The proposed project will 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 | Proposed | ||||
| 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 proposed project will 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. | ||||
| Outcome | Skills and competitiveness of men and women in the industrial labour force improved | ||||
| Outputs | 1. Quality and relevance of post-secondary TVET improved. 2. WBL programs with industry partnerships promoted. 3. Innovative TVET financing mechanisms expanded |
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| Geographical Location | Nation-wide | ||||
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| 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 proposed through the project will not cause significant adverse environmental impacts. The potential impacts associated with construction and demolition of buildings include community and occupational health and safety hazards, increased noise and dust levels, waste generation and disposal, and traffic congestion. These impacts can be mitigated through effective implementation of mitigation and monitoring measures as specified in the EMP and good construction site management practice. The PMU and project implementation units will designate counterpart safeguards staff to monitor compliance of the contractors with EMP, relevant regulations of the government and ADB policies, with support of one national safeguards consultant. The Ministry of Environment has approved building designs. Project-related complaints will be addressed through a grievance redress mechanism. |
| Involuntary Resettlement | Involuntary resettlement (category C). The project is classified as Category C for involuntary resettlement. Due diligence confirmed that all selected TTIs are existing operational education facilities located on state-owned land plots and will not require acquisition of additional land 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 indigenous peoples. Due diligence confirmed that the project is not expected to have any impact on indigenous 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 will mobilize a start-up procurement consultant 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 |
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 | - |
| Last Review Mission | - |
| Last PDS Update | 28 Mar 2019 |
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 Public Communications Policy (PCP) 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.
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| Title | Document Type | Document Date |
|---|---|---|
| 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 | Mar 2019 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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The Public Communications Policy (PCP) 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.
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Tenders
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Contracts Awarded
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Procurement Plan
None currently available.