PROJECT MANAGEMENT ARRANGEMENTS 15 A. Project Implementation Organizations – Roles and Responsibilities 15 B. Key Persons Involved in Implementation 17 C. Project Organization Structure 18 IV. COSTS AND FINANCING 19 A. Detailed Cost Estimates by Expenditure Category 20 B. Allocation and Withdrawal of Loan and Grant Proceeds 21 C. Detailed Cost Estimates by Financier 23 D. Detailed Cost Estimates by Outputs/Components 24 E. Detailed Cost Estimates by Year 25 F. Indicative Contract and Disbursement S-curve 28 G. Fund Flow Diagram 30 V. FINANCIAL MANAGEMENT 31 A. Financial Management Assessment 31 B. Disbursement 32 C. Accounting 34 D. Auditing and Public Disclosure 34 VI. PROCUREMENT AND CONSULTING SERVICES 35 A. Advance Contracting and Retroactive Financing 35 B. Procurement of Goods, Works, and Consulting Services 35 C. Procurement Plan 37 D. Consultant's Terms of Reference 57 VII. SAFEGUARDS 103 VIII. GENDER AND SOCIAL DIMENSIONS 104 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 109 X. ANTICORRUPTION POLICY 127 XI. ACCOUNTABILITY MECHANISM 127 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 127 XIII. ATTACHMENTS Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM includes references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Ministry of Labor, Migration and Employment is wholly responsible for the implementation of ADB financed project, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by Ministry of Labor, Migration and Employment of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the financing agreements. Such agreement shall be reflected in the minutes of the Loan and Grant Negotiations. In the event of any discrepancy or contradiction between the PAM and financing agreements, the provisions of the Financing Agreements shall prevail. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund AFS – audited financial statements CEF – Clean Energy Fund CEFPF – Clean Energy Financing Partnership Facility CTMMEQ – Center for Training Methodology and Monitoring of Education Quality CQS – consultant qualification selection DMF – design and monitoring framework DRS – Districts of Republican Subordination EMP – environmental management plan GACAP – governance and anticorruption action plan GBAO – Gorno-Badakhshan Autonomous Region GDP – gross domestic product ICB – international competitive bidding IEE – initial environmental examination LIBOR – London interbank offered rate MINT – Ministry of Industry and New Technologies MEWR – Ministry of Energy and Water Resources MOLME – Ministry of Labour, Migration and Employment MRITP – market-responsive and inclusive training program NCB – national competitive bidding NCCVET – national coordination council for vocational education and training NGO – non-government organization PAI – project administration instructions PAM – project administration manual PAG – project administration group QBS – quality based selection QCBS – quality and cost-based selection RRP – report and recommendation of the President to the Board SBD – standard bidding documents SGIA – second generation impress accounts SOE – statement of expenditure SPS – Safeguard Policy Statement SPRSS – summary poverty reduction and social strategy TOR – terms of reference I. PROJECT DESCRIPTION A. Rationale 1. The 1992–1998 civil war in Tajikistan resulted in significant emigration of skilled workers. Tajikistan’s gross domestic product growth averaged 7.2% per during 1998–2008, largely because of high prices for aluminum and cotton exports, and the inflow of remittances, primarily from the Russian Federation.1 The global financial crisis reduced growth to 3.9% in 2009, but growth recovered to an average of 6.5% from 2010 to 2014. The poverty incidence declined steadily from 96% in 1999 to 32% in 2014, but remains the highest in Central and West Asia. The benefits of economic growth have not been inclusive. Most employment is in agriculture, which has the lowest average monthly income. Agriculture’s share of total employment has increased steadily, from 43% in 1990 to 66.1% in 2013, while agriculture’s share of GDP declined from 30.1% to 21.1%.2 The average productivity per agricultural worker has declined between 2005 and 2015. Industry to provide the foundation for sustained growth and employment is undeveloped. 2. The stated goal of the National Development Strategy of the Republic of Tajikistan for the Period to 2015 is sustainable economic development and poverty reduction.3 The three strategic development objectives are (i) ensuring food security, (ii) achieving energy sovereignty, and (iii) overcoming communication obstacles. The strategic priority sectors are agriculture, energy, transport, and communications. The major challenge is structural transformation of the economy, both to sustain growth and to ensure that the benefits of development are widely shared. 3. The sources of the previous high growth rates—demand for aluminum and cotton, and remittances from migrant workers—have all been affected by external factors. The demand for and prices of aluminum and cotton declined significantly during 2011–2014. Remittances are under serious threat due to the slowdown of the Russian Federation economy, which hosts over 90% of Tajik migrant workers. Remittances declined from $4.4 billion in 2013 to $3.9 billion in 2014, dropping further to $1.2 billion at the end of June 2015.4 In additions, the Russian Federation has tightened its migration policies, preventing some 210,000 Tajik migrant workers from reentry. An additional 200,000 migrants are at risk of being deported. When combined with 150,000 new entrants into the labor force each year, the unemployment situation in Tajikistan is extremely serious. 4. There is an urgent need to address the unemployment crisis. Mechanisms are needed to facilitate job search for returning migrants. Skills upgrading, basic skills training and quick- turnaround certification, and access to credit to promote self-employment must be put in place as soon as possible. A comprehensive program for job creation needs to be designed and implemented. Jobs must be created in rural areas. The industry and services sectors need to establish more sustainable, labor-intensive, small and medium-sized enterprises. 5. Issues in the technical and vocational education and training system. The TVET system in Tajikistan is largely supply-driven. Most course structure and content is outdated, resulting in 1 Remittances accounted for 50% of GDP in 2013 and 42% of GDP in 2014. 2 Statistical Agency of Tajikistan. 2014. Tajikistan Statistical Bulletin. Dushanbe. 3 Government of Tajikistan. 2007. National Development Strategy of the Republic of Tajikistan for the Period to 2015. Dushanbe. 4 National Bank of Tajikistan. 2015. Quarterly report. Dushanbe. 2 a mismatch between graduate skills and labor market demand. Ineffective engagement of private sector partners in TVET, both employers and private trainers, is a key problem. Skills gaps to address climate change are also an issue. Most TVET institutions have obsolete and inadequate equipment, dilapidated school buildings, and poorly maintained dormitories. The condition of physical facilities and the lack of modern curricula reinforce the generally low social image of TVET, and contribute to the system’s inability to attract students. 6. Primary TVET suffers from deficiencies in both quality and quantity. The total enrollment in 63 lyceums in 2014 was 21,593 students, of whom 18% were girls, an average enrollment size of 343 students per lyceum. The small average enrollment size results in low student– teacher ratios (9:1), high unit cost (TJS1,400 per student per year compared with TJS900 in general 5 education), and a low percentage share of internally generated funds (22%) to total funding. 7. Weak faculty development has resulted in inadequately trained teaching staff. The salary scale of TVET teachers and masters remains very low compared with other civil servants, and with employees in industry and services sectors. Investment in TVET teacher salaries and training is required to build capacity, modernize technical and training skills, match skills to emerging market needs, and increase