Bangladesh: Skills for Employment Investment Program

Sovereign Project | 42466-014

Summary

The investment program will support the Government of Bangladesh's reforms in skills development, anchored in the National Skills Development Policy (NSDP), 2011. It will support large-scale private sector involvement and public-private partnership, which is critical to meet existing and future labor market needs and to reduce skills gap. This in turn is crucial for Bangladesh to move away from the 'low-skill, low-wage equilibrium' to a 'higher skill, higher wage virtuous cycle' to become a middle-income country. The investment program will help the government scale-up skilling of new entrants and up-skilling of existing workers to contribute to higher growth of priority sectors. It will strengthen skills development in Bangladesh and support transition to a sector-wide approach (SWAp) by establishing a unified funding system and enhancing overall coordination of the currently fragmented system.

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 Document Date
Skills for Employment Investment Program Apr 2014

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Skills for Employment Investment Program
Project Number 42466-014
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0081-BAN: Skills for Employment Investment Program
Swiss Grant (Cofinancing) US$ 30.00 million
MFF Facility Concept: Skills for Employment Investment Program
To Be Determined-Others US$ 400.00 million
MFF Facility Concept 0081-BAN: Skills for Employment Investment Program
Asian Development Fund US$ 350.00 million
MFF Facility Concept: Skills for Employment Investment Program
World Bank US$ 79.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Education - Education sector development
Gender Equity and Mainstreaming Gender equity
Description The investment program will support the Government of Bangladesh's reforms in skills development, anchored in the National Skills Development Policy (NSDP), 2011. It will support large-scale private sector involvement and public-private partnership, which is critical to meet existing and future labor market needs and to reduce skills gap. This in turn is crucial for Bangladesh to move away from the 'low-skill, low-wage equilibrium' to a 'higher skill, higher wage virtuous cycle' to become a middle-income country. The investment program will help the government scale-up skilling of new entrants and up-skilling of existing workers to contribute to higher growth of priority sectors. It will strengthen skills development in Bangladesh and support transition to a sector-wide approach (SWAp) by establishing a unified funding system and enhancing overall coordination of the currently fragmented system.
Project Rationale and Linkage to Country/Regional Strategy

The Bangladesh economy has grown rapidly at about 6% annually since 2003, up from 5% in the 1990s. The poverty headcount index declined sharply from 57% in 1992 to 31% in 2010. Social indicators have improved significantly, particularly for women. However, despite impressive progress, the 2010 labor force survey indicated that more than 60% of the labor force has either no education (40%) or up to primary education (22.8%); about 2 million young people enter the labor force every year. The average wage per worker has remained low at Tk200 per day for day laborers and Tk3,500 per month for garment workers.

With the approval of the National Education Policy and the NSDP, the government embarked on major education and training reforms. The National Education Policy emphasizes the overall importance of education and training, while the NSDP reinforces the importance of skills development and opens up the sector for major policy and institutional reforms. Bangladesh has achieved gender parity in primary and secondary education participation since 2000. Women's labor force participation grew from 26% in 2003 to 36% in 2010. A major opportunity for the country comes from its declining dependency ratio, from a high of 108% in 1974 to 66% in 2010, leading to an increasing share of the working age population in the next three decades. However, this opportunity cannot be capitalized on unless urgent investments are made in much higher quality schooling combined with at least a four-fold increase in skilling and/or up-skilling of the labor force, which is expected to increase from 56.7 million in 2010 to 78 million in 2025.

In its Perspective Plan 2021, Bangladesh articulates its vision to achieve middle-income status by 2021, including reducing the poverty rate by half. To accelerate economic growth from the current 6% to 8% and above, the government must address the skills shortage one of the key binding constraints. Skills development requires a two-pronged approach. First, it must be anchored in foundational skills that come from high-quality schooling combined with relevant vocational and technical skills to capitalize on the demographic dividend. Second, it requires scaling up skills training by four to eight times the current annual training capacity to (i) increase labor force productivity to contribute to higher average household income leading to higher gross domestic product, (ii) double exports within 10 years, (iii) double remittances through higher skills leading to higher per capita remittances, and (iv) promote economic diversification including trade facilitation and industrialization.

Impact increased income and productivity of the working population aged 15 years and over.
Project Outcome
Description of Outcome increased employment in priority sectors and skills for males and females.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

market responsive inclusive skills training delivered

quality assurance system strengthened

institutions strengthened

effective program management

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

Under Tranche 1:

Recruitment of officers and staff of the Support to Skills Development Coordination and Monitoring Unit (SDCMU) have been completed. Recuitment of individual consultants and consulting firms are ongoing. Contracts with industry associations for skills training are being finalized. Procurement of equipment to be used for training is ongoing.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects Category C
Involuntary Resettlement Category C
Indigenous Peoples Category B
Stakeholder Communication, Participation, and Consultation
During Project Design

Representatives of the project stakeholders were consulted during program preparation. The stakeholders consulted were the TVET regulating body, those responsible for labor market functioning, industry and other employers, private and nongovernment organization providers of TVET, and development partners. The program will seek inputs from other stakeholders, such as trade unions, new TVET students, TVET graduates, parents, and international employers, and secondary and higher education institutions to improve the quality of training.

Likewise, public consultations were conducted with industry associations, public training institutions, the Bangladesh Bank small and medium enterprise program, and Palli-Karma Sahayak Foundation, which partners with more than 200 nongovernment organizations.

During Project Implementation

Regular consultation will be undertaken during program implementation not only to identify any program-related grievances but also to seek feedback from the community on how it sees the program achieving its targets.

Adequate participation of civil society organizations in project implementation will also be ensured through constant dialogue, workshops, training programs, and dissemination of findings from monitoring and evaluation.

Business Opportunities
Consulting Services All consultants will be selected using ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Since this program is being financed by ADB's Special Fund resources and ADB will also be administering cofinancing to be provided by the Government of Switzerland, ADB's member country eligibility restrictions will not apply to this program. Up to nine industry associations and PKSF will be contracted by the executive agency using single source selection to deliver skills training in agreed sectors and skills areas.
Procurement The government will procure all goods, works, and consulting services for the investment program. Goods and civil works will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Goods valued at more than $1 million and works valued at more than $2 million will be procured using international competitive bidding and ADB's standard bidding documents, and be subject to prior review. Goods and works valued below the international competitive bidding threshold will be procured using national competitive bidding in accordance with the government's Public Procurement Act (2006) and it's Public Procurement Rules (2008), subject to modifications agreed by the government and ADB.
Responsible ADB Officer Brajesh Panth
Responsible ADB Department South Asia Department
Responsible ADB Division Human and Social Development Division, SARD
Executing Agencies
Finance Division, MOF (EA)Bangladesh Secretariat, Dhaka-1000
Bangladesh
Timetable
Concept Clearance 18 Nov 2013
Fact Finding 29 Sep 2013 to 11 Oct 2013
MRM 04 Feb 2014
Approval 19 May 2014
Last Review Mission -
Last PDS Update 13 Mar 2015

MFF Facility Concept

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 769.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 290.00 Cumulative Disbursements
Cofinancing 479.00 - 0.00 0.00 %

MFF Facility Concept 0081-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 380.00 Cumulative Contract Awards
ADB 350.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
MFF Skills for Employment Investment Program Environmental Assessment and Review Framework Dec 2013
MFF Skills for Employment Investment Program Resettlement Frameworks Dec 2013
MFF Skills for Employment Investment Program Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Dec 2013

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.