international skills forum session 8: b. paudel - outcome based finacing

8/13/2019 International Skills Forum Session 8: B. Paudel - Outcome Based Finacing

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Bal Ram PaudelTeam Leader

Employment Fund Secretariat

HELVETAS SwissIntercooperation Nepal

Skills Forum ADB Manila

11th December, 2013

Outcome based Financing System in TVET(an experience from Nepal)


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Employment Fund

SDC DFID World Bank

Employment Fund

Procurement of Products

& Services

Resource

Organizations

Private sector training and

employment Service Providers

Managed by

HELVETAS Nepal


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Employment Fund: Program Objective

/

140


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Activity based financing


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Outcome based financing:Underlying principles

/


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Hierarc

hy

ofobjective

s

Outcome

Output

Activities

Payment

s

None

Moderate

High

Pyramid of Outputs and Financing


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Outcome Price

( )


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Incentive for Social Inclusion

( ) 0% ( ) 70%

( ) 50%

( ) 40%


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0%

70%

50%40%

Inclusive Outcome Price


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Employment Fund: Payment Chain

AgreementTraining

completion

3 months

income

6 months

income

3 months

25% of

outcome

40% of

outcome35% of

outcome

No

Payments


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Process

Monitoring

Outputs

MonitoringOutcomes

Monitoring

Inputs Activities Outputs Outcomes IMPACT

Impact

evaluation

Agreement Trainingcompletion

Gainfully

Employment

Final payment of

Outcome PriceInitial payment

of outcome Price

No

Payments

Results & Payment Chain


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How does it work at Employment Fund?

(.. ,

)


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Prerequisites

Assess the readiness of Partner

Modest outcome target for Partner

Set SMART Outcome

Agree on process of implementation

Define/agree monitoring system

Incentive for good performance Disincentive for poor results


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Challenges

Activity based mindset

Different understanding

Difficulty on settingoutcome indicator

Fixing the outcome price

Outcome Verification

method/process

Chances of manipulation

on the ultimate outcome


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Thank You

international skills forum session 8: b. paudel - outcome based finacing

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