Nepal is at a pivotal stage in its development as it transitions into a federal system. Despite shocks from the 2015 earthquakes and 2015 2016 trade disruptions, the economy rebounded to grow at an average annual rate of 7.3% during FY2017 FY2019. The government aims for Nepal to graduate from least-developed country status by 2022 and reach middle-income status by 2030. The recent move to a federal governance system mandated by the 2015 constitution offers opportunities to deliver better services for poverty reduction and enhanced economic growth. The key challenge for Nepal is using this window of opportunity to lay a stronger foundation for sustained increase in economic growth and provide jobs for its young and growing labor force to realize the country's aspirations.
|Project Name||Supporting for Human Capital Development Initiative|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Education / Education sector development
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||Nepal is at a pivotal stage in its development as it transitions into a federal system. Despite shocks from the 2015 earthquakes and 2015 2016 trade disruptions, the economy rebounded to grow at an average annual rate of 7.3% during FY2017 FY2019. The government aims for Nepal to graduate from least-developed country status by 2022 and reach middle-income status by 2030. The recent move to a federal governance system mandated by the 2015 constitution offers opportunities to deliver better services for poverty reduction and enhanced economic growth. The key challenge for Nepal is using this window of opportunity to lay a stronger foundation for sustained increase in economic growth and provide jobs for its young and growing labor force to realize the country's aspirations. Addressing these challenges requires diversifying Nepal's economic base away from a heavy reliance on agriculture, remittances, and informal services towards higher-value industry and formal sectors, reducing the high unemployment rate (11.4%) and preparing the current as well as future workforce to be productive and competitive in the global market. Building a diversified and agile workforce with strong foundational and higher-order skills while simultaneously upgrading technical and specialized skills among new entrants and existing workers in the labor force will be critical to the country's development goals. Thus, under the 15th development plan for FY2020 FY2024, the government has prioritized investing in human capital along with raising productivity in agriculture and industry sectors, and effective implementation of the federal governance system to achieve high and inclusive economic growth.|
|Project Rationale and Linkage to Country/Regional Strategy||The TA facility is aligned with (i) ADB's strategy 2030, (ii) the government's new Education Development Plan (2021 2030), and (iii) the Sustainable Development Goal 5. The TA facility will support strategic policy advisory and technical inputs on school education and TVET issues, strategy development, financial management, engineering and procurement, quality assurance, and evaluation approaches. It will bridge capability gaps, apply best practices, and foster innovative solutions for common challenges in the sector. In particular, the TA will bring in international expertise not available in-country in the areas of curriculum, pedagogy, assessment, public private partnerships, industry partnerships and TVET delivery. The TA facility approach is suitable as it will enhance project preparation efficiency and improve project implementation readiness by (i) allowing the same experts to be mobilized for similar due diligence activities, (ii) facilitating learning on project processing and implementation across different projects and programs, (iii) creating synergies from working with common expertise and improving knowledge transfer, and (iv) strengthening coordination and synergy among various technical inputs and capacity building efforts. Overall, this TA facility will reduce transaction costs compared to resources required for separate stand-alone transaction TA projects. Nepal's education TA portfolio currently has two TAs, namely: (i) TA 8521: Supporting Education and Skills Development, aimed to support policy advisory, project processing, development partner coordination and implementation approved in 2013 with TA amount of $1.5 million, which will be closing in November 2020 and the resources are expected to be fully utilized; and (ii) TA 9215: Supporting Policies and Implementation in the School Sector, approved in 2016 and expected to close in December 2021 in the amount of $6.2 million, is a piggybacked TA to the ongoing results-based lending (RBL) loan Supporting School Sector Development Plan. This TA is currently financed by ADB, the European Union, and the Government of Norway and has sufficient funds to support implementation of the ongoing SSDP project and is expected to be fully utilized during the current SSDP RBL implementation.|
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The TA facility will provide a total of 50 person-months' consultant inputs (20 person-months international and 30 person-months national) to support the preparation and implementation of the ensuing projects. The consultants will be recruited using individual consultant selection method and deployed based on the requirements of each project being prepared or implemented. Individual consultant selection, rather than firm selection, is considered appropriate, because the TA facility involves multiple activities that are not necessarily interdependent and will require a varied range of consultants and services. ADB will engage the consultants following the ADB Procurement Policy and Regulations (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.|
|Responsible ADB Officer||Hoque, Uzma S.|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Human and Social Development Division, SARD|
Ministry of Education
|Approval||08 May 2020|
|Last Review Mission||-|
|Last PDS Update||08 May 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|08 May 2020||18 Jun 2020||18 Jun 2020||30 Jun 2023||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||0.00||0.00||0.00||0.00||500,000.00||08 May 2020||0.00|
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|Title||Document Type||Document Date|
|Supporting for Human Capital Development Initiative: Technical Assistance Report||Technical Assistance Reports||May 2020|
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