fbpx 38176-012: Skills Development Project | Asian Development Bank

Nepal: Skills Development Project

Sovereign (Public) Project | 38176-012 Status: Closed

The proposed TA will support the Government of Nepal to develop a market responsive and social- and gender-responsive technical education and vocational training by assisting the implementation of policy, institutional and operational reforms, delivery of demand-oriented skills training, short-term market oriented skills training focusing on excluded groups, and effective project management and monitoring and evaluation. The ensuing project is proposed for five years from 2013 to 2018.

Project Details

Project Officer
Gi Soon Song South Asia Department Request for information
  • Nepal
  • Technical Assistance
  • Education
Project Name Skills Development Project
Project Number 38176-012
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7992-NEP: Skills Development Project
Japan Fund for Poverty Reduction US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Education / Technical and vocational education and training

Gender Equity and Mainstreaming Gender equity
Description The proposed TA will support the Government of Nepal to develop a market responsive and social- and gender-responsive technical education and vocational training by assisting the implementation of policy, institutional and operational reforms, delivery of demand-oriented skills training, short-term market oriented skills training focusing on excluded groups, and effective project management and monitoring and evaluation. The ensuing project is proposed for five years from 2013 to 2018.
Project Rationale and Linkage to Country/Regional Strategy

Economy and labor market performance. After over a decade of conflict and political turmoil, Nepal is entering a critical period of sociopolitical transformation. The economic growth has been sluggish with a gross domestic product (GDP) growth of 4.0% in 2010. Agriculture, services and industry contributed 35.0%, 50.0% and 15.1% of the GDP in 2010. The agriculture sector engages 73.9% of the total labor force. Nepal has a very high labor force participation rate of 85.2% (female 80.1%, male 87.5%) and employment rate of 97.7%. Annually around 450,000 people enter the workforce. However, more than 90% of the workforce is engaged in informal sector, and 43% is underemployed. Due to slow job growth in domestic market, around two-thirds of the new workforce entrants seek overseas employment. There are 1.9 million registered overseas workers, and in total 3 million are estimated to work abroad. About 75% of the registered overseas workers are engaged in unskilled low paying jobs. Nepal has high remittances from overseas workers accounting for 23.8% of GDP in 2009.

Low level of human resource development. Nepal has made a significant progress in primary and secondary education. The net enrolment rates at primary, lower secondary and secondary have increased from 57%, 19% and 9% in 1995/96 to 93.7%, 63.2% and 23.9% in 2009/10 respectively. Gender parity has been achieved in primary education. However, adult literacy rate is very low at 55.6% (female 53.1% and male 74.7%), and school education suffers from high dropout rates (34% before grade 5 and 94% before school leaving certificate (SLC)). Consequently, educational attainment of the workforce is poor (48% of the workforce have no formal education). There are not enough skilled workers, especially in the areas of agro-processing, tourism, construction, energy, pharmaceuticals, hospitality, retail, information technology, health and educational services. Demand for semi-skilled and skilled workers within the country has to be met by foreign workers, particularly India. There is significant demand for more skilled workers for overseas jobs. It is imperative to convert the country's human resource potential into a skilled labor force with higher value in both domestic and international markets.

Reforms in TEVT subsector. Despite the notable progress in the last decade, the TEVT subsector remains largely ineffective. The TEVT and Skills Development Policy (2007) focused on (i) expansion of training opportunities; (ii) inclusion of the disadvantaged; (iii) integration of various training modes and providers into one system; (iv) relevance to link training with economic demand; and (v) sustained funding. Recently, a new TEVT policy framework has been waiting for the government's approval. Key elements include a TEVT Funding Board, a National Vocational Qualifications Framework (NVQF), and an autonomous National Vocational Qualification Authority to promote coherence and integration in education and training across all levels. Adequate resources and strong implementation capacity would be required to achieve the intended goals.

Limited access to TEVT. The formal TEVT system consists of 18 technical schools, 4 polytechnics, 2 community development vocational training center, and 30 annex schools under the Council for Technical Education and Vocational Training (CTEVT) and 450 private technical schools and polytechnics affiliated with CTEVT. Since 2006, a number of TEVT projects, including ADB's Skills for Employment Project (SEP), and non-government organizations (NGOs) have substantially increased short-term training opportunities for those who are not eligible for formal TEVT. However, access is far from adequate. In 2009, around 25,000 students were enrolled in the formal TEVT system, and an estimated 60,000 in short-term training. Therefore, less than 20% of the 450,000 new labor market entrants can participate in TVET. In addition, TEVT opportunities are concentrated in urban and periurban areas. With formal education requirement for formal TEVT and other obstacles in participation in short-term trainings, excluded groups would require additional support to access TEVT opportunities.

Poor relevance and quality of TEVT. The main sources of mismatch of demand and supply of skilled workers are the still low level of formal schooling, low relevance and poor quality of TEVT. The training curricula and delivery are supply-driven, determined by the resources available to the training institutions rather than the needs of employers. Labor market information is inadequate to inform TEVT subsector on the current and future demand for each skill category. Qualified teachers with industry experience are limited in number and facilities are often inadequate. NVQF needs to be finalized, and CTEVT should strengthen its capacity in monitoring, quality assurance, and incentives mechanism to improve performance. Sustainable financing solutions need to be developed.

The proposed project will build upon the achievements in TEVT subsector by several interventions including the ongoing SEP. It will be designed through a consultative process with key stakeholders and beneficiaries, including strong participation from the private sector, and will aim to create synergies with ADB's support in the formal education and various infrastructure development initiatives. The SDP's focus is fully aligned with the National Interim Three Year Plan (2010/11-2012/13) as well as ADB's Country Partnership Strategy 2010-2012. This project is included in the Nepal COBP for 2012-2014.

Impact tbd
Project Outcome
Description of Outcome tbd
Progress Toward Outcome
Implementation Progress
Description of Project Outputs tbd
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
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 will assist 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. A consultation and participation plan will be prepared, too.
During Project Implementation The consultation and participation plan as well as other safeguards documents (plan or framework following ADB's Safeguard Policy Statement) will be developed to guide the stakeholder participation and consultation during the project implementation.
Business Opportunities
Consulting Services The PPTA will be implemented over a period of 6 months from the fielding of consultants, which is anticipated in March 2012. ADB will recruit a team of consultants through a firm using simplified technical proposal for the quality- and cost-based selection method (quality-cost ratio of 80:20) as well as on an individual basis in accordance with its Guidelines on the Use of Consultants (2010, as amended from time to time). The TA will provide 12 person-months of international (2 person-months on individual basis) and 27 person-months of national (3 person-months on individual basis) consulting services in TEVT policy and planning, management and institutional arrangements, TEVT industry relations, value chain and labor market analysis, TEVT financing, fiduciary risk assessment, financial management, procurement, environment, gender and social development, etc. A pool of consultants is included to exercise flexibility to expedite the process, to meet the Government's requirements, and to ensure quality assurance given the need to deploy high quality consultants. The sector specialist, to assist with developing the project proposal for output 2: Demand-oriented skills development from basic to high academic level - targeted at improving the value chain in one or more selected economic sectors_ will be recruited with the pool consultant budget.
Responsible ADB Officer Gi Soon Song
Responsible ADB Department South Asia Department
Responsible ADB Division Human and Social Development Division, SARD
Executing Agencies
Ministry of Education
Sano Thimi
Kathmandu, Nepal
Concept Clearance -
Fact Finding -
Approval 09 Dec 2011
Last Review Mission -
Last PDS Update 27 Feb 2012

TA 7992-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2011 01 Feb 2012 01 Feb 2012 30 Sep 2012 25 Sep 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 500,000.00 0.00 0.00 0.00 0.00 500,000.00 09 Dec 2011 471,200.41

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.

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Title Document Type Document Date
Skills Development Project Technical Assistance Reports Nov 2012

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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The Access to Information Policy (AIP) 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.

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