Bangladesh: Skills for Employment Investment Program - Tranche 1
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.
South Asia Department
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|Project Name||Skills for Employment Investment Program - Tranche 1|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
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.|
|Description of Outcome||Increased employment in priority sectors and skills for males and females [NSDP 2 and 3].|
|Progress Toward Outcome||As of 30 June 2021, a total of 279,748 trainees (28.76% or 80,463 females) were enrolled under Tranche 1. Of the enrolled, 267,040 trainees (29.3% or 78,249 females) were certified.|
|Description of Project Outputs||
Market-responsive inclusive skills training delivered
Quality assurance system strengthened
Effective program management
|Status of Implementation Progress (Outputs, Activities, and Issues)||
40,000 trainees (53% or 21,213 females) received special stipend under Tranche 1. 100% target of stipend distribution has been achieved.
As of 30 June 2021, a total of 279,748 trainees were enrolled under Tranche 1. Out of these enrollments, 267,040 trainees (29.3% or 78,249 females) were certified.
As of 30 June 2021, total of 238,558 new entrants were enrolled under Tranche 1. 226, 486 of the new entrants were certified. Out of them, 154,435 have been placed in jobs (68.18% of the certified and 64.80% of the net enrolled). Female job placement against female certification is 73.68%
As of 30 June 2021, total enrollment for up-skilling was 41,190, certification was 40,553 and job placement 36,993. 91.22% of the certified up-skilled workers are still employed which is 89.82% of the net enrolled. Net enrollment was 41,182.
RPL Program has been dropped due to overlapping efforts with the World Bank program.
87 competency standards (CSs) have been developed. Out of this, 50 CSs have been developed by British Council, 35 by the Fast Track Consultants and the rest 02 have been developed by the Industry Associations which have been subsequently validated by SEIP. 47 CSs have so far been approved by BTEB and 12 by NSDA. All CSs are now used for SEIP training.
60 competency-based learning materials (CBLMs) developed. Out of this, 18 developed by British Council has developed 18, 1 by Fast Track Consultant, and 41 by industry associations. The CBLMs are now being used for imparting training
87 assessment tools developed. Out of this,50 developed by British Council, and remaining by the Fast Track Consultant. All assessment tools are being used
2,826 trainers (18.4% or 520 females)
150 (13 females) principals and TVET managers from public and private training providers completed management and refreshers' training from Infrastructure Investment Facilitation Company (IIFC)
205 assessors (6.3% or 13 females) have been trained
Two ISCs- Construction ISC and Light Engineering ISC have been operationalized in 2017 and have been implementing the targeted activities set for them.
National Skills Development Authority (NSDA) established in October 2018. Staff recruitment for NSDA hasn't started yet although Finance Division has cleared the Organogram. It has a budget line to receive regular fiscal allocation from the government similar to other government organizations. The NSDA rules have already been approved by the Cabinet and posted on the website. Fund Utilization Rules of NHRDF, approved by the Cabinet on 4 November 2019, will be implemented by NSDA. NSDA is now almost fully operational.
NHRDF was officially established on 16 May 2017. Under an MoU between NHRDF and SEIP on 07 May 2018, SEIP provided 3-year support (till December 2020) to fully operationalize NHRDF. The Organogram and Recruitment Rules were finalized at a meeting held on 02 January 2020 with Finance Secretary in the Chair. Recruitment is expected to start from January 2021.
Market responsive skills training program is being conducted by 116 public training institutes.
45 Job placement officers have been deployed for providing job placement support to the SEIP graduates.
Unified MTBF for skills development may be considered in the future by NSDA. This is beyond the scope of SEIP.
SDCMU became operational in December 2014.
SWAp is actually not within the scope of SEIP as it involves multiple ministries and divisions. NSDA can consider taking necessary steps to develop SWAp roadmap and framework in the future. It will certainly need government's approval as it involves multiple stakeholders.
TMS has been established and operationalized in 2015. Special Stipend Module, Mobile App for Attendance, Dash Board for TMS showing enrollment, certification, and job placement data have been incorporated. Monitoring Module is under development and will be completed by December 2020.
Final report for the tracer study submitted in April 2019. The tracer study also includes employer's satisfaction survey. First round of skills-gap study on nine sectors/subsectors completed and report disseminated in 2017
External firm has been recruited in Feb 2020 to conduct fiduciary reviews. FY 2018-19 and FY19-20 external Audit has completed.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Under the 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, the project (tranche1) is category C for environment safeguard.|
|Involuntary Resettlement||Since no relocation of people is planned, the 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. The project (tranche 1) is expected to have positive impacts and is classified as category B for indigenous peoples safeguards in accordance with ADB's Safeguard Policy Statement (2009). A small ethnic community people's plan (SECPP) was prepared to ensure that SEC people will receive culturally appropriate social and economic benefits from SEIP. It will also 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. The executing agency through the SDCMU will monitor these activities closely and ensure necessary actions.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Various groups of stakeholders were consulted during program preparation, including industry representatives, TVET institutes and regulating body, labor market researchers, private and nongovernment organizations , and development partners. The program has also sought 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.|
|During Project Implementation||Regular consultations are being carried out by TVET providers, industry groups, and communities to assess the performance and relevance of training programs. Inputs from employers are also sought regularly to explore the types of additional skills programs demanded. Adequate participation of civil society organizations in project implementation is being ensured through constant dialogue, workshops, training programs, and dissemination of findings from monitoring and evaluation.|
|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 $2 million will be procured using international competitive bidding and ADB's standard bidding documents, and be subject to prior review. Goods and works valued below the international competitive bidding threshold will be procured using national competitive bidding in accordance with the government's Public Procurement Act (2006) and it's Public Procurement Rules (2008), subject to modifications agreed by the government and ADB.|
|Responsible ADB Officer||Ahad, Faiza|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
Finance Division, MOF (EA)
Mr.Molla Mansur Ahmed
Bangladesh Secretariat, Dhaka-1000
|MRM||04 Feb 2014|
|Approval||03 Jun 2014|
|Last Review Mission||-|
|Last PDS Update||14 Sep 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|03 Jun 2014||19 Jan 2015||24 Feb 2015||30 Jun 2018||30 Jun 2020||25 Mar 2021|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||38.50||Cumulative Contract Awards|
|ADB||0.00||18 Oct 2021||0.00||9.51||95%|
|Cofinancing||10.00||18 Oct 2021||0.00||9.51||95%|
|Status of Covenants|
|Approval||Signing Date||Effectivity Date||Closing|
|03 Jun 2014||04 Jun 2014||24 Jul 2014||30 Jun 2018||31 Dec 2020||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||100.00||Cumulative Contract Awards|
|ADB||100.00||18 Oct 2021||86.05||0.00||95%|
|Cofinancing||0.00||18 Oct 2021||87.19||0.00||96%|
|Status of Covenants|
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.
Evaluation Documents See also: Independent Evaluation
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Professional Skills Training for Bangladesh's YouthA technical and vocational education and training scheme supported by ADB is helping young people in Bangladesh acquire much needed professional skills, creating job opportunities and raising income for the country's workforce.
|Tender Title||Type||Status||Posting Date||Deadline|
|Consultancy Services for Technical Feasibility study for the upgrading of Technical Training Centers (TTCs)||Firm - Consulting||Closed||24 Jul 2018||27 Aug 2018|
|Tracer Study of Skills for Employment Investment Program (SEIP) Graduates||Firm - Consulting||Closed||06 Jun 2017||05 Jul 2017|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|PACKAGE SD-9: CONSULTANCY SERVICES FOR DESIGN FOR UPGRADING OF TTCS UNDER TRANCHE-1||Loan 3131||04 Aug 2020||DOSUNG ARCHITECTS & ASSOCIATES CO., LTD. | KOREA KOREA, REPUBLIC OF||Finance Division, MOF||492,607.90||492,607.90|
|GD-94: PROCUREMENT OF 24 NOS DOUBLE CABIN PICK-UP FOR MOTOR DRIVING TRAINING COURSES IN RANGPUR AND RAJSHAHI DIVISION||Loan 3131||12 Nov 2019||RANGS LIMITED | 215 TEJGAON INDUSTRIAL AREA, BIR UTTAM M IR SHAWKAT SARAK, DHAKA BANGLADESH||Finance Division, MOF||1,241,920.47||1,241,920.47|
|GD-96: PROCUREMENT OF 22 NOS DOUBLE CABIN PICK-UP FOR MOTOR DRIVING TRAINING COURSES IN DHAKA AND MYMENSING DIVISION||Loan 3131||12 Nov 2019||RANGS LIMITED | 215 TEJGAON INDUSTRIAL AREA, BIR UTTAM M IR SHAWKAT SARAK, DHAKA BANGLADESH||Finance Division, MOF||1,138,427.10||1,138,427.10|
|GD-97: PROCUREMENT OF 22 NOS DOUBLE CABIN PICK-UP FOR MOTOR DRIVING TRAINING COURSES IN KHULNA AND BARISHAL DIVISION||Loan 3131||12 Nov 2019||RANGS LIMITED | 215 TEJGAON INDUSTRIAL AREA, BIR UTTAM M IR SHAWKAT SARAK, DHAKA BANGLADESH||Finance Division, MOF||1,138,427.10||1,138,427.10|
|MOU WITH REHAB FOR ADDITIONAL TRAINING TARGET 6000||Grant 0391||01 Jun 2019||REHAB | NATIONAL PLAZA (5TH & 6TH FLOOR) 1/G FREE SCHOOL STREET BANGLADESH||Finance Division MOF||2,277,756.93||—|
|GRANTS CONTRACT FOR SKILLS TRAINING WITH BACI||Loan 3131||22 Jan 2019||BANGLADESH ASSOCIATION OF CONSTRUCTION INDUST | NAHAR GREEN SUMMIT, 3RD FLOOR, HOUSE 43, ROAD 16 (OLD 27), DHANMONDI, DHAKA 1209 BANGLADESH||Finance Division, MOF||4,132,918.24||4,119,251.88|
|PACKAGE NO. SD-04 TRACER STUDY OF THE SEIP GRADUATES||Loan 3131||08 Aug 2018||DEVELOPMENT PROJECT DESIGN AND SERVICES LTD. | APT-2C, HOUSE-11, ROAD-04, BANANI DOHS, BANANI, DHAKA-1206 BANGLADESH||Finance Division, MOF||249,767.00||249,212.00|
|CONTRACT WITH BANGLADESH ROAD TRANSPORT CORPORATIO N (BRTC) FOR 2018 AND 2019||Loan 3131||15 Mar 2018||BANGLADESH ROAD TRANSPORT CORPORATION (BRTC) | 21, RAJUK AVENUE, DHAKA BANGLADESH||Finance Division, MOF||3,847,747.00||3,847,747.00|
|MOTOR DRIVING COURSE UNDER BMET||Loan 3131||15 Feb 2018||BUREAU OF MANPOWER , EMPLOYMENT AND TRAINING | 89/2 KAKRAIL, DHAKA BANGLADESH||Finance Division, MOF||2,718,776.00||2,715,266.00|
|CONSTRUCTION OF DRAIN IN BHOLA POURASHAVA E-GP/CTEIP/2017-18/BHO/DR-06||Loan 3133||07 Feb 2018||PRINCE & AZAD (JV) | COLLAGE ROAD, BHOLA BANGLADESH||Local Government Engineering Department||1,704,718.00||849,336.00|
|CONSTRUCTION OF DRAIN IN BHOLA POURASHAVA E-GP/CTEIP/2017-18/BHO/DR-05||Loan 3133||01 Feb 2018||M/S ASIF TRADERS | DOKKIN GORAN, DHAKA-1219 BANGLADESH||Local Government Engineering Department||1,192,153.00||595,145.00|
|LOCAL TRAINING, SEMINAR & WORKSHOP EXPENSES FOR 2017, OPERATING COST (WA 00014)||Loan 3131||23 Jul 2017||VARIOUS | VARIOUS BANGLADESH||Finance Division, MOF (EA)||1,002,163.00||1,002,163.00|
|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)||186,507.82||184,697.55|
|Overseas Training - Nanyang Polytechnique International, Singapore (NYPI), TOT||Loan 3131||22 Mar 2017||ITE Education Services (ITEES) | Singapore Singapore||Finance Division, MOF (EA)||278,570.41||277,797.54|
|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)||435,200.00||435,200.00|
|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)||156,271.71||155,777.07|
|Title||Document Type||Document Date|
|Skills for Employment Investment Program - Tranche 1: Procurement Plan||Procurement Plans||Mar 2014|