Invitation for Letter of Intent - Helvetas Nepal

Invitation for Letter of IntentEmployment Fund is a consortium fund aimed at imparting vocational skill training tounemployed youth linked to the gainful employment in the national and internationaljob market. The target beneficiaries are out of school youths from rural areas whoare economically poor and socially discriminated.Employment Fund is established under bilateral agreement between Government ofNepal and Swiss Agency for Development and Cooperation (SDC) in 2008. Atpresent, SDC and U.K. Department for International Development (DFID) arecontributing Fund to Employment Fund. The World Bank is also preparing to workthrough Employment Fund for Adolescent Girls Employment Initiatives (AGEI).Employment Fund Secretariat (EFS) invites for Letter of Intent (LOI) for deliveringskills training as per the Technical Education and Vocational Training policy ofGovernment of Nepal from interested private sector Training & Employment Serviceproviders (T&E providers) who are registered at Office of the Company Registrarunder company act.The T&E providers are expected to deliver at least 80% employment to trainedyouths with minimum monthly income of NRs. 3,000 in Nepal, NRs. 5,000 in Indiaand NRs. 12,000 in overseas after the training.All interested T&E providers are requested to submit LOI together with theircompany profile, legal registration documents and recent audited financialstatements. T&E providers who wish to implement training and employment in jointventure, franchising or partnership with other organizations needs to submit thepartnership agreement (or equivalent). T&E providers who have proven track recordof training and employment for the national as well as international labour market areencouraged to submit the LOI. Detailed guidelines for submitting LOI, the evaluationcriteria of LOI, and Terms of Reference for T&E providers are available atwww.helvetasnepal.org.npThe completed hard copy documents should reach to the following address latest by30 th October 2009:Employment Fund SecretariatHelvetas NepalDhobighat, LalitpureGPO Box 688, Kathmandu, NepalPhone: 015524925, 015524926EFS reserves the right to reject any or all LOI with or without furnishing any reasonsto the company concerned. The procurement of services under this announcementwill be subject to the planned grant agreement with the donors.

ToR for delivering Skills Training and Employment for Employment Fund1 BackgroundThe Employment Fund has been operational since 01 January 2007 and is governed through theagreement with the Government of Nepal and the Government of Switzerland. EF is established as amodel for stimulating the Technical Education and Vocational Training (TEVT) market and attractingpublic and private sector investors into the fund.It finances skill-training to young people from economically poor and socially discriminated youthsenabling them to compete in the national and international labor market. Private sector trainingproviders are expected to deliver quality vocational training which is need based and market orientedfor self- or wage employment.The fund is provided by SDC through Employment for Youth Project, DFID through SPA and TheWorld Bank for Adolescent Girls Employment Initiatives (AGEI). The employment fund secretariatis managed by Helvetas Nepal.2 Objective:The main objective of seeking LoI is to identify Training and Employment (T & E) Service providerswho can deliver quality skill Training and employment for trainees. The specific objectives are:a) Skills training to a total of about 10,000 youths in total with minimum 80 % trainees inemployment. Training and Employment Service Providers who have a track record oftraining and employment to youths would get priority.b) 80 % of the trained graduates belong to socially discriminated and economically poor group.Minimum 60 % women are trained.c) The targeted youth are those who have left school after the primary, lower secondary orsecondary education and belong to economically poor and socially discriminated groups agedbetween 16-35 yrs.3 Scope of WorkThe T & E service providers will be responsible to provide skills training to a minimum of 100Trainees belonging to the above mentioned target groups. The trades identified for training the youthsneed to be based on market assessment and training being provided needs to conform with but notlimiting to occupational skills standards (OSS) of NSTB/ CTEVT. Skill testing of a minimum of 80%of trainees needs to be provisioned. T & E Service providers must operate a monitoring system toconfirm that the minimum employment rate at pre- defined income has been achieved. .4 Expected OutputsThe main expected outputs of the trainings are:80 % of the trained graduates are gainfully employed at least for six months of employment withearning of minimum NRS. 3000, NRs. 5000 and 12,000 per month for Nepal, India and overseasrespectively. Incase of formal sector employment minimum earning in Nepal should be 4,600/- permonth.80 % of the trainees belong to socially and economically disadvantaged groups.60 % of the trainees are women.80 % of the graduates pass the skill testing as per OSS standards.5 Duration of Service deliveryThe service contract period may vary depending on the number of services (skill training) deliveredby the respective T & E service provider. Each of the training events must meet the TEVT policy andNSTB skills standards and needs to be delivered latest by June 2010.

Detailed LoI Preparation Guideline for Potential T & E service Providers1. Organizational Profile1 Organization submitting LoI- Name of the organization/ company- Legal status of the company (Private Ltd./Public Ltd)- Major Shareholders and their holding in the Company- Name of the Contact Person- Address, Phone, FaxCoverage of the organization (district, regional, national)2.Registered date, number and the governing body:3.- At office of the company registrar- At Inland Revenue Office (PAN/VAT)4. Date of last renewal of the registration:5. Main purpose of the organization (as per memorandum of Articles)6. Main Geographical regions of operation7. Modality of skills Training implementation8 Types of skills trainings imparted by Year( with no, of people trained)No. of training events per Year9 No. of Skills trainers a) employed directly b) temporary contracts10 Specify the target groups for skills training11 Names of the senior staff and their qualifications who are involved in Skillstraining?

Format for providing Information on Organizational CompetenceContentsService portfolioBrief description of your existingproduct / service portfolioIndicate numbers, e.g. people trainedNumber of courses conductedTrades in the PastThe effectiveness of the work: e.g.employment rate of trained peopleIndicate / describe your monitoringand follow-up systemHow does itFrequencyIndicatorsDo you have specific target groups?Outline!Do you have a particular genderfocus in the programme?Outline!Innovations introduced in your serviceportfolio during the past 3 years?Describe!Brief outline of how you plan yourprogrammesHow do you obtain labour marketinformation?How do you obtain information onwhich skills are in demand in thelabour market?How relevant is Skills testing in yourservice context?Intended Services under this LOIOutline / Description

Trade wise tentative Target number oftraineesGeographical Target of plannedTraineesIntended Categories of Trainees(Gender, caste, ethnicity, agegroup)Governance and managementBoard - membership, mandateDirector(s)Operative Management SystemOutline your organisational structure.Give an assessment of its relevanceand effectiveness of organisationalcapacityDetails of Human Resources withtheir qualification and experiencesGender sensitivity in the organisation– women in leadership positions?Clients? Who have you been workingfor?Working modalityDo you have your own capacity todeliver the training or outsource / subcontractwork?Describe modality in detailIs the partnership formalised throughcontractOn a project base or long-term?Please attach document of partnership,joint venture or franchising.Do you train / orient your partners?

With how many partners do youregularly collaborate for this intendedjob? Please provide the name and list.NetworkingWhich groups are you networkingwith?Are you actively participating inpolicy development / policy dialoguefor this sector? Describe!How do you update yourself and yourstaff on developments in the sector inNepal and in the region?Financial management / reportingAccounting and Internal controlsystems ,Outline!Total Financial Strength:- Paid up capital- Total Assets- Available Working Capital- Annual Turnover of last yearLOI should be to the point and brief as far as possible covering the above points.DeclarationWe hereby declare that..................

Employment Fund SecretariatLOI Screening CriteriaCriteria for Assessing Capacity and Performance of Training and EmploymentService ProvidersS.N. Assessment Criteria Guide for quantification Score/Range MaximumScoreProven success: Trained1. people in gainfulemploymentNoneBelow 70%70 to 80%80% and more051015 152 Clarity onLabour market3 Volume of skills trainingconducted within last twoyearsT & E providers activelyassesses / update labourmarket information (as perevidence)Skills training adapted asper labour marketinformations (as perevidence)Below 500Above 5004 Innovation New trade taken up for skillstraining every year havinglarge employmentprospectiveTwo per yearOne per year5 Planned Target Remoteness of participants(Targeting to the participantfrom high poverty prone andremote geographical area)Promising Trade for gainfulEmploymentTarget to Disadvantagedgroup (women, dalit,janajati, widow….)6 Modality of trainingcourse implementation.7 Extent and relevance oftheir networkingin house capacity//partnership / franchising /outsourcing. Clearly definedwith evidencesNetworking with privatesector employer, enterprise,0 - 50 - 5100-55 - 8 80- 7 70- 80- 80- 4 200-5 50 - 5 5

8 System for monitoringand quality assurance9 Capacity of organisationto deliver (HR, structure)10 Clarity of focus on specifictarget groups specificallywomen and ethnicminorities11 Financial Managementand Tax System12 Governance andmanagement structuregovernment, banks andfinancial institutionsReliable, qualitativemonitoring and qualityassurance system in placeDoes reported capacity fromthe past work match withHR and structure.Have they defined specifictarget groupsPercentage participation ofdefined target groups in thepast.Standard Accountingsystem, Annual Turnover,Financial strength, Adequateworking capital for prefinancing (or plan), VAT andTax clearance. Evidence withaudited financial reportsBased on assessment oforganization structure0- 5 50 - 5 50 – 20 - 3 50 - 10 100 - 5 5100