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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 Name Skills for Employment Investment Program - Tranche 1
Project Number 42466-015
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Grant
Loan
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
Partnerships
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 With a total enrolment target of 260,000 trainees under Tranche 1, a total of 256,715 trainees were enrolled in the public training institutions,12 industry associations, BBSME and PKSF (of which 77,216 were female), 229,325 trainees were certified and 168,498 were either placed in jobs or self-employed as of 30 June 2019.
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)

NSDA bill was passed by the parliament on 18 September, 2018 which took the form of Law on 01 October, 2018. Draft rules and regulations have already been prepared by the Prime Minister's Office which are expected to be approved by the competent authority soon. A Chairman has been appointed for NSDA to kick off its formal activities.

NHRDF was established on 16 May 2018. SEIP is currently supporting its operationalization.

Two ISCs (Construction and Light Engineering) are now operational and they have made progress in implementing the targeted activities set for them.

45 Job placement officers (JPO) are currently deployed.

SDCMU became operational in December 2014.

BIDS has completed skills gap study and disseminated the report. Tracer study has been completed, which also covers employers' satisfaction survey.

Management and refreshers' training implemented for 150 principals and TVET managers from public and private training providers.

RPL Program has been dropped due to overlapping efforts with the World Bank program.

Once the NSDA becomes operational, steps will be taken to develop SWAp roadmap and framework.Fiduciary risk mitigation review has been carried out periodically by an external audit firm and the observations are being addressed to ensure compliance.

Out of 130 competency standards (CS) to be developed by SEIP project, 87 CS have been developed under Tranche 1 and Tranche 2 together. 60 CBLMs has been developed. 87 assessment tools have been developed.

280 trainers completed overseas training; 820 trainers completed technical training locally (111 female); and 205 assessors completed training.

As of 30 June 2019, a total of 256,715 trainees were enrolled under Tranche 1 of whom 30.7% were female. Of the enrolled, 229,325 were certified with 32.01% females.

As of 30 June 2019, 70.5% of the certified new entrants have been placed in job. The number of certified new entrants was 188,247 out of whom 132,638 were placed in jobs.

As of 30 June 2019, at least 87.3% of the up-skilled workers continued to be employed. The number of certified up-Skilled trainees was 41,078 out of whom 35,862 had been continuing their jobs.

A total of 45,675 disadvantaged trainees received special stipends with 44% female under Tranche 1.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples B
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.
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 Li, Zhigang
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Finance Division, MOF (EA)
[email protected]
Bangladesh Secretariat, Dhaka-1000
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 04 Feb 2014
Approval 03 Jun 2014
Last Review Mission -
Last PDS Update 22 Aug 2019

Grant 0391-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Jun 2014 19 Jan 2015 24 Feb 2015 30 Jun 2018 30 Jun 2020 -
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 9.98 100%
Counterpart 28.50 Cumulative Disbursements
Cofinancing 10.00 03 Jun 2014 0.00 9.27 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Partly satisfactory Unsatisfactory - Satisfactory

Loan 3131-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Jun 2014 04 Jun 2014 24 Jul 2014 30 Jun 2018 30 Jun 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 03 Jun 2014 83.69 0.00 93%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 03 Jun 2014 82.40 0.00 91%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Partly satisfactory Unsatisfactory - Satisfactory

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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The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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Title Document Type Document Date
Skills for Employment Investment Program-Tranche 1: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Skills for Employment Investment Program - Tranche 1: Project Procurement-Related Review Report Proactive Integrity Reviews (PIR, formerly known as PPRR) Dec 2019
Skills for Employment Investment Program-Tranche 1: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Amendment to the Grant Agreement (Externally Financed) for Grant 0391-BAN: Skills for Employment Investment Program - Tranche 1 Agreements Oct 2018
Skills for Employment Investment Program - Tranche 1: Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Dec 2017
Skills for Employment Investment Program - Tranches 1 and 2: Facility Administration Manual Facility Administration Manual Jul 2017
Skills for Employment Investment Program - Tranche 1: Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Dec 2016
Skills for Employment Investment Program - Tranche 1: Audited Project Financial Statements (July 2014-June 2015) Audited Project Financial Statements Dec 2015
Amendment to Grant Agreement for Grant 0391-BAN: Skills for Employment Investment Program - Tranche 1 Grant Agreement Jul 2015
Grant Agreement (Externally Financed) for Skills for Employment Investment Program - Tranche 1 Grant Agreement Jan 2015
Loan Agreement (Special Operations) for Skills for Employment Investment Program - Tranche 1 Loan Agreement (Special Operations) Jun 2014
Project Agreement for Skills for Employment Investment Program - Tranche 1 Project/Program Agreements Jun 2014
Skills for Employment Investment Program: Periodic Financing Request 1 Periodic Financing Request Reports Mar 2014
Skills for Employment Investment Program - Tranche 1: Procurement Plan Procurement Plans Mar 2014

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

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

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

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
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 SUPPLY OF GOODS 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 SUPPLY OF GOODS 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 SUPPLY OF GOODS 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 OTHERS 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 Consulting Services 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 OTHERS 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 OTHERS 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 CONSTRUCTION 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 CONSTRUCTION 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) Others 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) Supply of Goods 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) Others 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) Others 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) Others 156,271.71 155,777.07

Procurement Plan