Tunisia - Employment and Training Project

 Employment and training project Report No: ; Type: Report/Evaluation Memorandum ; Country: Tunisia; Region: Middle East And North Africa; Sector: Vocational/Technical Education & Training; Major Sector: Education; Project ID: P005734 Tunisia: Employment and Training Fund (Loan 3255-TUN) The Tunisia Employment and Training Fund project, supported by Loan 3255-TUN for US$12.0 million equivalent, was approved in FY91. The loan, which was closed on June 30, 1995, after a one-year extension, was almost fully disbursed (US$0.3 million was canceled). The final disbursement took place on December 6, 1995. Cofinancing was provided by USAID during the initial phase of the project. The Implementation Completion Report (ICR) was prepared by the Middle East and North Africa Regional Office, and borrower comments are included. The objectives of the project were to increase the flexibility and mobility of the labor force by developing in-company training activities and by helping the unemployed find jobs. The project comprised two components. The first (90 percent of total base costs) created a regionally based Employment and Training Fund (ETF) to finance subprojects that would place unemployed workers in existing jobs as well as improve labor productivity through in-company training programs. The second (10 percent) set up an institutional development program to strengthen the capabilities of the government agencies responsible for employment and training programs. After a brief delay owing to changes in management structure, implementation proceeded smoothly, and the project achieved its objectives of improved worker training and labor market intermediation. The total number of beneficiaries of all training and job placement activities under the ETF exceeded appraisal estimates, and the average placement rate at 73 percent was high. In addition, the project developed in- company training activities, but whether companies that benefited from the project continue to train their workers is uncertain. As a measure of its success, the ETF has become an integral part of the Tunisian Employment Agency's operations and the government is planning to continue project activities with normal budgetary financing. The project also attained its institutional development objectives. Working with the Tunisian Employment Agency (ATE), the project strengthened vocational information centers, created and equipped regional employment offices, and trained central and regional staff. As a result of the project, the ATE instituted a new three-year program: a demand-driven service approach towards its clients, firms and job seekers, that restructured and reoriented all ATE activities, including the ETF. The ICR and the Operations Evaluation Department rate the project's outcome as satisfactory, sustainability as likely, institutional development as substantial, and Bank performance as satisfactory. Important lessons of the project, identified in the ICR, are that (i) the utilization of a grass-roots, "bottom- up" approach can ensure flexible implementation as well as local project ownership; and (ii) a simple, transparent, and flexible project design facilitates implementation by making it easier to introduce modifications in the light of changing conditions. The ICR is satisfactory, providing a comprehensive overview of project achievements and lessons learned. However, a plan for future operations is not included. No audit is planned.