Because there are no existing commercial IT training providers catering to graduates and private sector companies in the West Bank and Gaza, the seed grant’s objective will be to de-risk, encourage, and enable the establishment of new IT training services providers in West Bank and Gaza. Service providers could include, for example, bootcamp providers and training institutions established internationally that already have a validated business model and a global track record of getting trainees employed by local and international companies. This window will support international services providers to open office in West Bank and Gaza or establish partnerships with local Palestinian companies to develop sustainable business models.  Partnership might include initially a service contract with an international service provider with clear engagement role in the partnerships support in providing quality training services, tested curriculum material, full time trainers, knowledge transfer mechanisms for the local partner and train of trainers. The goal is to provide upskilling and certification in specialized technical skills, practical training, soft skills, and creative thinking for IT graduates in areas of high demand, based on a sustainable commercial model.  

The New IT training service providers’ seed grant will support service providers with resources to test and validate a business model that is financially sustainable and ensures that trainees gain employment. The funding will support: 

1. The initial costs required to establish new business operations in the West Bank or Gaza as detailed in a credible business model submitted by the applicant. Costs can include working capital, software, market testing, business development, organizational development, and capacity building (for example, training the trainers) but no works will be covered. Funding is expected to be provided in the range of a 50/50 co-funding basis for the initial costs to establish new business operations. 

2. The cost of the trainings based on results, during a maximum two-year launch period. Results will include a mix of outputs and outcomes, as detailed below: 

1. 80% of the training cost will be based on the actual number of trainees who benefited from the training provided against the planned number; the amount will be disbursed according to the grant agreement.  
2. 10% of the training cost will be disbursed based on the number of trainees who secured employment in the six months following the training and for a period of at least six months; 
3. The remaining 10% will be disbursed based on the number of women who gained employment in a six-month period following the training.  

Note*: Achieving 75% percent of the agreed target for employment (point 1& 2) will entitle the applicant to get a full reimbursement of the remaining 10% percentage/training costs.  Achieving less than 75% will be calculated based on the actual percentage scored.