ADB to release $100m loan for skills development

The Asian Development Bank (ADB) has confirmed a US$100 million loan for Bangladesh to help create skilled manpower, preparing them for jobs at home and abroad.
The amount is the first phase of the $350 million multi-tranche financing facility (MFF) fund of the Asian lender under the Skills for Employment Investment Programme (SEIP). The remaining $250 million credit is expected to be disbursed during the MFF period.
Saifuddin Ahmed, Joint Secretary of the Economic Relations Division (ERD) and Kazuhiko Higuchi, Country Director of the ADB Bangladesh Mission, signed an agreement at ERD in the city Wednesday.
The SEIP is estimated to be a $1.07 billion facility. In addition to ADB's $350 million credit, the government will provide $200 million from its own exchequer, Switzerland $30 million, the country's private sector $90 million, and the other development partners will provide $400 million.
The ADB's loan will have a 25-year maturity including a grace period of five years, and an interest rate of 2.0 per cent per annum.
The first tranche of assistance under the SEIP will target 40,000 women and disadvantaged people, including those with disabilities. It will also support 32 public training institutions under three ministries, nine industry associations, micro-credit organization Palli-Karma Sahayak Foundation (PKSF), and Bangladesh Bank's Small and Medium Enterprise Department.
The overall programme will equip over 1.25 million youths with employable skills by 2021. The 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 program is to boost job placement to around 70 per cent from the current nearly 40 per cent.
By 2015, the programme aims to help set up a National Human Resource Development Fund to scale up skills training. The program will also support the government's plan to establish a new ministry or authority for skills development.
"The assistance will support the government's efforts in leading Bangladesh to be a middle-income country by raising skills, productivity and income," said Mr Higuchi.