42466-015: Skills for Employment Investment Program - Tranche 1 | Asian Development Bank

Bangladesh: Skills for Employment Investment Program - Tranche 1

Sovereign (Public) Project | 42466-015 Status: Active

ADB is helping Bangladesh strengthen skills development and increase employment in priority sectors. The first project under the program will scale up the quality and standards of training programs, focusing on six priority sectors. It will strengthen institutions in enhancing skills development and improve access to training programs, particularly for women and disadvantaged groups.

Project Details

Project Officer
Alam, Nazmul South Asia Department Request for information
  • Bangladesh
  • Grant
  • Loan
  • Education
Project Name Skills for Employment Investment Program - Tranche 1
Project Number 42466-015
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0391-BAN: Skills for Employment Investment Program - Tranche 1
Government of Switzerland US$ 10.00 million
Loan 3131-BAN: Skills for Employment Investment Program - Tranche 1
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Grant: Skills for Employment Investment Program - Tranche 1
Chevron U.S.A. Inc. US$ 1.00 million
Loan: Skills for Employment Investment Program - Tranche 1
World Bank US$ 79.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Education / Technical and vocational education and training

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 the skills gap. This in turn is crucial for Bangladesh to move away from the 'low-skill, low-wage equilibriumm' to a 'higher skill, higher wage virtuous cycle' to become a middle income country. The program will help the government to scale-up skilling of new entrants and up-skilling of existing workers to contribute to higher growth of priority sectors. The program 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%) and less than 2% have any kind of vocational training; 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 Income and productivity of the working population aged 15 and over increased
Project Outcome
Description of Outcome Increased employment in priority sectors and skills for males and females [NSDP 2 and 3]
Progress Toward Outcome SEIP has taken initiatives for accelerating participation of poor and target people in the job market by making them skilled workforce. The target people includes women (at least 30% of total enrollees), people from ethnic minority, former enclaves, disabilities and living under poverty line.
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)

A total of 159,010 trainees were enrolled till end June 2017 of which Female trainees were 31.45%; percentages of total enrolment and female participation have been increasing gradually.

During the same period 124,747 trainees were certified of which Female trainees were 30.38%;

Certification rate has been increasing side by side with enrollment.

Till August 2017, 20,839 disadvantaged trainees were given special support, of which 56.31% were female trainees.

Till end of August 2017, 82,218 were employed of which female trainees were 30.52%.

Out of total certified trainees 65.91% were placed in jobs.

Necessary delegation of power is already granted to the PTIs for implementation of SEIP training programs.

SDCMU became operational in December 2014.

MTBF guideline will be finalized after establishment of the NSDA. The necessary activities have been going on to establish the authority.

After establishment of the NSDA steps will be taken to develop SWAp roadmap and framework.

Regular monitoring has been going on by an external monitoring firm. The firm has been engaged on 28 September 2016 and now has been working in full swing. A tracer study with wider coverage will be conducted by a firm soon, RFP has been issued.

After Cabinet decision the process of drafting a law to establish the National Skills Development Authority (NSDA) under Prime Minister's Office has been going on.

NHRDF has already been registered under the Company Act 1994. A Bank account also opened in the name of NHRDF and government allocation of Tk.100 crore has been deposited in the account. One Additional Secretary has been given the Charge of Managing Director of NHRDF and in addition Company Secretary and one DGM have been engaged for interim period.

After signing necessary contracts both the ISCs (Light Engineering sector and Construction sector) recruitment of core staff are going on

47 job placement officers/Coordinators are currently working to provide job placement support services to the SEIP training partners.

According to the NHRDF Memorandum of Articles , the possible sources of Fund are:

- Government budget

- Development Partners

- CSR fund of companies

- Levy on the factory owners

- Subscription by the recruiting agencies

- Other sources

i) 35 Competency Standards have already been developed with the involvement of the Fast Track International, National Consultants, BTEB and industry experts and distributed to the training providers for implementation;

(ii)British Council (SD-3) is working with the involvement of industry experts, trainers, ISCs, BTEB and the consultants of SEIP to develop another 50 Competency Standards, associated Competency based Learning Materials (CBLMs), Assessment Guides and tools for 50 training programs. British Council is also developing a manual for effective implementation of competency based training and assessment. So far 10(ten) competency standards have been developed and 4 are under development. They also developed 3 CBLM and 3 are under development.

(v) So far 35 assessment guides have been completed

i) 80 master trainers received overseas training on Pedagogy in ITEES, Singapore. Refresher program for all of them also completed in Dhaka.

(ii) Out of 120 master trainers targeted for technical skills training in Nanyang Polytechnic, Singapore, 2 batches of 40 trainers already completed the course; (iii) Three firms/ organization have been engaged for conducting training on pedagogy, technical skills and OHS. The firm LCBS is responsible for Pedagogy training to 820 trainers and 200 Assessors. One batch with 25 trainers completed Pedagogy course, next batch training has been ongoing.

Training to 200 Assessors have already been completed. The firms TUV SUD Bangladesh Ltd and Star Computer System (Joint venture) are responsible for skills training to trainers of SEIP training providers. The firms have already developed course contents for 9 trades out of 13 trades. They also completed 1 batch training on 4(four) trades (Welding, Graphics Design, Plumbing, Machine shop practice) where 69 Trainers were trained and certified. BRAC is implementing OHS training for trainers of SEIP training providers. 8 batches training for 157 trainers have already been completed. Total 820 trainers will be trained.

Infrastructure Investment Facilitation Company (IIFC), Bangladesh provided management training to 150 principals and TVET managers of public and private training providers. They have already completed the refresh programs.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Under project (tranche 1), only PTIs will receive support for minor repairs or renovations to cater to training activity needs. No acquisition of land is planned. Accordingly, project (tranche1) is category C for environment safeguard.
Involuntary Resettlement Since no relocation of people is also planned, project (tranche 1) is category C for involuntary resettlement safeguard.
Indigenous Peoples The investment program will reach and include unskilled residents of remote areas and members of disadvantaged groups, including indigenous peoples. Project (tranche 1) is expected to have positive impacts and is classified category B for indigenous peoples safeguards in accordance with ADB's Safeguard Policy Statement (2009). A small ethnic community strategy is under development to guide the executing and implementing agencies in assessing the presence of indigenous peoples in the project area and conducting separate consultations to elicit their views, identify the need for culturally compatible mechanisms for their participation, and ensure incorporation of adequate measures in project activities. The executing agency through the SDCMU will monitor these activities closely and ensure necessary actions.
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 , and development partners. The program will seek inputs from other stakeholders, such as trade unions, TVET graduates, parents, and international employers, and secondary and higher education institutions to improve the quality of training.

Public consultations were also conducted with industry associations, public training institutions, the Bangladesh Bank small and medium enterprise program and Palli-Karma Sahayak Foundation which has more than 200 partner 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 the investment program is being financed by ADB's Special Funds 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 investment 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 Alam, Nazmul
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Finance Division, MOF (EA)
[email protected]
Bangladesh Secretariat, Dhaka-1000
Concept Clearance -
Fact Finding -
MRM 04 Feb 2014
Approval 03 Jun 2014
Last Review Mission -
Last PDS Update 25 Sep 2017

Grant 0391-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Jun 2014 19 Jan 2015 24 Feb 2015 30 Jun 2018 30 Jun 2019 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.50 Cumulative Contract Awards
ADB 0.00 03 Jun 2014 0.00 6.14 61%
Counterpart 28.50 Cumulative Disbursements
Cofinancing 10.00 03 Jun 2014 0.00 6.31 63%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - -

Loan 3131-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Jun 2014 04 Jun 2014 24 Jul 2014 30 Jun 2018 30 Jun 2019 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 03 Jun 2014 0.00 67.25 73%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 03 Jun 2014 0.00 47.32 52%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - -

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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tender Title Type Status Posting Date Deadline
Tracer Study of Skills for Employment Investment Program (SEIP) Graduates Firm - Consulting Closed 06 Jun 2017 05 Jul 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LOCAL TRAINING, SEMINAR & WORKSHOP EXPENSES FOR 2017, OPERATING COST (WA 00014) Loan 3131 23 Jul 2017 VARIOUS VARIOUS BANGLADESH Finance Division, MOF (EA) Others 1002163 1002163
Improvement of Road in Barguna Pourashava E-GP/CTEIP/2016-17/BAR/RD-01 Loan 3131 03 Apr 2017 Flora Limited Adamjee Court (Annex 2), 119-120 Motijhe El C/A, Dhaka 1000 Bangladesh Finance Division, MOF (EA) Supply of Goods 186507.82 184697.546
Overseas Training - Nanyang Polytechnique International, Singapore (NYPI), TOT Loan 3131 22 Mar 2017 ITE Education Services (ITEES) Singapore Singapore Finance Division, MOF (EA) Others 278570.41 277797.539
GD-36 - Procurement of Desktop Computer, UPS and Networking Equipment for Basis and BTMA Loan 3131 22 Mar 2017 Nanyang Polytechnique International Singapore (Nypi) Singapore Singapore Finance Division, MOF (EA) Others 435200 435200
SD2 - Overseas Pedagogy Training of TVET Trainers, ITE Education Services (ITEES) Loan 3131 11 Jan 2017 Creative Plus International 48/1 Yousuf Mansion. Motijheel, Dhaka Bangladesh Finance Division, MOF (EA) Others 156271.71 155777.073

Procurement Plan