Logical Framework Matrix

EUROPEAN COMMISSION 

Azerbaijan 

Vocational Education and Training Reform Strategy and Pilot Implementation in a 

selected region in Azerbaijan 

Terms of Reference 

Contract budget: € 2.5 million

ANNEX III: TERMS OF REFERENCE 

1. BACKGROUND INFORMATION............................................................................3 

1.1 Beneficiary country ...........................................................................................3 

1.2 Contracting Authority........................................................................................3 

1.3 Relevant country background............................................................................3 

1.4 Current state of affairs in the relevant sector.....................................................5 

1.5 Related programmes and other donor activities: ..............................................7 

2. CONTRACT PURPOSE & EXPECTED RESULTS .................................................9 

2.1 Overall objectives..............................................................................................9 

2.2 Purpose ..............................................................................................................9 

2.3 Results to be achieved by the Consultant..........................................................9 

3. ASSUMPTIONS & RISKS.......................................................................................10 

3.1 Assumptions underlying the project intervention............................................10 

3.2 Risks ................................................................................................................10 

4. SCOPE OF THE WORK...........................................................................................11 

4.1 General.............................................................................................................11 

4.2 Specific activities.............................................................................................14 

4.3 Project management .......................................................................................20 

5. LOGISTICS AND TIMING......................................................................................23 

5.1 Location...........................................................................................................23 

5.2 Commencement date & period of execution ...................................................23 

6. REQUIREMENTS ....................................................................................................24 

6.1 Personnel .........................................................................................................24 

6.2 Office accommodation ....................................................................................30 

6.3 Facilities to be provided by the Consultant .....................................................30 

6.4 Equipment........................................................................................................30 

6.5 Incidental expenditure .....................................................................................30 

6.6 Expenditure verification ..................................................................................30 

7. REPORTS..................................................................................................................31 

7.1 Reporting requirements ...................................................................................31 

7.2 Submission and approval of progress reports..................................................32

5/2003 

Terms of reference 

Vocational Education and Training Reform Strategy and Pilot Implementation in a selected region in 

Azerbaijan 

8. MONITORING AND EVALUATION.....................................................................32 

8.1 Definition of indicators....................................................................................32 

8.2 Special requirements .......................................................................................32


Vocational Education and Training Reform Strategy and Pilot Implementation in a selected region 

in Azerbaijan 

List of Abbreviations 

ADB : Asian Development Bank 

CoM : Cabinet of Ministers 

EC : European Commission 

ENP : European Neighbourhood Policy 

ETF : European Training Foundation 

EU : European Union 

GDP : Gross Domestic Product 

GTZ : German Society for Technical Assistance 

IEP : Institute of Educational Problems 

ILO : International Labour Organization 

ISCO : International Standards for Classification of Occupation 

ISCED : International Standard for Classification of Education 

JBIC : Japan Bank for International Cooperation 

MoLSPP : Ministry of Labour and Social Protection of Population 

MoCT : Ministry of Culture and Tourism 

MoE : Ministry of Education 

MoED : Ministry of Economic Development 

MoF : Ministry of Finance 

NES : National Employment Strategy 

NGO : Non-government Organization 

SME : Small and Medium scale Enterprises 

SPPRED : State Programme on Poverty Reduction and Economic Development 

SPSEDR : State Programme on Socio-Economic Development of the Regions 

TACIS : Technical Assistance to the CIS by EU 

TEMPUS : Trans European cooperation scheme for higher education 

ToR : Terms of References 

UN : United Nations 

UNDP : United Nations Development Programme 

UNESCO : United Nations Education, Science and Culture Organization 

UNICEF : United Nations Children’s Fund 

USAID : United States Agency for International Development 

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VET : Vocational Education and Training 

WB : World Bank 

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1. BACKGROUND INFORMATION 

1.1 Beneficiary country 

Azerbaijan 

1.2 Contracting Authority 

The European Community, represented by the European Commission for and on behalf of 

the beneficiary country 

1.3 Relevant country background 

With an estimated population of 8.5 million, Azerbaijan possesses rich mineral and natural 

resources. Average growth of GDP in 2000-2004 was about 10.5%. In 2005 it increased to 

26.5% and it grew to 35% in 2006, before returning to 25% in 2007. Most of this growth is 

driven by investments in the oil sector and in particular the opening of the Baku – Tbilisi – 

Geihan oil pipeline in 2005. Government projections (2004-2010) indicate a fivefold 

growth in exports of oil products, while non-oil exports will grow by some 30%. 

The total number of economically active population increased moderately since 1995 and 

has reached 4 million by now. Men represent a much larger share than women (58.5% 

against 41.5%) in the employed population. Major employers are the state sector and 

farms. The number of own-account workers (self-employed, micro individual firms, 

informal activities, people hired by individuals) exceeds the number of those employed in 

larger and medium-sized enterprises. 

The number of those employed by the state owned industrial enterprises has decreased 

drastically from 2.6 million in 1990 to 1.2 million in 2004, while those employed in the 

non state enterprises contrarily increased from 1.1 million in 1999 to 2.6 million in 2004. 

Those employed in the state sector display by far the best educational profile, with 

approximately half having higher education and over one third VET qualifications. The 

private enterprises show a predominance of people with general education followed by 

those with VET qualifications. Only 22% obtained higher education qualifications in the 

private sector. 

The 2003 labour force survey determined the unemployment rate at the level of 10.7%, or 

over 404,000 unemployed people that year. The highest level of unemployment (23.8%) 

was discovered in the economically active youth group of 20-24 years. 

Unemployment and poverty rates are not directly correlated. A large share of the poor 

population is actually employed. According to the household budget survey of 2003, 

approximately 40% of those who were employed lived below the poverty line. The 

prevalence of poverty has a direct correlation with low productivity work and high 

dependency rates. 

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In demographic terms, Azerbaijan distinguishes itself from neighbouring Armenia and 

Georgia through positive growth and a much larger and younger population. There was a 

decrease in the size of the urban population in the period 1990-2003, from 54.2% to 50.7% 

as a result of immigration. Natural growth is higher in rural areas. There is a significant 

group of refugees and internally displaced persons estimated at 0.6 to 1 million individuals. 

Azerbaijan has developed a number of key policies and programmes of relevance for 

employment, growth and VET provision: 

• State Programme on Poverty Reduction and Economic Development (SPPRED) 

• Programme of Socio-Economic Development of the Regions 

• National Employment Strategy 

• State Programme on the Implementation of the Employment Strategy of the Republic 

of Azerbaijan (2007-2010) 

The SPPRED states that reduction of poverty depends on the country’s investment in 

human capital and places VET reform among its objectives – to ensure that it provides 

skills that are appropriate to the market economy. 

The Programme of Socio-Economic Development of the Regions indicates as one of its 

priorities the modernisation of the education system and the improvement of its quality. 

The National Employment Strategy addresses the professional skills agenda, the VET 

funding issue and promotes closer interaction among the relevant public bodies, employers 

associations and NGOs to open up the VET system to labour market dynamics and 

technological change. 

The system of vocational education and training in Azerbaijan has been in deep crisis for 

the last 15 years and is at present not in a position to contribute effectively to the 

implementation of the above national programmes. Deplorable situation becomes even 

more evident with the growing demand of the reviving non-oil industries for skilled 

workers. 

In 2006, President of the Republic of Azerbaijan at several occasions drew attention to the 

necessity of a coherent reform programme to modernise the national vocational education 

system. There is a consensus among key VET stakeholders and leading international 

donors that the reform of the Azeri VET system has to start with the development and 

approval of a comprehensive strategy for VET modernisation and a mid-term action 

programme for its implementation. This project is called to contribute to the national 

efforts in the formulation and pilot testing of such a strategy. 

This project is particularly important in the context of the policy of the Government of 

Azerbaijan to invest oil wealth into human capital to ascertain sustainable human 

development of the country and reduce the risk to grow into an oil-dependent economy. 

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This project is part of the TACIS Azerbaijan Action Programme 2006 within the priority 

area focused on support to the private sector and assistance for economic development. The 

added value of this TACIS VET reform project will be particularly high since assistance to 

VET system in Azerbaijan was almost absent from donors agenda in the last decade. 

1.4 Current state of affairs in the relevant sector 

Azerbaijan inherited from the pre-independence time two separate and noncommunicating 

public VET subsystems. “Initial VET” includes qualification levels up to 

and including “skilled worker”. “Secondary VET” is supposed to cover the demand for the 

intermediate levels of qualifications that do not require the graduation from the higher 

education institutions. 

The system does not offer communication pathways between these two VET subsystems, 

and progression from either level to higher education is not encouraged by current access 

regulations. These differences also exist at the institutional level: initial VET is under the 

control of the MoE Department of Vocational Technical Education, whereas secondary 

VET is under the Department of Higher Education of the same Ministry. 

Initial vocational education is provided in 60 “vocational technical schools” (with twoyear 

duration of study) and 47 “vocational lyceums” (with three-year duration of study). 

Training and educational process in the initial vocational education are carried out by 

about 6 thousand staff, including more than 3.5 thousand teachers and about 1.5 thousand 

training instructors. The student–teacher ratio (2005) for lyceum and professional-technical 

schools was 5.4 and 6.5 respectively. 

Among the 107 initial VET schools, 56 schools are categorised in agriculture (including 

processing) by their major profile, 12 are in building and construction, 7 each in commerce 

and light industry. VET schools may offer courses in addition to their major profile. 

Intensive production of new curricula for initial VET occurred in 2002-2004. The approach 

used (the ratio of general education to vocational subjects, and theory to effective 

practices) did not change significantly, however. New curricula are based on the academic 

tradition, overloaded with general education subjects in all areas (humanities/social, 

scientific/mathematic). Quality assurance mechanisms are weak. 

Secondary VET institutions (“colleges” with duration of study up to four years) provide 

preparation of junior specialists/junior engineers on more than 100 professions. At present, 

56 public and 4 private secondary vocational schools function in Azerbaijan Republic. Out 

of these, 45 schools belong to the Ministry of Education. There are more than 5 thousand 

teachers’ and 2.5 thousand support staff in VET institutions belonging to the MoE and 

accounting for 45 thousand students. 

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Significant shifts in education choices have occurred over the last decade, in terms of 

study areas and educational pathways after compulsory education. Initial VET saw a strong 

decrease in the number of students and graduations, while secondary VET recovered well 

after an initial drop. In the period 1990-2000 the number of students in initial VET fell by 

72% (from over 82 thousand to approximately 23 thousand), and in 2000-2005 these 

figures decreased further to 21 thousand. The number of students in secondary VET fell by 

28% in 1990-2000 but then recovered by 30% to reach a figure of over 55 thousand 

students. 

Choices in study areas have changed noticeably in the secondary VET schools and have 

resulted in a strong predominance of students in the areas of teaching and services over 

technical areas linked with industry, agriculture, transport, communications and 

construction. 

Vocational training, re-training, and professional development courses are organised on the 

basis of short-term curricula by the employment services of the Ministry of Labour and 

Social Protection for job seekers and unemployed citizens according to the needs of labour 

market for the purpose of supply of professionals qualified for competition. As a result, 

during the first 6 months of 2007, 746 citizens have been involved in these training 

courses, 55% of whom were provided with the permanent jobs, whereas the others were 

self-employed. 

In 2005, the ETF carried out a tracer study on employment among VET graduates in 

Azerbaijan. The main findings of the study indicated that 65% of respondents were not 

employed, only 6% were engaged in further study and only 28% had a job. On top of that, 

the large majority of those in employment (approximately 60%) worked in jobs entirely 

unrelated to their vocational qualification. Moreover, 46% of respondents had been 

unemployed for over one year. 

Most educational institutions do not pay due attention to the employment prospects of their 

graduates. For example, total number of students in secondary vocational schools under 

the professional group “education” increased almost five times from 1995/1996 school 

year to 2003/2004 school year (from 3.6 to 14.5 thousand) despite the fact that three out of 

four “education” graduates have been joining the army of unemployed persons. Most 

employers are in the opinion that the graduates from existing VET institutions are not 

competent for job placement. 

Effects in human resources policies of enterprises are obvious: large corporations react by 

investing in training in-house and abroad. These trends reflect a forced response of 

enterprises, but they occur in a situation where policy and regulatory framework to 

ascertain coherence and quality standards in training are unavailable. 

In response to the above problems the MoE prepared the Development Program for VET 

(2007-2010), which incorporates the following main objectives: 

• Preparation of law and state standards for VET, with re-arranging specialization of 

VET institutions in accordance with the demand of labour market 

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• Optimization of network of VET institutions, and improvement of school 

management including promotion of off-budget activities at VET institutions 

• Preparation of new curricula and printing of new textbooks for VET 

• Training/retraining of teaching staff 

• Provision of educational/training equipment to VET institutions 

The VET Development Programme includes action plans to achieve above objectives. The 

action plans, however, are not interrelated and their sequence is not clear. The Programme 

is not based on any elaborated VET strategy. 

1.5 Related programmes and other donor activities: 

1.5.1. International organizations 

Following international organizations are currently active in the education and other 

relevant sectors of Azerbaijan. 

The World Bank has a leading position in the ongoing education sector reform, but it has 

focused so far on general (basic) education only. 

United Nation Development Programme is undertaking a project for poverty reduction 

under the title “Development of Vocational Training System” for the period from 2005 to 

2007. The counterpart agency for this project is the Ministry of Labour and Social 

Protection of Population. The project is aimed at assisting the Ministry to establish and 

equip vocational training centres for re-training of unemployed and further training of 

employed persons. Such centres are being established in Baku and Goychay with 

additional centres planned for Ganja, Lankaran and Khachmaz. With technical support 

from ILO, the project also provides assistance for development and implementation of 

modular-based short-term programmes and courses. 

International Labour Organization assists MoLSPP in application of the International 

Labour Standards, promotion of employment, improvement of social protection and 

development of social dialogue. ILO rendered assistance for the preparation of the Azeri 

National Employment Strategy. ILO is collaborating with UNDP and MoLSPP in the 

implementation of the above mentioned project “Development of Vocational Training 

System”. 

The Director-General of UNESCO during his visit to Azerbaijan in August 2005 signed 

with the Ministry of Education a Memorandum of Understanding on co-operation in the 

field of education. 

UNESCO and the Ministry of Education have agreed to set up a joint working group aimed 

at devising and preparing policy and technical recommendations in support of the 

education reform initiative of the Azerbaijani Government. So far the working group was 

not operational. 

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1.5.2 Bilateral donors 

Germany Society for Technical Assistance (GTZ) has been implementing a 

transregional training programme for the VET teachers of Central Asian and Caucasian 

countries including Azerbaijan. 

Japan Bank for International Cooperation (JBIC) Undertook in 2006 a comprehensive 

evaluation of the Azeri VET system and indicated directions of the future assistance to this 

sector. As a condition for the implementation of such assistance, JBIC called the 

Government of Azerbaijan to define possible direction of VET strategy. Bank also 

indicated that EU-TACIS might be a forerunner in delivering assistance to the Government 

of Azerbaijan in elaboration of VET strategy. 

USAID (United States Agency for International Development) carried out a vocational 

education assessment in 2005 and identified the possible future involvement of USAID 

with a systematic approach to the reform of VET sector with five core components, 

including: (1) national classification system of occupations; (2) employment services; (3) 

labour market information system; (4) national skills standards, assessment, and 

accreditation system; and (5) technical education and vocational training. So far no 

activities to implement the above components have been undertaken. 

In 2002, Russia and Azerbaijan concluded the agreement on mutual recognition of 

educational documents and degrees. The agreement aims at developing cooperation in 

general education and vocational training, exchange of students, and collaboration among 

training and educational institutions. 

1.5.3 European Union 

The Partnership and Cooperation Agreement entered into force in 1999 and provides the 

legal framework for EU-Azerbaijan relations. In June 2004, the European Council decided 

to include Azerbaijan together with two other Southern Caucasus countries in the European 

Neighbourhood Policy (ENP). Past EC supported actions in the education sector were 

focused on higher education modernization through Tempus joint European Projects and 

Structural Measures. 

European Training Foundation (ETF) conducted in 2003 an overall study of VET in 

Azerbaijan, and a research on labour market needs for adult education. ETF implemented 

in 2005 an in-depth study on labour market in Azerbaijan and a pilot project on national 

qualification framework. 

TACIS Action Programme 2006 for Azerbaijan designed to render support to the 

Azerbaijan Government in the reform process and is compliant with the National 

Indicative Programme 2004-2006 that focuses on two areas of cooperation: 

• Support for institutional, legal and administrative reforms; 

• Support for the private sector and economic development. 

Within the framework of the first area, the support is provided to the Ministry of Economic 

Development in the implementation of the “State Programme on the Socio-Economic 

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Development of the Regions” (SPSEDR). The project is implemented in Baku, at the 

SPRED Secretariat, and in two pilot regions (Sheki-Zagatala and Aran). 

The present TACIS project “VET reform strategy and pilot implementation in a 

selected region in Azerbaijan” will be implemented within the framework of the second 

area of cooperation of the National Indicative Programme 2004-2006: support for the 

private sector and economic development. 

Exposure of VET sector decision makers and administrators to new models and 

international practice have been so far very limited due to the concentration of 

international technical assistance in the areas of general and higher education. 

2. OBJECTIVES, PURPOSE & EXPECTED RESULTS 

2.1 Overall objectives 

The overall objective of the project of which this contract will be a part is to contribute to 

the enhancement of competitiveness of Azeri non-oil sectors and increased employability 

of VET graduates. 

2.2 Purpose 

The purposes of this project are as follows: 

1. Improvement of policy making capacity, strategy and action programme for VET 

modernization 

2. Development of a replicable model of partnership in delivering competency-based 

vocational education and training 

2.3 Results to be achieved by the Consultant 

Related to the first purpose: 

• Public decision makers and other key stakeholders have enhanced their knowledge 

required for VET system renovation and contributed to the design of an Azeri VET 

modernisation strategy and action program. 

• Local capacity for VET strategy and policy development is created. 

• A mid-term strategy and action programme for the competency-based VET 

modernization in Azerbaijan is developed. 

• The way is paved for future VET sector support 

Related to the second purpose: 

• An effective partnership is established at local, regional and national levels among 

VET stakeholders to deliver competency-based training programmes for occupations 

in the tourism sector. 

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• A tourism sector labour market needs assessment in Daglig Shirwan economic region 

is conducted and proposals are made concerning sectoral demand for labour. 

• National competency-based occupational and qualification (educational) standards 

for the Tourism sector are developed and approved. 

• Competency-based vocational training curricula, teaching and learning materials for 

the Tourism sector are developed and approved. 

• Training of teachers from the pilot school and training of trainers on modern methods 

of teaching, learning and assessment are conducted. 

• Competency-based vocational education and training for different qualification levels 

and multiple occupations of the Tourism sector are initiated in the pilot school, and 

lessons learnt from the innovative experiment are used in the preparation of VET 

modernisation strategy. 

• Substantial and practical proposals deriving from the results of the pilot partnership 

are provided to public decision makers and other key stakeholders for the preparation 

of the VET strategy. 

3. ASSUMPTIONS & RISKS 

3.1 Assumptions underlying the project intervention 

• There is a strong political commitment from the Azeri Government to social and 

economic reforms. 

• MoE and other key ministries and stakeholders are willing to move from supplydriven 

to demand–driven VET system. 

• National authorities are ready to approve the pilot status of the selected vocational 

school in Ismayilli and willing to adopt the national occupational and educational 

standards, the outcome oriented curriculum and teaching materials developed in the 

course of the Project. 

3.2 Risks 

• Key ministries and stakeholders do not have a strong motivation to co-operate. 

• VET administrators and stakeholders are not aware of modern tendencies and 

practices in VET governance and management. 

• Pilot school facilities are not renovated and necessary equipment is not supplied in 

time. 

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4. SCOPE OF THE WORK 

4.1 General 

4.1.1 Project description 

The project has two concrete objectives: 

1. To contribute to the development of VET modernization strategy and action 

programme, and 

2. To establish a replicable model of partnership in delivering competency-based 

vocational education and training. 

To implement these objectives the project is divided in two distinct but interrelated 

components: Policy and Operational. The task of the Consultant is to make the 

implementation of these components mutually supportive and leading to the same target: 

reform of the current self-reproducing Azeri VET system into a modern system satisfying 

the needs of the labour market. 

Experience of European and other advanced countries demonstrates that such a reform can 

be achieved by the introduction of employment oriented and competency-based vocational 

education and training that provides people with the skills, knowledge and attitudes 

enabling them to perform at work in accordance with established occupational standards. 

Occupational standards constitute a basis for the specification of qualification requirements 

(educational standards), which create a national qualification framework. Qualification 

(education) standards, in their own turn, determine requirements to outcome oriented 

curriculum and assessment. 

The task of the Consultant is to: 

• ensure that the fundamental features of an employment oriented and competencybased 

vocational education and training system are incorporated into the VET 

modernization strategy by means of the Policy component; 

• initiate implementation of those features on a pilot basis through the Operational 

component. 

The Consultant shall also assure systematic coordination with other donors activities in 

Azerbaijani VET sector, and secure that the Policy component makes use of the lessons 

learnt from the pilot introduction of major elements of the competency-based VET system 

under the Operational component. 

Policy component 

The intervention logic should secure local ownership and sustainability and therefore 

enable policy learning among all VET stakeholders involved. Policy learning is 

understood as a process enhancing ownership and leading to an improved capacity of 

stakeholders to define, design and implement strategies and policies by themselves. In this 

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process, the role of external consultants is to facilitate learning and capacity building 

among stakeholders to enable them to take informed decisions. 

Local ownership of the future VET strategy and sustainability of an action programme for 

its implementation can be achieved by active involvement of major stakeholders in the 

policy development process. A Coordination Council for VET Modernization, 

comprising decision makers from key Ministries and representatives from major VET 

stakeholders, will provide guidelines to local and external experts in their work on VET 

modernization strategy paper and action programme. 

Operational component 

The objective of the Operational component is to develop and implement a replicable 

model of partnership in delivering competency-based vocational education and training. 

The model of partnership has to be created at three levels: national, economic region and 

local. 

Activities of the component will focus on labour market needs assessment, introduction of 

national competency-based occupational and qualification (educational) standards, 

development of new curricula and teaching/learning materials for the Tourism sector skills 

training. Daglig Shirwan economic region and a vocational school in Ismayilli town will 

serve as test grounds for the initiation of competency-based VET delivery for the Tourism 

sector. 

The partnership model will include the creation of a Working Group whose role will be: 

• To ensure the development and validation for the Tourism sector of the competencybased 

occupational and qualification (educational) standards, curricula, teaching and 

learning materials; 

• To contribute to the full reconstruction of the Ismayilli vocational school premises 

and infrastructure in accordance with the requirements of competency-based training 

for identified occupations and qualification levels of the Tourism sector; 

• To ensure the provision of proper on the job training for the pilot school students and 

teachers involved in the Tourism sector programmes, and further job placements for 

the school graduates; 

• To secure close cooperation of all parties involved in the production of the 

Operational component “Results” mentioned in the section 2.3. 

The Working Group may be composed by representatives of the following bodies: 

• Ministry of Education; 

• Institute of Educational Problems; 

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• Ministry of Economical Development; 

• Ministry of Labour and Social Protection of Population; 

• Ministry of Culture and Tourism; 

• Ismayilli Rayon Executive Power; 

• Ismayilli Vocational School (Director); 

• Tourism sector employers and executives; 

• Regional project coordinator (serves as an executive secretary of the Working 

Group). 

A Memorandum of Understanding has been prepared and will be endorsed by the 

members of the Working Group so as to ensure a high commitment of all the key 

stakeholders in the implementation of the pilot partnership component of the project. 

The Consultant shall play the role of a facilitator of processes, where the different key 

stakeholders and local experts define and design by themselves the identified 

improvements to make the VET system more responsive to social and labour market needs. 

The Consultant service is to make this process possible, more than to substitute the roles 

and responsibilities of those entitled to these functions. 

To deal with the lack of knowledge in modern tendencies and practices in VET 

administration and delivery including competency-based vocational education and training, 

the Consultant shall organise effective learning by doing through the services of key and 

short-term experts. It will also be necessary to conduct study tours to a new EU member 

state(s) practicing competency-based vocational education and training. 

The composition of groups for study tours may be as follows: 

Group 1: Members of the Coordination Council for VET Modernization and of the 

Working Group. 

Group 2: Local experts, officials and employers involved in the regulation, development 

and approval of competency-based occupational and qualification (educational) standards. 

Group 3: Local experts, officials and trainers of trainers involved in the development, 

approval and dissemination of outcome oriented curriculum, teaching/learning materials, 

training and assessment methods. 

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4.1.2 Geographical area to be covered 

The project will work at the national level in Baku (capital of Azerbaijan) as well as at the 

regional (Daglig Shirwan economic region) and local (Ismayilli rayon) levels. 

4.1.3 Target groups 

The project partner will be the Ministry of Education but the project will also benefit the 

Ministry of Labour and Social Protection of Population, Ministry of Culture and Tourism, 

Ministry of Economic Development, Ismayilli Rayon Executive Power and other 

organisations that are going to be involved in the development of the VET modernisation 

strategy as well as in the introduction of competency-based standards and learning 

programmes. 

The ultimate beneficiaries of the project are VET schools, teachers, trainers and students; 

the labour force (employed and unemployed) and employers. 

4.2 Specific activities 

4.2.1 Inception phase 

During the first three months of the project, the Consultant will carry out the following 

activities: 

• Establishment of the project’s head office; 

• Recruitment of local support staff, through a transparent process; 

• Meetings with all relevant institutions to ensure their awareness of the project, and to 

secure and enlarge their support for and participation in the project; 

• Secure pilot status of Ismayilli vocational school, legal and normative support for the 

development and approval of competency-based occupational and qualification 

(educational) standards, curriculum and training/learning materials for the Tourism 

sector. 

• Assist in the estimation of the requirements for reconstruction of Ismayilli vocational 

school necessitated by the introduction of competency-based training programmes 

for occupations in the Tourism sector. 

• Creation of the Coordination Council for VET Modernisation and of the Working 

Group for the implementation of the pilot partnership in consultation and cooperation 

with project stakeholders; 

• Endorsement of the Memorandum of Understanding by the members of the Working 

Group; 

• Establishment of the Project Steering Committee; 

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• Provision, in close co-operation with the Project Partner (Ministry of Education), of 

an Inception Report, containing (i) a report on the activities and achievements during 

the Inception Phase; and (ii) an action plan which fine-tunes the action plan from the 

technical proposal; 

• The action plan should include a timetable for each of the Results and Activities 

identified below, an input schedule, and a revised Logical Framework, with more 

details on indicators for activities. The action plan would require formal agreement 

of the Contracting Authority. It is essential that the Project Partner and other relevant 

institutions actively participate in the project planning during the Inception Phase 

with a view to retain a sense of ownership of the project; 

• With a view to enhance awareness about and ensure commitment to the project, the 

Consultant shall organise a kick-off event involving the Project Partner, Ministries 

and state administrative bodies concerned, and other relevant stakeholders. Date to 

be discussed with the Contracting Authority; 

4.2.2 The project implementation activities. 

The project activities will be organised around the two inter-related components (see 

section 4.1.1.) to be pursued concurrently. Minimum activities for each component are 

elaborated below. Through these activities the Consultant is expected to ensure the 

achievement of results listed in the section 2.3. Based on the assessment done at the 

Inception phase, the Consultant may propose alternative and/or complementary project 

activities or working methodologies, which will, however, have to be formally approved by 

the Contracting Authority. 

The Consultant is asked to carry out the following activities: 

1. Policy component 

Result 1.1: Public decision makers and other key stakeholders have enhanced their 

knowledge required for VET system renovation and contributed to the design of an Azeri 

VET modernization strategy and action programme. 

Activities: 

• Organise at an early stage of the project a study tour for members of the 

Coordination Council and of the Working Group to a new EU member-state 

practicing competency-based VET. 

• Maintain close cooperation and regular consultations with the members of the 

Coordination Council. 

• Conduct high level meetings to discuss: a) draft of the VET Modernization Strategy 

Paper and b) draft of the Action Programme. Ensure contributions to the discussions 

by members of the Coordination Council. 

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Result 1.2: Local capacity for VET strategy and policy development is created. 

1.2.1 Identify and select local experts for the development of the mid-term VET 

modernization strategy paper. 

1.2.2 Secure participation of these experts in the study tour envisaged for the Group 2 

(see section 4.1.1). 

1.2.3 Conduct “learning by doing” training sessions for the local experts by external 

policy experts. 

1.2.4 Prepare a learning-consulting “guide” for strategy and policy development in 

VET. 

1.2.5 Translate the guide into Azeri, make it approved by MoE and publish. 

1.2.6 Conduct workshop for 25 VET administrators and school directors on how to use 

the “Guide” for strategy and policy development at different levels of VET 

system’s organisational structure. 

Result 1.3: A mid-term strategy and action programme for the competency-based VET 

modernization in Azerbaijan is elaborated. 

Activities: 

• Conduct continuous consultations with VET stakeholders while working on a policy 

document. 

• Prepare and discuss the draft of the VET Modernization Strategy Paper at a high 

level meeting of VET stakeholders 

• Prepare and discuss the draft of the Action Programme at a high level meeting of 

VET stakeholders 

• Translate both documents into Azeri and submit them to the Project Partner. 

• Organise continuous information of Azeri public concerning VET Modernization 

Strategy through the project’s web site, interviews for newspapers, TV and radio. 

Result 1.4: The way is paved for future VET sector support. 

Activities: 

• Coordinate policy development with other donors’ interventions in Azeri VET 

sector. 

• Conduct consultations with donors and international organisations concerning their 

possible contributions to the implementation of the Action Programme. 

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• Provide indicative references to the desirable external support to the implementation 

of the Action programme’s outputs. 

2. Operational component. 

Result 2.1: An effective partnership is established at local, regional and national levels 

among VET stakeholders to deliver competency-based training programmes for 

occupations in the Tourism sector. 

Activities: 

• Assure participation of the Working Group members in the study tour together with 

the members of the Coordination Council for VET Modernization. 

• Secure pilot status of Ismayilli vocational school, legal and normative support for the 

development and approval of competency-based occupational and qualification 

(educational) standards, curriculum and training/learning materials for the Tourism 

sector. 

• Assist in the estimation of the requirements for reconstruction of Ismayilli vocational 

school necessitated by the introduction of competency-based training programmes 

for the Tourism sector occupations. 

• Continuously consult with the members of the Working Group concerning 

implementation of the Operational component. 

Result 2.2: A tourism sector labour market needs assessment in Daglig Shirwan economic 

region is conducted and proposals are made concerning sectoral demand for labour. 

Activities: 

• Identify and select local experts to conduct an assessment. 

• Conduct assessment under the supervision of an external expert. 

• Discuss the results with the members of the Working Group. 

• Prepare a report with recommendations concerning Tourism sector demand for 

labour in Daglig Shirwan region. 

• Place the Report on the project web site. 

Result 2.3: National competency-based occupational and qualification (educational) 

standards for the Tourism sector are developed and approved. 

Activities: 

• Contribute to the updating of the National Classifier for the Tourism sector 

occupations in accordance to the International Standard for Classification of 

Occupations (ISCO). 

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• Select local experts and send them to a study tour to a new EU member-state 

practicing competency-based VET. 

• Conduct “learning by doing” training sessions for local experts under the supervision 

of an external expert. 

• Develop national competency-based occupational and qualification (educational) 

standards for the occupations in the Tourism sector. 

• Translate standards into Azeri, make them approved by the Project Partner and 

ensure their placement on the MoE web site. 

Result 2.4: Competency-based vocational training curricula, teaching and learning 

materials for the Tourism sector are developed and approved. 

Activities: 

• Select local experts and trainers of trainers and send them to a study tour. 

• Conduct “learning by doing” training sessions for the local experts under the 

supervision of an external expert. 

• Develop competency-based vocational training curricula, teaching and learning 

materials for the Tourism sector. 

• Translate all materials into Azeri, make them approved by the Project Partner and 

ensure their placement on the MoE web site. 

Result 2.5: Training of teachers from the pilot school and training of trainers on modern 

methods of teaching, learning and assessment are conducted. 

Activities: 

• Get administrators and teachers of a pilot school acquainted with the fundamentals of 

competency-based vocational education and training. 

• Introduce them to new qualification standards, curricula, training and learning 

materials for the Tourism sector occupations. 

• Train teachers on how to use active methods of teaching and competency-based 

assessment of a student’s progress. 

• Conduct a workshop for 25 teachers and trainers on how to train other teachers in 

outcome oriented methods of teaching, learning and assessment. 

Result 2.6: Competency-based vocational education and training for different qualification 

levels and multiple occupations of the Tourism sector are initiated in the pilot school, and 

lessons learnt from the innovative experiment are used in the preparation of the VET 

modernisation strategy. 

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Activities: 

• Ensure the readiness of the pilot school to initiate competency-based learning 

process. Competency-based learning process in Ismayilli vocational school can start 

only after: 

(1) all the previous results (2.1-2.5) of the Operational component are achieved, 

(2) the school’s facilities are in proper order, 

(3) the equipment has been supplied and the teaching staff has learnt how to use 

it. 

• Secure the approval by the Project Partner of new programmes adapted to the needs 

of the Tourism sector. 

• Evaluate the contribution of the VET stakeholders to the success of the experiment. 

• Suggest measures for the replication of such a model of partnership to other regions 

and economic sectors of Azerbaijan. 

Result 2.7: Substantial and practical proposals deriving from the results of the pilot 

partnership are provided to public decision makers and other key stakeholders for the 

preparation of the VET strategy 

Activities: 

• Prepare report based on outputs of Result 2.6. 

• Present report indepth to the Coordination Council. 

• Implement activities from the Awareness Raising Campaign (4.2.4) and Final Phase 

(4.2.5) of project. 

4.2.3 Support to supply contract 

This service contract will be run in parallel with a separate supply tender procedure for 

equipment. As a result, the Consultant under this Service Contract will be required to: 

• to write the technical specification of the equipment to be purchased through the 

Supply Contract, 

• to assist in the preparation of the tender dossier, 

• to assist in the tender evaluation, and 

• to follow-up the actual installation of equipment delivered. 

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4.2.4 Awareness raising campaign 

• Design and launch a promotion campaign using various media channels including 

press and TV, to increase awareness about the importance of vocational educational 

and training for the social and economic development of Azerbaijan and the 

necessity to move to a competency-based VET system. 

• Design and launch the nation-wide promotion campaign activities to generate interest 

in establishing partnerships between VET schools, local employers and district 

authorities. 

• Prepare a publication on the principles of the competency-based VET system and on 

the lessons learnt by the EU member-states in their transition to competency-based 

VET system. 

• Translate this publication into Azeri, publish and disseminate it among VET schools 

and stakeholders. 

• Design and run a project website during the entire period of the project. 

• Publish the project results (in Azeri and English) and disseminate them widely to key 

target audiences. 

4.2.5 Final phase 

The Consultant shall organise in cooperation with the MoE a final conference in order to: 

• present the final results of the project; 

• underline the impact of the VET Modernization Strategy Paper and Action 

Programme on the future of the Azeri VET sector; 

• highlight the contributions of the established pilot partnership in the transition 

towards a demand driven VET delivery system. 

Invitees to this event should include representatives from all beneficiary organisations, 

other relevant ministries and state administrative bodies, legislative authorities, the 

business community, members of the international donor community, etc. as appropriate. 

4.3 Project management 

4.3.1 Responsible body 

The European Commission will be responsible for managing the contract. 

The Project Partner is the Ministry of Education of the Republic of Azerbaijan. 

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The Consultant and the Project Partner will work closely with the Ministry of Labour and 

Social Protection of Population, Ministry of Economic Development, Ministry of Culture 

and Tourism, local education and labour authorities, employers, and Ismayilli vocational 

school. 

4.3.2 Management structure 

The Project Steering Committee will be established to provide advice and guidance for the 

implementation of the project. In view of the strategic objectives of the project, the 

Consultant will facilitate the establishment of a Steering Committee that will comprise 

senior representatives from the following institutions: 

• Ministry of Education (Deputy Minister who will chair the Committee) 

• National Coordinating Unit for the EU Technical Assistance in Azerbaijan 

• Ministry of Labour and Social Protection of Population 

• Ministry of Economic Development 

• Ministry of Culture and Tourism 

• Centre for Economic Reforms 

• Head of Ismayilli Executive Power 

• Director of Ismayilli vocational school 

• Institute of Educational Problems 

• Scientific Research and Training Centre on Labour and Social Problems 

• Trade Union organisation 

In addition, the Contracting Authority (the European Commission) will nominate its own 

representative to the Committee, as an observer. 

Other bodies, agencies or institutions may be proposed (in consultations with the Ministry 

of Education) as Committee members. The final membership of the Steering Committee 

must be agreed with the Contracting Authority. 

The Steering Committee will meet every 3 months and oversee the project planning and 

implementation process. The first meeting will be held at the end of the Inception phase to 

discuss the Inception Report. 

The Steering Committee will: 

• Monitor all activities of the project, as agreed in the contract for the delivery of 

technical assistance to the project; 

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• Consider the Consultant’s Inception Report, Quarterly Reports and make 

recommendations as appropriate to the Contracting Authority which will approve 

these reports; 

• Ensure a close co-operation between the relevant ministries and institutions, social 

partner organisations, local authorities and other relevant actors, taking into account 

the complexity of the project and ensuring transparency; 

• Guide the development and monitor the implementation of individual schedules or 

work programmes of the project; 

The Consultant will ensure the proper and timely functioning of the Steering Committee, 

including the holding of regular meetings, the preparation and circulation of the agenda, 

the writing and distribution of minutes, and follow-up to the Steering committee decisions. 

Level of support to be provided by the Project Partner: 

The Project Partner will chair the Steering Committee, facilitate the nomination of its 

members and co-ordinate with the Consultant the above-mentioned tasks. 

The Project Partner should appoint a senior member of its staff to liaise on a permanent 

basis with the Consultant, and should ensure that staff of the appropriate level is made 

available to work alongside the staff of the Consultant. Staff of the Project Partner shall not 

be paid from project funds. 

The Project Partner should provide to the project experts copies of legislation, regulations, 

studies, reports and other relevant documents necessary for the implementation of the 

project. 

The Project Partner will provide such assistance to the Consultant as necessary to arrange 

visas for expatriate personnel of the Consultant, and customs clearance and inland 

transport (from border point to final destination) for the Consultant’s and the project’s 

imported equipment, if applicable. 

The Project Partner should also provide all possible assistance to solve unforeseen 

problems, which the Consultant may face. The possible failure to solve some of the 

Consultant’s problems encountered locally will not free the Consultant from meeting its 

contractual obligations vis-à-vis the Contracting Authority. 

The Project Partner and other key stakeholders shall secure sustainability of this 

intervention by appointing direct collaborative institutions at national, regional and local 

levels (e.g.: Institute of Educational Problems, Scientific Research and Training Centre on 

Labour and Social Relations, Centre for Economic Reforms). 

Project management team: 

The Consultant will establish a project team responsible for day-to-day implementation of 

the project, timely delivery of activities, organisation of all project operations and both 

content-related and financial reporting liaison with EC and Project Partner. The project 

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management team may also be supported by international and local long- and short-term 

experts and a regional coordinator. 

The Consultant has full responsibility for overall contract performance, finances, 

expenditure and reports directly resulting from the project. Whilst the responsibility for the 

choice and application of appropriate project management lies with the Contractor, 

attention is drawn to the EC’s Project Cycle Management Manual, which outlines current 

best practise. With regard to the Logical Framework methodology this should be viewed as 

obligatory and shall form a central part of the Inception Report. 

4.3.3. Facilities to be provided by the Contracting Party and/or other parties 

In Baku, the office accommodation for the project will be located within the premises of 

the Ministry of Education. In Ismayilli, it will be located close to or in the selected school. 

The office accomodation of a reasonable standard and of approximately 10 square metres 

for each expert working on the contract is to be provided free of charge by the Azerbaijani 

Authorities both in Baku and in Ismayilli. 

The Project Partner will also provide such assistance to the Consultant as necessary to 

arrange visas for expatriate personnel of the Consultant, and customs clearance and inland 

transport (from border point to final destination) for the Consultant’s imported equipment. 

5. LOGISTICS AND TIMING 

5.1 Location 

The operational base for the project will be Baku, the Daglig Shirwan economic region and 

Ismayilli where pilot activities will take place. 

5.2 Commencement date & period of execution 

The intended commencement date is end June 2008, and the period of execution of the 

contract will be 30 months from this date. Please refer to Articles 4 and 5 of the Special 

Conditions for the actual commencement date and period of execution. 

The Contracting Authority may, at its own discretion, extend the project in duration and/or 

scope, subject to the availability of funding. Any subsequent extension of the contract will 

be subject to satisfactory performance by the Consultant. This shall be judged in particular, 

in terms of the progress towards the achievement of the project purpose and the delivery of 

the anticipated results. The intervention of events outside of the Consultant’s control shall 

also be taken into consideration. 

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6. REQUIREMENTS 

6.1 Personnel 

It is expected that all experts will spend 100% of their time in Azerbaijan. Exceptions to 

the benefit of the project are subject to approval by the Contracting Authority. 

All experts must be independent and free from conflict of interest in the responsibilities 

accorded to them. In particular, civil servants, staff of the Project Partner and other staff of 

the public administration of the beneficiary country cannot be recruited as experts or be 

paid by the project’s funds. 

6.1.1 Key experts 

All experts who have a crucial role in implementing the contract are referred to as key 

experts. CVs for the key experts must be included in tenders. The profiles of the key 

experts for this contract are as follows: 

Key expert 1: Team Leader (long term) – minimum 572 working days. 

Qualifications and skills 

• University degree or equivalent in Economics, Management or a similar field; 

• English language proficiency, knowledge of Azeri or Russian language will be an 

asset; 

• Computer literacy; 

• Good communication and inter-personal skills. 

General professional experience 

• Minimum 5 years of work experience in project/programme management, as Team 

Leader/Deputy Team Leader/Project Manager or in a Senior management position; 

• Minimum 7 years of professional work experience in the Technical Vocational 

Education and Training field; 

Specific professional experience 

• Professional experience as Team Leader or key expert in at least 2 projects in the 

sector of education /training/labour market reform involving multiple categories of 

stakeholders (such as central/local level institutions, schools, local authorities, social 

partners, etc); 

• Professional experience in at least one project related to the development of 

vocational education policies and programmes, preferably in similar EU funded 

project. 

Main duties 

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He/she will be responsible for the field management of the team of experts, as well as for 

the management of the project on behalf of the contractor. He/She shall act as the main 

counterpart to the EC Project Manager in relation to the performance of project activities. 

He/she will be responsible for the efficient and effective financing management monitoring 

and the project implementation in line with EC procedures. 

Key expert 2: Expert in VET policy and programmes design (long term) – minimum 

440 working days. 

Qualification and skills 

• University degree or equivalent in Education, Social Sciences or a similar field; 

• English language proficiency, knowledge of Azeri or Russian language would be an 

important asset; 




• Min. 10 years of professional experience in the field of national education and 

education policies, including initial, post-secondary and continuing vocational 

education and training systems; 

• Good knowledge of the issues related to the European Qualification Framework 

(EQF), the National Qualification Framework (NQF), the competency-based 

education and training systems and their development in the EU. 

• Experience in development and implementation of training programmes. 


• Professional experience as a lead expert in at least one project in transition countries 

related to the development of national policies leading to the introduction (or further 

improvement) of competency-based education systems and to the implementation of 

quality assurance mechanisms and/or assessment and verification procedures in 

VET; 

• Experience of cooperation with state authorities and non-governmental organisations 

in policy making. 

Main duties: 

The expert is expected to enhance national capability in vocational education and training 

policy making and lead the work of national experts in the development of a VET 

modernisation strategy and an action programme for its implementation. He/she will 

establish close contacts with the members of the Coordination Council for VET 

Modernisation. 

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Key expert 3: Expert in competency-based standards and quality assurance of VET 

delivery (long term) – minimum 528 working days. 

Qualification and skills 

• University degree or equivalent in Education, Engineering, Economic or Social 

Sciences field; 

• English language proficiency, knowledge of Azeri or Russian language would be an 

important asset; 




• Min. 10 years of professional experience in the field of national education and 

education policies, including vocational education and training; 

• Good knowledge of the issues related to the European Qualification Framework 

(EQF), the National Qualification Framework (NQF), the National Quality 

Assurance Systems in Education and their development in the EU. 


The expert proposed must have: 

• Direct involvement in the development of national occupational standards and 

qualifications, including the establishment of a register and certification procedures 

including assessment and verification procedures as proven through participation in 

actions/projects in the field; 

• Direct involvement in implementation of quality assurance mechanisms in his/her 

country of origin and/or abroad, especially for consultancy and training purpose, as 

proven through participation in action/projects in the field; 

• Direct involvement in institutional development activities connected to competencybased 

training in his/her country of origin and/or abroad, as proven through 

participation in action/projects in the field; 

Preference will be given to candidates with proven track of experience in assistance in 

transition countries. 

Main duties: 

The expert is expected to be in charge of the implementation of the Operational 

Component of the project and to lead the work of the short-term experts recruited to work 

on this component. He/she will also be responsible for the building of national expertise in 

development of structures, mechanisms and instruments for the competency-based VET 

and National qualification framework. 

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6.1.2 Other experts 

CVs for experts other than the key experts (non-key experts) are not examined prior to the 

signature of the contract and they should not be included in tenders. 

The consultant shall select and hire other experts as required according to the profiles 

identified in the Organisation & Methodology and these Terms of Reference. These 

profiles must indicate whether they are to be regarded as long-term/short-term and 

senior/junior so that it is clear which fee rate in the budget breakdown will apply to each 

profile. All experts must be independent and free from conflicts of interest in the 

responsibilities accorded to them. 

The selection procedures used by the Consultant to select these other experts shall be 

transparent and shall be based on pre-defined criteria, including professional qualifications, 

language skills and work experience. The findings of the selection panel shall be recorded. 

The selection of experts shall be subject to approval by the Contracting Authority. 

Note that civil servants and other staff of the public administration of the beneficiary 

country cannot be recruited as experts, unless prior written approval has been obtained 

from the European Commission. 

Long-term experts – project Coordinators 

Two (2) long-term experts, based, one in Baku and one in Ismayilli, will support all project 

components as well as general project management. 

They must: 

• Have at least 5 years of relevant experience in the education sector or labour market; 

• Have good management and administration capacities; 

• Have excellent public relations capacities; 

• Have a university degree or equivalent in a relevant field (education, business 

administration, economy); 

• Have experience of participation in international projects. 

• Good knowledge of English. 

The primary tasks of the long-term experts will be to work as advisors and peers with the 

project management, key experts and short-term experts and facilitate their work and 

timely implementation of the project activities. Other short-term contracts with experts will 

be tied to specific outputs. 

Pool of short-term experts (minimum 330 working days) 

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The key experts will be assisted by short-term senior experts with suitable qualifications 

and capable to provide the necessary skills and knowledge required for the project. 

All specialists will have minimum 5-10 years relevant experience in the appropriate field 

and an adequate training at university level or a comparable level and experience in at least 

one of the following areas: 

• Organisational structures of demand-driven VET systems; 

• Legal and normative support of competency-based education and training; 

• VET quality assurance and control; 

• National Qualification Framework creation and major features; 

• VET financing; 

• Labour market and training needs analysis (technical competences in the Tourism 

sector); 

• Classification of Tourism sector occupations (ISCO methodology); 

• Occupational standards development (technical competency in the Tourism sector); 

• Qualification (educational) standards development (technical competency in the 

Tourism sector); 

• Assessment, certification, accreditation; 

• Competency-based curricula development (technical competency in the Tourism 

sector); 

• Competency-based teaching/learning materials development (technical competency 

in the Tourism sector); 

• Teachers and trainers of trainers training in modern teaching/learning methods 

(technical competency in the Tourism sector); 

• School management under demand-driven VET; 

• Equipment specifications for Tourism sector training. 

General profile for short-term experts 

The candidates should have: 

• Relevant experience related to one of the fields covered by the project in one or more 

of the EU countries and/or TACIS countries; 

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• Relevant professional experience in their specific areas with appropriate professional 

credentials; 

• Experience as a consultant or trainer; 

• Experience with work in an international team in international cooperation projects; 

• Strong English language skills (oral and written); 

• Azeri or Russian language skills will be an asset. 

6.1.3 Support staff & backstopping 

A Backstopping Officer from the Consultant’s headquarters shall be appointed for the 

whole duration of the project. He/she shall have the overall responsibility for the smooth 

and timely implementation of the Project and the efficient use of the project funds. The 

Backstopping Officer must be an efficient senior manager with experience from similar 

assignments. 

He/she will have the following responsibilities: 

• Co-ordinate the overall project activities from the Consultant’s headquarters; 

• Ensure proper reporting to the Contracting Authority according to EC reporting 

guidelines and requirements; 

• Ensure co-ordination between the project office, the Consultant’s headquarters, the 

Contracting Authority and the Project Partner; 

• Ensure proper administrative control of the project’s expenses, preparation of 

invoices with supporting documentation, and the timely delivery of reports. 

Backstopping costs are considered to be included in the fee rates. 

In order to allow professional staff to concentrate on their core tasks, the Consultant is 

expected to provide a team of three full time (equivalent) staff including: (1) a long term 

office manager/secretariat support, (2) a proficient office translator and (3) other 

administrative staff. 

The costs of this support staff must be included in the fee rates of the experts. 

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6.2 Office accommodation 

Office accommodation of a reasonable standard and of approximately 10 square metres for 

each expert working on the contract (both in Baku and in Ismayilli) is to be provided free 

of charge by the Azerbaijani Authorities. 

6.3 Facilities to be provided by the Consultant 

The Consultant shall ensure that experts are adequately supported. In particular it shall 

ensure that there is sufficient administrative, secretarial and interpreting provision to 

enable experts to concentrate on their primary responsibilities. It must also transfer funds 

as necessary to support its activities under the contract and to ensure that its employees are 

paid regularly and in a timely fashion. 

In addition, the Consultant must ensure that the project personnel (including all key and 

non-key experts and support staff) is equipped with any of the equipment, which the 

Consultant estimates is required in order for them to carry out their tasks effectively. This 

includes equipment for the offices to be set up by the project, such as computer equipment, 

furniture, telephones, printers, faxes, photocopiers etc. Sufficient provision must be made 

for these costs in the Consultant’s fee rates. 

If the Consultant is a consortium, the arrangement should allow for the maximum 

flexibility in project implementation. Arrangements offering each consortium partner a 

fixed percentage of the work to be undertaken under the contract should be avoided. 

6.4 Equipment 

No equipment is to be purchased on behalf of the Contracting Authority / beneficiary 

country as part of this service contract or transferred to the Contracting Authority / 

beneficiary country at the end of this contract. Any equipment related to this contract 

which is to be acquired by the beneficiary country must be purchased by means of a 

separate supply tender procedure. 

6.5 Incidental expenditure 

The provision for incidental expenditure covers the ancillary and exceptional eligible 

expenditure incurred under this contract. It cannot be used for a cost which should be 

covered by the Consultant as part of its fee rates, as defined in these Terms of Reference. 

Its use is governed by the provisions in the General Conditions and the notes in Annex V 

of the contract. 

Incidental expenditures cover: 

a) Study tours; 

b) Training, workshops, seminars and conferences; 

c) Information and promotion campaigns and dissemination events; 

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d) Local and international travel costs and subsistence allowances for missions to be 

undertaken as part of this contract from the base of operations in the beneficiary 

country as defined in paragraph 5.1. 

The Provision for incidental expenditure for this contract is €375,000. This amount 

must be included without modification in the budget breakdown. 

Any subsistence allowances to be paid for the missions undertaken as part of this contract 

from the base of operations in the beneficiary country must not exceed the per diem rates 

published on the Web site 

http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.htm at 

the start of each such mission. 

The Consultant will need prior written approval from the Contracting Authority before 

spending the funds related to any component within the incidental expenditure. 

No funds of the incidental expenditure budget may be used for fees for experts. 

6.6 Expenditure verification 

The Provision for expenditure verification relates to the fees of the auditor who has been 

charged with the expenditure verification of this contract in order to proceed with the 

payment of pre-financing instalments if any and/or interim payments if any. 

The Provision for expenditure verification for this contract is €25.000. This amount 

must be included without modification in the Budget breakdown. 

7. REPORTS 

7.1 Reporting requirements 

Please refer to Article 26 of the General Conditions. Interim reports must be prepared 

every six months during the period of execution of the contract. They must be provided 

along with the corresponding invoice, the financial report and an expenditure verification 

report defined in Article 28 of the General Conditions. There must be a final report, a final 

invoice and the financial report accompanied by an expenditure verification report at the 

end of the period of execution. The draft final report must be submitted at least one month 

before the end of the period of execution of the contract. Note that these interim and final 

reports are additional to any required in Section 4.2. of these Terms of Reference. 

Each report shall consist of a narrative section and a financial section. The financial 

section must contain details of the time inputs of the experts, of the incidental expenditure 

and of the provision for expenditure verification. 

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7.2 Submission and approval of reports 

Reports produced in this project will be submitted by the Consultant to: 

• The EC Project Manager – 1 copy in English and 1 copy in Azeri; 

• The Project Partner – 1 copy in English and 2 copies in Azeri; 

• The National Coordinating Unit - 1 copy in English and 2 copies in Azeri; 

• The Tacis Monitoring Team - 1 copy in English and 2 copies in Azeri. 

The above-mentioned number of copies may be adjusted according to Project Manager’s 

appreciation. English is the bidding language. 

All reports shall be submitted in hard copy (printed double sided) and electronic format (as 

single Word file). The Project Partner shall be encouraged to submit comments on the 

reports to the EC Project Manager. 

The EC Project Manager is responsible for the approval of reports. 

8. MONITORING AND EVALUATION 

8.1 Definition of indicators 

Indicators have been identified for objectives and results and deliverables for activities and 

are included in the log-frame matrix. The contractor will review during the inception phase 

the appropriateness of the indicators and deliverables. Thereafter the progress reporting, 

evaluation and external monitoring will be based on these indicators and deliverables. 

8.2 Special requirements 

No briefing or debriefing is foreseen under this project. The contractor will keep complete 

updated records and documents available for external monitors, evaluators, auditors and 

government aid coordination bodies. 

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Overall objective 


Vocational Education and Training Reform Strategy and Pilot Implementation in a selected region in Azerbaijan 

Logical Framework Matrix 

(1) Intervention logic (2) Objectively verifiable indication of 

achievement 

To contribute to the enhancement of 

competitiveness of Azeri non-oil sectors and 

increased employability of VET graduates. 

Project Purposes 

1. Policy component. 

Improved policy making capacity, new 

strategy and action programme for VET 

modernisation. 

2. Operational component. 

Replicable model of partnership in delivering 

competency-based vocational education and 

training. 

• Growth of labour productivity in nonoil 

economic sectors. 

• Increased ratio of qualified workers and 

junior specialists in Azeri labour force. 

• Improved job placement of VET 

graduates. 

• Creation and effective work of 

Coordination Council for VET 

Modernisation. 

• Active participation of local experts in 

the development of VET strategy and 

action programme. 

• VET Modernisation Strategy Paper and 

Action Programme agreed with the 

Project Partner and major VET 

stakeholders 

• Working Group consisting of the 

Operational component beneficiaries 

created and performed successfully. 

• Memorandum of Understanding agreed 

and implemented. 

• All means for the transition to 

competency-based training delivery in 

(3) Sources and means of verification (4) Assumptions 

• Economic studies and indicators 

provided by MoED, MoLSPP and 

other organisations. 

• Household and labour surveys. 

• Tracer studies. 

• Project reports 

• Minutes of meetings of Coordination 

Council. 

• Minutes of consultations with major 

stakeholders. 

• Draft VET Modernisation Strategy 

Paper and Action Programme 

• Feedback from project beneficiaries 

collected by independent monitors 

• Minutes of the meetings of the 

Working Group. 

• Review of the implementation of the 

Memorandum of Understanding. 

• Endorsement by the Project Partner of 

new competency-based standards, 

curricula, assessment and 

• Strong commitment by Azeri 

government to cardinal 

modernisation of the national 

VET system. 

• Expressed interest of donors and 

international organisations in 

rendering assistance to 

modernisation of the Azeri VET 

sector. 

MoE and other key ministries and 

stakeholders are willing to further 

partnership in the implementation of 

Action Programme for VET 


33

Results 

1. Policy component. 

Result 1.1. 




achievement 

Public decision makers and other key 

stakeholders have enhanced their knowledge 

required for VET system renovation and 

contributed to the design of Azeri VET 

modernisation strategy and action 

programme. 

Activities 

1.1.1 Organise at an early stage of the 

project a study tour for members of 

the Coordination Council and of the 

Working Group to a new EU 

member-state practicing 

competency-based VET. 

1.1.2 Maintain close cooperation and 

regular consultations with the 

the Tourism sector developed and 

training initiated. 

• National capacity built for the 

replication of the partnership model in 

other Azeri regions and economy 

sectors. 

• Coordination Council for VET 

Modernisation established and provided 

direction and advice. 

• Study tour for Coordination Council 

members conducted. 

• Continuous expert services provided to 

Council members. 


teaching/learning materials. 

• List of national experts trained by the 

project. 

• Achievement of the intended results 

of the Operational component. 

• Project reports. 


• Formal decision on the creation of 


• Minutes of Coordination Council 

meetings. 

• Study tour report. 

• Contributions of Coordination 

Council members to public 

discussions on Azeri VET 


• 

There is a wiliness of VET decision 

makers and key stakeholders to 

contribute continuously to VET 


Members of Coordination Council 

will be committed to its work, 

participate in a study tour and 

contribute to the high level meetings. 

34




achievement 

members of Coordination Council. 

1.1.3 Conduct high level meetings to 

discuss: a) draft of the VET 

Modernization Strategy Paper and b) 

draft of the Action Programme. 

Ensure contributions to the 

discussions by members of 


Result 1.2 

Local capacity for VET strategy and policy 

development created. 

Activities 

1.2.1 Identify and select local would be 

experts for the development of the 

mid-term VET modernization 

strategy paper. 

1.2.2 Secure participation of these 

experts in the study tour. 

• Local VET “policy designers” 

identified, trained and contributed to 

the development of the policy 

document and action programme. 

• Study-tour for policy designers 

conducted. 

• Guide to VET Strategy and Policy 

Development prepared by the Project 

and endorsed by MoE. 

• Workshop conducted for 25 VET 

administrators and school principles on 

how to use the “Guide” for strategy and 

policy development. 


• Minutes of the meetings of the 

“policy designers” team. 

• Individual study tour reports by the 

participants. 

• “Guide to VET Strategy and Policy 

Development” translated and 

published. 

• Workshop’s list of participants. 

Written questionnaires, oral 

interviews to participants by 

independent monitors. 


There will be continuous demand for 

local expertise in VET strategy and 

policy development. 

Sufficient number of local experts is 

available to learn VET policy making 

process and EU practices of 

transition to a competency-based 

vocational education and training, 

and contribute effectively to the 

development of a mid-term VET 

modernisation strategy and action 

35




achievement 

1.2.3 Conduct “learning by doing” for the 

local experts by external policy 

experts. 

1.2.4 Prepare a learning-consulting 

“Guide” for strategy and policy 

development in VET. 

1.2.5 Translate the guide into Azeri, 

approve by MoE and publish. 

1.2.6 Conduct workshop for 25 VET 

administrators and school principles 

on how to use the “Guide” for 

strategy and policy development at 

different levels of VET system’s 

organisational structure. 

Result 1.3 

Mid-term strategy and action programme for 

competency-based VET modernisation in 

Azerbaijan elaborated. 

• Hands on publication on lessons learnt 

from experience of EU member states 

about the transition to competencybased 

VET systems. 

• Concept paper on VET modernisation 

strategy discussed with the Project 

Partner and stakeholders. 

• Action programme for VET 

modernisation discussed with the 

Project Partner and stakeholders. 

• VET Modernisation Strategy Paper and 

Action Programme agreed with the 

Project Partner and major VET 

stakeholders. 


• Publication on the lessons learnt 

prepared, translated into Azeri, 

published and widely disseminated. 

• Minutes of consultations with the 

Project Partner and stakeholders. 

• Reports of the high level meetings on 

the strategy paper and the action 

programme. 

• Draft VET Modernisation Strategy 

Paper and Action Programme in 

English and Azeri languages. 

• Number of persons visiting project 

website and participating in the 

discussion forum. 

• Number of interviews for newspapers, 

TV and radio. 

programme. 

• Key VET stakeholders and 

beneficiaries are ready for 

different types of consultations 

on specific aspects of the 

modernisation strategy and 


• Draft VET Modernisation 

Strategy Paper and Action 

Programme will be endorsed by 

the Azeri authorities. 

36

Activities 




achievement 

1.3.1 Conduct continuous consultations 

with VET stakeholders while 

working on a policy document. 

1.3.2 Prepare and discuss draft of the VET 

Modernization Strategy Paper at a 

high level meeting of VET 

stakeholders 

1.3.3 Prepare and discuss draft of the 

Action Programme at a high level 

meeting of VET stakeholders 

1.3.4 Translate both documents into Azeri 

and submit them to the Project 

Partner. 

1.3.5 Organise continuous information of 

Azeri public concerning VET 

Modernization Strategy through the 

project’s web site, interviews for 

newspapers, TV and radio 


• Key VET stakeholders and 

beneficiaries are ready for 

different types of consultations 

on specific aspects of the 

modernisation strategy and 


• Draft VET Modernisation 

Strategy Paper and Action 

Programme will be endorsed by 

the Azeri authorities. 

37

Result 1.4 




achievement 

The way paved for the donors involvement 

into the implementation of Azeri VET 

modernization strategy. 

Activities 

1.4.1 Coordinate policy development with 

other donor interventions in Azeri 

VET sector. 

1.4.2 Conduct consultations with donors 

and international organisations 

concerning their possible 

contributions to the implementation of 

the Action Programme. 

1.4.3 Provide indicative references to the 

desirable external support to the 

implementation of the Action 

programme’s outputs. 

2. Operational component 

Result 2.1 

An effective partnership established at local, 

• Consultations with appropriate EC 

structures and potential donors during 

the preparation of the VET 

Modernisation Strategy Paper and 

Action Programme. 

• Provision of indicative references to the 

national and/or external sources of 

finance and technical assistance in the 

Action Programme. 

• Working Group to contribute to the 



• Minutes of the consultations with the 

donor and international organisations. 

• Indicative references to the sources of 

finance and technical assistance for 

the Action Programme outputs. 

• Written Memorandum of 

• Dialogue and cooperation 

between the EU and Azerbaijan 

for the modernisation of VET 

sector will continue. 





sector. 

• Dialogue and cooperation 

between the EU and Azerbaijan 

for the modernisation of VET 

sector will continue. 





sector. 

• Pilot school facilities renovated 

38




achievement 

regional and national levels among VET 

stakeholders to deliver competency-based 

training programmes for the Tourism sector 

occupations. 

Activities 

2.1.1 Assure participation of the Working 

Group members in the study tour 

together with the members of the 


2.1.2 Secure pilot status of Ismayilli 

vocational school, legal and 

normative support for the 

development and approval of 

competency-based occupational and 

qualification (educational) standards, 

curriculum and training/learning 


2.1.3 Assist in the estimation of the 

requirements for reconstruction of 

Ismayilli vocational school 

necessitated by the introduction of 

competency-based training 

programmes for the Tourism sector 

occupations. 

2.1.4 Continuously consult with the 

members of the Working Group 

concerning implementation of the 

Operational component. 

implementation of the Operational 

component established. 

• Memorandum of Understanding 

between the Working Group members 

endorsed. 

• Partners have been implementing their 

commitments. 


Understanding with mutual 

commitments of the Working Group 

members. 

• Data on different aspects of 

cooperative activities of the Working 

Group members 


though the joint efforts of the 

Working Group members, and 

necessary equipment supplied in 

time. 

• Pilot school granted the necessary 

autonomy for the introduction of 

competency-based VET delivery. 

• Members of the Working Group 

will be committed to their 

obligations in the Memorandum 

of Understanding and participate 

in the study tour. 

• Pilot school granted the necessary 

status by the Project Partner. 

• Legal and normative support for 

the Introduction of competencybased 

standards, curriculum and 

teaching/learning materials 

provided. 

39

Result 2.2 




achievement 

Tourism sector labour market needs 

assessment in Daglig Shirwan economic 

region conducted and proposals made 

concerning sectoral demand for labour. 

Activities 

2.2.1 Identify and select local experts to 

conduct needs assessment. 

2.2.2 Conduct assessment under the 

supervision of an external expert. 

2.2.3 Discuss the results with the members of 

the Working Group. 

2.2.4 Prepare a report with recommendations 

concerning Tourism sector demand 

for labour and skills in Daglig 

Shirwan region. 

2.2.5 Place the Report on the project web site. 

Result 2.3 

National competency-based occupational and 

qualification (educational) standards for the 

Tourism sector developed and approved. 

Sectoral assessment results submitted and 

proposals made. 

• National Classifier for the occupations 

in the Tourism sector updated in 

accordance with the International 

Standard Classifier of occupations 

(ISCO). 

• Study tour conducted for national 


Report on the tourism sector labour 

market needs assessment in Daglig 

Shirwan region. 

• Updated Classifier for the Tourism 

sector occupations. 

• Individual reports on the study tour 

results by participants. 


Readiness of MoLSPP to preserve and 

disseminate acquired experience in 

labour market needs assessment, 

analysis and forecasts. 

Required number of local experts 

available to conduct labour market 

needs assessment. 

• Readiness of MoLSPP to 

• 

introduce changes in the National 

Classifier of Occupations. 

Wiliness of MoE, MoLSPP and 

MoCT coordinate their efforts in 

the development and approval of 

40

Activities 




achievement 

2.3.1 Contribute to the updating of the 

National Classifier for the Tourism 

sector occupations in accordance to 

the International Standard for 

Classification of Occupations (ISCO). 

2.3.2 Select national experts and send them 

to a study tour to a new EU memberstate 

practicing competency-based 

VET. 

2.3.3 Conduct “learning by doing” for local 

experts under the supervision of an 

external expert. 

2.3.4 Develop national competency-based 

occupational and qualification 

(educational) standards for the 

occupations in the Tourism sector. 

2.3.5 Translate standards into Azeri, make 

them approved by the Project Partner 

and ensure their placement on the 

MoE web site. 

experts involved in the development of 

competency-based standards. 

• National experts trained and contributed 

to the development of competencybased 

standards. 

• Employers of the Tourism sector were 

actively involved in the development of 

competency-based standards. 

• Standards developed and approved. 


• Project certificates awarded to local 

experts trained and contributed to the 

development of competency-based 

standards. 

• Standards available in Azeri language 

on the MoE website. 



Tourism sector. 

• Readiness of Tourism sector 

employers to be involved in the 

development of occupational and 

qualification standards. 

• Readiness of MoLSPP to 

introduce changes in the National 

Classifier of Occupations. 

• Williness of MoE, MoLSPP and 

MoCT coordinate their efforts in 

the development and approval of 



Tourism sector. 

• Readiness of Tourism sector 

employers to be involved in the 

development of occupational and 


• Sufficient number of local experts 

will be available to learn 

international experience and 

contribute to updating of National 

Classifier of Occupations and 

developing of competency-based 

standards. 

41

Result 2.4 




achievement 

Competency-based vocational training 

curricula, teaching and learning materials for 

the Tourism sector developed and approved. 

Activities 

2.4.1 Select national experts and trainers of 

trainers and send them to a study 

tour. 

2.4.2 Conduct “learning by doing” for the 

local experts under the supervision of 

an external expert. 

2.4.3 Develop competency-based 

vocational training curricula, 

teaching and learning materials for 

the Tourism sector. 

2.4.4 Translate all materials into Azeri, 

make them approved by the Project 

Partner and ensure their placement on 

the MoE web site. 

• Study tour conducted for national 

experts involved in the development of 

modern curricula, teaching and learning 

materials. 

• National experts trained and contributed 

to the development of outcome oriented 

curriculum, teaching and learning 

materials. 

• MoE approved now modular 

curriculum, teaching and learning 

materials as standard requirements of 

vocational education and training for 



• Individual reports by participants on 

the study tour results. 

• Project certificates awarded to the 

local experts trained and contributed 

to the development of new curricula, 

teaching and learning materials. 

• Curricula, training and learning 

materials available on the MoE 

website. 

• Project Counterpart readiness to 

approve and disseminate new 

vocational training curricula, 

teaching and learning materials 

for the Tourism sector. 

• Sufficient number of local experts 

available to learn international 

experience and contribute to the 

development of competencybased 

vocational training 

curricula, teaching and learning 


42

Result 2.5 




achievement 

Training of teachers from the pilot school and 

trainers of trainers on modern methods of 

teaching, learning and assessment conducted. 

Activities 

2.5.1 Get administrators and teachers of a 

pilot school acquainted with the 

fundamentals of competency-based 

vocational education and training. 

2.5.2 Introduce to them new qualification 

standards, curricula, training and 

learning materials for the Tourism 

sector occupations. 

2.5.3 Train teachers how to use active 

methods of teaching and 

competency-based assessment of a 

student’s progress. 

2.5.4 Conduct a workshop for 25 teachers 

and trainers on how to train other 

teachers in outcome oriented methods 

• Workshop conducted for administration 

and teachers of Ismayilli vocational 

school on the fundamentals of 

competency-based VET and active 

methods of training. 

• Workshop conducted for 25 teachers 

and trainers of trainers. 

• Teachers and students of the pilot 

school practice active methods of 

teaching and learning. 


• Workshops list of participants, 

written questionnaires, oral 

interviews to participants by 

independent monitors. 


• Project certificates awarded to 

workshops participants. 

• Direct observation of teaching and 

learning process in the pilot school. 

• Questionnaires filled by teachers and 

students. 

• Approval by the Project 

Counterpart of the competencybased 

standards, curricula, 

teaching and learning materials 

developed within the project. 

• Availability of the above to the 

pilot school together with the 

legal arrangements for new 

qualifications of graduates. 

• Local teachers interested and 

willing to learn and practice 

active methods of teaching. 

43

Result 2.6 




achievement 

of teaching, learning and assessment. 

Competency-based vocational education and 

training for different qualification levels and 

multiple occupations of the Tourism sector 

being initiated in the pilot school, and lessons 

learnt from the innovative experiment. 

Activities 

2.6.1 Ensure readiness of the pilot school to 

initiate competency-based learning 

process. 

2.6.2 Secure the approval by the Project 

Partner of new programmes for the 

needs of the Tourism sector. 

• Ismayilli vocational school premises 

and infrastructure properly renovated by 

joint efforts of organisations 

constituting the Working Group. 

• Equipment for training in the Tourism 

sector occupations installed and 

teaching staff learned how to use it. 

• All previous Results of the Operational 

component (2.1-2.5) have been 

achieved. 

• Project Partner approved new 

competency-based training courses for 


• Implementation of new training courses 

started. 

• Lessons learnt from the implementation 

of the Operational component, and 

proposals elaborated for the replication 

of an experimental model of partnership 

for an orderly transition to competencybased 

VET. 


• Pilot school premises, infrastructure 

and equipment correspond to the 

modern requirements of competencybased 

training for the Tourism sector. 

• Curricula for the Tourism sector 

training programmes based on new 


• New teaching and learning materials. 

• New assessment procedures. 

• Written agreements between the pilot 

school and local employers. 

• Project paper on the lessons learnt. 

• Project final report. 

• Project Partner will approve 

initiation of competency-based 

training, its processes and 

procedures in the pilot school. 

• Ismayilli school premises and 

infrastructure properly renovated 

and necessary equipment 

installed. 

• Local employers and other 

stakeholders of the pilot school 

interested and willing to 

contribute further to the success 

of the experiment. 

• There will be demand for local 

expertise in the implementation 

of the Azeri VET Modernisation 

Strategy and Action Programme. 

• Pilot school administration and 

staff willing and capable to 

implement competency-based 

programmes for the Tourism 

sector. 

44




achievement 

2.6.3 Evaluate contribution of VET 

stakeholders to the success of the 

experiment. 

2.6.4 Suggest measures for the replication 

of such a model of partnership to 

other regions and economic sectors of 

Azerbaijan. 


45

Result 2.7 




achievement 

Substantial and practical proposals deriving 

from the results of the pilot partnership are 

provided to public decision makers and other 

key stakeholders for the preparation of the 

VET strategy 

Activities 

2.7.1 Prepare report based on outputs of 

Result 2.6.4. 

2.7.2 Present report in detail to the 


2.7.3 Implement activities from the 

Awareness Raising Campaign (4.2.4) 

and Final Phase (4.2.5) of project. 

• Results of the pilot partnership are 

collected and compiled into a report; 

• Members of Coordination Council are 

aware of the results of the pilot 

partnership; 

• Key stakeholders (including general 

public) are aware of the necessity of 

switching to a competency-based VET 

strategy. 


• Report on 'lessons learned and 

suggestions on replication of pilot 

model' prepared. 

• Minutes of Coordination Council 

meetings. 

• Report and list of Participants of the 

final conference. 

• Awareness-Raising materials. 

• Project Final Report. 

• Project Partner and other 

Government stakeholders present 

at the Final Conference. 

• Project Partner remains 

committed and involved in 


• Project has been able to 

implement its planned activities. 

46

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