38176-015: Skills Development Project | Asian Development Bank

Nepal: Skills Development Project

Sovereign (Public) Project | 38176-015 Status: Active

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 Details

Project Officer
Gyawali, Smita South Asia Department Request for information
  • Nepal
  • Education
Project Name Skills Development Project
Project Number 38176-015
Country Nepal
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0345-NEP: Skills Development Project
concessional ordinary capital resources lending / 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 Contracts have been signed with 12 private training providers and CTEVT technical institutes/schools to provide training to approximately 42,820 youths. Out of which, 33,867 youths have been enrolled and 26,766 have received different training.
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)

Output 1:

i Total of 42,820 have been contracted out for the training by public and private training providers. To date 33,867 have been enrolled and 26,766 have graduated.

ii. Among the training enrolled by 33,867 graduates, 11347 or 33.5% are female and 24,232 or 71.5% are from disadvantaged group. Among 26,766 trainees graduated, 26,525 (99%) have appeared in Skill test and result for 23,691(89%) has been published. Of the total published result, 17,940 (75.12%) trainees passed the skill test.

iii. Total 628 (179 or 28.5% female and 349 or 55.57% disadvantaged group have enrolled in the new or updated mid level program.

iv. Among the total enrolled 628, one program was started in 2014 and enrollment was 40 (19 or 47.5% female and 40 or 100% from disadvantaged group. Likewise in 2015, other 5 programs including the one started in 2014 and 183 participants (52 or 28.42% female and 101 or 55.19% from disadvantaged group) enrolled in the program. Likewise in 2016, 11 program (6 new and 5 started in earlier year) are running and total enrolled are 405 (108 or 26.67% female and 208 or 51.36% from disadvantaged group).

Output 2:

i. 10 CTEVT constituent schools designated to be developed as model schools and self assessment completed on September 2014. Activities with quality standards are agreed for the year 2015, 2016 and 2017. Also conducted quality performance coaching to QIP schools. ADB-contracted TVET Specialists are reviewing the quality improvement progress and management in QIP schools.

ii. QIP Progress Audit was conducted in July 2015 and July 2016 and Audit report shared to school principals. As per the Audit 2016, 95%of the schools met or partially met standards for governance and management; 85% of Schools met or partially met specified standards for teaching and learning; 89% of Schools met or partially met minimum standards specified for support to students; 75% met or partially met 2016 standards specified for teachers and faculties; 85% of Schools met or partially met the annual standards specified for budget and financial resources; 100% met or partially met the facilities maintenance standard; 80% of schools had established linkages with industries and Industry/Enterprise Advisory Committees were operational; 75% met or partially met the annual minimum requirement for research and development (Tracer studies and student Evaluation).

iii. Eight National QIP Development workshops conducted with the participation of Principals, Senior School Staff and CTEVT Directors.

iv. Six (6) QIP schools are supported with additional room construction, 5 with refurbishment work. Procurement of tools and equipment for newly introduced programmes has been completed (6 shopping and 2 NCB) including furniture. Tools, equipment and furniture were delivered to the concerned QIP Schools. Finishing work is ongoing for building construction and refurbishment work has been completed.

v. 15 new programs (600 student capacity) selected for CTEVT constituent Schools. Program curricula developed. One new Program initiated in 2014, four initiated in 2015 and six new program initiated in 2016. Remaining four new or updated programs will be initiated in 2017. Total enrollment of three year (2014, 2015 and 2016) is 628.

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

vii. Twenty (24) staff of CTEVT joined for M. tech and B. tech programs; 1 dropped out of the training. 278 (41 female and 72 disadvantaged group) CTEVT instructors and staff completed GESI sensitive training in instructional skills, curriculum, occupational skills, and management. 51 TVET professionals participated in Study Tours to Sri Lanka, Philippines, Australia and Hong Kong in different occasions.

Output 3:

The Ministry of Education (MoE) and its TVET Sector Development Unit are engaged in developing the TVET Strategy, Road Map and Results Framework. The Ministry has developed and adopted an action plan to support his development. ADB hired one international and one national consultant are now supporting MOE and the work is now advancing.

TSDU is established and operational.

Initial changes made in by-laws to enable CTEVT reorganization have been prepared and it is in final stage of approval. Member Secretary yet to approve the reorganization plan.

Output 4

M&E provision with GESI indicators established and fully operational within PIU; Regional Monitoring Offices (5 regions) established.

Indicators for GESI, sex and disadvantaged group disaggregated data developed and operational.

Fiduciary review is in place for annual performance review. Project Account audited for fiscal year 2071/72 (2015/16) submitted to ADB with in deadline of 15 January 2017.

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

- 10 Training Providers have been recruited to organize short term training .

- 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.

-Project Management Team Support has been mobilized from March 2013.

Procurement All necessary NCB and Shopping contracts for civil works and goods have been procured. Additional packages are being explored after the MTR of the project.
Responsible ADB Officer Gyawali, Smita
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Education
Sano Thimi
Kathmandu, Nepal
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 2017

Grant 0345-NEP

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 18.20 0.00 91%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 12.61 0.00 63%

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: 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 Procurement Plans Jun 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 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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