Implemented by UN-HABITAT, ILO, CESVI and SAACID Somalia

Project Document

Sustainable Employment Creation and Improved Livelihoods for Vulnerable Urban Communities in Mogadishu

Implemented by UN-HABITAT, ILO, CESVI and SAACID Somalia

Executive Summary

In Somalia, the long-standing unstable context has had widespread adverse social and economic effects. Throughout the country, the d As a result of the conflict, as well as of recurring environmental shocks, large sections of the population have experienced long term displacement. eficits in basic infrastructure and in the provision of essential services are enormous. Since the collapse of the state in 1991, the private sector and civil society, including local NGOs and community based organizations, have become the main providers of social services. Moreover, there has been limited investment in the productive sectors.

Local communities (in particular the youth, women, IDPs and other marginalized groups) have little opportunity to participate in processes that influence decision making related to the provision of basic services or the improvement of livelihoods. Furthermore, the opportunities for vulnerable urban groups to enhance their livelihood opportunities (e.g. through business, technical and vocational skills training) are limited.

The proposed Project, Sustainable Employment Creation and Improved Livelihoods for Vulnerable Urban Communities in Mogadishu, addresses these issues by focussing on poverty reduction through the creation of sustainable enterprise and employment, and the reconstruction of public infrastructure and basic services through a participatory, gender-balanced approach. It is thus highly relevant to achieving common UN development outcomes and the MDGs, as well as for peace-building in Somalia. The Action’s primary beneficiaries will be youth, women, IDPs and unemployed persons; women will comprise 30% of the targeted groups.

The intervention will be implemented by UN-Habitat, under a joint programme structure with ILO, CESVI and SAACID. The Project will be coordinated and closely aligned with the UN Joint Programme for Local Governance & Decentralized Service Provision (“UN JPLG”), in which all four partners are actively involved. Other key partners/stakeholders include local authorities and the local private sector.

Activities are targeted at the household, neighborhood, sub-district and district levels. The Project’s expected accomplishments are:

1. Economic activity increased and sustainable employment created in the private sector through the improvement and rehabilitation of strategic economic infrastructure and the establishment of appropriate operational systems and management.

2. Improved access to services, and employment generation, through the establishment of sustainable Solid Waste Management systems and support to businesses involved in garbage collection, disposal and waste valorization activities (e.g. recycling).

3. Improved capacities, upgraded skills and job creation in the Construction Sector, including enterprises engaged in building works and the production of building materials.

4. Employment generation and improved access to services, through technical support to private sector enterprises and PPPs engaged in water supply, water treatment, and liquid waste disposal.

5. Innovative technologies introduced and employment created in the Energy and Environmental Protection Sectors, with particular focus on renewable green energy, environmental mitigation, and the creation of viable PPPs.

6. Business support strengthened and employment created in the Trade, Processing and Manufacturing Sectors, with particular focus on medium-scale to larger existing and emerging enterprises.

Signature
Executive Director
Name: / Approving Authority Signature:
______Date:______/______/20__

1. Overview

Project Number
IMIS BAC
Linkage to the MTSIP Focus Area(s) – rank up to 3 max. / Percentage of contribution
FA 2: Promotion of Participatory Planning, Management, and Governance (UPMG) / 20%
FA 4: Environmentally Sound Basic Urban Infra-Structure & Services / 60%
FA 5: Strengthened Human Settlements Finance Systems / 20%
Linkage to the Focus Area(s) Expected Accomplishment(s)
FA 2; EA3; Improved Implementation of Inclusive UPMG
FA 4; EA2: Increased Institutional Efficiency and Effectiveness in the Provision of Basic Urban Infrastructure Services
FA 5; EA1: Increased financing for affordable housing and infrastructure.
Linkage to the Work Programme Expected Accomplishments
Sub-Programme 1: Shelter and Sustainable Human Settlements Development
(d) Improved capacity at the national and local levels to address sustainable urban development so that cities are safer, less vulnerable to disaster and better able to adapt to and mitigate the effects of climate change and manage post-disaster and post-conflict situations and to promote a positive approach to foreseeable natural risk prevention.
Sub-Programme 3: Regional and Technical Cooperation
(a) Enhanced regional, national and local capacity to implement human settlements policies, strategies and programmes with special focus on reduction of urban poverty and the response to natural and man-made disasters
Sub-Programme 4: Human Settlements Financing
(c) Expanded access to and sustained provision of adequate clean drinking water, improved sanitation and waste management, ecologically sound energy-saving transport and power supply technologies in urban and peri-urban areas, with due regard to small secondary towns.
Geographical Scope / Benadir Region, Somalia
Specific Project Location(s) / All 16 Districts of Mogadishu
UN-HABITAT Lead Division / Regional and Technical Cooperation Division, RTCD
Other UN-HABITAT collaborating Divisions/Offices/Units / ROAAS, UN-HABITAT Somalia Programme, DPCM, WATSAN, ICBB, ISS, Housing, Energy
Other collaborating agencies / Project implemented jointly with ILO, CESVI (INGO), and SAACID (LNG), in collaboration with the Benadir Regional Administration, 16 District Authorities and the Local Private Sector
Responsible Officer / Dorothee von Brentano
Proposed Project Duration / 36 months
Proposed Start Date / October 2011
Proposed Completion Date / September 2014
Currency / % of contribution / In US$ equivalent:
Estimated Total Budget
and % of contribution / Donor(s):
European Commission
Italian Cooperation / EUR 3,500,000
EUR 393,511 / 89.9%
10.1% / In kind: / $4,900,000
$550,915
UN-HABITAT: / In kind:
Third Party/Other: / In kind:
Total: / EUR 3,893,511 / 100% / In kind: / $ 5,450,915
Funding Agent(s) / Donor(s) / European Commission
Italian Cooperation
Version number / 01 / Revision Date:
Reference to the Millennium Development Goals – rank up to 3 max. / Level of Involvement

MDG No. 1 (“eradicate extreme poverty and hunger”), Targets 1A and 1B related to poverty reduction and employment generation
MDG No. 7 on Environmental Sustainability, Target 10 on improved access to water and sanitation
MDG No. 7 on Environmental Sustainability, Target 9 and 11 on respectively, sustainable development and reversing the loss of environmental resources, and improving the lives of slum dwellers

/ Very High
High
High

2. Background and Rationale

2.1. Origin of the Project/request for support

The Project was developed by the UN-HABITAT Somalia Programme, in response to the Restricted Call for Proposals (“CfP”) for the 10th European Development Fund, Economic Development Programme I, Lot 2 for Mogadishu. The CfP provided the UN-HABITAT Somalia Programme with an opportunity to respond to requests from local authorities and communities in Mogadishu, including the TFG, the Benadir Administration, District Committees and CBOs, for UN assistance for waste removal, the rehabilitation of economic infrastructure, job creation for marginalized urban communities, and the provision of vocational and technical training[1].

2.2. Context

The business environment has been further constrained by poor economic and public infrastructure, a low-skilled labour pool, limited access to financing, the absence of regulatory frameworks, and limited access to education at all levels. These conditions have hindered economic growth, as well as dramatically reduced opportunities for employment: it is estimated that between 30% and 66% of Somalia’s estimated 9.5m population is unemployed, and the greatest portion of those are under the age of 25.One consequence of this high rate of unemployment is widespread poverty: it is thought that over 73% of the population have an income of less than $2 per day, and 43% live in extreme poverty, on less than $1 per day. It is believed that poverty is more extreme in South Central Somalia than in its northern regions, and this may be related to the higher levels of conflict there. Due to poverty and the lack of job opportunities, labour migration, both to urban areas as well as abroad, is one of the main livelihood strategies, as is enrolment in non-state militias.

Urban populations in Somalia largely rely on an informal economy based on trade, the hospitality sector, transport, utilities (energy and water), communications and construction. Subsistence, petty trading, and micro, small and medium sized enterprises are the sources of employment and income for the majority of city dwellers. Nevertheless, the role of large businesses, particularly in the financial and telecommunication sectors, as well as in international trade, is significant, for mid- and higher income employment; and it is as well as a potential driver for change in the present conflict context.

Local communities – particularly youth, women, IDPs and other marginalized groups – have little opportunity to participate in processes that influence decision making related to the provision of basic services or the improvement of livelihoods. Furthermore, the opportunities for vulnerable urban groups to enhance their livelihood opportunities, through business, technical and vocational skills training, are limited.

2.3. Problem definition/analysis and justification

The Project addresses the above-noted issues of urban unemployment, enterprise under-development, and the lack of public service capacities, resources and systems by focussing on poverty reduction through the creation of sustainable enterprise and employment, in order to address needs and constraints of the target groups – local authorities, local private sector and local communities. These problems, needs and constraints are noted below:

Problem / Perceived needs/constraints of target groups
1. Urban communities have little or no access to basic services such as sanitation, clean water and electricity / Communities need basic services, without which their health, education and livelihoods are constrained.
2. Communities have little opportunity to participate in processes that influence decision making on activities related to the provision of basic services and the improvement of livelihoods / Communities must be enabled to participate in the identification, prioritization, planning and implementation of service delivery and livelihood-enhancing projects
3. The lack of functional economic infrastructure is a major challenge for job creation and to the establishment and expansion of local businesses / Economic infrastructure needs to be rehabilitated or reconstructed to support improved livelihood options and the growth of private enterprise
4. District councils lack the management skills to carry out their envisaged management and oversight roles and to provide basic services to their communities / District authorities need to build their management capabilities in order to increase their ability to deliver public services.
5. Limited waged and self-employment opportunities, and a paucity of other income generation activities, contribute to the high rate of poverty, particularly among youth, women, IDPs and other vulnerable groups. / Employment and self-employment opportunities, particularly for youth, women, IDPs and other vulnerable groups, must be created to reduce poverty and insecurity.
6. Most of the local labour pool, particularly youth, women and IDPs, lacks the technical, vocational and/or business skills needed for sustainable employment. / The capacities and skills of the labour pool, particularly of youth, women and IDPs, need to be developed, in order to improve their livelihood options.
7. The absence of an enabling environment for business, including business support services and a lack of access to investment finance, hinders enterprise and employment creation and growth. / The private sector needs a more enabling environment, including business support services and access to investment finance, in order to grow and to increase its employment absorption capacity.
8. District authorities lack the ability to raise the revenues required to provide basic services and to manage and maintain public infrastructure / District authorities need to raise revenue in order to provide basic services and to manage and maintain public infrastructure

To address the issue of high levels of unemployment, the project will support the creation and growth of medium to large-scale businesses that have significant job creation potential. It will also create 15,000 days of temporary employment in infrastructure and service delivery activities; and it will ensure that there is a qualified workforce for these activities by providing business, technical and vocational skills training.

In support of the private sector, the project will contribute towards a more enabling environment for trade and enterprise by providing business support services and facilitating access to investment finance, in order to stimulate new and existing businesses, and to increase their employment absorption capacity.

In support of the public sector, the action will strengthen the capacities of local authorities for their coordination, regulatory and oversight roles; and in their abilities to provide and manage basic services delivery, and to generate revenues to support and sustain these services and other public works.

The project is thus highly relevant to the needs and constraints of the Somali context and of the targeted groups.

2.4. Stakeholder analysis, participation and ownership

The Project’s key external stakeholders are the local authorities in the 16 districts of Mogadishu.

The Project’s primary beneficiaries are youth, women, IDPs and unemployed persons; its secondary beneficiaries are the local private sector and the urban communities in Mogadishu. For details on their participation in and benefits from the Project, see Section 3.5: “Stakeholders/Partners and Target Groups”.

The project will employ a participatory planning approach to ensure direct involvement by local stakeholders and target groups at all stages of activities. For example, the intervention will involve district authorities and local communities in identifying, prioritizing, planning, implementing and monitoring strategic investments in economic infrastructure, basic services and other project activities. Furthermore, the project will provide training and deliver workshops to local government, leaders and community groups to capacitate them to develop, manage and maintain public-private partnerships (“PPPs”)[2]. Conflict prevention and resolution, gender equity and environmental impact will be addressed as cross-cutting themes in each of the project components. Through its highly inclusive approach, the project will thus ensure participation from every level of the local community towards the achievement of sustainable economic growth and poverty reduction.

In addition to its alignment with local community priorities and needs, The Project is also linked to national priorities and UN frameworks, in its contribution towards the achievement of:

Somalia Reconstruction & Development Programme (RDP) 2008-2012, Pillar 3: “Establishing a sustainable enabling environment for rapid poverty-reducing development, to expand employment and reduce poverty”, and particularly its priority outcome for “improving and diversifying livelihoods”.
The 10th European Development Fund (EDF) Joint Strategy for Somalia, Pillar III: "Poverty reduction and the consolidation of peace through sustainable and equitable economic growth"
United Nations Somali Assistance Strategy (UNSAS), Outcome 2 (“poverty reduction and livelihoods”)
MDG No. 1 (“eradicate extreme poverty and hunger”), Targets 1A and 1B related to poverty reduction and employment generation
UN-HABITAT FA 2-A3; FA 4-EA2; and FA 5-EA1.

The Project is thus highly relevant to achieving common UN development outcomes and the MDGs, as well as for peace-building, in Somalia.

2.5. Reasons(s) for UN-HABITAT to engage in the Project

UN-HABITAT has over 25 years’ experience and demonstrated expertise in urban infrastructure and development activities in Somalia. Among other activities there, UN-HABITAT has acted as lead agency in the Somalia Urban Development Programme (“SUDP”, 2005 - 2008), and in the first UN Joint Programme for Local Governance (“UN JPLG”, 2008-2011). Furthermore, since January 2007, UN-HABITAT has been implementing a well-received programme of prioritized community-based infrastructure rehabilitation and service provision activities in all 16 districts of Mogadishu, as well as in the so-called “Bermuda enclave”, a secluded neighborhood of Mogadishu. The aim of these interventions has been to develop district-level capacity to initiate, plan and implement community-based participatory programming activities. UN-HABITAT thus has proven ability to deliver tangible results in Mogadishu

Building on its previous and current interventions in Somalia and Mogadishu, UN-HABITAT has been able to access funding from the European Commission in the amount of Euros 3,500,000 to initiate and roll out the Sustainable Employment Creation and Improved Livelihoods for Vulnerable Urban Communities in Mogadishu Project. Previous EC support to UN-HABITAT for community-based infrastructure and service provision activities in Somalia includes funding for the UN JPLG and the SUDP.

UN-HABITAT will implement the Project in partnership with the International Labour Organization (ILO), the Italian NGO CESVI, and the local NGO SAACID Somalia. Each of the four partners has extensive, proven experience in the implementation of similar livelihood, basic services and urban development activities in Somalia. The Project has been designed to benefit from the comparative advantages of each, particularly the operational expertise of UN-HABITAT in Somalia and Mogadishu, and its specific mandate in urban development.

The Project will also be implemented in close synergy with the UN Joint Programme for Local Governance, in which all four partners are actively involved. Additionally, it will be coordinated within the framework of the UN-led Mogadishu Rehabilitation effort, in which both UN-HABITAT and ILO are active. Finally, the Project will also serve as a precursor to the planned UNSAS II livelihoods programme.