ADDIS ABABA CITY ADMINISTRATION TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET)GULELE SUBCITY TVET OFFICE INSTITUTIONAL QUALITY ASSURANCE CORE PROCESS QUALITY AUDIT PROJECT PROPOSAL ON ESTABLISHING NEW POLYTECHNIC
FINANCIAL PROPOSAL FOR OPENING NEW POLYTECHNIC (TECHNICAL VOCATIONAL UNIVERSITY)
BERHANU TADESSE TAYE SUBMITTED TO: GULELE SUB-CITY FINANCE AND ECONOMIC DEVELOPMENT OFFICE SUBMITTED BY GULELE SUB-CITY TVET OFFICE
COMMENCING A NEW POLYTECHNIC TVET COLLEGE IN GULELE SUB-CITY TVET OFFICE AT ADDIS ABABA CITY ADMINISTRATION PARTICULAR PLACE OF THE PROJECT IS WOREDA 8 AND 9.
OWNER OF THE POLYTECHNIC PROJECT: GULELE SUB-CITY TVET OFFICE (GOVERNMENT)
March 13 2007 Addis Ababa Ethiopia 1
Table of contents 1.
Project Schedule ................................................................................................................................... 7 1.1.
Executive Summary ....................................................................................................................... 7
2.
Background of the project .................................................................................................................... 9
3.
Project Initiation and Rationales ......................................................................................................... 10
4.
Vision:.................................................................................................................................................. 11
5.
Mission: .............................................................................................................................................. 11
6.
Objective and scope of the project ..................................................................................................... 11 6.1.
The Specific objectives: ............................................................................................................... 12
7.
Beneficiaries ........................................................................................................................................ 12
8.
Project Output .................................................................................................................................... 12
9.
Target Market ..................................................................................................................................... 13 10.
The first phase of the training started by giving services like:.................................................... 13
11.
Project Team Members................................................................................................................... 14
12.
Organizational structures the polytechnic...................................................................................... 15
13.
Project Budget Estimation and Allocation ...................................................................................... 15
14.
Project Controlling and Monitoring Activity ................................................................................... 16
15.
Challenges of the Project ................................................................................................................ 16
16.
Possible Solution ............................................................................................................................. 16
17.
Implementation .............................................................................................................................. 16
18.
Project Sustainability ...................................................................................................................... 17
19.
Strategic Plan .................................................................................................................................. 17
20.
Policy and stratégies Ethiopian on TVET ......................................................................................... 17
21.
Financial strategy ............................................................................................................................ 19
22.
Project Budget Estimation and Allocation and Source of financial summery ................................ 21
23.
Project Time Management ............................................................................................................. 22
24.
Project Cost Management .............................................................................................................. 23
25.
Project Quality Management .......................................................................................................... 24
26.
The three process associated with PQM are: ................................................................................. 24
27.
Project Risk Management ............................................................................................................... 24
28.
Source of Fund and Income ............................................................................................................ 24 2
29.
Monitoring and Evaluation Procedure............................................................................................ 25
30.
Handover Plan ................................................................................................................................. 25
Tables
Table 1: Team Members, Their Qualifications and their Experience Table; 2: Financial Summery Table; 3: Description of Constructions Building Library and Sheds
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Project Profile Project title: Gulele Sub-City Woreda 8 and 9 polytechnic Project Location :Gulele Sub-City TVET office at Addis Ababa city administration particular place of the project is Woreda 8 and 9. Project Duration:for construction it takes 3 consecutive year and one year for training programme Town: Addis Ababa Sub-city: Gulele Sub-City TVET office Wereda: 08 and 09 Region: Addis Ababa City Administration Country: Ethiopia, P.o.box: --------Tele. No:011-1-11085 Mobile 0911-086066 Fax No: =251011-1-11085 E-mail:
[email protected] Nature or type of organization: Governmental, nonprofits making Organization Level of proposed TVET training: level 1, level2, level3, level4, level5 and degree level also short term training according to market demands. Size of the institution (College): 98m2 Expected enrolment for the programme: 2500 per annum Project Goals: Key outcome targets of ESDPIV TVET increasing enrolments of both trainers and trainees decentralization of vocational education. 4
Stakeholder Analyses: Project sponsor: -Government, Addis Ababa University technology faculty and Local Community Customers -Trainers, Trainees, Administrative workers, Surrounding Community, district leaders Users of the project outputs -Industries, entrepreneurs, Government, Trainees, special needs (Specially youth) Name of authorized representative of the applicant: MekonnenHailesilasse; head +251911061274 (Ethiopia) -BerhanuTadesse;position advisor and assistant project head +251911086066 Project manager and project team -MekonnenHailesilasse; positionoffice head and project managers -BerhanuTadesse;position advisor and assistant project managers -EnattihunEmira; outcome based training coordinator -G/medhinBezu; project supporter Project Budget Estimation and Allocation For capital expenditure 321,705,423 Ethiopian Birr Recurrent expediter 29,509,718 Ethiopian Birr Total amount of Fund Requested 100% from Government finance 351,216,141.
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I.
Proposed training areas:
1. Agricultural sector; animal production, agric-cooperative services, animal health, natural resources development and conservation, 2. Cultural, Tourism and sports sector; libraryand information, record and archive, tourism; catering operation, confectionery, baking and pastry making, sports; athletics officiating instruction; food ball officiating. 3. Health sector; advanced ambulance service and emergency care, environmental health extension, cleaning, waste diversion, waste handling, health extension management, health information administration, 4. Economic infrastructure sector; air transport, aircraft avionics maintenance, basic aircraft hangar line maintenance customer service management, energy; power generation operation, power generation and system installation and maintenance, power system operationmanagement, information and communication technology hardware and network servicing,IT service management , industrial automation and control technology management. Railway construction and transport management, basic railway electrical and control works, railway tunnel construction and maintenance;basic railway electrical and control works, rail communication and maintenance works, sub grade and trackside civil works and maintenance, road constructionand transport, basic infrastructure operations, bridge construction and maintenance, automotive body repair, automotive electrical/electronic, servicing automotive engine servicing; urban development and construction bar bending and concreting, building electrical installation,General metal manufacturing,carpentry, construction management, purchasing and property management, greening infrastructure, solid waste management, water and irrigation construction 5. Industry development sector;bamboo and bamboo products, cement production, basic cement products metal engineering, sugar and sugar products, textile and garments 6. Labour affairs and social service sector, community service work, children and old age care service.
6
II.
Proposed new departments
Since the project will have different activities such as the first on is three years construction paired the second one is only one year delivery of special or tailor made training programs, intend to offer training which is not available in our country college and university like basic level of Railway technology highly demanded in the current transportation service sector and supporting airlines training bring trainees from all parts of African countries even from other continent, now a days Ethiopia trains this sector sent to abroad, air transport training has positive aspect by others because most of the trainers come from African countries this best practice should be broaden in our educational institute, in addition to providing evening courses offered to the general public, consultancy service, testing of recruits (candidates for enterprises), organizing trade fair, the student in the polytechnic will learn during training produce, such as garments, wooden and metal furniture, tools, construction work, building maintenance, furniture production, or service centre (for example a coffee shop and restaurant ), Kab club practices, hair dressing service, automotive--garage maintenance and driving license training service, pump car wheel (tyres),Key outcome targets of this project increasing enrolments of both trainers and trainees.
1. Project Schedule 1.1.Executive Summary
Sustainable economic development and TVET are interdependent. Economic growth is a basic condition for the reduction of unemployment and poverty. However, it does not automatically lead to more jobs and less poverty. It can only contribute to poverty reduction if broad sections of society find productive work which offers a decent wage (BMZ, 2005). This can be achieved only if different policies and mechanisms, which focus on employment and broad access to work and TVET, can be implemented. Economic development cannot take place without the development of human resources. Therefore, well-qualified professionals must be trained in order to raise the competitiveness of companies, countries, and regions. 7
According to Ethiopian Sector Development Plan IV (ESDPIV) the main objective of the TVET sub-sector is to train middle level human power and transfer demanded technologies, and by doing so, to contribute to poverty reduction and sustainable development. The main challenges such as Society in general and implementing bodies in particular have low awareness about the benefits of TVET, Stakeholders’ participation in the management and delivery of TVET is inadequate, TVET trainers lack capacity and competence, There is lack of capacity by TVET experts to implement the new TVET strategy, The monitoring and evaluation systems is inadequate, TVET institutions have low capacity in adopting and transferring technology.Labor market information system to assess labor market demand is inadequate, The system for information sharing and coordination between the regions and the federal level is weak, There is a shortage of teaching materials especially in OS Newly developed, Utilization of resources and equipment is inefficient, TVET institutions are not always adequately equipped, There is low capacity to assess and certify TVET candidates Expected program outcomesby combating the above challenges, TVET providers and institutions strengthened to be centers for technology capabilities’ accumulation and transfer, TVET institutions capable of providing support to the incubation and establishment of MSEs as well as upgrading and strengthening existing MSEs, Quality of TVET (formal and non-formal) improved at all levels and made responsive to the needs of the labor market, A comprehensive, integrated, outcome based and decentralized TVET system for Ethiopia established, Relevant TVET offers which are crucial to national development expanded, Institutional set-up to manage the TVET strategy and deliver TVET programs reinforced, A sustainable financing system for TVET with efficient and cost-effective delivery systems and management structures developed, Equal access of females and rural communities and people with special needs to TVET ensured and empowered Key outcome targetsTVET enrolments will increase to 1,127,330 in 2007, Number of TVET trainers will increase from 15,943 in 2002 to 24,492 in 2007, Number of TVET institutions will increase from 825 in 2002 to 1,137 in 2007, Number of trained technology adopters will be 3000 in 2007, Number of transferred 8
technologies will be 1000 in 2007, Copied/imitated 950 in 2007, Improved 50 in 2007. No of incubated MSEs for technology transfer will increase from 600 to 3000 in 2007, 2670 micro-enterprises with capital acquired up to 20,000 Birr, 300 small scale enterprises from 20,000 to 500,000 Birr, 30 medium size entreprises above 500,000 Birr, Number of technologies transferred will be 1000 in 2007 (Copied/imitated 950 in 2007 Improved 50 in 2007). Number of trainees organized in MSEs will increase from 78,248 in 2002 to 563,665 in 2007, Number of new MSEs established will increase from 7,771 in 2002 to 56,367 in 2007, Number of occupations with occupational standards increases from 250 in 2002 to 390 in 2007, Number of occupations with assessment tools will increase from 211 in 2002 to 390 in 2007, Number of accredited assessment centers will increase from 174 in 2002 to 500 in 2007. % of competent/certified candidates will increase from 20 % in 2002 to 60 % in 2007, Number of accredited assessors will increase from 1860 in 2002 to 5000 in 2007, Number of enterprises involved in co-operative training will increase from 1208 in 2002 to 9,174 in 2007, Share of trainees accommodated by co-operative training will increase from 206,945 in 2002 to 1,127,330 in 2007. Number of enterprises conducting in-company training will increase from 13 in 2002 to 293 in 2007. Share of TVET managers at national, regional and institutional level in modern management techniques trained will be 100 %, Share of enrolments of females will increase from 46 % in 2001 to 50 % in 2007, Number of institutions in rural areas will increase by 100 % in 2007, Share of enrolments of students with special needs will increase by 100 % in 2007, Number of TVET trainees placed in MSEs will increase to 23,920 in 2007.Hence, Railway construction and air transport management highly demand in labour market hence government and private institution should open satisfy their customers. 2. Background of the project Since education is considered the key to effective development strategies, technical and vocational education and training (TVET) must be the master key that can alleviate poverty, promote peace, conserve the environment, improve the quality of life for all and help achieve sustainable development. Technical and Vocational Education and Training (TVET) system plays in achieving Ethiopia’s targets to overcome poverty. Under the over arching goal of poverty eradication, Ethiopia’s economic development strategy aims at fostering fast economic growth, fair and 9
equitable distribution of incomes, the development of a competent and open economy, and long-term reduction of the country’s dependence on ODA (official development assistance).
Ethiopia has made considerable progress towards universal primary education and continues to work hard to ensure relevance and quality at each educational level. As an increasing number of young people graduate from general education, it is of utmost importance to provide them with options for further education and training which increase their employability. In this context it is important to build a demand-driven, flexible, integrated and high quality TVET system.
The Government of Ethiopia (GoE) recognises the need to involve all stakeholders in the planning, policy making, training delivery and monitoring and evaluation of the TVET system. The on-going reform seeks to increase the engagement of the private sector – both of private TVET providers and enterprises as future employers of TVET graduates – and to provide students and trainees with knowledge, skills and abilities relevant for the world of work. One of the biggest challenges ahead is the sustainable financing of the reform process and of the actual operation of the TVET system. Based on the core principles for financing laid out in the National TVET Strategy, The principles are laid down in the draft Financing Framework for TVET in Ethiopia (September 2006). These principles are not intended to reduce public spending, but to share the burden and readjust the roles that the public sector, the private sector and households play in TVET financing. The main principles of the new TVET Financing Framework are diversification of funding sources, increased involvement of the private sector, and increased efficiency. 3. Project Initiation and Rationales After the fall of the Derg regime, the new government of Ethiopia has been making tremendous efforts to restructure the educational system of the country. A new Education and Training Policy has been launched and implemented all over the country. More over, the government set out a decree, No.80/2005 in 2005, and 10
established Technical and Vocational Education and Training (TVET) institutions to respond to the huge problems of unemployment and poverty. The establishment of the TVET institutions has so far contributed a lot in the country in general and in Addis Ababa in particular. For further implementation of policies and strategies qualified manpower at all levels is a must. Policies with good intentions fail due to lack of qualified people to implement them. This is mainly true in countries like Ethiopia. This must be given serious considerations. Cognizant to the above mentioned reasons, the justification for the establishment of polytechnic in Addis Ababa is to meets the government goal of producing competent middle level professionals that would meet the demands of the industrial labor market. Railway construction and air transport management highly demand in labour market hence government and private institution should open satisfy their customers. 4. Vision:To become the centre of Excellency and ensure enrolment of all the people of the Gulele sub city and any demanded in our country and African as a whole are economically strong and pulled out of property. 5. Mission: speed the regional development rate up through the provision of quality, equitable and relevant education and training to all citizen of the sub-city. 6. Objective and scope of the project The overall objective for establishment of the new college in Yeka sub city is To fill the gap for the skilled manpower demand of the concerned industry. Because of the marketable skill they acquire, graduates shall be competent, motivated, adaptable and innovative work force andhence shall be employed as soon as they graduate. These kinds of graduates shall play a pivotal role in the industry, regional and national efforts of poverty reduction.
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Governmental and private organizations can find qualified labour for easily from the local labour market. 6.1.The Specific objectives:
To examine incentives provided by the sub-city and woreda (local governments in income generating activities of public TVET colleges). To assess how colleges are collecting and utilizing in generating income department. To identify and solve the major problems encountered related to income generating activity. 7. Beneficiaries The immediate beneficiaries of the project would be industries, service sectors, on one hands and youth (trainees,), adult, special needs any citizen who have been suffering from skill gaps resulting in incompetence, under employment as well as unemployment will acquire employable skills from the project, also trainers, families, community surrounding the sub-city, the city government, the private industry sector getting skilled manpower in the market, government and the society at large. 8. Project Output Since the project will have different activities such as delivery of special or tailor made training programs, evening courses offered to the general public, consultancy service, testing of recruits (candidates for enterprises), organizing trade fair, Sale of products produced by students during the training, such as garments, wooden and metal furniture, tools, construction work, building maintenance, furniture production, Sale of wood trees, sewing of school uniforms, typing services, etc), or service centre (for example a coffee shop and restaurant ), Kab club practices, hair dressing service, automotive--garage maintenance and driving license training service, Letting and lending out of buildings, equipment and machinery, Commercial use of equipment (e.g. Internet facilities in computer lab), Special events, such as Cultural celebration and opening days with fundraising activities, dancing evenings, film show, out- door and in-door games 12
etc. all these activities will result in different out puts. But out puts can be categorized as tangible items and intangible services. 9. Target Market Railway construction and air transport management highly demand in labour market hence government and private institution should open satisfy their customers.Since the tangible goods and intangible services are intended to be offered to the marker, it requires need assessment even before producing such products and incurring costs of producing. So much so that, the trainees, trainers, administrative workers of the college, and the surrounding community, are qualified as potential market. 1.4 Target Group: urban development surrounding community including teachers and students 10.
The first phase of the training started by giving services like:
Formal education by level 1up to 5 including degree level and international scholarship After observing market demand train short term training Evening course Giving training for enterprises Renting sport fields for different activities Renting graduation gowns Renting of the institution facilities (halls for meeting and wedding ceremony) Renting machineries Renting buildings/blocks Income from the college music band
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Cafeteria service for outsiders. Others could be preparing trade fairs and special events, asking voluntary fund raisers and also by selling scraps (unneeded metals, woods etc). 11.
Project Team Members Our project is run by a team of people who serve in different specific roles. These are:
1) Project managers MekonnenHailesilasse; head +251911061274 (Ethiopia) -BerhanuTadesse; position advisor and assistant project head +251911086066 2) Team members -MekonnenHailesilasse; position office head and project managers -BerhanuTadesse;position advisor and assistant project managers -EnattihunEmira; outcome based training coordinator -G/medhinBezu; project supporter and members -EsheteBelete;members -MesganuDeresa;members -ZewduTesfay;members Project manager, whose job is to manage the project to success. He/she is in charge of the project, responsible and often accountable for the success of the project. Project team members are professionals and well experienced. They are believed to be interested, energetic and helpful. The team members of this project are recruited from Gulele TVET office and they are 7 in number.
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12. Organizational structures the polytechnic According to the international polytechnic and universityOrganizational strictures shall be matrices organization hence this polytechnic is at initial stage the next table Table 1: Team Members, Their Qualifications and their Experience No. Team Members
Qualification
Quan Years of tity experien ce
1.
Project manager
MA in professional vocational 1 education and management
10
2.
Deputy manager
MA in general management
business 2
8
3.
Department heads
MA/BSC in different fields that 6 the institution provides
5
4.
Trainers
BSC in different fields that the 200 institution provide
-
5
Staff
From mangers to janitors Total number of the team
-
13.
Project Budget Estimation and Allocation For capital expenditure 321,705,423 Ethiopian Birr Recurrent expediter 29,509,718 Ethiopian Birr
300 509
Total amount of fund requested 100% from Government finance 351,216,141 Annual contingency budget for any uncertainty 15% 45 million
15
14.
Project Controlling and Monitoring Activity
While project is being executed, monitory and evaluation process is implemented in each and every phase of activity. Monitoring and controlling consists of those process performed to observe project executive so that potential problems can be identified in a timely manner and correction action can be taken when necessary to control the execution of the project. 15. Challenges of the Project Lack of professional to conduct the training and education since we are bring those professionals either from abroad or send our trainees to abroad. Experts may not be motivated. New technology innovation may obsolete the existing equipments. Shortage of budget to hire the right experts from abroad.
16. Possible Solution Determine the required skill sets before recruiting the team. Find out if any formal training may fill the knowledge gaps, plan and secure the necessary training funds and times. Discussion will be held with the team if knowledge gaps can be filled by informal training. Train the team members in missing skills/experience to accomplish the work package. The project will meet the criteria by using SMART goals. 17. Implementation The implementation of the project is undertaken through participatory approach which involves society, government and other sectors from the start up to the end of the project.
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18. Project Sustainability The project is being implemented under favorable policy environment and government and community commitment. The government has established strong organizational structures to manage and administer the various aspects of the project and educational functions. There is also high control over the construction of new buildings and proper usage of funds that found from government allocation giving responsibility for each department and have internal audit section that will control all financial activities of each department. 19. Strategic Plan Polytechnic will have totally four years strategic plan i.e. three year for construction of the institute which will be the first year 2008-20010 build the construction. After the building will be finished the polytechnic program the training and education program will be start in 20011 by admitting trainees each in air transport, railway, construction technology, leather technology, wood work and carpentry and metal work technology etc. Similarly in 2010, applicant trainees will be admitted in each department.
20. Policy and stratégies Ethiopian on TVET TVET strategy of 2001 will guide the content of components and activities to be deployed under ESDP IV together with new orientations, such as to strengthen the role of the TVET sector in technology capability, accumulation and transfer. In particular, TVET institutions are also expected to play a stronger role in providing support to the incubation and establishment of MSEs as well as upgrading and strengthening existing MSEs.A combination of strategies relating to the legal framework for TVET (TVET Proclamation under way), the organizational set up and the development of managerial capacities throughout the system will be deployed. A review of the TVET is suggested for policy development, update and the formulation of new guidelines regarding technology, transformation and cooperative training. Raising awareness will be conducted within the broader society as well as among stakeholders on the benefits of TVET.At the systems level, the capacity of TVET agencies and councils will be developed so as to reinforce their role in policy development, implementation, monitoring and 17
evaluation of the TVET system. Labor market intelligence, research capacity and EMIS will need to be strengthened so that national and regional authorities can fully play their role in policy development and systems coordination. With a view to creating a comprehensive, outcome based and flexible TVET system, the development of occupational standards, assessment tools, and certification based on labor market analysis, benchmarking and stakeholder consultation will be continued. Curriculum content will be designed and teaching materials prepared in line with occupational standards, assessment tools and certification requirements. In this respect, priority sectors will be emphasized in order to concentrate efforts and be better connected to market and increase relevance. It is also foreseen to provide support and enhance the capacity of centers of competencies (COCs). TVET programs will be modularized and institutions equipped with ICT in order to make the TVET offer more flexible in its delivery in terms of entry and exit levels, Career guidance structures will be strengthened so as to obtain a better match between individual aspirations, the available TVET offer and labor market prospects, The TVET system will expand its offer via public and private provision of training programs. An increasing number of TVET trainers will be trained in line with the new TVET trainers qualifications framework and TVET trainers will be provided opportunities for professional development. Private providers of TVET will play a stronger role in the delivery of the TVET system. Incentives will be provided by the government and support through access to occupational standards, certification guidelines and model curricula and material. Regional accreditation systems for private TVET providers will also be strengthened, TVET institutions are expected to become agents of technology capability and transfer to micro- and small enterprises (MSEs). With this in mind, it will be necessary to include this new function in the pre-service and in-service training of TVET trainers, taking care of females’ participation. Equity will receive greater attention under ESDP IV. In particular the participation of females in management and training positions needs to be strengthened so as to ensure an increasing number of role models for female students. Females will be encouraged to join non-traditionally female professional training. Preferential access will be provided to students from disadvantaged regions and students with 18
special needs.In order to ensure a sustainable system of financing, income generating schemes and cost sharing by users will be enhanced and an effective utilization of training machines and equipment promoted. The Ethiopian government sees education and training as an important factor in the process of human resource development in order to break the vicious cycle of poverty that the country has been entangled in. Cognizant of this fact, the government promulgated a number of social and economic policies since it came to power in 1991. One of these policies is the current Education and Training Policy (hereafter ETP) that came into effect as of 1994. 21. Financial strategy TVET programs are expensive by nature and their sustainability requires effective management and administration. Funding is also a structural problem in the TVET sector, particularly in the public system. Costs of TVET will remain high, if it is to be provided as centre based training, which is still the predominant mode of TVET delivery in Ethiopia. As with most other countries, public TVET programs in Ethiopia are usually more expensive than general education, requiring lower than average teacher/student ratio and substantial capital and recurrent expenses incurred through practical training. As a consequence of budgetary constraints, most urban public TVET programs are under-funded while rural public TVET programes suffered from poor facilities and shortages of training materials. One major challenge of the current TVET reform in Ethiopia is to develop sustainable financing mechanisms to guarantee a stable funding of the system and its gradual expansion in line with Ethiopia’s development needs. The National TVET Strategy has suggested that the financing challenge would be addressed by a combination of cost saving mechanisms, generation of external resources into the TVET system and diversification of funding sources for public TVET programmers. In its new financing framework for TVET, the Ethiopian government seeks to recover a substantial share of recurrent costs of public institutions through more systematic income-generating activities. Furthermore, unit cost in public TVET institutions is rather high, because institutions are under-utilized and often run 19
under capacity. On the other hand, some – particularly urban – TVET institutions are overcrowded, which compromises the quality of training provided. The new financing framework therefore calls for increased capacity utilization through non-formal training activities, and increased efforts by the management of public training institutions to develop tailor-made TVET offers for industry and businesses and to deepen the relationship with the private sector. The issue of overcrowded TVET institutions is proposed to be addressed through introduction of performance-based budgeting and through improved management capacity of institutions at all levels of the TVET system. Following the TVET Proclamation and the TVET Financing Strategy published by MoE tuition fees (cost-sharing) and improved financial management regulations for public TVET institutions were introduced in many states. As a result, cost recovery through tuition fees and income generating activities has increased. Yet, proceeds are rather limited. It appears that on average, fees may contribute some 510% and IGA some 10% of the overall institutions budget. Another mechanism to improve the resource base is cost-saving through increased efficiency in the delivery of training. Studies have shown a substantial potential for increasing efficiency in TVET institutions by modernizing management structures and procedures, granting more financial autonomy to the institutions, and income generating effort. It must be noted that internal revenue generation shall be the main source of finance for TVET institutes and to transfer their technological development to consumers with continuity. The system will need to generate sufficient resources for public TVET provision and for the intended reinforcement of its governance and management structures, as well as to develop necessary support services. This diversification will be approached in a way that government budgetary allocations and funds provided by foreign donors are gradually supplemented by contributions from direct beneficiaries of TVET without putting too much burden. Incentives will be developed to encourage employers to contribute to the cost of TVET through scholarships, donation of equipment, and other means.
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22. Project Budget Estimation and Allocation and Source of financial summery Total amounts of budget Governmental 351,216,141. Ethiopian Birr Table; 2: Financial Summery Amount Ethiopian Birr 1 For capital expenditure 321,705,423
Can’t Remark
a Constructions 18 129,000,000 b Purchasing Equipment 147,705,423 and machineries c Other capital expenditure d Contingency 15% 45,000,000 2 Recurrent expediter 29,509,718
---
a Teachers salaries and staff family b Purchas of supplies c Car maintenance and Transportation vehicle punches d Electric e Water f Telephone General total
12,605,376
--
16,034,600
---
Types of expenditure
Birr Birr Birr
Birr Birr Birr
273,859 377,550 218,333 351,216,141
---
----
Table; 3: Description of Constructions Building Library and Sheds No Departments Type quantity construction 1 Office deans G+12 1 registrar, finance, plan, human resources 2 Agriculture G+4 1 department 21
Total amount of Remark expenditure 28,000,000
12,000,000
3
Health department 4 Economic infrastructure department 5 Industry development 6 Labour affairs department 7 Culture and tourism 8 Sheds and guard home and offices 9 Libraries 10 Fence and castle General total
G+4
1
12,000,000
G+4
1
12,000,000
G+4
1
12,000,000
G+4
1
12,000,000
G+4
1
12,000,000
G+1
9
21,000,000
G+1
1 1 18
7,000,000 1,000,000 129,000,000
For capital expenditure 321,705,423 Ethiopian Birr Recurrent expediter 29,509,718 Ethiopian Birr Total amount of fund requested 100% from Government finance 351,216,141 Annual contingency budget for any uncertainty 15% 45 million 23. Project Time Management Time estimates and planning. Accurate time estimation is a skill essential for good project management. It is important to get time estimates right for two main reasons: 1) Time estimate drive the setting of deadlines for delivery and planning of projects and hence will impact on other people’s assessment of your reliability and competence as a project manager. 2) Time estimate often determine the pricing of contracts and hence the profitability of the contract (project in commercial terms). Often people under estimate the amount of time needed to implement projects. This is true particularly where the project is not familiar with the task to be 22
carried out. Unexpected events or unscheduled high priority work may not be taken in to account. 24. Project Cost Management Effective project cost management allows each project to be specific and unique because that project entails costs and requires specific funding. However, no matter whether you lead a software development project (IT project cost management) or construction project management (construction project cost management) you should consider. Project cost management as a process that consists of the three steps. The process of managing project costs is activity for estimating costs, developing project budget and controlling spending. The project cost management process has the following key steps. A. Cost estimation: it is the project cost management process step when the project manager cooperates with the financial department to estimate costs required for purchasing all necessary good/services and undertaking necessary activities to deliver the project. Project cost estimation is conducted at the planning phases. The project manager uses project costs management software to develop spread sheets and make calculation in order to reach correct decision. B. Budget Determination: at this step of the cost management process cost spread sheets develop the budget framework and determine the budget. The project manager can use project cost management software to work in collaboration with the financial department to determine items of the budget and sources of funding and to allocate the budget. The step entails close cooperation with the project sponsor. C. Spending control: it is the step of the project cost management process where the allocated budget reviewed and spending is tracked. The project manager, takes responsibility for control spending and to ensure that the budget allocation is optimized and costs are fully covered with the planned and allocated budget.
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25. Project Quality Management Project quality management is all about the energy of continuous improvement of the project and the principal of project delivery using a quality management approach play a key role in assuring the project meets the customer requirements. 26. The three processes associated with PQM are: 1) Quality Planning: quality planning identifies the standards which are relevant to the project and now to assure standards are achieved. This is a key process of the planning process group. 2) Perform Quality Assurance: performing quality assurance is the execution of the quality activities during project execution. 3) Perform Quality Control: it is the monitoring deliverables to evaluate whether they comply with the projects quality standards and to identify how to permanently remove cause of unsatisfactory performance. This process occurs as a part of the monitoring and controlling process group. 27. Project Risk Management Project risk management can be defined as “the systematic excision and monitoring of tasks to detect, analyze and optimize project risks. Youth Work TVET College assumes a risk from both physical and natural hazards. Physical risks could be shortage of raw materials suppliers for production, theft, machinery blockage. Natural hazards like flood fire, etc. In order to avoid such risks the company set optional way (contingency plan). To avoid these problems the college enters an insurance policy and settles an optional sup0plier of raw materials. 28. Source of Fund and Income As the project stated a grant total of 4, 146, 900 birr is required for allocating resource and contingency budget, to launch a year training program in Youth TVET College. The source of funding is expected to be raised from
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government, MIDROC, UNICEF, other local and international donors that have strong goal of assisting development activities in Ethiopia. 29. Monitoring and Evaluation Procedure Youth Work TVET College abides to work in accordance to its declared value, namely transparency. With that, it will have the system of internal audit that will assess the financial performances of the college every year, as per the annual implementation plan. The project is also monitored by the project committee; this committee is responsible to give support and check whether there is shortage of facilities and tries to fulfill what is required for the project. And the evaluation of the project will be handled by the committee; the evaluation will be conducted whether the project meets the objectives with the time set and budget allocated. Besides, it will have an external auditing system that will check financial status, once in every year of performance. Internal control system extends beyond cash; it includes physical and record keeping controls over all the assets of the TVET. One part of this system assures that appropriate planned acquisitions are made, received in good condition billed at correct amounts and paid for all time. In the TVET what we mentioned in the organizational structure top executive are usually involved directly in controlling generating income in each of these activity. Thus, in safeguarding the TVET internal control. 30. Handover Plan The project manager shall prepare detail project handover plan which will be developed from handover plan include in the technical advisory group end stage document. Since this typical educational sector not ended the committee will provided for the newly hired professional. The plan will be distributed to all relevant parties.
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