Nepal: Skills Development Project

Sovereign Project | 38176-015 Status: Approved

Summary

The project will help the government implement key aspects of the Technical and Vocational Education and Training (TVET) Policy, 2012. The project will help the government (i) initiate strategic reforms that aim to improve overall management and performance of the TVET system, (ii) improve the quality and relevance of public training, and (iii) increase private sector engagement in training delivery and job placement. Each intervention has been designed to increase the efficiency and results orientation of TVET, making it more market-driven. The project will focus on skills development for the construction, manufacturing, and services sectors where large skill gaps exist. The project period is for five years from 2013 to 2018.

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Consulting Notices

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Procurement Notices

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Procurement Documents

Title Date
Skills Development Project Jun 2013

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Project Name Skills Development Project
Project Number 38176-015
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0345-NEP: Skills Development Project
Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Education - Technical and vocational education and training

Gender Equity and Mainstreaming Gender equity
Description The project will help the government implement key aspects of the Technical and Vocational Education and Training (TVET) Policy, 2012. The project will help the government (i) initiate strategic reforms that aim to improve overall management and performance of the TVET system, (ii) improve the quality and relevance of public training, and (iii) increase private sector engagement in training delivery and job placement. Each intervention has been designed to increase the efficiency and results orientation of TVET, making it more market-driven. The project will focus on skills development for the construction, manufacturing, and services sectors where large skill gaps exist. The project period is for five years from 2013 to 2018.
Project Rationale and Linkage to Country/Regional Strategy

Despite a decade of conflict until 2006 followed by protracted political instability, Nepal has made significant progress in key Millennium Development Goals. The government is at a critical juncture to meet the aspiration of the people for an improved standard of living and more equitable access to opportunities. Recent surveys identify lack of skilled labor as one of the key constraints for economic growth. The economy is undergoing a transition from a largely subsistence, agrarian economy to a more mixed economy where demand for basic to mid-level technically skilled workers is growing rapidly, especially in the services sector. Having a base of skilled young people can underpin stronger economic growth, leveraging Nepal's demographic dividend and productivity gains, provide transformational opportunities to individuals, and thus contribute to social stability and national development.

Human resource potential. Nepal has great potential for a demographic dividend, with an age dependency ratio of 65.9% in 2011, high labor force participation of both women (80.2%) and men (87.7%) in 2010, and high overseas demand for Nepalese workers. Annually, about 450,000 youth enter the labor market. Seeking better employment opportunities, about 1,300 Nepalese workers leave for jobs abroad on a daily basis. Remittances were estimated to be about 21% of gross domestic product (GDP) in 2012. The educational attainment of the workforce, however, is poor as 62% leave school by grade 5, over 75% by grade 8, and about 48% never attended school. Overseas workers are mainly engaged in low- or no-skilled and low-wage occupations. Nepal experiences skills mismatch in the labor market where job seekers do not have the right skills for available vacancies and new skills are in demand. Domestic employers report shortages of workers with technical and general employability skills.

Technical and vocational education and training. Formal TVET in Nepal is offered through 26 public institutes, 75 vocational units attached to district secondary schools, and over 450 privately run, publicly affiliated training providers. Many small unaffiliated providers offer informal training, and traditional apprenticeships offer informal learning on the job. Constituted in 1989, the Council for Technical Education and Vocational Training (CTEVT) has been mandated to be an autonomous apex body for TVET, and forms the backbone of the formal TVET system in Nepal in terms of technical, regulatory, and provision functions through its constituent institutions and affiliated providers. As semiautonomous suborganizations of the CTEVT, the Training Institute for Technical Instruction and the National Skills Testing Board serve the need for TVET human resource development, skills testing, and certification. Several government ministries also run formal and informal programs. The number of private training providers has increased since mid 2000's due to high demand for skills with an expectation of higher-paying jobs. Government and externally financed projects also offer short-term training.

Constraints. TVET has an important role in transforming Nepal's human resources into productive assets to meet the government's national development objective for inclusive, employment-oriented growth. Key constraints to TVET sector performance include (i) insufficient and inequitable access; (ii) poor quality and low market relevance; (iii) weak institutional capacity; and (iv) large investment gaps.

The project is fully aligned with the Three Year Plan, FY2011 FY2013, which highlights the need for more skills training for employment. The project contributes directly to two pillars: (i) broad-based and inclusive economic growth, and (ii) inclusive social development in ADB's country partnership strategy, 2010 2012, and will contribute to effective implementation, operation, and maintenance of ADB investment programs in energy, transport, and urban infrastructure development by increasing the skilled labor force

Impact Increased employability of the Nepalese workforce
Project Outcome
Description of Outcome A market-responsive and social and gender-inclusive TVET system established.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Expanded provision of inclusive market-oriented training

Improved quality and relevance of TVET provision

Policy, institutional and operational reforms

Effective project management and M&E

Status of Implementation Progress (Outputs, Activities, and Issues)

Project awarded 5 contracts out of 6 packages for batch 1 training packages, and training commenced. Arrangements also being made for the first batch of 9,000 places for short term training to be delivered by public institutes.

Expanded provision of inclusive market-oriented training.

- Contract awarded for Far Western Region for 1800 places.

- Contract awarded for Mid-western Region for 2340 places.

- Contract awarded for Training 3 Western Development Region for 3420 places

- Contract awarded for Training 4, Central Development Region (West) for 3240 places.

- Contract awarded for Training 5, Central Development Region (East) for 3240 places.

- 4746 are enrolled in basic level training, 1576 (33.21%) are women and 3242 (63.21%) are from excluded groups.

- Memorandum of Understanding (MOU) signed with 15 public technical training providers for Level 2 skill upgrading short term training. Training delivery will be made from July 2015 in the first batch (6000 of 9000).

- Quality Standard Indicators developed incorporating GESI indicators.

- Improved quality and relevance of TVET provisions. MOU signed with National Skill Tesing Board, CTEVT to carry out the skill test of all short term training graduates produced from 5 training packages.

- 10 model schools (CTEVT constituent) selected with Rapid assessment and SWOT analysis.

- Quality Standard Indicators for model schools developed with participatory approach through two-day workshop and gap analysis.

- Draft of industry linkage prepared.QIP plan formulated with provision of full integration of GESI principles in training.

- QIP self assessment for 10 model schools completed and first round of audit completed in July 2015. The audit findings will be shared to CTEVT and ADB on 18 September 2015.

- 15 new programs (600 student capacity) selected for CTEVT constituent schools; Program curricula developed. The enrollement status by disaggregation in the new program will be provided by end of September 2015.

- GESI sensitive Human Resource Development (HRD) plan for short term courses prepared and training started in TITI (Contract signed on April 30, 2015).

- GESI sensitive Occupation Skill Upgrade trainings significantly advanced (about 164 persons trained in OSU/ OSI and management: disaggregated data available for 86 which has women: 2(3%) and excluded group: 25 (29%).

- GESI Sensitization workshop for CTEVT staffs and 10 model school principals and sr. staffs conducted.

- BTech. / MTech. study program initiated for the first batch and second hatch will be submitted by end of September 2015.

- Human Resource Development (Occupation Skill Upgrade) trainings significantly advanced (50 persons trained)

- PIU staff participated in training and seminar (National/International) conducted by ADB.

- PIU staff participated in international TVET seminars as an exposure visit.

- Data collections completed for Training need analysis of CTEVT and its constituent schools.

- Terms of Reference (TOR) for Industry Partnership committees prepared; committees to be established by Sep 2015. Concept paper of enterprises linkage prepared and sent to all model schools and finalized by Sep 2015, Enterprises Advisory and Partnership Committee (EAPC) will be established by Sep 2015).

Policy, institutional and operational reforms

- ADB TA currently preparing documents for discussion on TVET sector development strategy, road map and TVET fund.

- TSDU established within MOE

- Organizational Structure of CTEVT with goals and strategy reviewed

- Organization assessment for CTEVT restructuring completed

- Analysis and recommendations for consideration in reorganization formulated.

- Gap analysis and area of reorganization agreed (Workshop March 19-20, 2015).

- Draft reorganization to be presented for discussion by CTEVT postponed to September, 2015.

- Five regional monitoring offices are now established and staffed with remaining offices to be established and staffed soon.

Effective project management and M&E

- PIU office set up with furnishing, tools and equipment, staffing and vehicles.

- Monitoring offices (5 regions) established.

-. Regular meetings with Proj Director and consulting team leader/deputy team leader as well as all relevant counterparts held.

- Study visit carried out trainings and employment programs organized.

- Monitoring plan drafted and will be reviewed after submission of inception plans.

- M&E provision with GESI indicators established and fully operation witin PIU; Monitoring offices (5 regions) established with staffing (8), other required technical monitoring staffs will be deputed from surrounding schools (roaster preparation is in progress targeted by July 2015)

- Indicators for GESI, sex and excluded group disaggregated data developed and operationali zed.

- Comprehensive monitoring and evaluation framework and tools (DMF) have been developed and being implemented, field visit monitoring reports are produced.

- Training and employment service guidelines developed for private and public training and employment service providers to ensure quality and effective training and employment programs. (Uploading data base provisioned for verification of trainings for the payment; Third party monitoring firm is selected and verification started by September 2015)

- Fiduciary review is in place for annual performance review (Project Account audited for fiscal year 2070/71 (2013/14) and submitted to ADB before 15 January 2015.

- Monitoring tools developed including the indicators for disaggregated data, linkages with database to ensure disaggregated employment and income verification data.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A project preparatory technical assistance financed by Japan Fund for Poverty Reduction assisted the Government and ADB to consult with stakeholders including the government, private sector (employers), public and private training providers, teachers and potential beneficiaries to ensure market-oriented and inclusive training programs.
During Project Implementation The elements of a consultation and participation plan are incorporated in the project administration manual to guide the continuous consultation and feedback process during the implementation.
Business Opportunities
Consulting Services

- 5 consulting firms have been recruited to organize short term training for 5 training packages.

- MOUs have been signed with 15 public technical training providers for level 2 training.

- MOU has been signed with National Skill Testing Board to test technical skills of all short term training graduates.

Procurement 4 NCB (2 for goods and 2 for works) are under procurement process.
Responsible ADB Officer Smita Gyawali
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Education
Sano Thimi
Kathmandu, Nepal
Timetable
Concept Clearance 26 Apr 2013
Fact Finding 22 Jan 2013 to 01 Feb 2013
MRM 12 Apr 2013
Approval 25 Jun 2013
Last Review Mission -
Last PDS Update 18 Sep 2015

Grant 0345-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2013 12 Jul 2013 24 Oct 2013 15 Jan 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 20.00 25 Jun 2013 6.83 0.00 34%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 4.28 0.00 21%
Title Document Type Document Date
Skills Development Project: Audited Project Financial Statements (16 July 2013 - 16 July 2014) Audited Project Financial Statements Jan 2015
Skills Development Project: Project Data Sheet (Nepali Translation) Translated PDS Apr 2014
Grant Agreement (Special Operations) for Skills Development Project Grant Agreement Jul 2013
Skills Development Project Reports and Recommendations of the President Jun 2013
Skills Development Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Jun 2013
Skills Development Project Procurement Plans Jun 2013
Skills Development Project Project/Program Administration Manual May 2013

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation

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Related Publications

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