Nepal: Skills Development Project

Sovereign Project | 38176-015 Status: Active

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

Title Deadline
Social Marketing 23 Oct 2016

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 Active
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 Project management is going well.
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) 15757 (5512 or 34.98% women and 10817 or 68.64 % disadvantaged group enrolled in basic skills level-1 training. Among them 12338 (4473 or 36.25 % women and 8362 or 67.77% disadvantaged groups) by private sector TESPs. Likewise 3419 (1039 or 30.38 % women and 2455 or 71.80 % disadvantaged groups) by public TESPs.

(ii) Out of 12338 enrolled by private sector, 12222 have completed the training.

(iii) As verified by RMO Enrolment of 2033 participants (651 or 32.02 % female and 1411 or 69.40 % disadvantaged group 509) have enrolled in the level-2 training in public schools to date.

(iv) Total of 193, out of which 45 (23.31%) female and 93 (48.18%) students from disadvantaged group are enrolled in 5 QIP schools in diploma level program.

(v) Nine new middle level programs, with a capacity for 424 students, are scheduled for delivery in July 2016 One new middle level program (Plant Science), with a student capacity of 48, is scheduled for delivery in July 2017.

Output 2:

(i) 10 CTEVT constituent schools designated to be developed as model schools, QIP self assessment for 10 model schools completed, activities with quality standards are agreed for the year 2015 and 2016, QIP plan formulated with provision of full integration of GESI principles in training.

(ii) Industry advisory and partnership committee established in 8 QIP Schools and establishing in rest of the QIP schools is ongoing.

(iii) Five new mid-level programs started in 5 QIP schools and 193 participants enrolled in the program. (New enrollment in 9 programs will be on July 2016 and one new program will be started in July 2017.

(iv) 15 staff of CTEVT joined for M. tech and B. tech programme in different universities of Nepal and India with the support of SDP. Likewise, Total 245 (33 female and 66 male) CTEVT instructors and staff participated in 15 short-term professional development training conducted by TITI. A TVET senior level study visit was organized to 24 staff of PIU, CTEVT, MOE, NPC and MOF to Sri Lanka and Philippines (12 in each country).

Output 3:

(i) 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 Implementation"

(ii) Established TSDU within MOE. TVET data survey carried out in 38 districts of Nepal.

(iii) Interim CTEVT re-organization proposal prepared for submitting to the council for approval.

(iv) Option paper developed by consultants and shared among the representative of different concerned ministries and experts.

Output 4:

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

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

(iii) Fiduciary review and Mid-term Review is being carried to support the Mid Term Mission planned for November 2016. Project Account audited for fiscal year 2070/71 (2014/15) submitted to ADB with in deadline of 15 January 2016.

(iv) 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 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 09 Sep 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 13.79 0.00 69%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2013 7.30 0.00 36%
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: Gender Equality and Social Inclusion Action Plan Gender Action Plans Jun 2013
Skills Development Project Procurement Plans Jun 2013
Skills Development Project Reports and Recommendations of the President 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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