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Cambodia: Skills for Competitiveness Project

Sovereign (Public) Project | 50394-002 Status: Approved

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 Details

Project Officer
Yumiko Yamakawa Southeast Asia Department Request for information
Country
  • Cambodia
Sector
  • Education
 
Project Name Skills for Competitiveness Project
Project Number 50394-002
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3791-CAM: Skills for Competitiveness Project
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan 8365-CAM: Skills for Competitiveness Project
Agence Francaise de Developpement US$ 19.92 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Education / Technical and vocational education and training

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.
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)
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 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 Yumiko Yamakawa
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 24 Jun 2019
Last Review Mission -
Last PDS Update 24 Jun 2019

Loan 3791-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Jun 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 0.00 0.00 0%
Counterpart 8.31 Cumulative Disbursements
Cofinancing 0.00 24 Jun 2019 0.00 0.00 0%

Loan 8365-CAM

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 19.92 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 19.92 - 0.00 0.00 %

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.

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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.

Titlesort ascending 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

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
Project Implementation Consultant Firm - Consulting Closed 30 May 2019 28 Jun 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan