Technical Assistance Report: Project Number: 49117-001 Capacity Development Technical Assistance (CDTA) October 2015
Technical Assistance Report: Project Number: 49117-001 Capacity Development Technical Assistance (CDTA) October 2015
Technical Assistance Report: Project Number: 49117-001 Capacity Development Technical Assistance (CDTA) October 2015
This document is being disclosed to the public in accordance with ADB's Public
Communications Policy 2011.
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
CURRENCY EQUIVALENTS
(as of 28 September 2015)
ABBREVIATIONS
NOTES
(i) The fiscal year (FY) of the Government of the Philippines ends on 31 December.
“FY” before a calendar year denotes the year in which the fiscal year ends, e.g.,
FY2013 ends on 31 December 2013.
In preparing any country program or strategy, financing any project, or by making any
designation of or reference to a particular territory or geographic area in this document, the
Asian Development Bank does not intend to make any judgments as to the legal or other status
of any territory or area.
CONTENTS
Page
APPENDIXES
1. Design and Monitoring Framework 6
2. Cost Estimates and Financing Plan 9
3. Outline Terms of Reference for Consultants 10
Project Classification Information Status: Complete
6. TA Category: B
qq
8. Financing
Modality and Sources Amount ($ million)
ADB 1.30
Capacity development technical assistance: Technical Assistance Special 1.30
Fund
Cofinancing 0.00
None 0.00
Counterpart 0.00
None 0.00
Total 1.30
qq
1. In December 2014, the Philippine Department of Labor and Employment (DOLE) asked
the Asian Development Bank (ADB) for technical assistance (TA) to support the national rollout
of the JobStart Philippines (JSP) pilot project, which aims to assist out-of-school youth find
employment. In response, ADB carried out a fact-finding mission in August 2015. During that
mission, ADB and DOLE agreed on the proposed impact, outcome and outputs, implementation
arrangements, cost, financing arrangements, and terms of reference. The DOLE’s planned
rollout of JSP to 64 local government units (LGUs) by 2020 builds on DOLE’s experience and
lessons in piloting JSP in four (4) LGUs from January 2014 to August 2015, which was
supported by a large scale ADB TA financed by the Government of Canada.1 The proposed TA
will support the government (through DOLE) through assistance with setting up the national
institutional structure of JSP and capacity development for staff at DOLE and at 24 Public
Employment Service Offices (PESOs) located within the LGUs, as well as commencement of
JSP activities in those 24 PESOs.2
2. The TA supports the public sector management pillar of the country partnership strategy,
2011–2016 and the employment generation pillar of the draft country operations business plan,
2016–2018. It is designed as part of a programmatic approach to help address part of the youth
employment problem. The programmatic approach includes the Increasing Competitiveness for
Inclusive Growth Program loan, 3 2011 to 2014, which included measures to promote a
competitive labor market, supported by large scale TA to implement the JSP pilot project aimed
at testing strategies to help young people find decent employment (footnote 1). These
interventions were followed by the TA requested by DOLE to set up the institutional structure for
the JSP rollout, to be followed by a sector development program loan called Facilitating Youth
School-to-Work Transition, which is planned for delivery in 2016. This will include a project loan
for JSP rollout. Previous consultations on plans for a national rollout were held on an
intermittent basis from November 2014 to July 2015, and these consultations benefited from
previous TA implementation review missions under the JSP pilot project. The design and
monitoring framework is in Appendix 1.
II. ISSUES
3. The Philippines has a youth employment problem. This is reflected in a slow school-to-
work transition for many young Filipinos (between the ages of 18 and 24). Frequent spells
outside the labor market without training and for extensive periods of time damage young
people’s future career prospects and earnings. This situation can also perpetuate lifetime
poverty for the young residing in poor households. Results from the 2008 ADB survey of 500
households in Metro Manila and Cebu found that high school graduates have a difficult time
productively integrating into the labor market, with only 20% finding a job within the first year of
leaving school.4 On average, it takes high school graduates up to 4 years to find a paid job, and
fewer than half actually find paid employment. In contrast to high school graduates, college
graduates on average find a job within 2 years and approximately 70% of them find paid
employment. As a result of this slow transition from school to work, one in four young persons
1
ADB. 2013. Technical Assistance to the Republic of the Philippines for Employment Facilitation for Inclusive
Growth. Manila.
2
The TA first appeared in the business opportunities section of ADB’s website on 25 August 2015.
3
ADB. 2014. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based Loan
for Subprogram 2 to the Republic of the Philippines for the Increasing Competitiveness for Inclusive Growth
Program. Manila.
4
ADB. Forthcoming. Youth Situation in the Labor Market. Manila.
2
(between the ages of 15 and 24) are not in employment, education or training at any point in
time. This is the second highest rate in Southeast Asia, behind Indonesia. Young women are
more likely to withdraw from the labor market. For example, one in three young women is
unlikely to be in employment, education or training. Of particular concern is the fact that young
people from low-income families are more than twice as likely to not be in employment, post-
secondary education of training compared to their peers in higher-income families. A large pool
of young people from lower-income families is not being integrated into the labor market.
4. Based on ADB’s diagnostics of the youth situation in the labor market (footnote 4), the
main constraints to achieving a faster school-to-work transition for many young people involve
both the labor demand side and the labor supply side. On the labor demand side, while paid
employment has been expanding on average by 3.7% per annum (or almost 500,000 new jobs
annually) since 2010, it has not been sufficient to create jobs for the 800,000 new job seekers
each year. The government has put in place reforms to lift growth and employment creation
through infrastructure investments with a target to reach over 5.0% of gross domestic product
by 2016, as well as continued financial sector and business climate reforms. On the supply side,
the main constraints to achieving a faster school-to-work transition as well as a faster job-to-job
transition for the unemployed include (i) weak linkages between the education and training
sectors and the skills requirements of industry, meaning that many young people are ill
prepared for the workplace, (ii) inadequate active labor market programs that can provide out-
of-school youth with an integrated set of employment support services that help them find
decent employment, (iii) inadequate labor market information to assist young people with job
searches, and (iv) under-resourced PESOs at the LGUs to provide efficient and effective
employment facilitation services for out-of-school youth.
5
“At-risk” youth in the JSP program refers to out-of-school youth at risk of not integrating into the labor market. The
criterion for ‘at-risk’ is youth aged between 18 to 24 with at least high-school education and less than 12 months of
work experience.
6
Life skills for employability refer to those soft skills necessary for young people to be successful in obtaining and
retaining a job. These include skills in searching for a job, resume writing, performing in interviews, communication
with supervisors, peers, clients and family, work and emotional attitudes expected in the workplace, team
collaboration, healthy habits, and financial literacy, among other important life skills.
3
6. ADB has a long and close engagement with DOLE on youth employment and the JSP.
Under ADB programmatic support (the Increasing Competitiveness for Inclusive Growth
program and capacity development TA [footnote 1]), the JSP was successfully piloted in four
LGUs in 2014 and 2015: Quezon City, Taguig City, City of San Fernando in Pampanga
province, and the municipality of General Trias, Cavite province. Over 5,000 out-of-school
youths registered for the program, of which two-thirds (about 3,200) were randomly selected to
undertake career guidance and coaching and labor market information. Half of them were then
randomly selected to undertake the full cycle of services, from life skills and technical training to
internships with employers. The random selection of young people at different stages of the
program was necessary to establish a randomized evaluation of the impact of the program on
employment for this at-risk demographic group. The 5,000-plus young people who registered for
the program will be traced for 6 months after the program finishes and the evaluation report will
be finalized in early 2016. Result of the evaluation will be used as inputs to refinements to JSP
as it is rolled out.
7. The midterm evaluation of the pilot carried out in December 2014 provided two lessons
for the nationwide JSP rollout. First, the evaluation found JSP had a positive impact on
employment outcomes for the target group. Employers were very satisfied with the JSP as it
helped to address their skill shortages and interns were well prepared through life skills training.
Employers also liked the flexibility provided to them in developing training plans. The majority of
the employers said they would retain most of the interns as regular workers. Employers
participating in the program covered a diverse set of industries and occupations with varying
skills competency requirements, such as in manufacturing, health care, food chains, and other
services. The beneficiaries also had a positive view of the program and found the life skills
training course boosted their confidence in applying for jobs. The internships provided them with
a channel to acquire work experience and improve their chances of finding employment in the
future. Second, design changes to JSP have been made to further facilitate the transition into
decent jobs. These include merging career guidance into life skills and reducing the internship
from 6 months to 3 months.
8. Based on the results of the pilot, and the two lessons, DOLE has, with ADB assistance,
developed a nationwide rollout plan for 2015 to 2020 and aims to implement JSP in 64 LGUs by
2020, targeting more than 64,000 out-of-school youths into the program, of which 24 LGUs and
15,000 JSP beneficiaries will be supported by the proposed TA. DOLE has signed 14
memorandums of understanding with partner LGUs to start the rollout in 2015. These LGUs
cover the four pilots and the additional 10 LGUs (Mandaluyong City, Pasay City, and Caloocan
City in the National Capital Region; Cebu City, Davao City, and Tagum City in Davao del Norte;
Dumaguete in Visayas, the entire province of Bohol; Puerto Princesa City in Palawan, and
Cagayan de Oro in Mindanao). Every year, 10 additional LGUs will be covered by the program
from 2016 to 2020. Funding of the rollout from 2015 to 2020 will come through government
budget allocations, Canadian government-proposed grant funding and an ADB-proposed project
loan (24 LGUs) under ADB’s Facilitating Youth School-to-Work Transition program, 2015–2020.
9. The impact will be increased youth employment rates. The outcome will be JSP rollout
by DOLE and PESOs commenced. This will be measured by 24 LGUs having signed
memorandums of agreement with DOLE and fully implementing JSP by December of 2021, with
more than 15,000 out-of-school youths accessing JSP in the 24 LGUs from 2015 to 2020.
4
11. Output 1: Capacity development of JSP units at DOLE headquarters and regional
DOLE offices strengthened. This output will provide capacity development to staff from the
Bureau of Local Employment, DOLE, and will provide advisory services to the bureau on JSP
policy related to the implementation of the standard operating procedures, business processes
and templates, development of the monitoring and evaluation framework, and grants
mechanism using country systems. Capacity development will be provided to staff of selected
regional offices for overseeing implementation, monitoring, and evaluation of the JSP at the
LGUs.
12. Output 2: Life skills for employability training curriculum rolled out nationally. This
output will engage a professional life skills training provider (company) to implement the life
skills (including soft skills) component of JSP by training the trainers at the PESOs and selected
training institutions, and pairing with PESO staff (as on-the-job training) to provide life skills
training to at least 15,000 JSP beneficiaries in 24 LGUs. The life skills provider will train 7,500
JobStarters in life skills while the PESOs will be responsible for training the other 7,500
JobStarters funded under the TA.
14. Successful achievement of the TA outputs faces possible risks. First, there are local
political and financial risks. PESO participation in the JSP is voluntary so a change of
administration in LGUs following elections may result in a lack of commitment to JSP. A second
risk to a successful JSP rollout is the government not securing sufficient national budgetary
funding for the PESOs’ capacity development and for funding the grants component of JSP.
Third, LGUs may provide insufficient budget and staff resources for JSP implementation. DOLE
is addressing some of these issues through legislative changes to the PESO Act and in May
2015 submitted to Congress the JSP Bill to secure government budget appropriations and
program sustainability. The Department of Budget and Management has also allocated budget
funding in 2015 and proposed funding for 2016.
15. The TA is estimated to cost $1,400,000, of which $1,300,000 will be financed on a grant
basis by ADB’s Technical Assistance Special Fund (TASF-other sources). The government will
provide counterpart support in the form of counterpart staff, office space, utilities, and other in-
kind contributions. In addition, the Government of Canada is also considering cofinancing the
TA at a later stage.
D. Implementation Arrangements
16. The DOLE will be the executing agency for the TA. The LGU signatories to the JSP
memorandums of understanding are the implementing agencies. Their functions will be guided
5
by the program’s standard operating procedures. A JSP steering committee, chaired by the
secretary of DOLE, will be established to oversee implementation of the JSP rollout.
Composition of the steering committee will include officials from the Department of Finance, the
Department of Budget and Management, the Department of Education, the National Economic
and Development Authority, the Technical Education and Skills Development Authority,
employer organizations, and the National Youth Commission, among others. ADB and the
Government of Canada will also be members of the steering committee. A project management
unit will be established in DOLE’s Bureau of Local Employment.
17. A company will be engaged in accordance with the Guidelines on the Use of Consultants
(2013, as amended from time to time) to carry out activities under the TA. The single source
selection method will be used to select Scope Global Pty Ltd,7 as it implemented the JSP pilot
project under the employment facilitation TA (footnote 1). The single source selection method
will be used to ensure continuity of technical advice and capacity development to DOLE and the
PESOs in transiting from the pilot project to the nationwide rollout stage. This continuity is
deemed necessary to protect the integrity of JSP program and ensure effective and efficient
implementation of the rollout. The consulting services under the TA will comprise two
international specialists: the team leader with employment program experience (15 person-
months) and the international finance officer (15 person-months). Scope Global will engage 19
national specialists: (i) two finance experts to assist DOLE with financial management and
government budgeted grant disbursements (10 person-months each), (ii) one information and
communications technology expert (10 person-months), (iii) 14 Project Coordinators (15 person-
months each), (iv) one communications and media relations expert (10 person-months), and
(v) one administrative officer (15 person-months). The firm will subcontract a life skills training
provider to implement the training program. Selection will be on a competitive basis with a fixed
amount contract. The TA will be disbursed in line with the Technical Assistance Disbursement
Handbook (2010, as amended from time to time). The purchase of equipment will be done in
accordance with ADB’s Procurement Guidelines (2015, as amended from time to time).
Equipment will be turned over to the executing and implementing agencies upon completion of
TA activities.
18. Dissemination of outputs will be through a JSP website and Facebook page set up
through the TA, but management will be handled by DOLE’s JSP unit and communications
department. The website and Facebook page will be maintained by DOLE at the end of the
program.
19. Following the signing of the TA agreement between the government and ADB, the TA
will be implemented over 62 months from 1 November 2015 to 31 December 2020. Consultant
deliverables are included in the terms of references in Appendix 3.
20. The President, acting under the authority delegated by the Board, has approved the
provision of technical assistance not exceeding the equivalent of $1,300,000 on a grant basis to
the Government of the Philippines for Support for the Nationwide Rollout of JobStart Philippines,
and hereby reports this action to the Board.
7
Scope Global Pty Ltd formerly named as Austraining Pty Ltd as contracted under TA 8335-PHI: Employment
Facilitation for Inclusive Growth.
6 Appendix 1
Outputs
1. Capacity By December 2020: Staff turnover reduces
development of JSP 1a. JSP unit established 1a. DOLE departmental the critical mass of
units at DOLE in DOLE orders and documents DOLE staff
headquarters and knowledgeable on JSP
RDOs strengthened 1b. JSP established in 4 1b. JSP unit quarterly processes
DOLE RDOs reports
Performance Indicators
with Targets and Data Sources and
Project Results Chain Baselines Reporting Risks
2b. At least 15,000 2b. SRS reports and Life
youth access life skills skills provider reports
training course, at least
55% of which are
female.
3. Capacity of 24 PESOs By December 2020
in JSP implementation 3a. JSP established in 3a. JSP Unit quarterly LGUs allocate
developed 24 PESOs reports insufficient budgetary
and staff resources to
3b. At least 240 PESO 3b.–3d. Reports PESOs to implement
staff trained in JSP generated from the SRS JSP, which is time
business operations intensive.
(SOPs, SRS, employer
MOAs and training
plans, financial
management and
monitoring systems), at
least 55% of which are
female.
b
Activities with Milestones
Inputs
ADB: $1,300,000 (grant)
Note: The government will provide counterpart support in the form of counterpart staff designated to JSP
units, counterpart support through office accommodation, utilities, and other in-kind contributions.
ADB = Asian Development Bank; BLE = Bureau of Local Employment; SRS = Skills Registry System; DOLE =
Department of Labor and Employment; JSP = JobStart Philippines; LGU = local government unit; LMIS = Labor
Market Information System; LST = like skills training; MOA = memorandum of agreement; MOU = memorandum
of understanding; PESO = public employment service office; RDO = regional DOLE office; SOP = standard operating
procedure; TA = technical assistance.
a
Government of the Philippines, National Economic and Development Authority, 2011. Philippine Development Plan
2011–2016. Manila.
b
Unless otherwise stated, Activities with Milestones are completed by the contractor.
Source: Asian Development Bank.
Appendix 2 9
Item Amount
Asian Development Banka
1. Consultants
a. Remuneration and per diem
i. International consultants 411.0
ii. National consultants 478.0
b. International and local travel
i. International travel 14.0
ii Domestic travel 86.0
c. Reports and communications 1.0
2. Equipmentb 30.0
3. Training, seminars, and conferences
a. Facilitators 5.0
b. Training (DOLE, PESO, employers, etc.) 45.0
c. Life skills (DOLE, PESO, JSP beneficiaries)c 80.0
4. Miscellaneous administration and support costsd 60.0
5. Contingencies 90.0
Total 1,300.0
DOLE = Department of Labor and Employment: JSP = JobStart Philippines; PESO = public employment service
office.
Note: The technical assistance (TA) is estimated to cost $1,400,000, of which contributions from the Asian
Development Bank are presented in the table above. The government will provide counterpart support in the form of
staff, office space, and utilities. The value of government contribution is estimated to account for 7.1% of the total TA
cost.
a
Financed by the Asian Development Bank’s Technical Assistance Special Fund (TASF-other sources).
b
Equipment includes up to 30 desktop computers, three laptops, and 10 printers, photocopiers or scanners.
Equipment will be used by the executing and implementing agencies during the TA implementation. Equipment will
be turned over to the executing agency at the conclusion of the project. A website, Facebook, and other social media
will be developed by the national information technology consultant that will be recruited under the TA (see Appendix
3).
c
Subcontract for the life skills provider.
d
Includes project management unit operational expenses, land transportation expenses.
Source: Asian Development Bank estimates.
10 Appendix 3
1. A firm (ScopeGlobal) will be recruited using the single source method to ensure
continuity in policy advice and capacity building in transition from the JobStart Philippines (JSP)
pilot completed in 2015 to the nationwide JSP rollout, thereby assuring integrity of JSP. The
contract amount is a maximum of $1,300,000. ScopeGlobal will engage two international
experts (15 person-months each) and 19 national specialists (a total of 265 person-months): (i)
two finance experts to assist DOLE with financial management and government budgeted grant
disbursements (10 person-months each), (ii) one information and communications technology
expert (10 person-months), (iii) 14 Project Coordinators (15 person-months each), (iv) one
communications and media relations expert (10 person-months), and (v) one administrative
officer (15 person-months). Five Project Coordinators will be based in the National Capital
Region while nine Project Coordinators will be stationed in the local government units (LGUs)
located outside Luzon. The firm is expected to be mobilized by November 2015 and all
consultants mobilized shortly thereafter.
3. Tasks will include the following: (i) lead capacity development of JSP unit and BLE staff
in the JSP rollout; (ii) work with BLE to ensure all JSP business processes and documentation
are operationalized and remain updated, including financial management and the Skills Registry
System (SRS) and other information technology tools; (iii) work with BLE in capacity
development of 24 public employment service offices (PESOs) in the implementation of JSP in
the 24 LGUs; (iv) supervise the Project Coordinators and their capacity building efforts at the 24
PESOs; (v) work with Project Coordinators and PESOs to develop an active prequalified pool of
employers in JSP, and achieving minimum of 10 employers participating in JSP in each of the
24 PESOs; (vi) oversee the rollout of the life skills training program; (vii) provide a range of
advocacy support to the Department of Labor and Employment (DOLE) with other national
government agencies and stakeholders (private sector, labor groups, youth groups, and
vocational training institutions) on JSP; (viii) oversee coordination of program activities with the
private sector and other stakeholders; and (ix) work with BLE and PESO staff to transfer
knowledge and management of JSP to JSP unit at BLE and PESO by mid-2016.
5. National finance officers (2 officers for up to 10 person-months each). The two national
finance officers must have a university degree in accounting or finance. A nationally recognized
charter accounting qualification would be an advantage. She or he should have at least 5 years
of professional work experience. Experience with ADB procurement procedures and
government accounting, reporting, and procurements rules and would be highly desirable. She
or he will be responsible for (i) recording, reporting, and management of accounts, procurement
of goods and services, and support disbursements under the firm contract, to be done in
accordance with ADB’s TA Disbursement Handbook (2010, as amended from time to time); and
(ii) assist BLE with accounting, reporting, and monitoring of government-budgeted grant
disbursements to employers under the JSP program and other expenses under the supervision
of the international finance officer. In carrying out these activities, both national officers will work
with the accounts staff of DOLE and PESO staff to implement a financial management system
and internal controls for the disbursement of government budgetary grants under the JSP
covering life skills training, JSP beneficiary training allowances, and grants to employers to
cover the cost of technical training and administration associated with internships. The national
finance officers will be supervised by and report to the international finance officer and the BLE
JobStart Program Officer.
monitoring progress, and (iv) produce monthly reports on progress with program implementation
and on the progress of each program participant (average of 200 to 300 JobStarters each year
per PESO). The coordinators’ immediate supervisor will be the PESO manager. The officers will
also report to and be supervised by the BLE JobStart Program Officer and the Team Leader.
10. Subcontract for life skills provider (January 2016 to June 2018). The firm will
subcontract a national firm specializing in life skills for young people necessary for successful
entry into the job market. A detailed terms of reference will be developed by the contractor,
covering (i) revisions to and finalization of the life skills curriculum and materials, and ensuring
the curriculum is gender neutral and appropriately addresses gender-related concerns in life
skills; (ii) trainers’ manual; (iii) development and implementation of a training-the-trainers course
in life skills training at DOLE and the PESOs; and (iv) assistance to each of the 24 PESOs in
carrying out life skills training to JobStarters in March and September of the first year of the
PESO’s participation in JSP, with the life skills provider providing training to at least 7,500 of the
15,000 JobStarters from March 2016 to December 2017 (PESOs will be responsible for
providing life skills training to the other 7,500 JobStarters without the assistance of the life skills
provider). At least 55% of JobStarters accessing life skills training provided under the
subcontract will be female.
11. The contractor (Scope Global) will contract the life skills provider by competitive bidding,
using a fixed-amount contract.