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.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

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

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)

Short Term Market Oriented Training:

Five contracts awarded to private TESPs (among six packages): Far Western Region for 1800 places, Mid Western Region for 2340 places, western development region for 3420 places, Central West development regions for 3240 places and Central East development regions for 3240 places (14,040 total)

(8479 (2988 or 35.24% women and 5918 or 69.8% excluded groups) enrolled in basic skills level-1 training, provided by Private Sector Training and Employment Service Providers (TESPs).

Out of the 8479 enrolled in the training, 8382 (M=5509 and F=2873) have completed the training. Among them 6562 are excluded group). All 8382 who completed the training had applied for skill test. Result of the skill test has been partially published and 1550 (75.98 %) have passed the skill test out of 2040 published. Total 6342 are still waiting for skill test.

Memorandum of Understanding (MOU) with 19 CTEVT constituent schools for 2680 places and 13 Technical Education in Community Schools (TECS) for 1060 places signed for Level 2 skill upgrading. Total 397 (240 Male, 157 Female and 292 excluded group) trainees enrolled in this programme. Limited enrolment to date is partially attributed to strict entry criteria that were initially established. Entry criteria have since been relaxed to allow experienced workers without technical training certification to enroll.

MOU with 19 CTEVT constituent schools for 6000 places of level-1 MOST training has been signed.

Out of the 397 enrolled in level-2 training, 200 (Male=118, Female=82 and Excluded group=174 have been graduated and applied for skill test.

The third party monitoring for employment verification for the first cycle training of far western region has been completed. The report will be submitted soon. The verification in mid-western region and western region is ongoing.

Conducted Mason Training of Trainers for Private and Public TESPs in Earthquake Resistant Technology. Training Conducted in Gorkha, Balaju and TITI. 88 participants (male 81 and female 7)

As part of needy group support for trainees in Round 1 Short Term training. Masonry Training was provided for home reconstruction for earthquake affected trainees. Participants were 200 Western Region, 320 Central Region West, and 300 Central Region East.

The TOR for the second round Training and Employment service program is prepared after TNA of demanded occupations and approved by ADB. Total seven packages for 20000 places through private training providers will be conducted in urban areas. Approval has been received from ADB for a Training package 7 (Construction-1) for 3000 places. Invitation of EOI will be shortly published in ADB's CMS (Online system).

EOI Evaluation Criteria for second round training and employment program is prepared, approved by ADB and endorsed by Project Steering Committee.

GESI provisions like -GESI sensitive outreach strategy, proportionate representation of females and those from excluded groups in management boards/staff and trainers are included in TESP selection criteria

Likewise, GESI provisions are included in the TOR for Level 2 training to be organized by CTEVT constituted schools.

RFP for TPs and CSOs will include participation of women and people from excluded groups. GESI activities and targets/ indicators aimed at reducing gender disparities and social exclusion in access to training and employment opportunities, counseling and guidance support.

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

Quality Improvement Plan:

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.

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.

- Draft of industry linkage plan prepared.

15 new programs (600 student capacity) selected for CTEVT constituent schools; Program curricula developed. The enrollment status by disaggregation in the new program has been completed.

- Organized occupational skills development training; skill upgrading training conducted, and ongoing; GESI Sensitization Workshop to 10 model schools and CTEVT staff conducted

- 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.

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

- TVET policy paper (2012) published and reviewed.

- Position paper for TVET sector development road map prepared and under process for approval by GON.

- Workshop organized on "Stakeholder orientation on TVET Policy Implementaition"

- Established TSDU within MOE.

- TVET data survey carried out in 38 districts of Nepal.

- 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.

- Position paper for TVET Fund Board prepared and under process for approval by the GON.

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

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

- Monitoring offices (5 regions) established.

- Regular meetings with Project 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 within 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 operationalized.

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

- None yet.

- Computerized accounting system established

- Training and employment service guidelines developed.

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 Staff

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 07 Mar 2016

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 10.22 0.00 51%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 6.65 0.00 33%
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

None currently available.

Related Publications

None currently available.


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