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ADB to Help Develop Postsecondary Education in Maldives

Increased employment opportunities in the Maldives and a higher standard of living particularly in the outer atolls will result from the Postsecondary Education Development Project for which the Asian Development Bank today approved a US$6.3 million equivalent (SDR4.69 million) concessional loan.

Over the last two decades, the Maldives has achieved significant improvements in human development by attaining almost universal literacy of a population dispersed over 200 islands and dramatically reducing infant mortality. However, rapid population growth and the transition to an open, service-based economy has led to a widening in the gap between the supply of skilled labor and the needs of the key economic and social sectors. Although there is a demand for skilled labor in the Maldives, the supply of educated personnel is seriously constrained due to the limited capacity for in-country postsecondary education. Given the demographics of the country and the heavy reliance on expatriate labor, improving the quality and quantity of skilled labor has become a crucial development issue.

The project will reduce the supply-demand gap for trained personnel in important economic sectors including public administration, health services, education, tourism, maritime industry and technical training. The project aims at upgrading access to and improving the quality of postsecondary education. It will strengthen the institutional quality and capacity of the seven existing postsecondary institutions by expanding the in-country curricula choices and raising the level of courses leading to internationally recognized advanced diplomas. The project will also establish the Maldives College of Higher Education as an umbrella organization to manage and coordinate postsecondary administration and academic programs for the seven institutes.

About 12,000 postsecondary education graduates in teaching, nursing, community health, public administration, accounting, and trades and maritime studies will benefit from the Project during the five-year implementation period and ten years thereafter. It is expected that about one third of the graduates will be women working in the outer atolls who will benefit from the expanded opportunities in teaching, nursing and public administration and indirectly benefit about 250 communities by providing social services and educational opportunities.

The interest-free loan from the ADB will be from the Bank's Special Funds resources and will be repayable within 40 years, including a 10-year grace period. It will carry a one percent service charge per annum. Approval of the loan is subject to the condition that the loan shall be signed when sufficient financial resources are available from the Asian Development Fund, the Bank's concessional lending window.

The Ministry of Finance and Treasury will be the executing agency for the project.

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