The project is to enhance the skills and competitiveness of Cambodia's industrial sector labour force. It will develop human resources to work as skilled-workforce in four priority sectors, namely manufacturing, construction, electricity, and electronics. The project will help transform selected five technical training institutes (TTIs) into leading technical and vocational education and training (TVET) institutes in Cambodia, to produce high quality technicians in the priority sectors and to respond to changing technology and industry needs. The project will also strengthen the industry's roles and engagement in skills development, focusing on upskilling and reskilling of the existing workers. Partnership agreements will be forged with industry and TTIs to promote work-based learning (WBL) programs and expand the Skills Development Fund (SDF) as an innovative TVET financing mechanism.
| Project Name | Skills for Competitiveness Project | ||||||||
| Project Number | 50394-002 | ||||||||
| Country | Cambodia |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships |
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| Sector / Subsector | Education / Technical and vocational education and training |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||
| Description | The project is to enhance the skills and competitiveness of Cambodia's industrial sector labour force. It will develop human resources to work as skilled-workforce in four priority sectors, namely manufacturing, construction, electricity, and electronics. The project will help transform selected five technical training institutes (TTIs) into leading technical and vocational education and training (TVET) institutes in Cambodia, to produce high quality technicians in the priority sectors and to respond to changing technology and industry needs. The project will also strengthen the industry's roles and engagement in skills development, focusing on upskilling and reskilling of the existing workers. Partnership agreements will be forged with industry and TTIs to promote work-based learning (WBL) programs and expand the Skills Development Fund (SDF) as an innovative TVET financing mechanism. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Cambodia is one of the fastest growing economies in the world, with the average growth rate of 7.1% between 2011 and 2017. To achieve this, the country embraced the _Factory Asia_ model of economic growth, deploying a large supply of inexpensive low-skilled labour to manufacture simple products for export, particularly garments and footwear. However, despite a favorable economic growth forecast, there are signs of medium-term downside risks. For example, the minimum wage in the garment sector more than doubled, from $80 a month in 2013 to $182 a month in 2019. Labour productivity has not improved and Cambodia's ranking in the Global Competitiveness Report 2018 remained low due to difficulties finding skilled employees (110 out of 140 economies).1 The growth model of attracting foreign direct investment for labour cost-advantage is getting diluted. The government of Cambodia aims to diversify and modernize industries from labour -intensive to skills driven ones to sustain economic growth, as laid out in its industry development policy (IDP) 2015 2025. 2 As such it has prioritized reform of its TVET system to equip future and current workforce with the required skills to make the transition from low-skilled jobs to higher skilled jobs. | ||||||||
| Impact | Cambodia's industrial structure is modernized and transformed from labour-intensive to skills-driven by 2025. | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Skills and competitiveness of men and women in the industrial labour force improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | 1. Quality and relevance of post-secondary TVET improved. 2. WBL programs with industry partnerships promoted. 3. Innovative TVET financing mechanisms expanded |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Loan declared effective on 25 Sep 2019. Advance accounts have been set-up and the initial disbursements were made in December 2019. Inception mission was conducted in February 2020 and kicked-off with the project launching in Cambodian Hotel. The project implementation consulting firm and a number of PMU individual consultants have been recruited. The PIC mobilization is expected to be delayed due to the covid pandemic. Three civil works packages (for Battambang, Svay Rieng and Siem Reap) were advertised on 26 March. Civil works package IFB for ITC is planned in April. The last civil works package for TVET Park is currently finalizing DED and is expected to be advertised in May. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Environment (category B). The project is classified as Category B for environment. An initial environmental examination (IEE) and environmental management plan (EMP) have been prepared covering civil works at TTIs. The draft IEE and EMP were disclosed on ADB website.The final IEE and EMP will be disclosed following detailed designs. The improvements proposedthrough the project will not cause significant adverse environmental impacts. The potentialimpacts associated with construction and demolition of buildings include community andoccupational health and safety hazards, increased noise and dust levels, waste generation anddisposal, and traffic congestion. These impacts can be mitigated through effective implementationof mitigation and monitoring measures as specified in the EMP and good construction sitemanagement practice. The PMU and project implementation units will designate counterpartsafeguards staff to monitor compliance of the contractors with EMP, relevant regulations of thegovernment and ADB policies, with support of one national safeguards consultant. The Ministryof Environment has approved building designs. Project-related complaints will be addressedthrough a grievance redress mechanism. Latest: The IEE was updated and was disclosed on 25 March 2020. |
| Involuntary Resettlement | Involuntary resettlement (category C). The project is classified as Category C forinvoluntary resettlement. Due diligence confirmed that all selected TTIs are existing operationaleducation facilities located on state-owned land plots and will not require acquisition of additionalland and/or involuntary resettlement. The due diligence report was disclosed on the ADB website. |
| Indigenous Peoples | Indigenous peoples (category C). The project is classified as Category C for indigenouspeoples. Due diligence confirmed that the project is not expected to have any impact onindigenous people as it is not implemented in the provinces with indigenous communities. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Project preparation includes intensive and extensive tripartite stakeholder consultation led by the TRTA firm, along with the MLVT management, TTIs (teaching staff and students), and other stakeholders. During the design phase, consultative workshops and field visits will be conducted. Meetings with donor partners, and possible co-financiers, will also be held. |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | ADB had mobilized start-up procurement consultants to support advance actions for civil works and consulting services procurement. In addition, three procurement consultants will strengthen the capacity of each implementing agency to perform procurement quality assurance to ensure compliance, quality and timely procurement activities. Procurement of goods, works, and recruitment of consulting services will be undertaken following ADB's Procurement Policy (2017) and Procurement Regulations for ADB Borrowers (2017), as amended from time to time. As ADB will partially administer the AFD loan, universal procurement will be applied. |
| Procurement | The procurement capacity assessment concluded that the overall risk rating is medium. All procurement and recruitment of consultants will be undertaken by the respective implementing agencies through procurement committees. To strengthen procurement capacity, ADB and project implementation consultants will provide in-country support and carry out training for PMU staff and implementing agencies. |
| Responsible ADB Officer | Yamakawa, Yumiko |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Human and Social Development Division, SERD |
| Executing Agencies |
Department of Macro Fiscal Policy-Ministry of Economy and Finance [email protected] Street 92, Rukha Vithei Daun Penh, Sangkat Wat Phnom, Khan Daun Penh, Phnom Penh, Cambodia Institute of Technology of Cambodia-Ministry of Education, Youth and Sport [email protected] ITC PO Box 86, Russian Federation, Phnom Penh, Cambodia Ministry of Labor and Vocational Training #3 Russian Federation Blvd Phnom Penh, Kingdom of Cambodia |
| Timetable | |
|---|---|
| Concept Clearance | 24 Nov 2017 |
| Fact Finding | 14 Jan 2019 to 25 Jan 2019 |
| MRM | 27 Mar 2019 |
| Approval | 24 Jun 2019 |
| Last Review Mission | - |
| Last PDS Update | 26 Mar 2020 |
Loan 3791-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 24 Jun 2019 | 16 Aug 2019 | 25 Sep 2019 | 30 Apr 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 68.31 | Cumulative Contract Awards | |||
| ADB | 60.00 | 24 Jun 2019 | 26.31 | 0.00 | 44% |
| Counterpart | 8.31 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Jun 2019 | 4.54 | 0.00 | 8% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | - | - | Satisfactory |
Loan 8365-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 24 Jun 2019 | 24 Dec 2019 | 24 Dec 2019 | 31 Mar 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 19.92 | Cumulative Contract Awards | |||
| ADB | 0.00 | 24 Jun 2019 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 19.92 | 24 Jun 2019 | 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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Skills for Competitiveness Project: Procurement Plan | Procurement Plans | Mar 2020 |
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 3791-CAM: Skills for Competitiveness Project | Loan Agreement (Ordinary Resources) | Aug 2019 |
| Skills for Competitiveness Project: Report and Recommendation of the President | Reports and Recommendations of the President | May 2019 |
| Skills for Competitiveness Project: Gender Action Plan | Gender Action Plans | May 2019 |
| Skills for Competitiveness Project: Project Administration Manual | Project/Program Administration Manual | May 2019 |
| Skills for Competitiveness Project: Project Data Sheet (Khmer translation) | Translated PDS | Nov 2017 |
| Skills for Competitiveness Project: Technical Assistance Report | Technical Assistance Reports | Nov 2017 |
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 for Competitiveness Project: Initial Environmental Examination | Initial Environmental Examination | Jul 2020 |
| Skills for Competitiveness Project: Initial Environmental Examination | Initial Environmental Examination | Mar 2020 |
| Skills for Competitiveness Project: Initial Environmental Examination | Initial Environmental Examination | Mar 2019 |
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.
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ADB to Improve Skills, Competitiveness of Cambodia's Labor Force
ADB has approved a $60 million loan to boost the skills and competitiveness of Cambodia’s labor force, as the government seeks to transition its economy from a low-skilled, labor-intensive growth model to a skills-driven one.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| MEF-SDF Individuals | Individual - Consulting | Closed | 29 Nov 2020 | 06 Dec 2020 |
| REGIONAL EDUCATION INSTITUTE(REI) | Firm - Consulting | Closed | 19 Nov 2020 | 18 Dec 2020 |
| Skills for Competitiveness Project ITC/Site Supervising Engineer | Individual - Consulting | Closed | 17 Oct 2020 | 02 Nov 2020 |
| L3791-CAM: Skills for Competitiveness Project [DGTVET-W-4] | Invitation for Bids | Closed | 28 Jul 2020 | 27 Aug 2020 |
| MEF-SDF Value Chain Studies | Firm - Consulting | Closed | 15 Jul 2020 | 13 Aug 2020 |
| L3791-CAM: Skills for Competitiveness Project [ITC-W-1] | Invitation for Bids | Closed | 03 Jun 2020 | 03 Jul 2020 |
| L3791-CAM: Skills for Competitiveness Project [DGTVET-W-1] | Invitation for Bids | Closed | 26 Mar 2020 | 27 Apr 2020 |
| L3791-CAM: Skills for Competitiveness Project [DGTVET-W-2] | Invitation for Bids | Closed | 26 Mar 2020 | 27 Apr 2020 |
| L3791-CAM: Skills for Competitiveness Project [DGTVET-W-3] | Invitation for Bids | Closed | 26 Mar 2020 | 27 Apr 2020 |
| MEF-SDF Individuals | Individual - Consulting | Closed | 17 Mar 2020 | 29 Mar 2020 |
| Skills for Competitiveness Project - ITC/National Financial Management Specialist | Individual - Consulting | Closed | 07 Jan 2020 | 21 Jan 2020 |
| Skills for Competitiveness Project - ITC/National Procurement Specialist | Individual - Consulting | Closed | 07 Jan 2020 | 21 Jan 2020 |
| MEF-SDF Individuals | Individual - Consulting | Closed | 26 Nov 2019 | 04 Dec 2019 |
| MEF-SDF Individuals | Individual - Consulting | Closed | 06 Nov 2019 | 08 Nov 2019 |
| MEF-SDF Individuals | Individual - Consulting | Closed | 04 Sep 2019 | 30 Sep 2019 |
| Project Implementation Consultant | Firm - Consulting | Closed | 30 May 2019 | 28 Jun 2019 |
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$) |
|---|---|---|---|---|---|---|---|---|
| ITC-W-1 CONSTRUCTION OF 2 NEW BLDGS AND REHAB OF 1 BLDG ITC, PHNOM PENH | Loan 3791 | 11 Dec 2020 | KIM MEX CONSTRUCTION AND INVESTMENT CO LTD | NO.54 STREET 590, SANGKAT BOEUNG KOK II KHAN TOUL KORK, PHNOM PENH CAMBODIA | Ministry of Labor and Vocational Training | CONSTRUCTION | 4,431,082.25 | 4,431,082.25 |
| DGTVET W-4/ PMU20/ CW04 CONSTRUCTION OF 3 NEW 4-STOREY BLDG & 2 NEW WRKSHP NTTI FOR TVET PARK, PHNOM PENH | Loan 3791 | 04 Dec 2020 | KIM MEX CONSTRUCTION & INVESTMENT CO LTD | NO. 54EO ST 590, SANGKAT BEUNG KOK II KHAN TOULKOK, PHNOM PENH CAMBODIA | Ministry of Labor and Vocational Training | CONSTRUCTION | 8,476,505.41 | 8,476,505.41 |
| DGTVET W-2/ PMU20/ CW03 CONSTRUCTION AT RPITSS, SVAY RIENG 3 NEW BLDGS AND 2 REHABILITATION | Loan 3791 | 29 Oct 2020 | KBH CONSTRUCTION CO LTD | #C27 ST B1711, BOENG SALANG VILLAGE SANGKAT RUSSEY KEO, KHAN RUSSEY KEO, PP CAMBODIA | Ministry of Labor and Vocational Training | CONSTRUCTION | 3,355,875.84 | 3,355,874.84 |
| DGTVET W-01 / PMU20/CW02 CONSTRUCTION AT BIT, BATTAMBANG 3 NEW BLDGS AND 2 REHABILITATION | Loan 3791 | 23 Sep 2020 | Y VAN SERVICES CO LTD | 22 ST 476, SANGKAT TOUL TUMPONG KHAN CHAMKARMON, PNHOM PENH CAMBODIA | Ministry of Labor and Vocational Training | CONSTRUCTION | 3,094,887.21 | 3,094,887.21 |
| DGTVET W-03 / PMU/20/CW01 CONSTRUCTION AT NPIA, SIEM REAP 4 NEW BUILDINGS | Loan 3791 | 16 Sep 2020 | KIM MEX CONSTRUCTION & INVESTMENT CO LTD | NO. 54E0 ST.590, SANGKAT BEUNG KHOK II KHAN TOULKOK, PHNOM PENH CAMBODIA | Ministry of Labor and Vocational Training | CONSTRUCTION | 3,655,080.11 | 3,655,080.11 |
| PROJECT IMPLEMENTATION CONSULTANTS (PIC) SOFRECO - FRANCE | Loan 3791 | 29 Mar 2020 | SOFRECO ASSOCIATED W/ PANHCHAK RESEARCH INSTI | 92-98 BOULEVARDVICTOR HUGO 92115 CLICHY CEDEX FRANCE | Ministry of Labor and Vocational Training | CONSULTANCY | 2,399,486.00 | 2,399,486.00 |
| MEF 4 INDIVIDUAL CONSULTANTS 1.KOB MATH 2.SENG BANDITH 3.HY THY 4.CHAPHO SOMRANGCHITTRA | Loan 3791 | 29 Mar 2020 | VARIOUS 1ST-RANKED CANDIDATES | PHNOM PENH CAMBODIA | Ministry of Labor and Vocational Training | CONSULTANCY | 131,774.00 | 131,774.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Skills for Competitiveness Project: Procurement Plan | Procurement Plans | Mar 2020 |