42251-019: Skills Sector Enhancement Program - Additional Financing | Asian Development Bank

Sri Lanka: Skills Sector Enhancement Program - Additional Financing

Sovereign (Public) Project | 42251-019 Status: Approved

The Asian Development Bank (ADB) approved the program for $100 million equivalent on 28 March 2014 to support the first phase (2014 2016) of the government's 7-year Skills Sector Development Program (SSDP), 2014 2020. The SSDP aims to build an efficient skills development system to meet labor market demand. The proposed additional financing will enable the government to implement the SSDP through 2020 and add value by scaling up successful program interventions and accelerating the pace of reform initiatives.

Project Details

Project Officer
Halgamage Don, Sudarshana Anojan Jayasundara South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Education
 
Project Name Skills Sector Enhancement Program - Additional Financing
Project Number 42251-019
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 9193-SRI: Skills Sector Enhancement Program - Additional Financing
Japan Fund for Poverty Reduction US$ 3.00 million
Loan 3650-SRI: Skills Sector Enhancement Program - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan 3651-SRI: Skills Sector Enhancement Program - Additional Financing
Ordinary capital resources US$ 40.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Education / Technical and vocational education and training

Gender Equity and Mainstreaming Gender equity
Description The Asian Development Bank (ADB) approved the program for $100 million equivalent on 28 March 2014 to support the first phase (2014 2016) of the government's 7-year Skills Sector Development Program (SSDP), 2014 2020. The SSDP aims to build an efficient skills development system to meet labor market demand. The proposed additional financing will enable the government to implement the SSDP through 2020 and add value by scaling up successful program interventions and accelerating the pace of reform initiatives.
Project Rationale and Linkage to Country/Regional Strategy

The current Skills Sector Enhancement Program supported SSDP implementation from 2014 to 2016. When the program was approved by the Board in 2014, additional financing of $100 million was envisaged to continue supporting SSDP implementation up to 2020, subject to good performance. The program has been performing well. The program made good progress toward outcome and output targets. The employment rate of TVET graduates increased from 50% in 2012 to 57% in 2015, exceeding the target of 55%. The program exceeded or fully achieved 12 of the 17 output indicators in the design and monitoring framework, and is on track to achieve the remaining indicators. Capacity development activities and risk mitigation measures have been effective in keeping program performance on track. As of December 2017, ADB disbursed 90.5% or $87.0 million out of $96.1 million against 30 out of 33 disbursement-linked indicator (DLI) targets; the remaining targets are on track for achievement.

Beyond the results achievement, the program has clear value addition, by helping stakeholders stay focused on results rather than transactions and inputs. Focusing on results encouraged a spirit of enquiry, a willingness to learn, an openness to try new approaches and, ultimately, a greater sense of ownership of the progress achieved. This was evident in the employment-linked training program for private training providers, the performance allowance scheme for instructors, and the performance-based financing mechanism for selected training centers.

Continued improvement of the TVET system remains the government's top priority, as reflected in the Public Investment Programme, 2017 2020 and Vision 2025. The midterm review of the SSDP confirmed that its scope and key interventions remain technically sound, and ADB's results-based lending (RBL) modality has been effective in supporting the implementation. In the beginning of 2017, the government provided the Skills Sector Development Division (SSDD) under the executing agency, the Ministry of Skills Development and Vocational Training (MSDVT), with more experienced professionals competitively sourced from the market to strengthen the SSDD's capacity and accelerate implementation progress.

The program used DLIs to focus the stakeholders' efforts on critical reform areas, while strengthening program systems in fiduciary management, safeguards, monitoring and evaluation (M&E), and gender and social inclusion. It helped reorient the TVET system to focus on the employment outcome. The additional financing will scale up key interventions and achieve a higher level of outcome and output targets. It will also incorporate new results areas as DLIs to exert more influence over the SSDP. These will help deepen the ongoing reforms and ensure their sustainability beyond the program period. The additional financing will be accompanied by a grant project for women's empowerment and private sector engagement, where the government has started important reforms under the current program but needs to build up experience in successful innovations to gain momentum for larger-scale interventions.

Additional financing is most suitable for this support because the ongoing government program and well-established implementation arrangements promise large efficiency gains. The RBL modality will continue because it effectively promotes critical changes to the TVET system in an adequately phased but flexible manner by focusing on results rather than inputs and transactions. Stakeholders have gained significant experience in the modality. The additional financing builds on current program achievements but with necessary updates reflecting lessons so far. It will enable ADB to effectively support SSDP objectives, improve program systems, and increase their sustainability beyond the program period. The additional financing is included in ADB's country operations business plan, 2018 2020 for Sri Lanka.

Impact Employability of the Sri Lankan workforce, particularly youths, increased
Project Outcome
Description of Outcome Market-responsive and inclusive TVET system developed
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Quality of TVET provision improved

Industry partnership for TVET planning and provision enhanced

TVET participation and equitable access increased

TVET sector management to implement policy, institutional, and operational reforms improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impacts are site-specific, temporary, and can be readily mitigated with good engineering practices. Any work inviting higher category of environment classification (category A) shall not be included in the project.
Involuntary Resettlement No resettlement will occur. Small-scale civil works will include refurbishment and upgrading of TVET training facilities within the existing premises. Any new construction will be on government-owned land.
Indigenous Peoples Implementation of program components neither directly nor indirectly affects the dignity, human rights, livelihood systems, or culture of indigenous people. Hence, the safeguard requirements 3 will not be triggered.
Stakeholder Communication, Participation, and Consultation
During Project Design The government's SSDP will implement social marketing and stronger career counseling to improve public perception of TVET, increase participation of disadvantaged groups, inform prospective and existing trainees about the benefits of TVET, and the world of work for successful transition from school to job. Therefore, a separate participation plan will not be prepared.
During Project Implementation
Business Opportunities
Consulting Services ADB will assist MSDVT in engage an experienced entity (grant implementation firm or nongovernmental organization) to carry out the activities under the grant project up to the contract negotiation. The assignment would require consultant inputs of around 270 person-months (20 person-months international, and 250 person-months national).
Procurement None.
Responsible ADB Officer Halgamage Don, Sudarshana Anojan Jayasundara
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Ministry of Skills Development and Vocational Training
[email protected]
Nipunatha Piyasa,
No. 354/2, Elvitigala Mawatha,
Colombo 05, Sri Lanka
Timetable
Concept Clearance -
Fact Finding 29 May 2017 to 07 Jun 2017
MRM 20 Nov 2017
Approval 28 Mar 2018
Last Review Mission -
Last PDS Update 28 Mar 2018

Grant 9193-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 - 30 Sep 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 0.00 28 Mar 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 28 Mar 2018 0.00 0.00 0%

Loan 3650-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 - 31 Dec 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 532.50 Cumulative Contract Awards
ADB 60.00 28 Mar 2018 0.00 0.00 0%
Counterpart 472.50 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2018 0.00 0.00 0%

Loan 3651-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 03 Aug 2018 31 Dec 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 28 Mar 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2018 0.00 0.00 0%

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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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.

Title Document Type Document Date
Skills Sector Enhancement Program - Additional Financing: Environmental and Social Management Framework Environmental and Social Management System Frameworks Nov 2017

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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