SWITZERLAND, ADB TO SUPPORT SKILLS TRAINING IN BANGLADESH
DHAKA, Jan. 19 (NsNewsWire) — The Asian Development Bank (ADB) and the Government of Bangladesh today signed an agreement for a $10 million grant to help scale up skills training for young workers to boost income and productivity. The grant is provided by the Government of Switzerland and will be administered by the ADB.
This assistance is part of the $30 million grant that the Government of Switzerland has planned to contribute to the Skills for Employment Investment Program. The investment program is implemented by the Government of Bangladesh through the Ministry of Finance. The investment program will have three tranches and will be implemented over 7 years.
Saifuddin Ahmed, Joint Secretary, Economic Relations Division and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission, ADB signed the agreement, on behalf of the Government of Bangladesh and ADB, respectively. Siroco Messerli, Deputy Director of Cooperation of the Swiss Agency for Development and Cooperation, Dhaka attended the event.
“The assistance provided by the Government of Switzerland will support Bangladesh’s efforts to become a middle-income country by raising worker’s skills, productivity and income,” said Country Director Kazuhiko Higuchi. “Through the grant, the Skills for Employment Investment Program will benefit from the experience and expertise of the Swiss Agency for Development and Cooperation in skills development.”
The assistance under the first tranche of the investment program will target 40,000 women and disadvantaged people, including those with disabilities. It will also support 32 public training institutions under Ministry of Education, Ministry of Expatriates’ Welfare and Overseas Employment, and Ministry of Industries; nine industry associations; a microcredit organization (Palli-Karma Sahayak Foundation); and Bangladesh Bank.
The investment program will equip over 1.25 million youths with employable skills by 2021 through a strong involvement of the private sector. The investment program will support skills training in 15 priority sectors, starting with six sectors: garments and textiles, leather, construction, light engineering, information technology, and shipbuilding. A major target of the investment program is to boost job placement to around 70%, from about 40% now through performance based funding.
The investment program is estimated to cost a total of $1.07 billion. In addition to $30 million from the Government of Switzerland and the $350 million ADB assistance, the investment program is expected to be complemented by $200 million from the Government of Bangladesh, $400 million from other development partners, and $90 million from the private sector. The first tranche of the ADB loan is $100 million.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region