$100m ADB loan for skills development of young workforce
The government yesterday signed an agreement for a $100 million loan with the Asian Development Bank (ADB) for upskilling young workforce, especially women, to enhance job opportunities, expand economic base and boost income.
The assistance is the second tranche of the $350 million multi-tranche financing facility approved by ADB in 2014 for the skills for employment investment programme (SEIP).
The remaining amount from the ADB assistance is expected to be utilised before the period of the financing facility ends in 2024, the Manila-based donor said in a statement yesterday.
Kazi Shofiqul Azam, secretary of the Economic Relations Division, and Kazuhiko Higuchi, country director of the Bangladesh resident mission of ADB, signed the loan agreement at a ceremony in Dhaka.
“The programme underpins the country's path towards higher income level with diversified and expanded economic base, while providing good jobs to people, especially women,” Higuchi said.
The second tranche of the SEIP will support expansion of the training programme to nine priority industries, bringing in three additional industry associations (Bangladesh Agro-processors' Association, Industry Skills Council for Hospitality and Tourism, and Bangladesh Women Chamber of Commerce and Industry), and 15 training providers.
Upskilling training for Bangladeshi migrant workers overseas, especially for managerial skills, is an important goal under the expanded programme, ADB said.
Over 240,000 people, 30 percent of whom are women, will be trained by 2021, according to the statement.
The SEIP tranche 2 programme is estimated to cost a total of $133 million. In addition to the $100 million ADB assistance, the programme is complemented by $25 million from the Bangladesh government, $4.5 million from the Swiss government, and $3.5 million from the private sector.
The second tranche of the ADB loan will have a 25-year term, including a grace period of 5 years, and an interest rate of 2 percent per annum.