1. Building Technical and Vocational Skills Towards diversified & Sustainable Growth in Mozambique Prepared for the S EMINAR ON G ROWTH, T RANSFORMATION, AND J OB C REATION F EBRUARY 9-11, 2011, M APUTO, M OZAMBIQUE Tjaart van Staden

2. Contents 1.Vision for TVET 2.Introduction to TVET (in Mozambique) 3.Strategic / Key Success Factors 4.Mega Projects & Optimization 5.Closing Remarks

3. License to Operate? How do we ensure that these companies play a coherent role in the development of Mozambique whilst ensuring that they are operating in a supportive and investor friendly environment that helps them attain their objectives?

4. License to Participate? How can we support these people, taking the opportunity in their own way, to help themselves and thereby create INCLUSIVE economic growth?

5. 20102010 20102010 20162016 20162016 20142014 20142014 20122012 20122012 20182018 20182018 foreignforeign foreignforeign locallocal locallocal PLANNED - Increased Local Participation in Work & Economy Expatriate Local

6. Integrated Job Specific HSE Introduction to TVET General Labourers Artisan 160 – 200 Days 80 – 140 Days 25 – 60 Days 15 – 35 Days 10 days

7. Introduction to TVET (in Mozambique) 1998 and the MOZAL experience Institutional Infrastructure Strategic Environment of TETE and NAMPULA Provinces TVET - Critical Success Factors in Developing Countries

8. Key Success Factors Development Triggers (e.g. Mega Projects) Business Intelligence Synergy & Collaboration Planning, Targeting, Implementing, Tracking, Reporting Designing and Managing for Optimization – Design Strategy – Procurement Strategy – Implementation Strategy

9. Mega Projects & Optimization Trigger GROWTH TRANSFORMATION +/- - -

10. Replacement Technologies PROJECT DESIGN & IMPLEMENTATION PROJECT OPERATIONS AND CLOSURE Agriculture development Agri-Industries Project implementation Financial Close and start of Project Implementation Mine Operations Mineral Imports Closure Commissioning (Creating the Balance – Optimise the Triggers through Timing) Mega Projects & Optimization

11. From “project” approach… Oil Project #5 Detailed Skills Histogram Refinery Project #2 Detailed Skills Histogram Oil Project #1 Detailed Skills Histogram Dam Project #1 Detailed Skills Histogram Hydro – electricity Project #2 Detailed Skills Histogram Agriculture Infrastructure Project #4 Detailed Skills Histogram Oil Project #3 Detailed Skills Histogram Agri-processing Project #1 Detailed Skills Histogram Water Reticulation Project #2 Detailed Skills Histogram Sanitation Project #1 Detailed Skills Histogram Electricity Project #1 Detailed Skills Histogram Logistics/ Transport Project #2 Detailed Skills Histogram 2010 DEVELOPMENT TIMELINE 2020

12. …to “program” approach 2010 TVET DEVELOPMENT STRATEGY AND IMPLEMENTATION 2020 Construction Critical skills Construction Critical skills Mechanical Critical skills Mechanical Critical skills Structural Critical skills Structural Critical skills Electrical Critical skills Electrical Critical skills Mining Critical skills Mining Critical skills Supervisory & Management Critical skills Supervisory & Management Critical skills Agriculture et al Critical skills Agriculture et al Critical skills

13. Closing Remarks The Balancing Act The Art of the Possible Creating Best Practice

14. Demand for Skills, Competence and SME capacity from the environment Supply of Skills, Competence and SME capacity from the environment Development of Local People and Local Business The Balancing Act MACRO INDICATORS: SOCIO/ POLITICO/ INSTITUTIONAL/ ECONOMIC/ NATURAL ENVIRONMENT (INTEGRATED GIS) MACRO INDICATORS: SOCIO/ POLITICO/ INSTITUTIONAL/ ECONOMIC/ NATURAL ENVIRONMENT (INTEGRATED GIS) ON-GOING CONTEXTUAL RESEARCH AND COMMUNICATION CHANNELS Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Project # 2 Project # 3 Project # 4 Project # n Labour need SME development Market development Infrastructure need CSI Labour need SME development Market development Infrastructure need CSI Project # 1 Innovation level

15. Business Management Implementation Business Management Implementation Stakeholder Mgmt. Preferential Procurement Mgmt. Labor Relations Wage Management OHS& E Mgmt. Access Control Time & Attendance Access Control Time & Attendance SME Development and Mentoring Labour Management Implementation Labour Management Implementation Registration Medical Screening Assessment Training Induction Employment Demobilization Individuals (Supply) Individuals (Supply) Businesses (Supply) Businesses (Supply) Operational Management & Reporting Tracking Planning Projects’ Demands/ Opportunities Projects’ Demands/ Opportunities Centralized Data Warehousing Macro-Economic Indicators Contextual Research Contextual Research Stakeholder Management & Reporting Tracking Planning GIS Integrated Development Approach

16. Questions

17. Labour Management Services Employment Total People Employed To Date20563 Total People on Site4784 Limited Duration Contracts Completed - Demobs15779 Average Duration of Completed Limited Duration Contracts - Days113 Total of Wages Paid (estimate – TBD WBS)R 165,128,540.25 Registration Number of Individuals Registered76497 Training Total Number Trained5884 Total Cost of TrainingR 19,667,856.00 Total Number of Trainees Placed5219 Back

18. Business Management Services Procurement Management Total Value of Contracts AwardedR 1,344,235,946.26 Progress Payments to BEE CompaniesR 487,430,076.26 Progress Payments to WEO CompaniesR 96,205,861.95 Progress Payments to ABE CompaniesR 282,733,786.15 Total Number of Main Contracts149 Total Primary Contractors149 Total Sub Contractors856 Total Development Contracts43 Number of Contracts Complete (Only Dev)88 SMME Number of SMME Contracted (SMME Dev Program)42 Value of SMME Contracts (SMME Dev Program)R90 916 803.53 Business Support Services Total Businesses Registered4441 Back

19. Developing Sustainability (local entrepreneurs/ investors) Ensuring Skills, knowledge and attitudeBusiness ownership and growth Lack of Competence/ Capacity (workers and job-seekers) TVET SME Development & Targeted Procurement Unemployed/ subsistence (rural poor) LRU - Labor LRU - Business Targeted LOCAL RESOURCE USAGE

20. BENEFITS FROM LOCAL RESOURCE USAGE (source: Engineers against Poverty) BENEFITS FROM LOCAL RESOURCE USAGE (source: Engineers against Poverty) Project identification, feasibility and initial planning Project identification, feasibility and initial planning Contract agreement, monitoring and evaluation Contract agreement, monitoring and evaluation Appointment of contractor Design and specification Appointment of consultant(s) Appointment of consultant(s) Procurement strategy Procurement strategy Commission & Handover More employment in construction More employment in construction Increased employment in materials industries Increased employment in materials industries Market openings for suppliers of local materials & components Increased work for local contractors Increased work for local contractors Opportunities for local consultants Opportunities for local consultants INCLUSIVE GROWTH INCLUSIVE GROWTH SUSTAINABLE INFRASTRUCTURE SERVICES SUSTAINABLE INFRASTRUCTURE SERVICES POVERTY ALLEVIATION STAGES OF THE PROCUREMENT CYCLE STAGES OF THE PROCUREMENT CYCLE CONTRIBUTIONS TO DEVELOPMENT OUTCOMES CONTRIBUTIONS TO DEVELOPMENT OUTCOMES IMMEDIATE BENEFITS IMMEDIATE BENEFITS Operation and maintenance (O&M) Operation and maintenance (O&M)