Central Finance and Contracts Unit

The Active Labour Market Measures
Grant Scheme-2008

Guidelines
for grant applicants

responding to the call for proposals

for 2008

Open Call for Proposal

(From 2006 budget line)

Budget line: Item 22.020401 of the General Budget of the EC

Reference: CFCU/TR0602.03-02

Deadline for receipt of applications: 16th April 2008

NOTICE

Please note that the procedure has changed. The evaluation of your application will only be performed if your concept note is provisionally selected. Your application will then undergo the evaluation. The eligibility conformity check will only be performed for the proposals that have been provisionally selected according to the score obtained after the final evaluation, on the basis of the supporting documents which will be requested by the Central Finance and Contracts Unit and the Declaration by the Applicant signed by a duly authorised person(s) and sent together with the application.

TABLE OF CONTENTS

1.The Active LABOUR MARKET MEASURES programme

1.1Background......

1.2Objectives of the programme and priority issues for 2008......

1.3Financial allocation provided by the contracting authority......

2.Rules OF thIS call for proposalS

2.1Eligibility criteria......

2.1.1Eligibility of applicants: who may apply......

2.1.2 Partnerships and eligibility of partners......

2.1.3Eligible actions: actions for which an application may be made......

2.1.4Eligibility of costs: costs which may be taken into consideration for the grant......

2.2How to apply, and the procedures to follow......

2.2.1Application form......

2.2.2Where and how to send the applications......

2.2.3Deadline for receipt of applications......

2.2.4Further information......

2.3Evaluation and selection of applications......

2.4Submission of supporting documents for provisionally selected proposals......

2.5 Notification of the Contracting Authority’s decision......

2.5.1 Content of the decision......

2.5.2 Indicative time table......

2.6Conditions applicable to implementation of the action following the Contracting Authority's decision to award a grant

3.LIST OF annexes

1.The ACTIVE LABOUR MARKET measures programme

1.1Background

The Turkish labour market is characterised by low labour force participation rate. Labour Force Survey

data for 1988-2006 reveal that the population between 15-64 years of age increased by 48 % whereas employment rate increased only by 24 %, reflecting nearly 50 % of labour force participation throughout the period. The average labour force participation rate for the EU25 in 2006 was 70.5% compared to 48,0% in Turkey.

The employment rate, which was always around 50 % since 1988, has fallen down after 1999 and decreased to decreased to 43.2 % in 2006 (64.5 % for men and 22.3 % for women). The unemployment rate, on the other hand, stood at 9.9% in 2006 (9.7% for men and 10.3 for women).

These average figures for unemployment and for labour force participation rate contain hide significant variations in relation to age, gender and location.

Women

Women’s participation into the labour market and female employment are the key challenges in the Turkish labour market.

Labour force participation of women is remarkably lower than that of men, both in urban and in rural areas. In 2005, the labour force participation rate was 78.2 % for men and 36.5 % for women in rural areas and 75.1 % and 20.6 % in urban areas, respectively.

These figures also show remarkable differences when compared to the EU. In 2006, the male participation rate in Turkey of 71,5% was close to the EU25 average of 78,0% but for women the rate was 24,9%, significantly below the EU25 average of 63,1%.

The main obstacle for women’s low labour force participation rate is the inadequate employability of women. Lack of skills and vocational qualifications hinder entry into labour market and put them in a high risk poverty and social exclusion. Labour force participation rate of women is positively related with education level. Labour force participation of women is 31 % for upper secondary school graduates where it rises to 70 % for high school and university graduates.

Traditional gender roles in the society that puts the responsibility of child and elderly care on women, patriarchal family structure and existing discrimination against women in especially the poorer regions of the society constitute the main obstacles against education, employment and participation of women into social and economic life.

It is clear from the above that any active labour market programme targeted at women must include actions which encourage women to move into the labour market. This can be done by making support services more accessible and appropriate and by increasing the confidence of those women outside the labour market that participation in active labour market actions will significantly increase their chances of securing employment. For those women who already participating in the labour market, but are unemployed, support actions should focus on increasing locally relevant skills and supporting the transition into work.

Youth

Another major challenge in the Turkish labour market is youth unemployment (i.e., unemployment among 15-24 years of age). The disadvantageous position of the young in the labour market can be analysed in terms of four characteristics. Firstly, the youth unemployment rate is nearly twice as high as average unemployment rates (18.7 % and 10.1 % respectively in 2006). Secondly, it is increasing more rapidly than average unemployment. In the 2000-2005 period, there has been an increase in youth unemployment of 5.6 % while the average unemployment rate increased by 3.4 %. Thirdly, it is higher in urban areas than in rural areas (21.5 % and 14.1 % respectively in 2006). Fourthly, it is more common among men in rural areas and women in urban areas. On average, female youth unemployment has increased more rapidlythan male youth unemployment.

The average participation rate of those aged 15 – 24 is 38.9% (compared to the overall average of 48.9%). For men, the figure is 55.1% (compared to an overall average of 72.6%) and for women it is 25.7% (the same as for all ages).

The unemployment rate for this 15 – 24 age group is significantly above the national average at nearly 19% (19.8% for women and 18.4% for men).

The reasons for high youth unemployment rates can be attributed to three factors. Firstly, as a result of the fact that activity rates are positively related with the education level, highly educated young participate more in the labour market and become unemployed if the job creation is not adequate. Secondly, the link between the education system and labour market is not adequate which makes transition from school-to-work inefficient. This may result in staying in education or waiting for better positions. Thirdly, the mismatch between the skills of the labour force and skills demanded is valid for the young as well.

Active labour market measures for youth should therefore provide young people with re-training and labour adjustment services on completion of their formal education. They should also work closely with employers to provide opportunities to gain work experience and to increase confidence within employers of the abilities of youth.

Given the high youth unemployment rates and low rates of participation of women in Turkey, through this grant scheme, the European Commission will support the efforts of the Turkish government to improve the situation of youth and women in the labour market within the framework of the 2006 Pre-Accession Financial Assistance Programme for Turkey.

Institutional Framework

Responsibilities relating to the human resource development of the labour market are predominantly taken by ISKUR. As a public employment institution, ISKUR carries out the placement services for both public and private sector, implements active labour market measures and also regulates the establishment of private employment agencies. These services need to be improved in two ways:

  • Firstly, the active labour market measures need to be more consistent with the requirements of local employers so that they produce people with the skills, knowledge and attitude to be integrated into the local labour market.
  • Secondly the public employment services need to be designed and delivered in a way which is tailored to the needs of jobseekers. This includes designing measures at the appropriate level but also delivering them in a way which is accessible.

In order to ensure that the needs of local employers influence these services, mechanisms should be established to improve co-operation between employers and those providing support to job seekers. Clear analysis should also be completed of the unemployed so that services meet their needs.

The institutional framework of the grant scheme is as follows:

  • ISKUR is responsible for the technical monitoring and implementation of the grant scheme on behalf of the Turkish Government,
  • The Central Finance and Contracts Unit (CFCU) is referred to in this document as the Contracting Authority. The CFCU will assume responsibility for tendering, contracting, administration, accounting and payments of the project.

1.2Objectives of the programme and priority issues

The objective of the programme is to increase capacity within the eligible provinces to design and implement effective active labour market measures in order to increase the employability of women and youth. It is expected that at least 50% of the target group who benefited from the grant scheme will be employed in the medium term.

There are two priorities to be supported under this grant scheme:

  • Promotion of employment for women
  • Promotion of employment for youth

For both priorities, the actions should:

  • Support women/youth who are currently seeking for jobs to identify, apply for and obtain suitable employment positions
  • Support women/youth who are not participating in the labour market to become integrated into the labour market

For those projects supporting women, the scheme particularly encourages projects which seek to develop skills in non-traditional sectors.

The programme is being implemented in 28 provinces. These provinces have been selected on the basis of a classification system which is based on the number of unemployed men and women, the number of people claiming unemployment allowance; and the number of people who are insured. For the sole purpose of this grant scheme, the provinces have been divided up into four areas as follows:

Area / Provinces
1 / İstanbul, Bursa, Tekirdağ, Sakarya, Kocaeli
2 / İzmir, Manisa, Denizli, Aydın, Antalya, Balıkesir
3 / Ankara, Kayseri, Konya, Zonguldak, Çorum, Samsun, Sivas, Trabzon, Eskişehir,
4 / Diyarbakır, Gaziantep, Şanlıurfa, Hatay, Mersin, Adana, Kahramanmaras, Malatya

1.3Financial allocation provided by the contracting authority

The overall indicative amount made available under this call for proposals is EUR 16,000,000 which is provided by a combination of EU (75%) and Turkish government (25%) funds. EUR 8,000,000 of this total amount is allocated to the four areas as follows:

Area / Minimum Indicative allocation
1 / 3,000,000
2 / 1,500,000
3 / 2,000,000
4 / 1,500,000
Total / 8,000,000

The remaining EUR 8.000.000 will be allocated to the highest scoring applications irrespective of the province.

The Contracting Authority reserves the right not to award all available funds. In the case where the amount foreseen for a specific area cannot be used due to insufficient quality or number of proposals received, the Contracting Authority reserves the right to reallocate the remaining funds to another area.

Size of grants

Any grant awarded under this programme must fall between the following minimum and maximum amounts:

Minimum amount: EUR 50.000

Maximum amount: EUR 400.000

No grant may exceed 90.00% of the total eligible costs of the project (see also section 2.1.4).

The balance must be financed from the applicant’s or partners’ own resources or from sources other than the European Community budget. All project costs must be recorded in applicant/partner(s) accountancy. The Beneficiary has to justify the amount of co-financing either with own resources or the form of financial transfers from third parties at the stage of project implementation.

In addition, a grant may not be for less than 50.00% of the total eligible costs of the project.

Applicants should keep in mind that the funds applied for should be proportionate to the activities to be carried out. They should not automatically request the maximum amount of funding available.

2.Rules OF thIS call for proposalS

These guidelines set out the rules for the submission, selection and implementation of actions financed under this call, in conformity with the provisions of the Practical Guide to contract procedures for EC external actions, which is applicable to the present call (available on the Internet at this address:

2.1Eligibility criteria

There are three sets of eligibility criteria, relating to:

  • applicants which may request a grant (2.1.1), and their partners (2.1.2),
  • actions for which a grant may be awarded (2.1.3),
  • types of cost which may be taken into account in setting the amount of the grant (2.1.4).

2.1.1Eligibility of applicants: who may apply?

(1) In order to be eligible for a grant, applicants must:

  • be registered legal persons and
  • be non-profit making and
  • NGO’s (fulfilling the criteria mentioned in the box below), Special Provincial Administrations, village service unions, municipalities, chambers of commerce and/or industry, chambers of tradesman and craftsmen, professional/vocational organisations, universities, vocational and technical training institutions, organised industrial zones (OIZ), SME-representative organisations (i.e. professional/vocational associations and/or foundations), trade unions of workers and employers, not-for-profit co-operatives[1], public training centres, and
  • be nationals of Turkey[2]. This obligation does not apply to international organisations and
  • be non governmental organization and
  • be directly responsible for the preparation and management of the action with their partners, not acting as an intermediary and

In addition, all applicants must:

  • have at least one partner organisation
  • have their headquarters in an eligible province
  • be able to demonstrate sufficient project management resources in terms of their technical, financial and administrative capacity to manage their proposed action.

(2) Potential applicants will not participate in calls for proposals or be awarded grants if they are in any of the situations which are listed in Section 2.3.3 of the Practical Guide to contract procedures for EC external actions (these situations are listed in the text box below and are also available from the following Internet address:

Potential applicants may not participate in calls for proposals or be awarded grants if:
(a)they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;
(b)they have been convicted of an offence concerning professional conduct by a judgement which has the force of res judicata (i.e., against which no appeal is possible);
(c)they are guilty of grave professional misconduct proven by any means which the Contracting Authority can justify;
(d)they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with Turkish legal provisions;
(e)they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests;
(f)they have been declared to be in serious breach of contract for failure to comply with their contractual obligations in connection with a procurement procedure or other grant award procedure financed by the Community budget.
Applicants are also excluded from participation in calls for proposals or the award of grants if, at the time of the call for proposals, they:
(g)are subject to a conflict of interests;
(h)are guilty of misrepresentation in supplying the information required by the Contracting Authority as a condition of participation in the call for proposals or fail to supply this information;
(i)have attempted to obtain confidential information or influence the evaluation committee or the Contracting Authority during the evaluation process of current or previous calls for proposals.
In the cases referred to in points (a), (c), (d), (f), (h) and (i) above, the exclusion applies for a period of two years from the time when the infringement is established. In the cases referred to in points (b) and (e), the exclusion applies for a period of four years from the date of notification of the judgment.

In part B section VI of the grant application form (“Declaration by the applicant”), applicants must declare that they do not fall into any of these situations.

2.1.2 Partnerships and eligibility of partners

Applicants must act with partner organisations as specified hereafter.

Partners

For projects to be effective, the support services must be designed in accordance with the needs of local labour market and must be appropriate to the unemployed women and youth to be supported. In order to ensure that both sets of needs are taken into consideration in the design and implementation of project actions, partnerships must include entities representing demand and labour supply side of the labour market. The partnership must, therefore, consist of at least two separate legal persons and must contain at least one of the following:

  • a representative of the ‘labour demand’ side
  • a representative of the ‘labour supply’ side

The table below gives some examples of the types of organisations under each heading. This table is intended to give guidance and is not intended to be an exhaustive list.

Labour demand side / Labour supply side
  • Chambers of Commerce or Industry
  • Organised Industrial Zones
  • Professional Organisations
  • SME-representative organisations
/
  • Universities
  • Vocational and technical training institutions
  • NGO’s providing training and/or consultancy
  • NGO’s working with youth or women

There is no maximum number of partners and careful consideration should be given during the identification of partners to ensure that each partner has a clearly defined role within the project.

Certain organisations undertake work, or representative duties, on behalf of the labour supply side and the labour demand side. In such instances, a partner organisation is still required. The organisation should clearly identify its role in the project and include a partner who brings additional and necessary expertise.