Dhaka, Bangladesh (BBN)-The Asian Development Bank (ADB) will provide US$ 100 million to Bangladesh as loan aiming to boost income and productivity through enhancing skills of young workers.
The programme is expected to train 1.25 million youths with employable skills by 2021 in 15 priority sectors, said a press released of Asian Development Bank (ADB).
To this end, the government and ADB today signed an agreement for the loan.
Saifuddin Ahmed, Joint Secretary of Economic Relations Division (ERD) and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission, inked the agreement at NEC-II conference room in the city's Sher-e-Bangla Nagar.
The assistance is the first tranche of the US$ 350 million multi-tranche financing facility (MFF) approved by ADB for the Skills for Employment Investment Program (SEIP).
The remaining US$ 250 million ADB assistance is expected to be utilized during the MFF period.
"The assistance will support the government's efforts in leading Bangladesh to be a middle-income country by raising skills, productivity and income," said Kazuhiko Higuchi.
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, microcredit organisation Palli-Karma Sahayak Foundation (PKSF), and Bangladesh Bank Small and Medium Enterprise Department.
The overall program 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 percent, from about 40 percent now.
By 2015, the program 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 SEIP is estimated to cost a total of US$ 1.07 billion.
In addition to US$ 350 million ADB assistance, the program is expected to be complemented by US$ 200 million from the Government of Bangladesh, US$ 30 million from the Government of Switzerland, US$ 400 million from other development partners, and US$ 90 million from the private sector.
The first tranche of the ADB loan, for US$ 100 million, will have a 25-year term, including a grace period of 5 years, and an interest rate of 2 percent per annum.
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.
In 2013, ADB assistance totaled $21.0 billion, including co-financing of US$ 6.6 billion.
BBN/ANS/AD-04June14-8:30pm (BST)
