Skills for Industry Competitiveness and Innovation Program (RRP BAN 55148)
Program Implementation Document
Project Number: 55148-001
Loan Number: LXXXX
July 2023
People’s Republic of Bangladesh: Skills for Industry
Competitiveness and Innovation Program
CONTENTS
Page
I.
PROGRAM DESCRIPTION
1
II.
RESULTS AND DISBURSEMENT
A.
The Results-Based Lending Program’s Overall Results
B.
Disbursement-Linked Indicators
C.
Disbursement-Linked Indicator Verification Protocols
D.
Disbursement Allocation and Status
3
3
12
17
38
III.
EXPENDITURE FRAMEWORK AND FINANCING
A.
Expenditure Framework
B.
Program Financing
41
41
41
IV.
PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS
A.
Monitoring and Evaluation System
B.
Fiduciary Systems
C.
Satisfying Procurement Member Country Eligibility Restrictions
D.
Safeguard Systems
E.
Gender and Social Dimensions
F.
Communication and Information Disclosure Arrangements
G.
Development Coordination
42
42
44
50
50
52
52
53
V.
INTEGRATED RISKS AND MITIGATING MEASURES
A.
Key Risks and Mitigating Measures
53
53
VI.
PROGRAM ACTION PLAN
A.
Status of Program Action Plan
57
57
VII.
MONITORING OF KEY PROGRAM COVENANTS
61
VIII.
ACCOUNTABILITY MECHANISM
61
IX.
PROGRAM ORGANIZATIONAL STRUCTURE AND FOCAL STAFF
A.
Organization Structure
B.
Program Officers and Focal Persons
C.
Project Implementation Organizations
61
63
65
65
APPENDIXES
1.
Design and Monitoring Framework
68
2.
Statement of Audit Needs - Draft Terms of Reference for Financial Audit
71
3.
Indicative Terms of Reference for Internal Audit
75
4.
Indicative Terms of Reference for Performance Audit
77
5.
ADB Guidelines to Prevent or Mitigate Fraud, Corruption, and Other Prohibited
Activities in Results-Based Lending for Programs
80
PURPOSE OF THE PROGRAM IMPLEMENTATION DOCUMENT
The developing member country is wholly responsible for implementing the program supported by resultsbased lending. Asian Development Bank staff support the results-based lending program design and
implementation.
The program administration document consolidates the essential program implementation information. It
is a management tool that supports effective program implementation, monitoring, and reporting. It is
developed throughout program processing and should be discussed with the developing member country
at loan negotiations. It is a living document that should be refined and kept up-to-date during program
implementation.
ABBREVIATIONS
ADB
BACS
DLI
DMC
EARF
e-GP
EMP
GRS
iBAS++
IEE
IVA
M&E
MOF
NHRDF
NSDA
OCAG
PAP
PID
PPR
PSSA
RBL
RRP
SDCMU
SEC
SEIP
STTL
TMS
TOR
TVET
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Asian Development Bank
Budget and Accounting Classification System
disbursement-linked indicator
developing member country
environmental assessment and review framework
e-Government Procurement
environmental management plan
grievance redress system
Integrated Budget and Accounting System
initial environmental examination
Independent verification agency
monitoring and evaluation
Ministry of Finance
National Human Resource Development Fund
National Skill Development Authority
Office of the Comptroller Audit General
program action plan
program implementation document
Public Procurement Rules
Program Safeguards System Assessment
results-based lending
report and recommendation of the President
Skills Development Coordination and Monitoring Unit
small ethnic communities
Skills for Employment Investment Program
smart textile technology living labs
trainee management system
terms of reference
technical and vocational education and training
I.
PROGRAM DESCRIPTION
1.
The Asian Development Bank (ADB) will finance the results-based lending (RBL) program
to support the Government of Bangladesh’s Skills Development Framework for Economic
Competitiveness 2023,1 as envisaged in the Perspective Plan of Bangladesh 2021−2041 (PP2041)
and the Eighth Five Year Plan July 2020−June 2025.2 The program aims to (i) increase the
technology-oriented skilled workforce across emerging and priority sectors, (ii) promote inclusive
skilling and upskilling opportunities for women and socially disadvantaged groups, (iii) incentivize
industry−university partnerships to nurture innovation capacity and improve industry
competitiveness, and (iv) foster skills for climate-resilient manufacturing processes and green
technologies.
2.
Rationale. Bangladesh’s aspiration to reach a high-income status by 2041 is highly
dependent on its capability to leverage technological advances, adapt to an evolving global
economic landscape, and foster industry competitiveness and diversification. This aspiration
demands deeper and wider measures to improve the country’s human capital, especially the skill
levels of the existing and future workforce, by addressing skills challenges across industries and
across disadvantaged sections of the population. To this end, the MOF has prepared the Skills
Development Framework for Economic Competitiveness 2023, anchored in the PP2041 and the
Eighth Five Year Plan.3 It consolidates various skilling efforts across several ministries, which are
ongoing or planned, into a single framework to prioritize their alignment with the strategic roadmap
for economic competitiveness and inclusive growth. The government framework entails four pillars
(Table 1) and emphasizes developing technology-oriented skills, information and communication
technology (ICT)-based technical skills, and research and development (R&D)-based innovations,
given that technology advances are transforming the nature of jobs and human resource needs
across industries. The RBL program supports the government framework by financing its selective
interventions in building a technology-oriented workforce across skill levels (i.e., advanced technical
skills, managerial capabilities, entry- to mid-level skills) for priority and emerging industries, which
would foster economic diversification and improve competitiveness. The RBL program supports
sector-focused skills initiatives in the public and private sectors by harnessing training partnerships
with industries. In addition to the nine priority sectors covered under the ongoing Skills for
Employment Investment Program (SEIP),4 the RBL program will incorporate skills for emerging
sectors such as automotive, electronics, and pharmaceuticals. The program also promotes socially
inclusive training and employment opportunities for women and socially disadvantaged groups
(e.g., people with disabilities, transgender people, people in small ethnic communities). The
interventions focus on incentivizing private industries and universities to collaborate for industryrequired human resources and industry-oriented R&D activities, with attention to green technology
solutions and climate-resilient business practices.
1
2
3
4
Government of Bangladesh, Ministry of Finance. 2023. Skills Development Framework for Economic
Competitiveness. Dhaka.
Government of Bangladesh, Ministry of Planning. 2020. Making Vision 2041 A Reality: Perspective Plan of
Bangladesh 2021-2041. Dhaka and Government of Bangladesh, Ministry of Planning. 2020. Eighth Five-Year Plan
July 2020−June 2025: Promoting Prosperity and Fostering Inclusiveness. Dhaka.
The MOF framework document has been approved by the Minister of MOF on 15 June 2023. The framework
consolidates ongoing or planned skills initiatives across ministries into a single framework to prioritize their alignment
with development goals of Vision 2041. The framework aims to ensure that the skills initiatives are well resourced
and coordinated to complement each other (without duplication) and boost synergy among varying initiatives.
ADB. 2014. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche
Financing Facility to the People’s Republic of Bangladesh for the Skills for Employment Investment Program. Manila.
Tranche 2 was processed in 2016 and tranche 3 in 2019; the tranche 3 loan will close in May 2024. The nine sectors
supported under the SEIP are garments and textiles, leather goods and footwear, information technology, light
engineering, construction, shipbuilding, agro-processing, hospitality and tourism, and nursing.
2
3.
The RBL program is aligned with ADB’s country partnership strategy for Bangladesh,
2021−2025 to (i) boost competitiveness, employment, and private sector development; (ii) promote
green growth and climate resilience; and (iii) strengthen human capital and social protection. The
RBL also contributes to ADB’s Strategy 2030 operational priorities on (i) addressing remaining
poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate
change, and building climate and disaster resilience, and enhancing environmental sustainability;
(iv) strengthening governance and institutional capacity; and (v) fostering regional cooperation and
integration.5 For climate change, it is also aligned with the goals of the Paris Agreement.6
4.
Results-based lending. The RBL is suitable because (i) the MOF has strong commitment
and ownership to accelerate coordinated skills initiatives and meet skills demands from emerging
and priority industries; (ii) the MOF intends to incentivize multiple stakeholders (e.g., key ministries,
industry partners, universities) to align their efforts and accountability towards achieving common
results, i.e., producing a skilled workforce for industry competitiveness; (iii) the MOF has
demonstrated strong institutional capacity under the long-term SEIP, financed by ADB through a
multitranche financing facility, in managing performance-based contracts with multiple training
partners, which can further strengthen results orientation in training partnerships; (iv) the MOF has
experience in implementing the World Bank’s program for results;7 (v) RBL helps reduce transaction
costs, while enhancing the government’s practices, systems, and institutional capacity to build an
agile and responsive skills system for sustainability; and (vi) ADB financing will leverage budgets
across several ministries for clear training outputs linked with industry demands.8
5.
Program scope. The scope of the broader government program and the RBL program is
summarized in Table 1. The RBL program supports selective outputs and interventions of the
broader government program.9
Table 1: Program Scope
Item
Outcome
Key outputs
5
6
7
8
9
Broader Government Program
Human capital enhanced for sustainable
economic development and inclusive
growth
(i) Increase advanced skilled workers for
priority manufacturing sectors
(ii) Expand ICT-based skills and
employment
(iii) Increase R&D initiatives for innovation
in industry
(iv) Expand equitable education and
training opportunities.
Results-Based Lending Program
Technology-oriented skilled workforce
increased for priority and emerging
industries across skill levels
Selective initiatives of the government
program will be supported, focusing on:
(i) advanced technical skills and
managerial capabilities for emerging
and priority industries,
(ii) industry−university collaborations for
R&D projects with applications of
advanced or green technologies,
(iii) socially inclusive skilling and upskilling
for women and people from
disadvantaged groups, and
(iv) enhanced skills monitoring and
coordination.
ADB. 2021. Country Partnership Strategy: Bangladesh, 2021–2025. Manila and ADB. 2018. Strategy 2030:
Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila.
The RBL’s alignment with the Paris Agreement was assessed during the preliminary climate and disaster risk
screening.
World Bank. 2019. Bangladesh: Strengthening Public Finance Management Program to Enable Service Delivery.
Washington, DC.
The ministries to be supported include the Ministry of Education, Department of Technical and Madrasah Education;
Ministry of Expatriates’ Welfare and Overseas Employment; the Ministry of Industries; and the Ministry of Textiles
and Jute.
Following the RBL policy, the program will not include high-value procurement contracts and packages.
3
Item
Activity types
Broader Government Program
Establish new polytechnics and training
institutes, increase ICT training in
education, expand employment in high-tech
parks, incorporate STEM in higher
education, establish technology centers of
international standards; and increase skills
for improved productivity of low-wage
workers.
Expenditure size
Main financiers and
their respective total
amounts
Results-Based Lending Program
Establish smart textile technology labs for
advanced technical training, upgrade other
centers for training on emerging
technologies, redesign managerial training
courses, develop competitive grants for
industry-oriented R&D projects, sign
training partnership agreements with public
and private sector partners, and conduct
skills training for migrant workers.
$708.9 million
Government: $408.9 million
ADB: $300.0 million
$7.005 billion
Government: $6.110 billion
World Bank: $300 million (ASSET)
World Bank: $295 million (EDGE)
ADB: $300 million
Geographic coverage
Nationwide
Nationwide
Implementation period
FY2024−FY2029
FY2024−FY2029
ADB = Asian Development Bank; ASSET = Accelerating and Strengthening Skills for Economic Transformation;
EDGE = Enhancing Digital Government and Economy Project; FY = fiscal year; ICT = information and communication
technology; R&D = research and development; STEM = science, technology, engineering, and mathematics.
Note: The World Bank’s ASSET (approved in 2021) and EDGE (approved in 2020) also support the government’s
broader program, which are excluded in the RBL scope. EDGE focuses on ICT initiatives such as training and
workforce development, while ASSET supports market-oriented technical and vocational education and training
programs through various institutions.
Sources: Government of Bangladesh, Ministry of Finance and Asian Development Bank estimates.
II.
A.
RESULTS AND DISBURSEMENT
The Results-Based Lending Program’s Overall Results
6.
The RBL program’s impact will be a technology-ready workforce developed for a diversified
and innovation-driven economy.10 The outcome will be an increased technology-oriented skilled
workforce for priority and emerging industries across skill levels.11 The outcome will be measured
by the following: (i) skilled workers across skill levels—from basic to advanced technical skills—
produced for at least 10 priority and emerging industries, with 65% job placement for new job
seekers (disbursement-linked indicator [DLI] 1); and (ii) women and people from socially
disadvantaged groups with employable and/or life skills increased through specially targeted
programs (DLI 2). The program is expected to benefit about 220,000 new and existing workers over
a 6-year implementation period.12
7.
Output 1: Capacity for advanced technical skills training developed for emerging and
priority sectors. This output will cultivate higher-level technical skills for existing priority and newly
emerging sectors, such as electronics, automotive, and pharmaceutical, through partnerships
between industries and education and/or training institutes (DLI 3). The skill requirements will be
identified by leading industries, particularly for high-demand technology-related skills. Industries will
be involved in developing curricula and instructors as well. The Finance Division in the MOF is
setting up an industry advisory board for the program, consisting of leading industries. Some
polytechnics in industrial areas will be converted into specialized polytechnics to offer customized
10
Government of Bangladesh, Ministry of Planning. 2020. Making Vision 2041 a Reality: Perspective Plan of
Bangladesh 2021−2041. Dhaka.
11 The design and monitoring framework is in Appendix 1.
12 The expected number of beneficiaries under the RBL is equivalent to about 20% of the annual enrollment in
technical and vocational education and training institutes in the country. The program’s beneficiaries will include
those trained in advanced technical and managerial courses covering at least five to seven emerging and priority
sectors based on university–industry partnerships.
4
skills courses for emerging industries (e.g., automobiles, electronics).13 This output will also
enhance the institutional capacity to produce skilled workers adept at emerging technologies,
including green technologies (DLI 4). It will create an automotive skills training center at a
polytechnic focusing on electric vehicles, establish smart textile technology living labs (STTLs) in
two textile engineering colleges,14 and set up high-demand technology-based courses in garments
universities and in a light engineering institute. Many of these technical courses will have
international partnerships for transfer of knowledge, training of instructors, and capacity
development.15
8.
Output 2: Managerial capabilities and green innovation capacity strengthened.
Building on the SEIP’s introduction of executive development centers (EDC) that impart customized
mid-level managerial training through university–industry partnerships, the government will further
institutionalize the EDCs in partnering universities (e.g., Bangladesh University of Textiles, BRAC
University, Dhaka University, and East West University).16 EDC courses will be redesigned to align
with industry’s technology trends and global environmental standards, including green technologies
and business practices (DLI 5). This output will also promote applied R&D for industry solutions and
incubation opportunities (DLI 6) by providing competitive grants. This initiative intends to foster
collaborative innovations in industrial production processes and value-added product or service
development. Applied R&D projects supporting the growth of small and medium-sized enterprises
and climate-resilient products or services will be prioritized.17 The government will make efforts to
bring overseas scientists and engineers of Bangladeshi origin to contribute to the transfer of
knowledge and skills, which will connect local industries and academies to the global network. This
will become a basis of developing a government policy or program.
9.
Output 3: Access to socially inclusive skilling and upskilling expanded. This output
will continue to support basic and mid-level skills training of new entrants or existing workers with
industry partnerships, following the SEIP's sector-focused training models, covering at least nine
priority sectors (DLI 7). These will be implemented in close coordination with the National Skills
Development Authority (NSDA) and National Human Resource Development Fund (NHRDF).18 It
will also create specially targeted skills programs for socially disadvantaged groups (e.g., people
with disabilities, transgender people, and people in small ethnic communities); women garment
sector workers who are at high risk of job loss because of automation; and those who may be
negatively affected by the transition to a low-carbon economy. For women, upskilling and multiskilling for future garment work or alternative livelihoods, community-based support for
empowerment, and green entrepreneurship skills will be provided in partnership with the H&M
Foundation and the Asia Foundation. The government will also scale up skills courses with
13
A polytechnic in Narsingdi, where an automobile production plant is being established, will become a specialized
center of excellence for automotive technical skills.
14 Smart textile technology labs provide hands-on learning environments with technology applications, including yarn
manufacturing and fabric and/or garments production, using global standards in testing and production. It aims to
strengthen capabilities of the textile industry workforce and promote R&D, especially in man-made fabrics.
15 The identified international partnerships include the Korea Hightech Textile Research Institute for smart textile
technology labs; the Fashion Institute of Technology in New York for the Bangladesh University of Fashion and
Technology; and the Korea University of Technology and Education for the Bangladesh Industrial Technical
Assistance Center.
16 The current executive development centers focus on the following four industries: garments, textiles, knitwear, and
leather goods and footwear.
17 This component will be linked with the government’s financing initiatives in promoting diversification (footnote 7).
18 The program will coordinate with (i) the National Skills Development Authority to ensure that training providers under
the RBL are registered, and (ii) the National Human Resource Development Fund to avoid overlapping support for
training providers under the RBL.
5
international certification for potential migrant workers, which will enable them to gain better
employment opportunities overseas and increase remittance flows (DLI 8).
10.
Output 4: Institutional capacity for skills monitoring and management enhanced. This
output will support the establishment of an industry advisory board for output 1 activities, which will
guide the development of advanced technical skills courses by ensuring the coverage of emerging
sectors and new skills requirements.19 The output will continue to enhance monitoring mechanisms,
such as the online trainee management system (TMS) created under the SEIP to monitor training
performance and track its outcomes. Analytic studies, such as a tracer study and industry skills
trends analysis, will be undertaken to assess the effectiveness of new skills programs and to
institutionalize effective training partnership models. The output will ensure effective management
and governance of skills development systems overall, by undertaking financial audits, internal
audits, and performance audits of the RBL program.
11.
The results indicators critical for achieving the RBL program outcome and outputs are
chosen as DLIs. The program includes nine DLIs, representing core skills areas across diverse
industries demanded for improved industry competitiveness and employment. The allocation of
ADB financing for each DLI is based on the significance of its achievement for the program outcome,
combined with the scope of activities required for DLI achievement. The DLIs include a mix of
outcome, output, and institutional indicators, together with essential process outputs to be
undertaken in building the capacity for an agile and responsive skills system across skill levels.
Essential prerequisites for effective implementation of the RBL program are identified as prior
results for select DLIs. Partial disbursement will be allowed for most DLIs once target achievement
has reached a minimum required level (e.g., about 60%). The DLIs and their disbursement
allocations are summarized in Table 2.
Table 2: Disbursement-Linked Indicators
Indicator
Outcome: Technology-oriented skilled workforce increased for priority
and emerging industries across skill levels
DLI 1: Skilled workers across skill levels produced for at least 10 priority and
emerging sectors, with 65% job placement for new job seekers
DLI 2: Women and people from socially disadvantaged groups with employable
work and life skills increased through specially targeted programs
Output 1: Capacity for advanced technical skills training developed for
emerging and priority sectors
DLI 3: Industry-demanded advanced technical skills courses created and
implemented, including green technical skills
DLI 4: Access to practical training in advanced technologies increased,
including green technologies and green skills
Output 2: Managerial capabilities and green innovation capacity
strengthened
DLI 5: Mid-level management courses redesigned and implemented
DLI 6: R&D projects through university–industry partnerships piloted, focusing
on applications of advanced and/or green technologies for industry
development
Output 3: Access to socially inclusive skilling and upskilling expanded
19
Disbursement
Allocated
($ million)
Share of
Total ADB
Financing (%)
21
7.0
15
5.0
40
13.3
45
15.0
40
13.3
20
6.7
The industry advisory board is expected to consist of industry leaders from emerging sectors to advise the
government regarding demand for advanced technical skills areas across the sectors. This board is intended for the
government to ensure the coverage of sectors where advanced skills are in need.
6
Disbursement
Allocated
($ million)
Share of
Total ADB
Financing (%)
Indicator
DLI 7: Competency-based, job-ready entry and mid-level skills courses
64
21.3
redesigned and implemented for at least nine priority sectors with industry
partnerships
DLI 8: Access to skills courses with international certification increased for
20
6.7
potential migrant workers
Output 4: Institutional capacity for skills monitoring and management
enhanced
DLI 9: Skills program management, monitoring, and evaluation capacity
35
11.7
strengthened
Total
300
100.0
ADB = Asian Development Bank, DLI = disbursement-linked indicator, R&D = research and development.
Source: Asian Development Bank estimates.
12.
The program results framework represents overall key results areas, including both DLIs
and non-DLI (Table 2). Table 2 shows annual target indicators for each of DLIs and non-DLI. Table
3 presents the DLI matrix, including only DLIs and their annual indicators.
7
1.
Program Results Framework
Table 3: Results-Based Lending Program Results Framework
(as of 10 May 2023)
Result Indicators
DLI
(Yes
/ No)
Baseline Value &
Year
Prior results
2024 (Year 1)
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
Outcome: Technology-oriented skilled workforce increased for priority and emerging industries across skill levels
1. Skilled workers
across skill levels
produced for at
least 10 priority
and emerging
sectors (i.e.,
advanced
technical,
managerial, and
entry-levels), with
65% job
placement for new
job seekers
Yes
(DLI
1)
Total number of
people under
SEIP Tranche 2
(2017−2022) who
completed training
was 197,000. The
total consisted of
30% mid-level
technical skill and
70% entry-level
skill training. Job
placement rate for
new job seekers
was 61.3%.
[cumulative]
2. Women and
people from
socially
disadvantaged
groups with
employable work
and life skills
increased through
specially targeted
programs (e.g.,
people with
disabilities,
orphans,
transgender
people, people
from small ethnic
communities)
[cumulative]
Yes
(DLI
2)
Under SEIP
Tranche 3, about
4,100 women are
in training through
special targeted
programs; about
2,600 people from
small ethnic
communities; 275
orphans; and 176
people with
disabilities, in their
respective
targeted
programs.
(i) At least
80,000 people
improved sectorrelevant skills
with certified
training across all
skill levels.
(i) At least
120,000 people
improved sectorrelevant skills
with certified
training across all
skill levels
(i) At least
160,000 people
improved sectorrelevant skills
with certified
courses across
all skill levels
(ii) At least 65%
of certified new
job seekers are
placed in job
within 6 months
(65% each for
men and
women).
At least 12,500
women and
socially
disadvantaged
people gained
employable
skills, including
life skills and
entrepreneurship
training (progress
for each of
socially
disadvantaged
groups to be
shown).
(ii) At least 65%
of certified new
job seekers are
placed in job
within 6 months
(65% each for
men and
women).
At least 20,000
women and
socially
disadvantaged
people gained
employable
skills, including
life skills and
entrepreneurship
training (progress
for each of
socially
disadvantaged
groups to be
shown).
(ii) At least 65%
of certified new
job seekers are
placed in job
within 6 months
(65% each for
men and
women).
At least 26,500
women and
socially
disadvantaged
people gained
employable
skills, including
life skills and
entrepreneurship
training (progress
for each of
socially
disadvantaged
groups to be
shown).
8
Result Indicators
DLI
(Yes
/ No)
Baseline Value &
Year
Prior results
2024 (Year 1)
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
Output 1: Capacity for advanced technical skills training developed for emerging and priority sectors
3. Industrydemanded
advanced
technical skills
courses created
and implemented,
including green
technical skills
Yes
(DLI
3)
Currently very few
job-ready
certificate-level
courses are
available at the
advanced
technical skill level
in technology
applications,
especially for
emerging sectors.
Standard
contract and
training plan
templates
(including cost
norms and
implementation
guidelines) for
advanced
technical skills
finalized and
endorsed.
Yes
(DLI
4)
There are limited
opportunities for
practical training
in advanced
technologies at
present.
(i)Training
curriculum and
operational
plans for
advanced
smart textile
technology
labs (STTLs)
finalized and
endorsed.
[cumulative for
trainees]
4. Access to
practical training
in advanced
technologies
increased,
including green
technologies and
green skills (e.g.,
STTLs, BITAC,
BUFT,
polytechnicsautomotive)
[cumulative for
labs or
workshops]
(ii)Detailed
designs for
STTLs with
climate
resilient
features and
green
technology
equipment
At least 5
industryacademic
partnership
MOUs
(including
international
partnerships)
signed for
advanced
technical
training for
emerging and
priority
industries
(e.g.,
automotive,
light
engineering) .
At least 15
advanced
technical courses
commenced,
including those
related green
skills.
Training of
trainers on the
use of
advanced
technologies are
in place and at
least [20] trainers
commenced
training (e.g.,
BITAC, STTLs).
At least 2,110
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 3,200
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 4,800
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 20
technology labs
or workshops
operationalized
for advanced
training,
incorporating
barrier free,
climate resilient
and green
building features.
At least 35
technology labs
or workshops
operationalized
for advanced
training,
incorporating
barrier free,
climate resilient
and green
building features.
9
Result Indicators
DLI
(Yes
/ No)
Baseline Value &
Year
Prior results
2024 (Year 1)
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
finalized and
endorsed.
Output 2: Managerial capabilities and green innovation capacity strengthened
5. Mid-level
Yes
Under SEIP
(i) Standard
At least 500
management
(DLI
Tranche 2, 1,695
contract and
people
courses
5)
people were
training plan
enrolled in
redesigned and
enrolled in midtemplates
EDC courses
implemented
level management (including
(at least 15%
EDC courses at 4
updated cost
women).
[cumulative]
partner
norms and
universities
implementation
covering 4
guidelines) are
industry sectors
finalized and
(9.7% women).
endorsed.
At least 1,260
people enrolled
in EDC courses
(at least 15%
women).
At least 2,100
people enrolled
in EDC courses
(at least 15%
women).
(i) Sector-wise
tracer and/or
evaluation
studies
completed and
disseminated.
At least 3,250
people enrolled
in redesigned
EDC courses (at
least 15%
women).
(ii) EDC courses
updated based
on tracer and/or
evaluation
studies.
(ii) Each
partnering
university EDC
courses
redesigned to
incorporate
green business
practices and
emerging
technology
trends.
6. R&D projects
through universityindustry
partnerships
piloted, focusing
on applications of
advanced and/or
green
technologies for
industry
development
7. A draft policy or
program
developed to bring
non-resident
Yes
(DLI
6)
No ongoing
industry-university
partnerships for
industry-oriented
R&D projects.
The guidelines
for competitive
grants on
industryoriented R&D
endorsed and
disseminated.
At least 8
proposals based
on universityindustry
partnerships
selected for R&D
projects.
No
No ongoing
program or
scheme.
A working
group formed
for
establishment
A list of potential
NRB scientists
and engineers
At least 3
consultative
workshops held
with government,
At least 7 R&D
projects under
implementation
through
universityindustry
collaborations.
At least 5 R&D
project outcomes
have been
piloted or
adopted by
industries.
At least 3
optional incentive
schemes drafted
Draft policy or
program placed
for endorsement
10
Result Indicators
DLI
(Yes
/ No)
Baseline Value &
Year
Bangladeshi
(NRB) scientists
and engineers for
collaborative R&D
projects
Prior results
2024 (Year 1)
of procedures
for the
program,
including one
NRB
representative.
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
compiled by a
working group.
academic, and
NRB
representatives.
for policy
discussions.
by relevant
authority.
At least 42,000
people are
enrolled in
sector-specific
training, with
30% women.
At least 90,000
people are
enrolled in
sector-specific
training, with
30% women.
(i) Training
performance
evaluated and
training courses
revised based on
sector-specific
job placement
and partner
performance
records.
At least 160,000
people are
enrolled in
sector-specific
training, with
30% women.
Output 3: Access to socially inclusive skilling and upskilling expanded
8. Competencybased, job-ready
entry and midlevel skills
courses
redesigned and
implemented for
at least 9 priority
sectors with
industry
partnerships
Yes
(DLI
7)
Under SEIP
Tranche 2, about
199,665 people
enrolled in
competencybased, job-ready
entry- and midlevel technical
courses.
[cumulative]
9. Access to skills
courses with
international
certification
increased for
potential migrant
workers (at least
10% women)
[cumulative for
courses and for
trainees]
Yes
(DLI
8)
Under SEIP
Tranche 2, about
2,100 people
enrolled in
international
certificate
courses.
At least 9
industry
associations or
other partners
signed for
training
partnerships
with updated
training course
plans, covering
at least 9
priority sector
training.
At least 5
international
certification
courses
identified and
agreements
signed with
partner
organizations.
(ii) At least
135,000 people
are enrolled in
sector-specific
training, with
30% women.
At least 8 agreed
courses are
operationalized
and commenced
for skills training.
At least 14,500
people enrolled
in international
certificate
courses (at least
10% women).
At least 18,000
people enrolled
in international
certificate
courses (at least
10% women).
11
Result Indicators
DLI
Baseline Value &
(Yes
Year
Prior results
2024 (Year 1)
/ No)
Output 4: Institutional capacity for skills monitoring and management enhanced
10. Skills program Yes
Under SEIP,
For advanced
(i) TMS system
management,
(DLI
online trainee
technical skills
enhanced to
monitoring, and
9)
management
programs,
incorporate
evaluation
system (TMS)
Industry
modules on
capacity
monitors
Advisory Board different levels
strengthened
performance of
is established
of skills
training partners
to guide on
training; and
with
emerging
disaggregated
disaggregated
sector and
data of
data information;
skills
trainees
various M&E and
requirements.
available by
fiduciary activities
sex and other
were undertaken
individual
during
attributes (e.g.,
implementation.
ethnic
minorities,
disabilities).
(ii) An annual
internal audit
plan for the
RBL program
developed and
approved.
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
(i) Annual
analytic report on
TMS data
produced and
disseminated,
with
disaggregated
analysis by
gender and
socially
disadvantaged
groups.
(ii) Performance
audit plans for
implementing
partners (public
and private) in
place; an
independent
auditor is on
board; and the
performance
audit
commenced.
(i) Internal audit
undertaken,
covering at least
5 implementing
partners, and
action plans
agreed.
(iii) Performance
audits of all
implementing
partners
completed,
performance
audit report
issued, and
remedial actions,
if any, are taken
by SDCMU or
incorporated into
revised training
plans or
amended
contracts.
(i) Tracer or
evaluation
studies
completed to
assess the
program
effectiveness and
results are
disseminated.
(ii) Annual
analytic report on
TMS data
produced and
disseminated.
2028 (Year 5)
(i) Internal audit
undertaken,
covering at least
10 implementing
partners, and
action plans
implemented.
(ii) Second
performance
audit report
issued and
remedial actions,
if any, are taken
by SDCMU.
ADB = Asian Development Bank, BITAC = Bangladesh Industrial Technical Assistance Center, BUFT = Bangladesh University of Fashion and Technology, DLI =
disbursement-linked indicator, EDC = executive development center, IVA = independent verification agency, M&E = monitoring and evaluation, RBL = resultsbased lending, MOU = memorandum of understanding, R&D = research and development, SDCMU = Skills Development Coordination and Monitoring Unit, SEIP
= Skills for Employment Investment Program, STTL = smart textile technology living lab, TMS = trainee management system.
Source: Asian Development Bank.
12
B.
Disbursement-Linked Indicators
1.
Description of Disbursement-Linked Indicators
Table 4: Disbursement-Linked Indicators
(as of 10 May 2023)
Result Indicators
Baseline Value
& Year
Prior results
2024 (Year 1)
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
Outcome: Technology-oriented skilled workforce increased for priority and emerging industries across skill levels
1. Skilled workers
Total number of
(i) At least
across skill levels
people under
80,000 people
produced for at least 10 SEIP Tranche 2
improved sectorpriority and emerging
(2017−2022)
relevant skills
sectors (i.e., advanced
who completed
with certified
technical, managerial,
training was
training across all
and entry-levels), with
197,000. The
skill levels.
65% job placement for
total consisted of
new job seekers
30% mid-level
(ii) At least 65%
technical skill
of certified new
[cumulative]
and 70% entryjob seekers are
level skill
placed in job
training. Job
within 6 months
*The target here
placement rate
(65% each for
excludes those being
for new job
men and
counted under DLI 2
seekers was
women).
61.3%.
2. Women and people
Under SEIP
At least 12,500
from socially
Tranche 3, about
women and
disadvantaged groups
4,100 women are
socially
with employable work
in training
disadvantaged
and life skills increased
through special
people gained
through specially
targeted
employable
targeted programs (e.g., programs; about
skills, including
people with disabilities,
2,600 people
life skills and
orphans, transgender
from small ethnic
entrepreneurship
people, people from
communities;
training (progress
small ethnic
275 orphans; and
for each of
communities)
176 people with
socially
disabilities, in
disadvantaged
[cumulative]
their respective
groups to be
targeted
shown).
programs.
2028 (Year 5)
(i) At least
120,000 people
improved sectorrelevant skills
with certified
training across all
skill levels.
(i) At least
160,000 people
improved sectorrelevant skills
with certified
courses across
all skill levels.
(ii) At least 65%
of certified new
job seekers are
placed in job
within 6 months
(65% each for
men and
women).
(ii) At least 65%
of certified new
job seekers are
placed in job
within 6 months
(65% each for
men and
women).
At least 20,000
women and
socially
disadvantaged
people gained
employable
skills, including
life skills and
entrepreneurship
training (progress
for each of
socially
disadvantaged
groups to be
shown).
At least 26,500
women and
socially
disadvantaged
people gained
employable
skills, including
life skills and
entrepreneurship
training (progress
for each of
socially
disadvantaged
groups to be
shown).
13
Result Indicators
Baseline Value
& Year
Prior results
2024 (Year 1)
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
Output 1: Capacity for advanced technical skills training developed for emerging and priority sectors
3. Industry-demanded
advanced technical
skills courses created
and implemented,
including green
technical skills
[cumulative for trainees]
4. Access to practical
training in advanced
technologies increased,
including green
technologies and green
skills (e.g., STTLs,
BITAC, BUFT,
polytechnicsautomotive)
[cumulative for labs or
workshops]
Currently very
few job-ready
certificate-level
courses are
available at the
advanced
technical skill
level in
technology
applications,
especially for
emerging
sectors.
Standard
contract and
training plan
templates
(including cost
norms and
implementation
guidelines) for
advanced
technical skills
finalized and
endorsed.
There are limited
opportunities for
practical training
in advanced
technologies at
present.
(i)Training
curriculum and
operational
plans for
advanced smart
textile
technology
living labs
(STTLs)
finalized and
endorsed.
(ii)Detailed
designs for
STTLs with
climate resilient
features and
green
technology
equipment
finalized and
endorsed.
At least 5
industryacademic
partnership
MOUs
(including
international
partnerships)
signed for
advanced
technical
training for
emerging and
priority
industries (e.g.,
automotive, light
engineering).
At least 15
advanced
technical
courses
commenced,
including those
related green
skills.
Training of
trainers on the
use of
advanced
technologies
are in place
and at least 20
trainers
commenced
training (e.g.,
BITAC,
STTLs).
At least 2,110
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 3,200
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 4,800
trainees enrolled
in advanced
technical
courses, with at
least 15%
women
participation.
At least 20
technology labs
or workshops
operationalized
for advanced
training,
incorporating
barrier free,
climate resilient
and green
building features.
At least 35
technology labs
or workshops
operationalized
for advanced
training,
incorporating
barrier free,
climate resilient
and green
building features.
14
Result Indicators
Baseline Value
& Year
Prior results
2024 (Year 1)
Output 2: Managerial capabilities and green innovation capacity strengthened
5. Mid-level
Under SEIP
(i) Standard
At least 500
management courses
Tranche 2, 1,695 contract and
people enrolled
redesigned and
people were
training plan
in redesigned
implemented
enrolled in midtemplates
EDC courses
level
(including
(at least 15%
management
updated cost
women).
EDC courses at
norms and
[cumulative]
4 partner
implementation
universities
guidelines) are
covering 4
finalized and
industry sectors
endorsed.
(9.7% women).
(ii) Each
partnering
university EDC
courses
redesigned to
incorporate
green business
practices and
emerging
technology
trends.
6. R&D projects
No ongoing
The guidelines
through
industry−universi
for competitive
university−industry
ty partnerships
grants on
partnerships piloted,
for industryindustryfocusing on applications oriented R&D
oriented R&D
of advanced and/or
projects.
endorsed and
green technologies for
disseminated.
industry development
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
At least 1,260
people
enrolled in
redesigned
EDC courses
(at least 15%
women).
At least 2,100
people enrolled
in redesigned
EDC courses (at
least 15%
women).
(i) Sector-wise
tracer and/or
evaluation
studies
completed and
disseminated.
2028 (Year 5)
At least 3,250
people enrolled
in redesigned
EDC courses (at
least 15%
women).
(ii) EDC courses
updated based
on tracer and/or
evaluation
studies.
At least 8
proposals
based on
university−
industry
partnerships
selected for
R&D projects.
At least 7 R&D
projects under
implementation
through
universityindustry
collaborations.
At least 5 R&D
project outcomes
have been
piloted or
adopted by
industries.
(i) Training
performance
evaluated and
training courses
revised based on
At least 160,000
people are
enrolled in
sector-specific
Output 3: Access to socially inclusive skilling and upskilling expanded
7. Competency-based,
job-ready entry and
mid-level skills courses
redesigned and
implemented at least for
Under SEIP
Tranche 2, about
199,665 people
enrolled in
competency-
At least 9
industry
associations or
other partners
signed for
At least 42,000
people are
enrolled in
sector-specific
At least 90,000
people are
enrolled in
sector-specific
15
Result Indicators
9 priority sectors with
industry partnerships
[cumulative]
8. Access to skills
courses with
international
certification increased
for potential migrant
workers (at least 10%
women)
Baseline Value
& Year
based, job-ready
entry- and midlevel technical
courses.
Under SEIP
Tranche 2, about
2,100 people
enrolled in
international
certificate
courses.
Prior results
2024 (Year 1)
training
partnerships
with updated
training course
plans, covering
at least 9
priority sector
training.
At least 5
international
certification
courses
identified and
agreements
signed with
partner
organizations.
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
training, with
30% women.
[cumulative for courses
and for trainees]
Output 4: Institutional capacity for skills monitoring and management enhanced
9. Skills program
Under SEIP,
For advanced
(i)TMS system
(i) Annual
management,
online trainee
technical skills
enhanced to
analytic report
monitoring and
management
programs,
incorporate
on TMS data
evaluation capacity
system (TMS)
Industry
modules on
produced and
strengthened
monitors
Advisory Board
different levels
disseminated,
performance of
is established to of skills training; with
training partners
guide on
and
disaggregated
with
emerging sector disaggregated
analysis by
disaggregated
and skills
data of trainees
gender and
data information;
requirements.
available by sex socially
various M&E and
and other
disadvantaged
fiduciary
individual
groups.
activities were
attributes (e.g.,
undertaken
ethnic
(ii)
during
minorities,
Performance
implementation.
disabilities).
audit plans for
implementing
training, with
30% women.
sector-specific
job placement
and
performance
records.
2028 (Year 5)
training, with
30% women.
(ii) At least
135,000 people
are enrolled in
sector-specific
training, with
30% women.
At least 8 agreed
courses are
operationalized
and commenced
for skills training.
At least 14,500
people enrolled
in international
certificate
courses (at least
10% women).
At least 18,000
people enrolled
in international
certificate
courses (at least
10% women).
(i) Internal audit
undertaken,
covering at least
5 implementing
partners, and
action plans
agreed.
(i)Tracer or
evaluation
studies
completed to
assess the
program
effectiveness and
results are
disseminated.
(i) Internal audit
undertaken,
covering at least
10 implementing
partners, and
action plans
implemented.
(ii) Performance
audits of all
implementing
partners
completed,
performance
audit report
issued, and
remedial actions,
(ii) Annual
analytic report on
TMS data
produced and
disseminated.
(ii) Second
performance
audit report
issued and
remedial actions,
if any, are taken
by SDCMU.
16
Result Indicators
Baseline Value
& Year
Prior results
2024 (Year 1)
(ii) An annual
internal audit
plan for the RBL
program
developed and
approved.
Target Values and Results Indicators
2025 (Year 2)
2026 (Year 3)
2027 (Year 4)
2028 (Year 5)
partners
if any, are taken
(public and
by SDCMU or
private) in
incorporated into
place; an
revised training
independent
plans or
auditor is on
amended
board; and the
contracts.
performance
audit
commenced.
ADB = Asian Development Bank, BITAC = Bangladesh Industrial Technical Assistance Center, BUFT = Bangladesh University of Fashion and Technology, DLI =
disbursement-linked indicator, EDC = executive development center, IVA = independent verification agency, M&E = monitoring and evaluation, RBL = resultsbased lending, MOU = memorandum of understanding, R&D = research and development, SDCMU = Skills Development Coordination and Monitoring Unit, SEIP
= Skills for Employment Investment Program, STTL = smart textile technology living lab, TMS = trainee management system.
Source: Asian Development Bank
17
C.
Disbursement-Linked Indicator Verification Protocols
1.
Description of the Verification Protocols
Table 5: Disbursement-Linked Indicator Verification Protocols
(as of 10 May 2023)
Information
Disbursement-Linked
Source and
Verification Agency and
Verification
Indicators
Definition and Description of Achievement
Frequency
Procedure
Time Frame
Outcome: Technology-oriented skilled workforce increased for priority and emerging industries across skill levels
DLI 1. Skilled workers across skill levels produced at least for 10 priority and emerging sectors, with 65% job placement for new job seekers
2026 (Year 3)
Definition: Sector-relevant skills across skill levels refer
The TMS data will
SDCMU will prepare a
The cut-off
(i) At least 80,000 people
to all skills training implemented under SICIP and include
generate the status report on DLI achievement
date for TMS
improved sector-relevant
advanced technical skills under output 1, mid-level
report on training
based on TMS data that
data will be 31
skills with certified training
managerial skills (EDCs) and related short-term skills
achievement
are validated by SDCMU
December
across all skill levels ($4
under output 2, and entry- and mid-level skills
annually.
team, and submit the report each year.
million)
implemented by industry associations or NGOs under
to IVA with data sources.
Verification will
output 3.
be completed
2027 (Year 4)
The IVA will verify the
by 30 April the
(i) At least 120,000 people
The targets will count the trainees who complete diplomareport based on TMS data
following year.
improved sector-relevant
or certificate-level training for above mentioned courses
or other detailed data
skills with certified training
cumulatively over time. The targets for DLI 1do not
sources from SDCMU as
across all skill levels ($4
include women and trainees from socially disadvantaged
needed. The IVA will
million)
groups enrolled in specially targeted training courses,
submit the verification
which are counted for DLI 2.
report to the Finance
2028 (Year 5)
Division and ADB.
(i) At least 160,000 people
Partial disbursement: If at least 60% of the target
improved sector-relevant
number is achieved, partial disbursement will be made for
skills with certified training
the amount proportional to the target achieved. The
across all skill levels ($4
remaining amount will be disbursed upon achievement of
million)
the full target. For example, for year 3 the target is 80,000
for the disbursement amount of $4 million. If only 70,000
[Cumulative targets across
target is met, $3.5 million will be disbursed (87.5% of $4
years]
million based on 70,000/80,000 x 100). The remaining
amount will be released when the full target of 80,000 is
met during the program duration.
2026 (Year 3)
Definition: The job placement rate will be calculated as
The TMS data will
SDCMU will prepare a
The cut-off
(ii) At least 65% of certified
the number of certified trainees who find gainful
generate the status report on DLI achievement
date for TMS
new job seekers are placed
employment, including self-employment within 6 months
report on training
based on TMS data that
data will be 31
in jobs within 6 months of
of training completion, divided by the total number of
achievement
are validated and submit
December
training completion (65%
certified trainees. The calculation of the job placement
annually.
the report to IVA with data
each year.
rate will only include certified trainees who did not have
sources.
Verification will
18
Disbursement-Linked
Indicators
each for men and women)
($3 million)
2027 (Year 4)
(ii) At least 65% of certified
new job seekers are placed
in jobs within 6 months of
training completion (65%
each for men and women)
($3 million)
Definition and Description of Achievement
any job or self-employment at the time of enrolling in the
training (i.e. new job seekers). Those trainees who
already had a job at the time of enrolling in training will be
excluded from the calculation.
The targets are considered to be achieved when at least
65% of the cumulative number of certified new job
seekers are shown to be placed in jobs (calculated
separately for men and women), as documented in the
TMS data and validated by SDCMU.
Information
Source and
Frequency
Verification Agency and
Procedure
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA will
submit the verification
report to the Finance
Division and ADB.
Partial disbursement: If at least 60% of certified new job
seekers (percentage based on cumulative numbers) are
placed in jobs by the cutoff date (combining men and
women), partial disbursement of $2 million will be made
from the total allocated disbursement amount of $3
million. The rest will be released when the target of 65% is
met.
DLI 2. Women and people from socially disadvantaged groups with employable skills increased through specially targeted programs
2026 (Year 3)
Definition: The targets refer to those trainees who
The TMS data will
SDCMU will prepare a
At least 12,500 women and
complete courses created specifically for women and
generate the status report on DLI achievement
socially disadvantaged
those from socially disadvantaged groups, which include
report on training
based on TMS data that
people gained employable
people with disabilities, transgender people, orphans, and
achievement
are validated and submit
skills, including life skills and people from small ethnic communities. For women, the
annually,
the report to IVA with data
entrepreneurship training
courses refer to those implemented by BWCCI and H&M
disaggregated by
sources.
($5 million)
Foundation in collaboration with the Asia Foundation.
women and by
Women: 10,000
Additional targeted programs that are developed for the
separate socially
The IVA will verify the
Socially disadvantaged:
same purpose by other partners will also be counted.
disadvantaged
report based on TMS data
2,500 (includes people
groups.
or other detailed data
with disabilities,
The targets are met when the planned aggregate number
sources from SDCMU as
transgender, people from
is achieved cumulatively, including at least 60% of women
needed. The IVA will
small ethnic communities)
target and at least 60% of socially disadvantaged group
submit the verification
target.
report to the Finance
2027 (Year 4)
Division and ADB.
At least 20,000 women and
Partial disbursement: Partial disbursement will be made
socially disadvantaged
for the amount proportional to the aggregate number
people gained employable
achieved if all of the following three conditions are met: (i)
skills, including life skills and at least 60% of the aggregate target number is achieved;
entrepreneurship training
(ii) at least 60% of the target for women is achieved; and
($5 million)
(iii) at least 60% of the target for socially disadvantaged
Women: 16,000
groups is achieved. The remaining amount will be
Verification
Time Frame
be completed
by 30 April the
following year.
2028 (Year 5)
(ii) At least 65% of certified
new job seekers are placed
in jobs within 6 months of
training completion ($3
million)
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
19
Disbursement-Linked
Indicators
Socially disadvantaged:
4,000
Definition and Description of Achievement
released when the planned cumulative target is met
during the program duration.
Information
Source and
Frequency
Verification Agency and
Procedure
2028 (Year 5)
If the aggregate target is met but if any one of the
At least 26,500 women and
conditions outlined in (ii) or (iii) above is not met, then the
socially disadvantaged
disbursement amount will be reduced by $1 million at the
people gained employable
end of Year 5.
skills, including life skills and
entrepreneurship training
($5 million)
Women: 20,000
Socially disadvantaged:
6,500
Output1: Capacity for advanced technical skills training developed for emerging and priority sectors
DLI 3. Industry-demanded advanced technical skills courses created and implemented, including green technical skills
Prior results (2023)
Definition: Following the established procedure at
Contract document SDCMU will prepare a
Standard contract and
SDCMU for all training programs, there will be a contract
template approved
report on DLI achievement
training plan templates
template for advanced skills programs, which includes
by relevant
based on the contract
(including cost norms and
training (business) plan document that describes in detail
authority (one time) document prepared and
implementation guidelines)
the purpose of training programs, specific courses, target
approval letter, and provide
for advanced technical skills
trainee numbers, implementation schedules, direct and
to an independent
finalized and endorsed ($10
indirect costs, unit cost per trainee, monitoring
consultant engaged under
million)
procedures, job placement requirement, payment
ADB TA.
schedules, and so on. For advanced training, there will
be cost-sharing with trainees which may vary depending
The consultant will verify
on a specific institution or type of training, along with
the report with attachments
industry contributions when applicable. The SDCMU will
and ensure all necessary
prepare this template to provide identified advanced skills
information is included. The
training partners, so that contracts can be signed and
consultant will submit the
training programs can be implemented in a timely way.
verification report to the
The identified partners requiring this contract template will
Finance Division and ADB.
include BITAC, BRAC university (computer science/IT and
pharmaceutical), BUFT, IBA leather technologies courses,
which will be under output 1. Additional programs may be
added during program duration.
The target is achieved when the contract and training plan
templates have been finalized and approved by the
Finance Division (or/and the Ministry of Justice and other
relevant authority) for use by training partners for
advanced training.
Verification
Time Frame
Upon loan
effectiveness
20
Disbursement-Linked
Indicators
2024 (Year 1)
At least 5
industry−academic
partnership MOUs (including
international partnerships)
signed for advanced
technical training for
emerging and priority
industries (e.g., automotive,
light engineering)
($6 million)
Definition and Description of Achievement
No partial disbursement. When the contract template is
endorsed, disbursement will be made.
Definition: The target refers to an MOU or similar type of
cooperation agreement signed for the purpose of
advanced technical skills training under output 1. The
MOUs cover (i) those signed between industries and
technical institutes (e.g, polytechnics, universities) that
identify advanced skills areas to be developed by the
institutes, and (ii) those signed between institutes and
international agencies to support the development and/or
implementation of advanced skills training courses at the
institutes (which may be a tripartite MOU including the
Finance Division). Other MOUs to be signed for the
development of advanced technical skills will also be
included in the definition. The expected MOUs include
capacity support from Fair Group for automotive and/or
electronics (mechatronic technology) skills training at the
polytechnic in Narsingdi (or other polytechnic); BRAC
computer science and/or pharmaceutical courses with any
industry partner; BUFT advanced courses with any
industry partner; STTLs cooperation with an international
research institute; BITAC cooperation with Korea
University of Technology and Education; and BUFT with
Fashion Institute of Technology in New York (or other
international partner).
Information
Source and
Frequency
Signed MOUs
Verification Agency and
Procedure
Verification
Time Frame
SDCMU will prepare a
report on DLI achievement
based on signed MOUs as
described and submit the
report to IVA with attached
MOUs.
Required
documents in
place by 31
December
2024;
verification to
be completed
by 30 April
2025.
The IVA will verify the
report based on the
attachment. The IVA will
submit the verification
report to the Finance
Division and ADB.
The target is achieved when at least 5 MOUs have been
signed for program creation, implementation, or technical
cooperation.
2025 (Year 2)
At least 15 advanced
technical courses
commenced, including those
related to green skills
($6 million)
Partial disbursement: If at least 3 MOUs are signed,
partial disbursement will be made. $4 million will be
disbursed if 3 MOUs are signed; and $5 million will be
disbursed if 4 MOUs are signed. The remaining amount
will be released when all 5 MOUs are signed.
Definition: The target refers to advanced technical
training courses to be implemented under output 1, which
will include certificate-level or diploma-level courses. This
may include short-term courses as agreed under training
contracts with training institutes under output 1. The
courses to be implemented include (but are not limited to)
The TMS data will
generate the status
report annually on
training courses
under
implementation.
SDCMU will prepare a
report on DLI achievement
based on TMS data that
are validated and submit
the report to IVA with data
sources.
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
21
Disbursement-Linked
Indicators
Definition and Description of Achievement
those implemented by BITAC (in Dhaka’s new advanced
training facility), BRAC (computer science/IT or
pharmaceutical), BUFT, IBA leather technology institute,
automotive training at a polytechnic, and STTLs. Green
skills courses refer to courses proposed by BITAC (on
renewable energy) and BUFT (on circular fashions).
Additional courses related to advanced green skills,
developed and implemented by other training institutes
during program implementation, will also be counted.
Information
Source and
Frequency
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU. The
IVA may carry out
additional verification
activities. The IVA will
submit the verification
report to the Finance
Division and ADB.
The target is achieved when at least 15 advanced
technical skills courses in total offered by the institutes
under output 1 have commenced training.
2026 (Year 3)
At least 2,110 trainees
enrolled in advanced
technical courses, with at
least 15% women
participation ($6 million)
2027 (Year 4)
At least 3,200 trainees
enrolled in advanced
technical courses, with at
least 15% women
participation ($6 million)
2028 (Year 5)
At least 4,800 trainees
enrolled in advanced
technical courses, with at
least 15% women
participation ($6 million)
Partial disbursement: If at least 10 advanced technical
skills courses in total have commenced, partial
disbursement will be made for the amount proportional to
the target achieved. The remaining amount will be
disbursed when the full target is achieved.
Definition: The target in each year refers to the total
cumulative number of trainees who have enrolled in
advanced technical courses supported under output 1,
from the beginning of the program implementation period
until the end of each respective year. The advanced
courses cover (but are not limited to) those offered by
BITAC (in Dhaka’s new advanced training facility), BRAC
(computer science/IT and pharmaceutical), BUFT, IBA
leather technology institute, automotive training at a
polytechnic, and STTLs. There may be additional courses
developed under output 1 during program implementation
which will also be included. These courses may be at
certificate- or diploma level.
The percentage of women enrolled in the courses will be
computed out of the cumulative number of trainees
enrolled at the end of year 3, year 4 and year 5.
Partial disbursement: Partial disbursement will be
made for the amount proportional to the target achieved.
The following conditions will have to be met for partial
disbursement for each year: (i) at least 60% of the target
Verification Agency and
Procedure
The TMS data will
generate the status
report on total
enrollment in
relevant courses
annually,
disaggregated by
sex.
SDCMU will prepare a
report on DLI achievement
based on TMS data that
are validated and submit
the report to IVA with data
sources.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
be completed
by 30 April the
following year.
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
22
Disbursement-Linked
Indicators
(cumulative numbers)
Definition and Description of Achievement
is achieved for the year; and (ii) at least 10% of the
cumulative enrollees up to that year are women.
Information
Source and
Frequency
Verification Agency and
Procedure
If the aggregate target is met in each year, but the target
for percentage of cumulative women enrollees is not met,
then the disbursement amount will be reduced by $1
million each year.
DLI 4. Access to practical training in advanced technologies increased, including green technologies and green skills
Prior results (2023)
Definition: STTLs are to be established in two textile
Feasibility studies
SDCMU will prepare a
(i) Training curriculum and
engineering colleges: one in the existing college in
that include training report on DLI achievement
operational plans for
Chittagong and the other in a newly established college in
curriculum,
with attachments on
advanced STTLs finalized
Gazipur. The feasibility studies are to be finalized, which
operational plans,
supporting documents. The
and endorsed
include the training curriculum, operational plans, and
and equipment
report with attachments is
($10 million)
scope of facilities/workshops in STTLs based on
lists; detailed
provided to an independent
discussions with MOTJ and respective colleges.
design works for
consultant engaged under
(ii) Detailed designs for
STTL.
ADB TA.
STTLs with climate resilient
(i) The target is achieved when training curriculum and
features and green
operational plans for STTLs are agreed among MOTJ,
The consultant will verify
technology equipment
college officials in Chittagong, and the expert team. All
the report with
finalized and endorsed
the above aspects are to be part of the feasibility study.
attachments, according to
($10 million)
Since the training scope and required facilities/
verification protocols. The
workshops are common for both colleges, once the
consultant will submit the
plan for the Chittagong college is endorsed, the target
verification report to the
is considered met.
Finance Division and ADB.
(ii) The target is achieved when detailed designs of STTL
for the Chittagong college is completed with climate
resilient features (based on preliminary designs
included in the feasibility study) and endorsed (ready
for bidding). When the final equipment list, including
green technology features (e.g., water- and energy
saving features) is finalized and included in the
feasibility study, the target is considered met.
Partial disbursement: For (i), when all tasks are
completed, $10 million will be disbursed; no other partial
disbursement is allowed. For (ii), if the equipment list with
green technologies is finalized and agreed, $5 million will
be released. The remaining amount of $5 million will be
released when detailed designs are completed and ready
for bidding.
Verification
Time Frame
Upon loan
effectiveness
23
Disbursement-Linked
Indicators
2025 (Year 2)
Training of trainers on the
use of advanced
technologies are in place
and at least 20 trainers
commenced training
($10 million)
2027 (Year 4)
At least 20 technology
labs/workshops
operationalized for
advanced training,
incorporating barrier-free,
climate resilient and green
building features ($10
million)
2028 (Year 5)
At least 35 technology
labs/workshops
operationalized for
advanced training,
incorporating barrier free,
climate resilient and green
building features ($5 million)
Definition and Description of Achievement
Definition: The target refers to TOT programs for main
trainers or faculty at BITAC, textile college in Chittagong
(STTL), and new automotive center in Narsingdi
polytechnic, who will undergo training with their respective
international partners. The target is met when at least 20
trainers from these institutes combined have started a
training program (or have completed training) provided by
international partners.
Partial disbursement. If at least 10 trainers have
commenced or completed their training, partial
disbursement of the amount proportional to target
achieved will be made. The remaining amount will be
released when at least 20 trainers have commenced TOT
programs. If less than 10 trainers have commenced TOT
programs, then no disbursement will be made.
Definition: The target refers to practical training
facilities/workshops or technology (or testing) labs that will
be established or renovated for advanced technical skills
training (output 1). The institutions considered under this
target include BITAC, BUFT, STTL in Chittagong; and
automotive training at Narsingdi polytechnic. If provision
of other labs is agreed during implementation, they will
also be counted towards achievement of this target. The
annual DLIs are considered met when the targeted
number of workshops or labs are ready with all equipment
set up for training. New buildings are to have barrier-free
accessibility and energy-saving features.
Information
Source and
Frequency
The TMS
generated data on
TOT along with
supporting
documents on TOT
progress by BITAC
and Chittagong
college
The IVA will verify the
report with supporting
documents. The IVA will
submit the verification
report to the Finance
Division and ADB.
The building
progress reports on
BITAC and STTL in
Chittagong, or
other relevant
reports
SDCMU will prepare a
report on DLI achievement
based on the construction
or use of new training
facilities, along with
supporting documents on
building descriptions. The
report is submitted to IVA.
The IVA will verify the
report with supporting
documents or undertake a
site visit. The IVA will
submit the verification
report to the Finance
Division and ADB.
Partial disbursement: If at least 60% of the target
number is met for the given year, partial disbursement for
the amount proportional to the achieved number will be
released. The remaining amount will be disbursed once
the targets are achieved. If target achievement is less
than 60%, then no disbursement will be made.
Output 2: Managerial capabilities and green innovation capacity strengthened
DLI 5. Mid-level management courses updated and implemented
Prior results (2023)
Definition:
(i) Standard contract and
(i)New contract and training plan templates will be
training plan templates
prepared for redesigned mid-level management (EDC)
Verification Agency and
Procedure
SDCMU will prepare a
report on DLI achievement
based on TOT progress for
trainers at BITAC,
Chittagong college, and
Narsingdi polytechnic with
supporting documents. The
report is submitted to IVA.
Contract document
template endorsed
by relevant
SDCMU will prepare a
report on DLI achievement
with relevant supporting
Verification
Time Frame
The cut-off
date for
progress report
will be 31
December
2025.
Verification will
be completed
by 30 April the
following year.
The cut-off
date for
progress report
will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
Upon loan
effectiveness
24
Disbursement-Linked
Indicators
(including updated cost
norms and implementation
guidelines) are finalized and
endorsed ($2.5 million)
(ii) Each partnering
university EDC courses
redesigned to incorporate
green business practices
and emerging technology
trends ($2.5 million)
Definition and Description of Achievement
program. The templates will reflect eligible cost categories
and ceiling amounts for each category, among other
things. The contract template includes training (business)
plan document that should describe in detail the purpose
of training programs, specific courses, target trainee
numbers, implementation schedules, direct and indirect
costs, unit cost per trainee, monitoring procedures, job
placement requirement, payment schedules, and other
training details. The SDCMU will update this template
based on lessons from implementation of trainings under
SEIP and endorsed/approved by MOF or relevant
authority. It will ensure the cost norms are consistent and
transparent across institutions and based on strong
justifications.
The target is achieved when the contract and training plan
templates have been prepared based on revised cost
categories and cost norms and endorsed by the Finance
Division (or/and relevant authority) for use by EDC partner
universities.
(ii) EDC partner universities will prepare redesigned
curriculum, which will incorporate green business
practices and updated course modules relevant to each
sector. Once the revised EDC curriculum by each
university partner includes the above, the target is
considered achieved. All EDC partners (BIGM, BRAC,
BUTEX, East West University, and IBA) are expected to
include this component. The proposed revised
curriculum—that includes the list of EDC courses and
other certificate courses with descriptions—needs to be
agreed. The target is considered met when the
redesigned training plan has been agreed by SDCMU and
the final training plan document has been submitted to
SDCMU.
Partial disbursement: If only one of the two prior results
under this DLI is achieved, partial disbursement of $2.5
million will be released. The remaining amount will be
released upon achievement of the other prior result.
Information
Source and
Frequency
authority and the
proposed
curriculum by EDC
universities
Verification Agency and
Procedure
documents and provide to
an independent consultant
engaged under ADB TA for
verification.
The consultant will verify
the report with supporting
documents, according to
verification protocols. The
consultant will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
25
Disbursement-Linked
Indicators
2024 (Year 1)
At least 500 people enrolled
in redesigned EDC courses
(at least 15% women) ($5
million)
2025 (Year 2)
At least 1,260 people
enrolled in redesigned EDC
courses (at least 15%
women)
($10 million)
2026 (Year 3)
At least 2,100 people
enrolled in redesigned
courses (at least 15%
women)
($10 million)
Definition and Description of Achievement
Definition: The target refers to the cumulative number of
persons enrolled in redesigned EDC courses, including
policy analysis courses. This will cover BRAC knitwear,
BUTEX, East West University, IBA garments, and BIGM
courses.
The percentage of women enrolled in the courses will be
calculated out of the cumulative number of trainees
enrolled by the end of year 1, year 2 and year 3.
Information
Source and
Frequency
The TMS data will
generate the status
report on total
enrollment in
relevant EDC
courses annually,
disaggregated by
sex
The annual target is considered to be achieved when the
cumulative enrollment reaches the target number
indicated for the given year and the target for women
trainees is met for that year.
If the target for the proportion of women is not met, , then
disbursement amounts will be reduced by $1 million for
year 1, $2 million for year 2, and $2 million for year 3. If
the target is met cumulatively in the following year,
deducted amounts will be disbursed in that year.
Verification Agency and
Procedure
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
[cumulative numbers]
2027 (Year 4)
(i) Sector-wise tracer and/or
evaluation studies
completed and disseminated
($3 million)
(ii) EDC courses updated
based on tracer and/or
evaluation studies ($2
million)
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved.
Definition: (i) Each university/institution is to undertake a
tracer study of training participants or an evaluation study
of the EDC programs. The study will examine the
relevance and effectiveness of each institution’s EDC
courses, benefits and outcomes of EDC courses for
trainees, and recommendations for improving EDC
programs. The target is considered achieved when each
university/institution offering EDC courses has completed
the study and the results are disseminated. The coverage
of institutions includes BRAC knitwear, BUTEX, EastWest University, IBA-garments, and BIGM.
Partial disbursement: If at least three out of five
universities/institutions complete the above (i), partial
disbursement of $2 million will be made in case of three
The summary
document from
each university or
institution as
evidence for the
study conducted
and for the
description and
rationale for
updated curriculum
or related activities
SDCMU will prepare a
report on DLI achievement
based on documents from
EDC universities/
institutions, which are
validated. The report is
submitted to IVA with
attachments.
The IVA will verify the
report and consult relevant
institutions as needed. The
IVA will submit the
verification report to the
Finance Division and ADB.
The cut-off
date for
completion of
activities by
EDCs is 31
December
2027.
Verification will
be completed
by 30 April
2028.
26
Disbursement-Linked
Indicators
Definition and Description of Achievement
institutions and $2.5 million in case of four institutions.
The rest will be disbursed when all has completed.
Information
Source and
Frequency
Verification Agency and
Procedure
Verification
Time Frame
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The cut-off
date for TMS
data will be 31
December
2028.
Verification will
be completed
by 30 April
2029.
(ii) Definition: Each university/institution is expected to
update their courses based on recommendations from
tracer or evaluation studies, as needed. The target is
considered achieved when EDC universities/institutions
have updated their curriculum or training plans in
alignment with the studies’ recommendations. Revisions
may range from minor modifications to integration of
course revisions or additional activities such as outreach,
additional job placement support etc.
2028 (Year 5)
At least 3,250 people
enrolled in redesigned EDC
courses (at least 15%
women)
($5 million)
[cumulative]
Partial disbursement: If at least three out of five
universities/institutions complete the above (i), partial
disbursement of $1 million will be made in case of three
institutions and $1.5 million in case of four institutions.
The rest will be disbursed when all has completed.
Definition: The target refers to the cumulative number of
persons enrolled in redesigned EDC courses, including
policy analysis courses. This will cover BRAC knitwear
and pharmaceutical, BUTEX, East West University, IBAgarments, and BIGM courses.
The percentage of women enrolled in the courses will be
computed out of the cumulative number of trainees
enrolled at the end of year 5.
The target is considered achieved when the cumulative
enrollment reaches the target number. If the target for the
proportion of women is not met, then disbursement
amount will be reduced by $1 million.
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved.
The TMS data will
generate the status
report on total
enrollment in
relevant EDC
courses,
disaggregated by
sex
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
DLI 6. R&D projects through university−industry partnerships piloted, focusing on applications of advanced or green technologies for industry
solution
27
Disbursement-Linked
Indicators
2024 (Year 1)
The guidelines for
competitive grants on
industry-oriented R&D
endorsed and disseminated
($5 million)
Definition and Description of Achievement
Definition: The Finance Division will develop guidelines
for competitive grants that will support industry-oriented or
applied R&D projects focusing on innovations in industry
production processes or product development, with
priority for green technology applications. These R&D
projects are to be undertaken through academic and
industry partnerships. There will be an application process
where eligible proposals will be considered on a
competitive basis for funds. The guidelines will describe
the purpose of competitive grants, eligibility criteria for
applicable R&D proposals, application and selection
procedures, implementation and outcome requirements,
and so on.
Information
Source and
Frequency
The final endorsed
guidelines
document and the
evidence of its
dissemination to
stakeholders
Verification Agency and
Procedure
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA.
The IVA will verify the
report by reviewing
supporting documents. The
IVA will submit the
verification report to
Finance Division and ADB.
Verification
Time Frame
The endorsed
document to
be ready by 31
December
2024.
Verification will
be completed
by 30 April
2025.
The target is considered achieved when the guidelines
are prepared, endorsed by the Finance Division together
with other relevant authorities as needed, and
disseminated to potential stakeholders.
2025 (Year 2)
At least 8 proposals based
on university-industry
partnerships selected for
R&D projects
($5 million)
2027 (Year 4)
At least 7 R&D projects
under implementation
through university-industry
collaborations ($5 million)
There will be no partial disbursement.
Definition: Following the guidelines, the Finance Division
and SDMCU will consider applications for proposed R&D
projects for industry innovations, which are based on
university-industry partnerships. The selection will be
done by a technical committee to be established for this
purpose. The target is considered to be met when at least
8 proposals have been reviewed, selected, and grants
agreements signed.
Partial disbursement: If at least 5 proposals are selected
for support, partial disbursement of $3 million will be
released. If 6 or 7 proposals are signed, $4 million will be
released. The remaining amount will be released upon
achievement of the target.
Definition: The target refers to the implementation of
selected R&D projects for industry innovations. Each of
selected proposal teams is to submit quarterly or
semiannual progress reports to SDCMU, and SDMCU is
to validate the progress from time to time. The target is
considered to be met when at least 7 projects—out of
those selected for grants agreement by the committee—
The R&D project
proposals selected
for support
SDCMU will prepare a
report on DLI achievement
with supporting documents
on selected proposals. The
report is submitted to IVA.
The IVA will verify the
report by reviewing
supporting documents. The
IVA will submit the
verification report to the
Finance Division and ADB.
Validated progress
reports from R&D
projects
SDCMU will prepare a
report on DLI achievement
with supporting documents
on validated progress
reports from R&D projects.
The report is submitted to
IVA.
Proposal
selection to be
completed by
31 December
2025.
Verification will
be completed
by 30 April
2026.
Validated
progress
reports to be
ready by 31
December
2027.
Verification will
28
Disbursement-Linked
Indicators
2028 (Year 5)
At least 5 R&D project
outcomes or solutions have
been piloted or adopted by
industries ($5 million)
Definition and Description of Achievement
are under implementation or have been completed with
expected outcomes or results.
Partial disbursement: If at least 5 selected projects are
under implementation or have been completed with
expected results, $3 million will be released. If 6 selected
projects are ongoing or completed with expected results,
$4 million will be released. The remaining amount will be
released upon achievement of the target.
Definition: The target refers to the outcomes of selected
R&D projects. At least 5 industry solutions arising out of
the selected R&D projects are to be piloted or adopted by
industries. Academic publications will not be counted
towards achievement of this target. All selected projects
will submit the outcome status of their R&D projects as
part of progress reports and as an outcome report.
The target is considered achieved if at least 5 outcomes
from selected R&D projects are piloted or adopted by
industries.
Information
Source and
Frequency
Verification Agency and
Procedure
The IVA will verify the
report by reviewing
supporting documents. The
IVA will submit the
verification report to
Finance Division and ADB.
Validated progress
or outcome reports
from R&D projects
SDCMU will prepare a
report on DLI achievement
with supporting documents
on validated outcome
reports from R&D projects.
The report is submitted to
IVA.
The IVA will verify the
report by reviewing
supporting documents. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
be completed
by 30 April
2028.
Validated
outcome
reports to be
ready by 31
December
2028.
Verification will
be completed
by 30 April
2029.
Partial disbursement: If at least 3 R&D outcomes or
solutions are piloted or adopted, $3 million will be
released. If 4 outcomes or solutions are piloted or
adopted, $4 million will be released. The remaining
amount will be released upon achievement of the target.
Output 3: Access to socially inclusive skilling and upskilling expanded
DLI 7. Competency-based, job-ready entry and mid-level skills courses redesigned and implemented for at least for nine priority sectors with industry
partnerships
2024 (Year 1)
Definition: The target refers to training contracts to be
Signed contracts
SDCMU will prepare a
The status
At least 9 industry
agreed and signed between SDCMU and implementing
with industry
report on DLI achievement
reports to be
associations or other
training partners. Training partners will include around 10
associations or
with supporting documents
ready by 31
partners signed for training
industry associations and NGOs (e.g., PKSF, Kumudini).
NGO partners
on signed contracts and
December
partnerships with updated
Agreements with public institutes will not be counted
indication of sector
2024.
training course plans,
towards achievement of this target. Training contracts will
coverage. The report is
Verification will
covering at least 9 priority
include details of training plans (business plans) such as
submitted to IVA.
be completed
sectors ($20 million)
the list of skills courses, target trainees, implementation
by 30 April
schedules, and cost estimates, as required by the
The IVA will verify the
2025.
template. For most of the industry associations that were
report by reviewing
included under SEIP, training plans are expected to be
supporting documents. The
IVA will submit the
29
Disbursement-Linked
Indicators
Definition and Description of Achievement
redesigned with updated course list. BWCCI will not be
counted for this DLI.
Information
Source and
Frequency
Verification Agency and
Procedure
verification report to the
Finance Division and ADB.
Verification
Time Frame
The TMS data will
generate the status
report on total
cumulative
enrollment for
relevant programs
annually,
disaggregated by
sex
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
(i) SDCMU
documents on
reviews of training
SDCMU will prepare a
report on DLI achievement
based review documents
The target is considered to be met when at least 9
industry associations or NGOs covering 9 sectors have
signed training contracts with the Finance Division.
2025 (Year 2)
At least 42,000 people are
enrolled in sector-specific
training, with 30% women
participation ($12 million)
2026 (Year 3)
At least 90,000 people are
enrolled in sector-specific
training, with 30% women
participation ($12 million)
Partial disbursement: If at least 7 industry associations
or NGOs have signed the contracts, partial disbursement
of $15 million will be released. The remaining $5 million
will be released when at least 9 partners have signed the
contracts.
Definition: The target refers to the cumulative number of
people enrolled in entry-level and mid-level training
programs under output 3 that are offered and/or managed
by public institutes (DTE, BMET, BITAC except for
Dhaka), industry associations, and NGOs (e.g., PKSF,
Kumudini). The target also includes those enrolled in
motor driving courses. However, those enrolled in
specially targeted training courses for women and socially
disadvantaged groups (i.e., those offered or managed by
BWCCI, H&M and Asia Foundations, other specially
targeted courses for women that may be developed
during program implementation, programs for people with
disabilities, orphans, transgender people, and small ethnic
communities) will not count towards achievement of this
target. This target will also exclude those enrolled in
separate BMET courses for international certification.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to
Finance Division and ADB.
The target for each year is considered achieved when the
cumulative enrollment reaches the target number
indicated for the given year.
2027 (Year 4)
(i) Training performance
evaluated and training
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved. The remaining amount will be released
upon achievement of the target.
Definition:
(i) SDCMU will undertake a review of training performance
of each training partner, focusing on enrollment and job
The cut-off
date for TMS
data and
30
Disbursement-Linked
Indicators
courses revised based on
sector-specific job
placement and training
partner performance records
($5 million)
(ii) At least 135,000 people
are enrolled in sectorspecific training, with 30%
women ($5 million)
Definition and Description of Achievement
placement rates for each training course. For those
courses which are not in high demand or for which job
placement rates are low, training partners will replace the
course or propose remedial actions to improve job
placement. This exercise will be done, preferably each
year, and a major review will be completed by Year 3 and
revised training plans will be in place starting in Year 4, if
required.
The target is considered to be achieved, when training
plans of all training partners have been
reviewed by SDCMU and findings discussed with industry
associations and other partners.
Partial disbursement: If the review is completed at least
for 70% of all implementing partners, partial disbursement
of $3 million will be made. The rest will be disbursed
when all reviews are completed.
(ii) The target refers to the cumulative number of people
enrolled in entry-level and mid-level training programs
under output 3 that are offered and/or managed by public
institutes (DTE, BMET, BITAC except for Dhaka), industry
associations, and NGOs (e.g., PKSF, Kumudini). The
target also includes those enrolled in motor driving
courses. However, those enrolled in specially targeted
training courses for women and socially disadvantaged
groups (i.e., those offered or managed by BWCCI, H&M
and Asia Foundations, other specially targeted courses for
women that may be developed during program
implementation, programs for people with disabilities,
orphans, transgender people, and small ethnic
communities) will not count towards achievement of this
target. This target will also exclude those enrolled in
separate BMET courses for international certification.
The target for each year is considered achieved when the
cumulative enrollment reaches the target number
indicated for the given year.
Information
Source and
Frequency
performance by
training partners
and revised training
plans (if applicable)
(ii) The TMS data
will generate the
status report on
total cumulative
enrollment for
relevant programs
annually,
disaggregated by
sex.
Verification Agency and
Procedure
and TMS data that have
been validated. The report
is submitted to IVA with
data sources.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures, if
needed. The IVA will
submit the verification
report to the Finance
Division and ADB.
Verification
Time Frame
required
documents will
be 31
December
2027.
Verification will
be completed
by 30 April
2028.
31
Disbursement-Linked
Indicators
2028 (Year 5)
At least 160,000 people are
enrolled in sector-specific
training, with 30% women
($10 million)
Definition and Description of Achievement
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved. The remaining amount will be released
upon achievement of the target.
Definition: The target refers to the cumulative number of
people enrolled in entry-level and mid-level training
programs under output 3 that are offered and/or managed
by public institutes (DTE, BMET, BITAC except for
Dhaka), industry associations, and NGOs (e.g., PKSF,
Kumudini). The target also includes those enrolled in
motor driving courses. However, those enrolled in
specially targeted training courses for women and socially
disadvantaged groups (i.e., those offered or managed by
BWCCI, H&M and Asia Foundations, other specially
targeted courses for women that may be developed
during program implementation, programs for people with
disabilities, orphans, transgender people, and small ethnic
communities) will not count towards achievement of this
target. This target will also exclude those enrolled in
separate BMET courses for international certification.
Information
Source and
Frequency
The TMS data will
generate the status
report on total
cumulative
enrollment for
relevant programs
annually,
disaggregated by
sex.
The target for each year is considered achieved when the
cumulative enrollment reaches the target number
indicated for the given year.
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved. The remaining amount will be released
upon achievement of the target.
DLI 8. Access to skills courses with international certification increased for potential migrant workers
2024 (Year 1)
Definition: The target refers to training courses that offer List of courses
At least 5 international
an international certificate based on the government’s
identified and
certificate courses identified
agreement with international accreditation agencies.
agreed with BMET
and agreements signed with These courses would enable workers to go for overseas
(or other agencies)
partner organizations
jobs with better wages. The courses would include those
for international
($5 million)
accredited by City & Guilds and others to be offered
certification
based on MOUs with other countries (e.g., Saudi Arabia,
Singapore, Republic of Korea). BMET will sign
agreements with international agencies or countries to
Verification Agency and
Procedure
Verification
Time Frame
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The cut-off
date for TMS
data will be 31
December
2028.
Verification will
be completed
by 30 April
2029.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
verification measures, if
needed. The IVA will
submit the verification
report to the Finance
Division and ADB.
SDCMU will prepare a
report on DLI achievement
based on the courses
identified and agreed with
foreign agencies or
countries with evidence
documents. The report is
submitted to IVA with
supporting documents.
List of courses
agreed by 31
December
2024;
verification to
be completed
by 30 April
2025.
32
Disbursement-Linked
Indicators
Definition and Description of Achievement
offer these courses. If other implementing partners pursue
courses for international certification, those will also be
counted.
Information
Source and
Frequency
There will be no partial disbursement for this target.
Definition: The target refers to the number of courses for
international certificates for which training has
commenced. This includes all the courses which allow an
international certificate, based on agreement with
international accreditation or foreign government
agencies.
The target is considered to be achieved when at least 8
courses with international certification are under
implementation.
The TMS data will
generate the status
report on the
courses being
implemented for
international
certificates.
disaggregated
Partial disbursement: If at least 6 courses are being
implemented, $3 million will be released as partial
disbursement. $4 million will be released if at least 7
courses are being implemented. The remaining amount
will be released upon achievement of the target.
2027 (Year 4)
At least 14,500 people
enrolled in international
certificate courses (at least
10% women) ($5 million)
2028 (Year 5)
At least 18,000 people
enrolled in international
certificate courses (at least
10% women) ($5 million)
Definition: The target refers to the cumulative number of
people enrolled in training programs for international
certificates. Most of these courses will be offered or
facilitated by BMET, including those affiliated with City &
Guilds. Other courses affiliated for international
certificates, such as welding or nursing (at Kumudini) will
be considered if trainees receive an international
certificate through these courses.
The target for each year is considered achieved when the
cumulative enrollment reaches the target number
indicated for the given year.
Verification
Time Frame
The IVA will verify the
report based on supporting
documents and may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
The target is considered achieved when at least 5 courses
have been identified and agreed for implementation for
international certification. The number will refer to each
course and count all the identified and agreed courses
across foreign partner agencies.
2026 (Year 3)
At least 8 agreed courses
operationalized and
implemented for training
($5 million)
Verification Agency and
Procedure
The TMS data will
generate the status
report on total
cumulative
enrollment for
relevant programs
annually,
disaggregated by
sex.
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU. The
IVA may undertake
additional verification
measures. The IVA will
submit the verification
report to the Finance
Division and ADB.
SDCMU will prepare a
report on DLI achievement
based on TMS data that
have been validated. The
report is submitted to IVA
with data sources.
The IVA will verify the
report based on TMS data
or other detailed data
sources from SDCMU as
needed. The IVA may
undertake additional
The cut-off
date for TMS
data will be 31
December
2026.
Verification will
be completed
by 30 April
2027.
The cut-off
date for TMS
data will be 31
December
each year.
Verification will
be completed
by 30 April the
following year.
33
Disbursement-Linked
Indicators
Definition and Description of Achievement
Partial disbursement: If at least 60% of the target
enrollment is achieved, partial disbursement will be
released for the amount proportional to the cumulative
number achieved. The remaining amount will be released
upon achievement of the target.
Output 4: Institutional capacity for skills monitoring and management enhanced
DLI 9. Skills program management, monitoring, and evaluation capacity strengthened
Prior results (2023)
Definition: The Industry Advisory Board is to be
For advanced technical skills established to guide the Finance Division and SDCMU in
programs, Industry Advisory
developing a workforce with advanced technical skills.
Board is established to
The Industry Advisory Board will help identify emerging
guide on emerging sectors
requirements for advanced technical skills across priority
and skills requirements ($10 sectors and advise effective ways to foster partnerships
million)
between industries and universities/technical institutes for
skills development.
Information
Source and
Frequency
Approval notice or
letter including
TOR and list of
Industry Advisory
Board members.
The target is achieved when the establishment of the
Industry Advisory Board is approved by the Ministry of
Finance or the relevant authority, and TORs and a list of
board members are cleared. No partial disbursement will
be applicable.
2024 (Year 1)
(i)TMS enhanced to
incorporate modules on
different levels of skills
training; and disaggregated
data of trainees available by
sex and other individual
attributes (e.g., ethnic
minorities, disabilities) ($3
million)
(ii) An annual internal audit
plan (on a rotating basis) for
the RBL program developed
and approved ($2 million)
(i) Definition: The current TMS covers training providers
and trainees enrolling mostly entry-level skill training, such
as those under output 3, along with mid-level managerial
training programs under output 2. The TMS will be
enhanced by creating additional modules to capture and
monitor advanced technical skills training under output 1
and specially targeted skills trainings under output 3. The
TMS will also ensure documentation of disaggregated
data of trainees’ gender and socioeconomic
characteristics. The additional modules will also be set up
to track progress of DLIs, particularly those with
quantitative targets.
The target is considered achieved when SDCMU has
created additional modules or fields in TMS to monitor all
new types of skills courses, as well as modules to track
progress of DLIs. There will be no partial disbursement
for this target.
(i) Documents
ascertaining the
updates in TMS;
(ii)annual internal
audit plan
document, which
was approved
Verification Agency and
Procedure
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
SDCMU will prepare a
report on prior results along
with required documents.
The report is submitted to
an independent consultant
engaged under ADB TA for
verification.
The consultant will verify
the report with supporting
documents, according to
verification protocols. The
consultant will submit the
verification report to the
Finance Division and ADB.
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA with data sources.
The IVA will verify the
report based on supporting
documents. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
Upon loan
effectiveness
Supporting
documents
ready by 31
December
2024 and
verification
completed by
30 April 2025.
34
Disbursement-Linked
Indicators
2025 (Year 2)
(i) Annual analytic report on
TMS data produced and
disseminated, with
disaggregated analysis by
gender and socially
disadvantaged groups
($2 million)
(ii) Performance audit plans
for implementing partners
(public and private) are in
place; an independent
auditor is on board; and the
performance audit
commenced ($3 million)
Definition and Description of Achievement
(ii) Definition: Under the RBL, internal audits will be
strengthened both in SDCMU and in other implementing
partners. Hence, internal audit will be undertaken for
implementing partners during the RBL along with capacity
building activities. To this end, SDCMU will prepare
annual plans for internal audits for all implementing
partners on a rotating basis (e.g., industry associations,
NGOs).
The target is achieved when an annual internal audit plan
is developed and approved by the Finance Division. There
will be no partial disbursement for this target.
(i) Definition: TMS includes rich data on individual
trainees, as well as training progress and performance by
training providers. Currently TMS is mostly used to track
progress in enrollment, certification, and job placement.
The TMS data will be used for more analytic reports to
assess various aspects of training participation and
performance by trainee background info at the aggregate
level, as well as training subject matters. SDCMU is
expected to produce annual reports during
implementation to assess various individual and providerspecific factors associated with training across different
skill levels.
The target is considered to be achieved when SDCMU
produces 1 or 2 analytic reports by Year 2 and
disseminates the report(s) to key stakeholders (e.g.,
relevant ministries, industry associations, universities).
There will be no partial disbursement for this target.
(ii) Definition: Under RBL, SDCMU will undertake
performance audits of all implementing partners two
times: the first by Year 3 and the second by Year 5. The
audit will encompass all aspects of training management
under SICIP, including financial management,
procurement practices, trainers’ qualifications, record
keeping of trainee progress and job placement, etc.
The target is considered to be achieved when
performance audit plans for implementing partners (both
Information
Source and
Frequency
(i) Annual analytic
reports using TMS
data;
(ii) performance
audit plan
document and
evidence of audits
undertaken for
implementing
partners
Verification Agency and
Procedure
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA.
The IVA will verify the
report based on supporting
documents. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
Supporting
documents
ready by 31
December
2025 and
verification
completed by
30 April 2026.
35
Disbursement-Linked
Indicators
2026 (Year 3)
(i) Internal audit undertaken,
covering at least 5
implementing partners, and
action plans agreed ($2
million)
(iii) Performance audits of all
implementing partners
completed, performance
audit report issued, and
remedial actions, if any, are
taken by SDCMU or
incorporated into revised
training plans or amended
contracts. ($3 million)
Definition and Description of Achievement
public and private, including motor driving) have been
developed and approved, an independent auditor (or an
audit firm) has been recruited, and the performance audit
has been commenced. There will be no partial
disbursement for this target.
Definition:
(i) Based on the internal audit plan developed by Year 1,
SDCMU’s internal audit team will undertake the tasks that
cover at least 5 implementing partners (both public and
private partners) by Year 3. The audit results will generate
action plans for implementing partners, which will be
discussed and agreed with follow-up review timelines.
The target is considered achieved when internal audits for
at least 5 implementing partners have been completed
and action plans have been discussed with relevant
implementing partners. There will be no partial
disbursement for this target.
(ii) Based on the performance audit plan, audits are
expected to complete for all implementing partners (both
public and private) by Year 3. During the year, a
performance audit report is also to be issued; remedial
actions are taken for relevant implementing partners
(including punitive actions if performance has not
complied with required provisions); and contracts are
amended or training plans are revised according to
performance audit results.
The target is achieved when performance audits have
been completed for all implementing partners with
required follow-up actions as described above, and the
overall performance audit report is produced.
Partial disbursement: If performance audits have been
completed at least 70% of implementing partners, $2
million will be disbursed. The remaining amount will be
disbursed when performance audits of all implementing
partners are completed.
Information
Source and
Frequency
Verification Agency and
Procedure
Verification
Time Frame
(i) An internal audit
report for
implementing
partners including
action plans;
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA.
(ii) A performance
audit report for
implementing
partners and the
overall report
The IVA will verify the
report based on supporting
documents. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Supporting
documents
ready by 31
December and
verification
completed by
30 April the
following year
36
Disbursement-Linked
Indicators
2027 (Year 4)
(i)Tracer or evaluation
studies completed to assess
the program effectiveness
and results are disseminated
($3 million)
(ii) Annual analytic report on
TMS report produced and
disseminated ($2 million)
Definition and Description of Achievement
Definition:
(i) A tracer study or evaluation studies for training
programs across skill levels will be completed and results
disseminated by Year 4. For these activities, a consulting
firm should be on board by Year 3 and all required
activities should be completed by Q2 Year 4 for
dissemination during Q3-Q4 Year 4. Depending on the
skill levels (outputs 1-3), different types of studies may be
undertaken; for example, some type of evaluation studies
may be conducted for advanced technical skills and EDC
programs, while a tracer study may be done for trainings
under output 3.
Information
Source and
Frequency
(i) Tracer or/and
evaluation study
reports;
(ii) Annual analytic
reports using TMS
data
The target is considered achieved when the studies (or a
study) are completed and the report findings are
disseminated. There will be no partial disbursement for
this target.
Verification Agency and
Procedure
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA.
The IVA will verify the
report based on supporting
documents. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
Supporting
documents
ready by 31
December
2027 and
verification
completed by
30 April 2028.
(ii) TMS includes rich data on individual trainees, as well
as training progress and performance by training
providers. Currently TMS is mostly used to track progress
in enrollment, certification, and job placement. The TMS
data will be used for more analytic reports to assess
various aspects of training participation and performance
by trainee background info at the aggregate level, as well
as training subject matters. SDCMU is expected to
produce annual reports during implementation to assess
various individual and training provider factors associated
with training across different skill levels.
2028 (Year 5)
(i) Internal audit undertaken,
covering at least 10
implementing partners, and
action plans implemented
($2 million)
The target is achieved when SDCMU produces analytic
reports again by Year 4 and disseminated to key
stakeholders (e.g., relevant ministries, industry
associations, universities). There will be no partial
disbursement for this target.
Definition:
(i) Based on the internal audit plan developed by Year 1,
SDCMU’s internal audit team will continue to undertake
the tasks that cover at least 10 implementing partners
(both public and private partners) by Year 5. The audit
results will generate action plans for implementing
(i) Internal audit
reports with agreed
action plans;
(ii)Second
performance audit
SDCMU will prepare a
report on DLI achievement
with supporting documents.
The report is submitted to
IVA.
Supporting
documents
ready by 31
December
2028 and
verification
37
Disbursement-Linked
Indicators
(ii) Second performance
audit report issued and
remedial actions, if any, are
taken by SDCMU ($3
million)
Definition and Description of Achievement
partners, which will be discussed, and implementation has
commenced with relevant partners.
The target is achieved when internal audits for at least 10
implementing partners have been completed and action
plans have been discussed with relevant implementing
partners. There will be no partial disbursement for this
target.
Information
Source and
Frequency
reports with
remedial action
plans
Verification Agency and
Procedure
The IVA will verify the
report based on supporting
documents. The IVA may
undertake additional
verification measures. The
IVA will submit the
verification report to the
Finance Division and ADB.
Verification
Time Frame
completed by
30 April 2029.
(ii) Based on the performance audit plan generated from
the first performance audit, the second performance audit
will be conducted for at least 70% of implementing
partners (both public and private) during Years 4 and 5.
Those with significant findings from the first performance
audits will be prioritized for the second performance audit
and those who were not covered in the first performance
audit. During Year 5, a performance audit report is to be
issued and remedial actions are taken for relevant
implementing partners. The findings are also to be shared
with NHRDF to restrict future support for those with
problematic findings.
The target is achieved when performance audits have
been completed in the second round for at least 70% of
implementing partners or at least 15 implementing
partners (whichever is higher), and the overall
performance audit report is produced.
Partial disbursement: If at least 80% of planned
performance audit has been completed among
implementing partners, $2 million will be disbursed. The
remaining amount will be released upon achievement of
the target.
ADB = Asian Development Bank, BIGM = Bangladesh Institute of Governance and Management, BITAC = Bangladesh Industrial Technical Assistance Center,
BMET = Bureau of Manpower, Employment and Training, BUFT = Bangladesh University of Fashion and Technology, BUTEX = Bangladesh University of Textiles,
BWCCI = Bangladesh Women Chamber of Commerce and Industry, DLI = disbursement-linked indicator, DTE = Department of Technical Education, EDC =
executive development center, IBA = Institute of Business Administration, IVA = independent verification agency, MOU = memorandum of understanding, NGO =
nongovernmental organization, NHRDF = National Human Resource Development Fund, NSDA = National Skills Development Authority, Q = quarter, RBL = resultsbased lending, R&D = research and development, SDCMU= skills development coordination and monitoring unit, STTL = smart textile technology lab, TMS = trainee
management system, TOR = terms of references.
Source: Asian Development Bank.
38
D.
Disbursement Allocation and Status
13.
The loan proceeds will be disbursed following ADB’s Loan Disbursement Handbook (2022,
as amended from time to time),20 and detailed arrangements agreed between the borrower and
ADB. The loan proceeds will be disbursed to the government’s account. ADB disbursement will be
made following the achievement of the DLIs and subsequent verification of DLI achievement
according to the verification protocol. Where achievement is partial, partial disbursement may be
made as laid out in the verification protocol.
14.
Financing prior results. Up to 15% of the loan ($45 million) will be used to finance prior
results essential for the effective implementation of the RBL program. Prior results are to be
achieved before loan effectiveness but no earlier than 12 months before the signing of the loan
agreement. Prior results are also subject to the agreed verification protocols. Partial disbursements
will be allowed as specified in the verification protocol. There is no request for advance financing
for the proposed program.
15.
The prior results include:
(i)
Standard contract and training templates (including cost norms and
implementation guidelines) for advanced technical skills finalized and endorsed
(DLI 3);
(ii)
Training curriculum and operational plans for advanced smart textile technology
living labs (STTLs) finalized and endorsed (DLI 4);
(iii)
Detailed designs for STTLs with climate-resilient features and green technology
equipment finalized and endorsed (DLI 4);
(iv)
Standard contract and training plan templates (including updated cost norms and
implementation guidelines) are finalized and endorsed (DLI 5);
(v)
Each partnering university EDC courses redesigned to incorporate green
business practices and emerging technology trends (DLI 5); and
(vi)
For advanced technical skills programs, an Industry Advisory Board is
established to guide on emerging sectors and skills requirements (DLI 9).
16.
Partial disbursement. Partial disbursement of DLIs is allowed for most DLIs proportional
to the target achieved, subject to achieving the minimum target (e.g., around 60%). The remainder
of amounts allocated to DLIs will be disbursed when the full target is achieved. The details of partial
disbursement for each of DLIs are described in the verification protocols in Table 5.
17.
All DLIs must be achieved on or before the RBL program’s completion date, which will be
June 2029.21 If a DLI is not achieved or not fully achieved by the RBL program completion date, the
amount allocated to the portion of the DLI not achieved or not fully achieved will be cancelled.
Evidence of achievement of DLIs must be submitted with the withdrawal application. The borrower
will have a winding-up period, which ends 4 months after the RBL program's completion date, for
submitting withdrawal applications to ADB. If the amount of ADB financing disbursed exceeds the
total amount of the RBL program’s expenditures (excluding expenditure pertaining to procurement
from nonmember countries, unless universal procurement has been approved) after the windingup period and final disbursement has been made, the borrower should refund the difference to ADB
within 6 months after the RBL program completion date.
20
21
ADB. 2022. Loan Disbursement Handbook. Manila.
Under the ADB’s RBL policy, the program completion date is the same as the loan closing date. ADB. 2021.
Operations Manual Policies and Procedures: Results-Based Lending for Programs. Manila.
39
18.
Before the submission of the first withdrawal application, the borrower will submit to ADB
the evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of
the borrower, together with the authenticated specimen signatures of each authorized person. Use
of ADB’s Client Portal for Disbursements22 system is mandatory for submitting withdrawal
applications to ADB.
22
ADB. 2016. Guide to the Client Portal for Disbursements. Manila. The portal facilitates the online submission of
withdrawal applications to ADB and faster disbursement. The forms that the borrower needs to complete are available
in the portal.
40
1.
Expected Disbursement Allocation and Schedule
Table 6: Expected Disbursement Schedule
($ million, as of 10 May 2023)
Disbursement-Linked Indicators
Total ADB
Financing
Allocation
Share of Total
ADB Financing
(%)
Prior
Results
(2023)
2024
(Year 1)
2025
(Year 2)
2026
(Year 3)
2027
(Year 4)
2028
(Year 5)
Outcome
DLI 1. Skilled workers across skill levels produced for
10 priority and emerging sectors, with 65% job
placement for new job seekersa
DLI 2. Women and people from socially
disadvantaged groups with employable work and life
skills increased through specially targeted programs
21
7.0
(i) 4
(ii) 3
(i) 4
(ii) 3
(i) 4
(ii) 3
15
5.0
5
5
5
DLI 3. Industry-demanded advanced technical skills
courses created and implemented, including green
technical skills
40
13.3
10
6
6
6
DLI 4. Access to practical training in advanced
technologies increased, including green technologies
and green skillsa
45
15.0
(i) 10
(ii)10
10
5
DLI 5. Mid-level management courses redesigned
and implementeda
40
13.3
(i) 2.5
(ii) 2.5
(i) 3
(ii) 2
5
DLI 6. R&D projects through university-industry
partnerships piloted, focusing on applications of
advanced and/or green technologies for industry
development
20
5
5
DLI 7. Competency-based, job-ready entry and midlevel skills courses redesigned and implemented at
least for 9 priority sectors with industry partnerships a
12
(i) 5
(ii) 5
10
5
5
5
(i) 2
(ii) 3
Outputs
6
6
10
5
10
10
6.7
5
5
64
21.3
20
12
DLI 8. Access to skills courses with international
certification increased for potential migrant workers
20
6.7
5
DLI 9. Skills program management, monitoring, and
evaluation capacity strengtheneda
35
11.7
10
(i) 3
(ii) 2
(i) 2
(ii) 3
(i) 2
(ii) 3
(i) 3
(ii) 2
Total
300
100.0
45
46
48
50
58
ADB = Asian Development Bank, DLI = disbursement-linked indicators, R&D = research and development.
a For DLIs that include more than one results indicator in some years, separate disbursement amounts are indicated for each of the results indicators.
Source: Asian Development Bank.
53
41
2.
Disbursement Status
Table 7: Disbursement Status
(as of May 2023 to be updated periodically during program implementation)
ADB
Financing
Allocation
($ million)
DLIs
Not applicable at this
stage
Share of
Total ADB
Financing
(%)
Expected
Disbursement by
{month and year}
($ million)
Actual
Disbursement by
{month and year}
($ million)
Share of Total
ADB Financing
Disbursed
(%)
Total
ADB = Asian Development Bank, DLI = disbursement-linked indicator.
Source: Asian Development Bank.
III.
A.
100.0
EXPENDITURE FRAMEWORK AND FINANCING
Expenditure Framework
1.
Expected Expenditure Framework
19.
Program expenditures. The RBL program expenditures are estimated to be $708.9 million
from FY2024 to FY2029 (Table 8). The development expenditures account for 43% of the overall
RBL expenditures, which consist of capital expenditures and major program interventions, such as
training and capacity development. Nondevelopment expenditures, mainly recurrent in nature, such
as operating expenses and salaries in public training institutes, account for 47% of the RBL
expenditure.
Table 8: Summary of Program Expenditure Framework, FY2024−FY2029
(in 2023 prices, as of 13 March 2023)
Item
Amount ($ million)
1. Nondevelopment expenditures
333.9
2. Development expenditures
a. Civil works and equipment
90.0
b. Training implementation
160.0
c. Capacity development
20.0
d. Research and development pilots
15.0
e. Monitoring, management, and other costs
90.0
Total
708.9
FY = fiscal year.
Sources: Ministry of Finance and Asian Development Bank estimates.
B.
Share of Total (%)
47.1
12.7
22.6
2.8
2.1
12.7
100.0
Program Financing
1.
Expected Financing Plan
20.
Program financing. The government has requested a concessional loan of $300 million
from ADB’s ordinary capital resources to help finance the program. The loan will have a 25-year
term, including a grace period of 5 years; an interest rate of 2.0% per year during the grace period
and thereafter; and such other terms and conditions set forth in the draft loan agreement. The
summary program financing plan is in Table 9.
42
Table 9: Program Financing Plan
(as of 13 March 2023)
Source
Government
Asian Development Bank
Ordinary capital resources (concessional loan)
Total
ADB = Asian Development Bank.
Sources: Government of Bangladesh and Asian Development Bank.
Amount
($ million)
408.9
Share of Total
(%)
57.7
300.0
708.9
42.3
100.0
21.
Climate adaptation is estimated to cost $15.1 million and climate mitigation is estimated to
cost $60.3 million. ADB will finance 100% of adaptation and mitigation costs. These amounts will
support the following climate actions: (i) development and implementation of training courses on
green skills, green technology applications, and green business practices; (ii) adoption of green
building designs for new training facilities and renovated academic buildings; and (iii) modernization
of training equipment to promote sustainability and resilience (i.e., energy and water conservation
and pollution control features).23
2.
Financing Status
Table 10: Status of Program Financing Plan
(To be updated periodically during program implementation)
Source
Government
Development partners
Asian Development Bank
Ordinary capital resources
(concessional loan)
Total
Source: Asian Development Bank.
IV.
A.
Financing in
{Previous
Year}
($ million)
0.0
0.0
0.0
0.0
0.0
Share of Total
Financing in
{Previous
Year}
(%)
0.0
0.0
0.0
0.0
100.0
Cumulative
Amount of
Financing to
Date
(Year–Year)
($ million)
0.0
0.0
0.0
0.0
Share of
Total
Cumulative
Financing to
Date
(%)
0.0
0.0
0.0
0.0
0.0
100.0
PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS
Monitoring and Evaluation System
1.
Summary of Monitoring and Evaluation System and Actions
22.
The RBL program will leverage the existing monitoring and evaluation (M&E) system
established under the SEIP and strengthen it further to cover the expanded scope of the RBL
program more effectively and efficiently. The SEIP had formed training partnerships with multiple
stakeholders, which included public TVET institutes across several ministries, more than 10 industry
associations, and nongovernmental organizations. The RBL program will continue with similar
arrangements and add additional implementing partners for advanced technical skills.
23
Climate Change Assessment (accessible from the list of linked documents in Appendix 2 of the report and
recommendation of the President).
43
23.
To monitor progress and outcomes of training programs, the Skills Development
Coordination and Monitoring Unit (SDCMU) developed and maintains a separate web-based
integrated trainee management system (TMS). The TMS documents and monitors all training
activities along several dimensions, such as eligibility, enrollment, certification, assessment, and job
placement among trainees; trainer and assessor quality; and stipend management for each course
and institute. Before any training is rolled out, each training provider is required to upload trainee
information with supporting documents to the TMS based on a detailed TMS operation manual. The
independent monitoring firm verifies actual records against the TMS data through physical checks
during its field monitoring for a random sample of training institutes. A quality assurance team within
the SDCMU is responsible for monitoring of training quality and performance of training providers
through monitoring field visits as well as through TMS data. The SDCMU follows a quality assurance
framework to monitor training providers that encompasses screening of training institution capacity,
skills standards, learning materials and assessment tools, availability of a unified training delivery
system that includes job placement support services, financial management, and overall functioning
of institutes. In addition, the SDCMU organizes an annual performance review to ascertain the
achievement of each implementing partner against the set targets.
24.
The existing mechanisms within the SDCMU will be augmented to make sure the M&E
system generates reliable, timely, and adequate information on processes, results, and DLIs. The
TMS data enable monitoring of training progress in real time against targets set for each training
course. The database captures trainee information including their national identification number,
location, gender, and other social indicators (such as whether they belong to small ethnic
communities or are disabled, attendance for each course, and information on eligibility for the
particular course). This provides a control mechanism for ensuring eligible trainee enrollment,
avoiding potential double-counting of trainees, and monitoring attendance for each training
course.24 The TMS also captures information on trainee targets, enrollment, assessment,
completion, and job placement (including whether graduates are self-employed or placed in wageemployment). The TMS is further equipped to generate aggregated summary reports by different
levels and attributes such as skill level, course type, industry, and trainee attributes (for example,
gender and other social groups). The TMS will be expanded to include additional modules to capture
and monitor the expanded scope of training courses under the RBL program, such as advanced
technical skills training. These features will contribute to verification of quantitative outcome and
trainee-related output DLIs and other performance indicators in the design and monitoring
framework (DMF in Appendix 1).
25.
While the TMS data will monitor progress in quantitative targets of all training activities,
assistant executive project directors (AEPDs) and M&E specialists in the SDCMU will be
responsible for each group of DLIs and DMF indicators based on their oversight for a group of
implementing partners. The program action plan (PAP) implementation will be overseen by
respective officers, for example, the social and gender specialist for the implementation of gender
and social inclusion actions; the financial management team for fiduciary-related actions; and the
environmental specialist for environmental safeguards. The executive project director (EPD) with
the support from an M&E specialist and other staff will be responsible for ensuring the monitoring
of all program-related indicators, including DLIs and PAPs, and loan covenants.
24
For the ongoing SEIP, trainees are allowed to enroll in SEIP-supported training only once, as SEIP offers free training
with travel allowances. For those trainees under harsh economic and social circumstances, additional stipends are
provided subject to 80% training attendance.
44
26.
The SDCMU will prepare semi-annual progress reports, which cover the progress toward
DLIs, PAP, and other actions outlined in annual work plans. The SDCMU will also prepare
semiannual environmental safeguards monitoring reports during construction phase and annual
reports afterwards until the program completion. At least twice a year, ADB will field a review
mission, focusing on overall progress of implementation activities towards results (both DLIs and
non-DLIs), achievement status of DLIs, timely implementation of PAP, workings of implementation
arrangements including financial and procurement arrangements, and monitoring of environmental
and social safeguards. A midterm review will be conducted jointly with Finance Division and ADB
after two 2 years of program implementation for any midcourse adjustments as needed. Within 12
months of loan closing of the program, the SDCMU will prepare a program completion report that
will be shared with ADB.
2.
Monitoring and Evaluation System-Related Program Actions Status
27.
The RBL design incorporates capacity development activities to further strengthen the
monitoring of program results and processes to achieve the results. Activities to strengthen M&E
capacity are embedded in the program’s DLIs. Specifically, the DLIs emphasize (i) enhancement of
TMS data to enable monitoring of outcome and output level results; (ii) internal audits within the
SDCMU and training implementing partners; (iii) performance audits of the program that encompass
training partners, training management, and institution level results, while incorporating remedial
actions based on the audit findings into training plans; and (iv) preparation and dissemination of
analytic reports, tracer studies, and evaluations to provide further insights on program effectiveness.
These measures are designed to mitigate any potential risks stemming from the existing M&E
system. An independent verification agency will be engaged by the Finance Division in consultation
with ADB to verify and confirm DLI targets according to the verification protocol.
B.
Fiduciary Systems
1.
Financial Management System
a.
Summary of the Financial Management System and Actions
28.
Institutional arrangements. The executing and implementing agency, the Finance
Division in the Ministry of Finance (MOF), has been successfully managing and implementing the
SEIP since 2014, a long-term skills development program sponsored by the government and
financed by ADB. The RBL program will follow the country systems and leverage the existing
capacity of the SDCMU. Within the SDCMU, there are existing financial management systems,
manuals, procedures, and capacity, which have been institutionalized under the SEIP. The program
will follow the country system, policies and procedures on accounting, financial reporting, and
auditing. The overall responsibility for the program’s financial management arrangements will be
with the SDCMU under the Finance Division.
29.
The overall fund and financial management will be with the SDCMU, being responsible for
(i) program implementation plans, (ii) preparing detailed program budget, (iii) overseeing
implementation progress including the monitoring of implementing partners and training service
providers, (iv) preparing program financial statements, and (v) having the financial statements
audited.
30.
For the SEIP, the SDCMU has shown satisfactory performance in its compliance with ADB’s
financial management requirements. The SEIP Tranche 3 is currently rated “on-track” with audited
program financial statements, which were submitted to ADB on time with unqualified auditors’
45
opinion. The overall pre-mitigation financial management risk is substantial, and specific risks
identified include the following:
(i)
(ii)
(iii)
(iv)
(v)
Program risk. Although there are established systems and procedures, there is a
risk of limited accountability and control mechanisms at the level of training service
providers, because of the scale of the RBL program involving multiple agencies and
targeting large numbers of beneficiaries. The program will mitigate the risk by (a)
screening out training service providers based on performance records; (b)
conducting capacity assessments of training service providers based on preset
criteria; (c) establishing accountability through written agreements that include
clauses on audit, anticorruption, and records retention; (d) mandating the use of TMS
by all training service providers; (e) strengthening monitoring by enhancing the
checklist, timely follow-up, and resolution of identified issues; (f) providing capacity
building; and (g) conducting performance audits of the program by an independent
auditor by the end of years 3 and 5 of the program.
Staffing. Since the RBL program expands the scope of activities compared with the
SEIP, the SDCMU’s current staffing may not be sufficient for timely implementation
of all expected activities. The program will augment the existing capacity of the
SDCMU with additional staff and provide training on financial management
requirements to all relevant implementing partners.
Accounting. The Finance Division has prepared the Skills Development Framework
for Economic Competitiveness 2023 (footnote 1), anchored in the PP2041 and the
Eighth Five Year Plan (footnote 2). The RBL program will support selective initiatives
from the broader skills development framework. A dedicated program budget code
for the RBL program is yet to be created. The PAP includes an action to create a
program budget code, which would ease tracking, budgeting, accounting, and
reporting of financial transactions. There is an existing government Integrated Budget
and Accounting System (IBAS++), which can create a dedicated program code. In
addition, the SDCMU is experienced in implementing ADB’s financial management
requirements including financial reporting. The SDCMU will be responsible for
preparing the program financial reports for submission to ADB. Semiannual progress
reports will be produced and submitted to ADB within 45 days from the end of June
and December each year.
Internal audit. While there is an existing internal audit within the SDCMU, the
capacity is limited and the scope of internal audit function is unclear. The RBL
program will strengthen the existing internal audit function by increasing the internal
audit staff (one additional staff) and preparing an annual internal audit plan, which will
be discussed with the secretary of Finance Division. The internal audit scope will
include the identification and assessment of anticorruption and integrity risks relating
to procurement, financial management, and effectiveness of internal controls. The
internal audit function shall report its findings to the secretary of FD-MOF. Findings
and implementation status of its recommendations will be included in semiannual
progress reports.
External audit. The Office of the Comptroller Audit General (OCAG) is responsible
for auditing government receipts and expenditures. The OCAG audits are conducted
in accordance with auditing standards issued by the International Organization of
Supreme Audit Institutions. For development projects in general, audit reporting has
improved over the years both in terms of content and relevance. Yet, audit reports
are often submitted with delays of 1-2 years compared to the prescribed timeframe
of 6 or 9 months after the end of the fiscal year. For the SEIP Tranche 3, audited
46
financial statements have been received on time for all fiscal years, and quality has
been acceptable to ADB.
31.
Accounting and financial reporting. The Finance Division will cause the SDCMU to
maintain separate books and records of the RBL program in accordance with the government
accounting rules and regulations, cash basis of accounting. All payments and accounting entries
will be made in IBAS++ against appropriate budget code. Similar to other ADB-financed programs
in Bangladesh, the RBL program will use the government’s Budget and Accounting Classification
System (BACS). The RBL program will be recorded under the Finance Division organizational code
109. A separate program or project code (operational code) will be assigned by the MOF in-line with
the use of BACS and IBAS++. The RBL expenditures were mapped to the government’s chart of
accounts as follows:
Table 11: Budget Heads and Codes Applicable for the RBL Program
Total Expenditure
FY2024-2028
($ million)
Organizational
Code
Suborganizational
Code
MOF
109
1090101
4111, 4112
MOF
109
1090101
3231
MOF
109
1090101
1090101,
1310134,
1410202,
1400204,
1600207
3257
Broad
Program
RBL
Program
3,672.3
90.0
2.5%
284.1
180.0
63.4%
100.9
15.0
14.9%
2,943.2
423.9
14.4%
Total
7,000.5
MOF = Ministry of Finance, RBL = result-based lending
Source: Government of Bangladesh, Ministry of Finance and Asian Development Bank.
708.9
10.1%
Institution
MOF
109
Economic
Code
3111, 3211,
3256, 3911,
3257
Budget Items
Civil works and
equipment
Training and
capacity
development
Research and
development
pilots
Monitoring,
management
and other
administrative
costs
%
32.
On an annual basis, the RBL program’s financial statements will be prepared in accordance
with cash basis of accounting, consistent with international accounting standards. The IBAS++ has
been operational and will be used for the RBL program accounting. The financial statements will
include at least the following:
(i)
Statement of cash receipts and payments, showing the funds received by each
funding source (ADB loan, government, etc.) and expenditures incurred by
expenditure category for the current year, prior year and cumulative from the loan
effectiveness date or from retroactive financing date, whichever is applicable.
(ii)
Statement of budget versus actual expenditures. Any significant variance must be
sufficiently explained in the notes.
(iii)
Statement of disbursement with a breakdown for each funding source.
(iv)
Detailed notes to the financial statements including significant accounting policies.
The notes of the financial statements must provide a detailed breakdown of at least
the following:
a. funds received from the government during the current year, previous year and
cumulative to date.
47
b. a list of withdrawal applications submitted to and the amounts paid by ADB as
follows: (a) financing source, (b) withdrawal application number, (c) the amount
claimed and currency, (d) period when expenditures were incurred, (e) date
submitted, (f) disbursement method, (g) the amount disbursed by ADB, and (h)
the exchange rate as applicable.
33.
The expenditure categories and outputs used in the financial reports shall be aligned with
the program document, which has been mapped with the BACS.
34.
Periodic reporting. To allow timely and efficient monitoring of financial transactions and
program activities, the SDCMU shall prepare semi-annual financial information, as part of semiannual program progress reports, to be submitted to ADB within 45 days from the end of June and
December each year.
35.
Auditing and public disclosure. The RBL program’s audits will be conducted by an
independent auditor acceptable to ADB using auditing standards and practices aligned with
international auditing standards. The program will include three audits: (i) financial audit, (ii) internal
audit, and (iv) performance audit.
36.
Financial audit. A program financial audit will be conducted annually by OCAG according
to the statement of audit needs (Appendix 2). The audit would cover the entire program. The audit
report will include a management letter and auditor’s opinions, which cover whether the program
financial statements present a true and fair view or are presented fairly, in all material respects, in
accordance with the applicable financial reporting standards. The management letter will include
from the second year onwards, a follow-up on the previous year’s audit observations.
37.
The audited program financial statements and the auditors’ report will be submitted in
English language to ADB within 9 months from the end of the fiscal year. ADB reserves the right to
require a change in the auditor (in a manner consistent with the laws and regulation of the
government of Bangladesh) or require additional support to be provided to the auditor if the audits
required are not conducted in a manner satisfactory to ADB or if the audits are substantially delayed.
ADB will disclose on its website the program financial statements and the auditors’ report thereon
within 14 days of their acceptance, following ADB’s Access to Information Policy.25
38.
Internal audit. An annual internal audit scope and work plan will be prepared, which shall
include the RBL program. The internal audit would be carried out in accordance with international
or national standards on internal audits and should include test of controls. The scope of the
assignment would cover the program activities and transactions. The internal audit scope will extend
to the control mechanisms at the implementing partners level that support the RBL outcome
delivery. (The indicative terms of reference for internal audit are included in Appendix 3.) The
internal audit function will coordinate with the SDCMU to ensure that the recommendations related
to the program (if any) are addressed in a timely manner. The status of internal audit
recommendations will be regularly monitored by the SDCMU and the Finance Division and will be
included in semi-annual progress reports to be submitted to ADB.
39.
Performance audit. A performance audit of the RBL program shall be conducted by an
independent auditor engaged by the Finance Division, with specific attention on program
governance and accountability. The performance audit shall be carried out twice during the program
implementation by year 3 and 5, in accordance with the agreed terms of references for the audit.
25
ADB. 2018. Access to Information Policy. Manila.
48
The performance audit report shall be shared with ADB upon its completion in year 3 and year 5 of
the program. (The indicative terms of reference for performance audit are included in Appendix 4.)
40.
The compliance with financial reporting and auditing requirements will be monitored during
review missions, and will be followed up regularly with all concerned, including the auditors.
b.
Financial Management System-Related Program Actions Status
41.
The action plans to strengthen the program financial management systems are embedded
in the DLIs and PAP. The following are the key financial management action plans agreed between
the government and ADB:
(i)
The existing SDCMU staff capacity will be strengthened to support the RBL
program by increasing the number of financial management and internal audit staff
positions at SDCMU (one for each position).
(ii)
As in DLI 9, an annual internal audit plan will be prepared and approved in year 1.
The internal audit scope will extend to implementing partners. The scope shall
include the identification and assessment of anticorruption and integrity risks
relating to procurement, financial management, and effectiveness of internal
controls. The internal audit function of SDCMU will report its findings to the
secretary of Finance Division. Findings and implementation status of the
recommendations will be included in semiannual progress reports to be provided
to ADB.
(iii)
Creation of dedicated program budget head (in IBAS++) to ease monitoring,
accounting, and reporting of financial transactions.
(iv)
Coordination with OCAG to ensure that the RBL program is part of the annual audit
plan and the audit is conducted is conducted in a timely manner.
(v)
Performance audit by an independent auditor, focusing on good governance,
effectiveness, efficiency, and economy of the program, will be conducted by the
end of years 3 and 5. The findings will be shared with ADB. The identified gaps
and actions from performance audits will strengthen the program and increase
operational efficiencies and effectiveness.
2.
Procurement System
a.
Summary of the Procurement System and Actions
42.
The proposed program will involve (i) construction or upgrading of technology-based training
labs or academic buildings; (ii) procurement of training equipment and furniture; and (iii) hiring of
consulting services. The civil works are estimated to account for about 16% of total development
expenditures, and goods procurement about 8% of development expenditures. The civil works,
goods, services contracts will not exceed the respective complex and high-value single contracts.26
All major procurement will be done by SDCMU on behalf of other implementing partners.
43.
All procurement will be carried out following the country system based on the Public
Procurement Act, 2006 and the Public Procurement Rules (PPR, 2008), with the following
conditions and modifications to bring consistency with international best practices and the ADB
Procurement Framework:
26
High-value contracts refer to $50 million for works, $30 million for goods, $20 million for information technology
systems, and $15 million for consulting services. ADB 2021. Technical Staff Guidance for Results-Based Lending
for Programs. Manila.
49
(i)
(ii)
(iii)
(iv)
(v)
Post-bidding negotiations shall not be allowed with the lowest evaluated or any
other bidder;
The lottery system in award of contracts shall not be allowed;
Bidders’ qualification and experience requirements shall be mandatory;
There should be no automatic disqualification of bids based on percentage above
or below the estimated cost; and
Contract awards shall be based on the lowest evaluated bid price of compliant bid
from eligible and qualified bidders.
44.
The existing SDCMU will continue to be responsible for all the program management. The
strength of the SDCMU at the program level includes the presence of highly experienced
procurement professionals and consultants as an SDCMU’s core team; its process for information
management and accountability measures are simple and satisfactory; and complaints and
disputes management mechanisms are in place. The identified weakness reflects that the
program’s implementing partners include the private sector (e.g., industry associations, training
providers) that may not be fully aware of the public procurement procedures. The impact of this risk
will be minimal because the SDCMU’s procurement unit—with additional project officer for
procurement—will undertake all major procurement activities in the program. The procurement
assessment and annual audits indicate that the SCDMU complies with the PPR, although it has not
yet used the national online procurement system, e-Government Procurement (e-GP).
b.
Procurement System-Related Program Actions Status
45.
The action plans to strengthen the program’s procurement systems are included in the PAP.
The following are key program actions agreed.
(i)
SDCMU will engage an additional experienced procurement staff for timely
carrying out of procurement activities.
(ii)
Prepare an annual procurement plan to be incorporated into annual work plans for
approval.
(iii)
Arrange training on e-GP for the SDCMU procurement team to shift to the use of
e-GP.
(iv)
Provide procurement training to private sector implementing partners regarding
national procurement rules and regulations, as well as procurement procedures
for the RBL program.
(v)
Ensure to include ADB non-member country restrictions in the procurement plan
and information on country of origin in the SDCMU reporting template.
(vi)
Ensure compliance with the ADB Sanctions list.
(vii)
Ensure implementation of all conditions and modifications identified at para 43
above.
(viii) ADB will conduct an annual procurement review for a sample of at least 30% of
the total contracts awarded in the respective year.
3.
Anticorruption System
a.
Summary of Anticorruption System
46.
The government will use its own country systems to take appropriate measures to prevent
fraud and corruption related to the program and to remedy or prevent its recurrence. If specific
instances of fraud and corruption are identified, it will be reported to the Anticorruption Commission
The commission will take necessary actions for investigations and in accordance with Bangladesh
laws and regulations. A procurement grievance redress system is also prescribed in the PPR 2008
50
to record and respond to complains relating to procurement processes within a stipulated time
frame.
47.
The government will instruct all relevant agencies27 to (i) comply with the requirements of
ADB’s RBL anticorruption guidelines; (ii) ensure that any person or entity debarred or temporarily
suspended by ADB is not eligible to be awarded a contract under or otherwise allowed to participate
in the RBL program during the period of such debarment or temporary suspension; and (iii) include
a provision related to item (ii) in the bidding documents. The bidding documents should also
reference:
(i)
the list of debarred and temporarily suspended firms and individuals available on
ADB’s website;28
(ii)
ADB’s Office of Anticorruption and Integrity’s website29 where reports of allegations
of integrity violations can be made
(a)
by e-mail to integrity@adb.org or anticorruption@adb.org;
(b)
through the complaint form;
(c)
by secure telephone access +63 2 8632 5004;
(d)
by fax +63 2 636 2152; or
(e)
by mail to Office of Anticorruption and Integrity, Asian Development Bank,
6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines; and
(iii)
the reservation by the DMC’s procurement administration offices at each level of
the right to reject the proposed award to debarred or temporarily suspended
entities.
48.
The guidelines will be issued in the name of the Finance Division in MOF, which are
responsible for the oversight of the RBL program and may be updated within the program period.
49.
ADB’s guidelines on fraud, corruption, and other prohibited activities for RBL programs are
in the Appendix 5.30
C.
Satisfying Procurement Member Country Eligibility Restrictions
50.
The RBL policy includes provisions to satisfy ADB's member country procurement eligibility
restrictions.31 All the program’s activities, expected expenditures, and procurement are expected to
be restricted to ADB member countries. It has been communicated to the executing agency that
ADB member country eligibility restriction will be applicable for all procurement, including consulting
services contracts. ADB will conduct an annual procurement review for a sample of 30% of the total
contracts awarded in the respective year to review compliance.
D.
Safeguard Systems
51.
The program’s safeguard system was assessed by reviewing the country’s policies,
regulations, and the institutional capacity for addressing the safeguard risks. The Program
Safeguard Systems Assessment (PSSA) confirms that the RBL program is categorized B for
27
This includes all procuring entities, procurement agents, and other agencies at all levels under the RBL program.
ADB. Anticorruption Sanctions List. For more information, including how to access ADB’s sanctions list, refer to ADB.
2017. Frequently Asked Questions on ADB’s Sanctions.
29 ADB. Anticorruption and Integrity.
30 Relevant information on the anticorruption systems and how to deal with fraud and corruption cases during
implementation can be found in ADB. 2019. Mainstreaming the Results-Based Lending for Programs. Manila; and
ADB. 2021. Operational Manual Policies and Procedures: Results-Based Lending for Programs. Manila
31 ADB. 2019. Mainstreaming the Results-Based Lending for Programs. Manila (paras. 94-95).
28
51
environment, C for involuntary resettlement, and B for indigenous peoples according to ADB’s
Safeguard Policy Statement (2009).
52.
Environment. The RBL program will support the construction of STTLs and construction
or upgrading of other academic buildings. The potential adverse impacts of these civil works are
expected insignificant, site-specific, short-term, and mitigation measures are readily available.
Considering several civil works, an environmental assessment and review framework (EARF) has
been developed to facilitate safeguards planning and implementation and to streamline safeguards
compliance. The EARF will guide (i) subproject screening and environmental assessment for due
diligence on eligible activities, (ii) initial environmental examination (IEE) including environmental
management plan (EMP) for category B subprojects, and (iii) stakeholder consultation and
information disclosure. The EMPs will be incorporated in the bidding and contract documents,
implemented by contractors and monitored by SDCMU. The EARF will also ensure that grievance
redress mechanism is in place and EMP implementation is monitored. Following the country
system, an environmental clearance certificate for the eligible subprojects will be obtained from the
Department of Environment with necessary documentation.
53.
The SDCMU will monitor and ensure compliance as per EARF requirements. Contractors
will submit quarterly environmental monitoring reports to SDCMU. The engineering team at
SDCMU—including an environmental specialist—will consolidate quarterly reports from project
sites and prepare semiannual safeguard monitoring reports and submit to ADB (within 45 days of
every reporting period), as part of the program’s semiannual progress reports. After ADB review,
the monitoring reports will be disclosed on the websites of SDCMU and ADB. The SDCMU will
provide the environmental and social safeguard monitoring reports semiannually during
construction period and afterwards annually until the program completion. The outline of the
semiannual environmental and social safeguards monitoring reports are attached to the EARF. The
SDCMU will also disclose the EARF and IEE reports on its website.
54.
Involuntary resettlement (IR). Due diligence confirmed that the program does not require
acquisition of land. No involuntary resettlement impacts are envisaged since planned civil works will
take place within the existing campuses.
55.
Indigenous peoples (IP). This refers to small ethnic communities (SECs) in the RBL
program. The program does not anticipate any negative impacts on people in SECs. SEC groups
will receive benefits as the program beneficiaries, since targeted training courses will be designed
to serve special needs of people in SECs. A separate SEC plan (or IPP) is not required. The
program will ensure that affirmative actions are relevant, culturally appropriate, and inclusive. The
program activities will exclude activities that adversely affect the dignity, human rights, livelihood
systems, or culture of SEC. The SDCMU has solid institutional capacity and experience in managing
social concerns. The SDCMU has a social and gender development specialist who is responsible
for social safeguards monitoring, implementation, and reporting.
56.
The key environmental and social safeguard program actions are included in the PAP in
Section VI. The status of PAP implementation will be included in the semiannual progress reports.
57.
Grievance redress mechanism. The SDCMU offers a few options for grievance resolution
to ensure transparency, accountability, and fairness in its operation. Currently, there are three
committees for grievance redress system (GRS): (i) program GRS Committee, (ii) gender and social
safeguard (including SEC) GRS committee, and (iii) construction GRS committee. There is also a
subcommittee for each construction site. Mobile numbers of GRS focal point persons are displayed
at the sites. The SEIP has also developed an online GRS form, which is available on the SEIP
52
website. Complaints are being received and their resolutions are being communicated to the
complainant. The RBL program will also have an offline grievance filing system for those who do
not have access to the internet. Each component or activity site will maintain a complaint register
specific for lodging affected people's concerns, complaints, and grievances about the
environmental, social, and land issues or concerns. The safeguards focal person and the executive
project director at SDCMU will ensure the follow-up of grievances until resolved. The SDCMU will
have a regular review to ensure that all grievances are resolved in time-bound and through a
transparent mechanism. The affected person is free to access the country's legal system at any
time and at any stage. The affected person also can use the ADB Accountability Mechanism through
directly contacting (in writing) the Complaint Receiving Officer at ADB headquarters or the ADB
Bangladesh Resident Mission (BRM).
E.
Gender and Social Dimensions
58.
The program is categorized as gender equity theme. Women’s participation in skills training
is disproportionately lower than that of men across skill levels,32 and women’s labor force
participation is less than half the men’s rate (36% versus 81%). With women being concentrated in
low-wage manufacturing jobs, they are at greater risk of technology-induced job losses.33 The RBL
program aims to provide upskilling and multiskilling trainings to help the RMG sector women
workers avert job losses, while raising awareness for family and community members about
women’s work to ease social constraints. The program will empower women across skill levels,
through entrepreneurship support, mid-level managerial training, and leadership courses. The DLI
matrix is designed to ensure the achievement of its gender impact: these include a separate DLI for
women’s employable skills acquisition (along with those from socially disadvantaged groups) and
DLIs incorporating female trainee targets within each skill level.
59.
The program adopts a multi-pronged approach in promoting social inclusion in access to
skilling and employment opportunities. These include (i) expanded entry-level skilling and upskilling
courses, mostly targeted at people from low-income households and covering rural areas; (ii)
specially targeted training for those from socially disadvantaged groups considering gender
inequality, exclusion, and vulnerability (i.e., people with disabilities, orphans, transgender people,
and people from SECs), which will be tailored for their special needs including life and
communication skills; and (iii) skills courses with international certification that will enable potential
migrant workers to access higher-wage, higher-quality jobs overseas, which would in turn increase
remittances for migrant households back at home.
60.
The key gender and social inclusion actions are included in the PAP in Section VI. The
regular monitoring and implementation status will be included in semiannual progress reports.
F.
Communication and Information Disclosure Arrangements
61.
Information from implementing partners, including training performance, will be
communicated through SDCMU and disclosed on the SDCMU website. Information disclosure
requirements will follow the relevant rules and regulations of the government and ADB. The PSSA
is disclosed in the ADB website. The relevant documents to comply with environment and social
32
As of 2017, female trainees comprised 33% in basic trade courses and 20% in diploma courses. Ministry of
Education, Bangladesh Technical Education Board; Bangladesh Education Statistics 2017.
33
Women account for 65% of workers in the RMG sector, where nearly 1 million people are expected to lose jobs.
Government of Bangladesh, Ministry of Planning. 2020. Eighth Five-Year Plan July 2020-June 2025: Promoting
Prosperity and Fostering Inclusiveness. Dhaka.
53
safeguards will also be disclosed in the SDCMU and ADB website. ADB’s Access to Information
Policy requires the disclosure of program information based on the principles of transparency,
timeliness, meaningful participation, and inclusiveness. Community engagement and stakeholder
outreach will ensure the participation of beneficiaries, especially the poor and socially
disadvantaged groups, such as people from SEC.
G.
Development Coordination
62.
ADB is coordinating with multilateral and bilateral development partners to complement
ongoing support for skills development and avoid duplication. For example, the government’s broad
program includes extensive ICT-based skills and employment initiatives, which are being supported
by the World Bank and coordinated by the Ministry of Post, Telecommunications, and Information
Technology. Duplicating efforts are avoided in this area and hence excluded in the RBL expenditure
framework. During implementation, ADB will coordinate with development partners through the
Developing Working Group, which meets regularly to harmonize the common efforts, discuss
ongoing challenges, and share information. Wherever possible, coordinated support will be
provided to create synergy for sustainable impacts in the government’s skills development efforts.
For various development support provided to different ministries, the Finance Division will
coordinate with respective ministries through its program steering committee to avoid duplication
and harmonize support areas to augment development impacts.
V.
A.
INTEGRATED RISKS AND MITIGATING MEASURES
Key Risks and Mitigating Measures
Table 12: Status of Integrated Risk Assessments and Mitigating Measures
(as of 28 March 2023)
Risks
Results
Limited technical
capacity and capabilities
may delay the
implementation of new
advanced technical skills
courses and affect timely
achievement of DLIs
For newly established
advanced technology
labs in public institutes,
relevant ministries may
not properly plan for
increased recurrent
budget, such as
Rating Without
the Mitigating
Measures
Substantial
Substantial
Key Mitigating Measures
(i) For new advanced technical courses,
international partnerships are incorporated
to support training of trainers, preparation
of learning materials, and continuous
capacity building support for training
delivery and course management; (ii) all
implementing partners are required to
develop detailed training plans (e.g.,
specific courses, trainee targets,
implementation schedules, cost estimates)
that also identify support needs for timely
implementation; and (iii) the SDCMU—as
the overall RBL program implementation
unit—will have designated managers for
respective training areas, who will identify
potential constraints and facilitate required
support for timely achievement of DLIs.
(i)Training plan proposals by training
institutes are to include the details of
annual target trainees, implementation
schedules, staff requirements, and
associated operating budgets, for the
ministry’s budget planning; and (ii) the
Finance Division ensures the relevant
Updated Status
54
Risks
increased training and
management staff, and
thus create a risk in
delivering annual target
trainees under DLIs
The SDCMU’s M&E
system, especially the
TMS, do not fully capture
all the data required for
program monitoring and
reporting, and may
include some inaccurate
data
Operating environment
Multiple implementing
partners across the
public, private, NGO
sectors may make
program management
complex and results
achievement challenging
Rating Without
the Mitigating
Measures
Key Mitigating Measures
ministries receive the required budget and
execute the budget as approved for timely
achievement of DLIs.
Moderate
The SDCMU will (i) enhance its TMS with
additional modules for the expanded
scope of training across skill levels; (ii)
structure the TMS to capture data
information aligned with DLIs; (iii) regularly
validate the TMS data based on random
checks and monitoring visits; (iv) conduct
system audits of TMS every other year to
ensure robustness of the IT-based
system; and (v) develop in-built and
automated checks within the TMS
(including data entry reviewer and verifier
sign offs before data processing) to flag
data inconsistencies.
Substantial
The SDCMU under the SEIP has
successfully managed multiple partners by
designating assistant project directors to a
group of stakeholders, supported by an
expert team, a quality assurance team,
and monitoring specialists. For the RBL
program with its expanded scope of
additional implementing partners, the
SDCMU will be expanded and
restructured to include additional staff to
enable close monitoring and coordination.
Assistant project directors will be
responsible for a group of stakeholders,
aligned with DLI targets. In addition,
project steering committee meetings—
chaired by secretary of the Finance
Division—will be held with major
implementing partners, as done under the
SEIP.
With experiences from the COVID-19
pandemic, some training courses may be
delivered through online classes as much
as possible, especially for training of
trainers and management staff courses.
Once the disruption is ended, extra efforts
will be made to fill the gap in training
delivery.
Based on the experience of SEIP
implementation, the SDCMU will engage
industry associations with successful
performance to screen training providers
during the training plan review process.
Industry associations with inadequate job
placement records will be required to
redesign their training courses and deploy
remedial measures, such as job fairs and
Recurring global
diseases or other shocks
may disrupt the
execution and
implementation of
training programs
Moderate
Slow improvement in the
capacity of industry
associations and training
providers to deliver
quality training linked to
job placement may
adversely affect program
outputs
Moderate
Updated Status
55
Risks
Expenditure and financing
Delayed budget release
and slow budget
execution
Fiduciary
The current SDCMU has
an internal audit
specialist, but the scope
and function of internal
audit are not clearly
defined
The SEIP has been
submitting its APFSs on
time with a clean
auditor’s opinion. The
FAPAD has conducted
audits of the SEIP. For
the RBL program, audits
may be conducted by
another OCAG
directorate that may not
be familiar with the
auditing standards
acceptable to ADB
Limited knowledge of
government procurement
rules and standard
procurement documents
among implementing
partners, especially
those from the private
sector
Rating Without
the Mitigating
Measures
Key Mitigating Measures
outreach activities, to improve job
placement.
Moderate
The funds will be allocated and released
through iBAS++, which has simplified
budget release processes. With the
government’s strong commitment and the
Finance Division as the executing and
implementing agency, there is a strong
commitment for skills development in the
RBL program. Timely and adequate
provision of funding will be closely
monitored throughout the program’s
implementation by the SDCMU and
reported in its semiannual progress
reports.
Substantial
The program will strengthen the existing
internal audit function in the SDCMU by
engaging one additional specialist and
preparing annual internal audit plans,
which will be discussed with the secretary
of the Finance Division in the MOF. The
internal audit scope shall include
identification and assessment of
anticorruption and integrity risks related to
procurement, financial management, and
effectiveness of internal controls. The
internal audit function shall report its
findings to the secretary of the Finance
Division. Findings and implementation
status of action plans will be included in
semiannual progress reports.
The SDCMU and Finance Division, MOF
will liaise with the OCAG to ensure that
the RBL program is part of the annual
audit plan and it is completed on time. The
SDCMU will ensure timely preparation of
annual program financial statements for
submission to the OCAG. Audit
observation shall be closely monitored and
resolved in a timely manner. The audit
observations shall be included as part of
semiannual progress reports.
Substantial
Moderate
The SDCMU will organize regular
procurement workshops to familiarize the
implementing partners with government
procurement rules and regulations, and
the RBL program’s procurement
procedures. The SDCMU will update its
operations guidelines for the RBL
program, including a manual for
procurement of goods, works, and
services. Limited procurement will be done
Updated Status
56
Risks
Lack of systematic
database on
procurement information
at the SDCMU and
inadequate monitoring of
procurement
transactions of
implementing partners
Governance and integrity
Varying capacity among
implementing partners
(e.g., industry
associations,
universities) may
increase potential fraud
and corruption risks
Safeguards
Inadequate capacity to
continuously monitor
environmental safeguard
issues during
construction of several
technology labs and
training facilities
Rating Without
the Mitigating
Measures
Moderate
Key Mitigating Measures
by implementing partners; all major
procurement will be done by the SDCMU.
The SDCMU will develop a web-based
procurement monitoring system that can
track the progress of procurement
activities from advertising until contract
completion.
Updated Status
ADB will conduct an annual procurement
review for a sample size of 30% of the
total contracts awarded by the SDCMU in
the respective year. For implementing
partners, performance audits will be
carried out, which will include post-review
of procurement transactions, if any.
Substantial
The SDCMU will (i) ensure all training
service agreements include clauses on
anticorruption; (ii) provide periodic
orientation training to implementing
partners;(ii) strengthen an internal audit
team that will help build internal audit
capacity across implementing partners;
(iii) carry out performance audits of the
program (including all implementing
partners), with the first performance audit
completed and action plans agreed by
year 3 and the second (risk-based)
performance audit by year 5; and (iv)
report results of performance audits to the
executive project director and national
project director for reconsideration of
training grants in case of significant
issues.
Moderate
The SDCMU will strengthen its existing
engineering team with a full-time
environment safeguard specialist to
monitor and implement EMPs during
construction and address other safeguard
concerns. The progress of EMPs will be
reported in semiannual safeguards
reports.
Overall RBL program
Substantial
risk
ADB = Asian Development Bank, APFS = audited program financial statement, DLI = disbursement-linked indicator,
EMP = environmental management plan, FAPAD = Foreign Aided Project Audit Directorate, iBAS++ = Integrated
Budget and Accounting System, IT = information technology, M&E = monitoring and evaluation, MOF = Ministry of
Finance, NGO = nongovernment organization, OCAG = Office of the Comptroller and Auditor General, RBL = resultsbased lending, SDCMU = Skills Development Coordination and Monitoring Unit, SEIP = Skills for Employment
Investment Program, TMS = trainee management system.
Note: Risk factors are assessed against two dimensions: (i) the likelihood that the risk will occur, and (ii) the impact of
the risk on the outcome. Rating scale: low = low likelihood and low impact; moderate = substantial to high likelihood
but low to moderate impact; substantial = low to moderate likelihood but substantial to high impact; high = high likelihood
and high impact.
Source: Asian Development Bank.
57
VI.
A.
PROGRAM ACTION PLAN
Status of Program Action Plan
Table 13: Program Action Plan
(as of 10 May 2023)
Actions
Area 1: Technical Aspects
Responsible
Agency
Time Frame for
Implementation
1.1. For all proposals by implementing partners
(e.g., industry associations, NGOs), be sure
to (i) screen training providers based on
past performance records, (ii) conduct
capacity assessments per SDCMU
templates, and (iii) avoid overlapping
support with NHRDF programs.
1.2. For advanced technical skills training, be
sure to (i) sign the MOUs (or renew if
existing) for international technical
cooperation, including BITAC and STTLs;
and (ii) sign formal agreements on technical
and capacity support packages.
1.3. Develop M&E plans incorporating new
advanced technical skills aligned with
outputs and DLIs, and have the final plan
endorsed by the executive project director
and national project director (as needed).
1.4. Prepare annual capacity development plans
for (i) training of trainers or management
staff (separately for different skill levels, as
needed); (ii) occupational health and safety;
and (iii) financial management staff of all
training providers.
1.5. For EDC programs, sustainable institutional
development plans (including financing with
subsidies) developed by each university,
discussed, and finalized with
implementation timelines.
1.6. Plan for tracer and/or evaluation studies
with TOR and start the recruitment of
qualified consulting firms to complete and
disseminate the studies by Sep 2027.
Area 2: Gender and Social Inclusion
SDCMU
During program
implementation
SDCMU
(i) MOUs by Sep
2023; and
(ii) Support
packages by
Dec 2023
FD-MOF and
SDCMU
By Jan 2024
SDCMU
By Jan 2024 and
each year
afterward
SDCMU and
EDC
universities
By Dec 2026
SDCMU
TOR ready by Mar
2026; consulting
firm on board by
Aug 2026
2.1. Be sure to incorporate targeted training for
women across skill levels, which may
include advanced technical skills (e.g.,
women’s polytechnics), women business
leadership training, and upskilling or multiskilling programs.
2.2. Women’s percentage for training courses
will be (i) at least 15% for advanced
technical courses (output 1), (ii) at least
15% for mid-level managerial courses
(output 2), and (iii) at least 30% for entryand mid-level skills courses.
SDCMU
Sep 2023−Dec
2024
SDCMU
During program
implementation
Status of
Implementation
58
Actions
2.3. Ensure that any capacity building activities
planned (e.g., leadership training, training of
trainers) include at least 20% women.
2.4. All new infrastructure development (e.g.,
training facilities, dormitories, classroom
buildings) will have gender- and disabilityfriendly features, such as separate toilets,
separate prayer rooms, and ramps and rails
in entry and access areas.
2.5. For social marketing, be sure to undertake
awareness raising and outreach activities,
targeted at women and socially
disadvantaged groups (e.g., people with
disabilities, transgender people, and SECs
communities) for training participation.
2.6. Social marketing campaigns will prepare
awareness materials (e.g., video clips,
leaflets) that include positive images of
women and socially disadvantaged groups;
these will be disseminated through
workshops, focus groups, and mainstream
media outlets.
2.7. Social marketing materials are provided to
employers as well to promote employment
for women and socially disadvantaged
groups.
2.8. All monitoring and progress reports,
including semiannual progress reports,
should have data disaggregated by sex and
other social categories (e.g., SECs, poverty,
disability) for enrollment, dropouts,
completion, and job placement.
Area 3: Fiduciary Management
3.1. Create a dedicated program code for the
RBL program to ease accounting,
monitoring, reporting, and auditing of the
program’s financial transactions.
3.2. Appoint additional accountants and internal
audit staff to support the SDCMU.
3.3. External audit:
(i) Finalize the statement of audit need
(see the PID) and request the OCAG to
include the RBL program in the annual audit
plan;
(ii) Ensure that OCAG conduct annual
financial audits of the program and submit
audited program financial statements to
ADB within 9 months from the end of each
fiscal year;
(iii) Incorporate the status of audit
observations and implementation as part of
semiannual progress reports.
3.4. Internal audit:
(i) Prepare an annual internal audit work
plan according to the risk- based audit
approach. The scope will include
identification and assessment of
Responsible
Agency
Time Frame for
Implementation
SDCMU
During program
implementation
SDCMU
During program
implementation
SDCMU
During program
implementation
SDCMU
During program
implementation
SDCMU
During program
implementation
SDCMU
Jun 2023−Jun 2029
FD-MOF and
SDCMU
By loan signing
FD-MOF and
SDCMU
FD-MOF,
SDCMU, and
OCAG
By Sep 2023
(i) SDCMU
(i) By Nov 2023
(ii) 9 months after
end of each
fiscal year
(iii) 45 days after
end of Jun and
Dec each year
(i) By Nov 2023
(ii) By Dec 2023
(ii) FD-MOF
for year 1; and
and SDCMU
2 months
before the start
Status of
Implementation
59
Actions
anticorruption and integrity risks relating to
procurement, financial management, and
effectiveness of internal controls.
(ii) Gain approval of the internal audit plan
by the secretary of FD-MOF and/or national
project director.
(iii) Incorporate the status of monitoring and
reporting of internal audit observations and
recommendations into semiannual
progress reports.
3.5. Performance audit: Two performance
audits will be carried out in accordance with
the agreed terms of reference to identify
gaps and propose action plans among
implementing partners in the overall
program’s management and training
performance. Specific actions include (i)
engage an independent auditor to carry out
performance audits by the end of 2024; (ii)
start the audit from 2025 for the overall RBL
program, including all implementing
partners; (ii) prepare the first report by June
2026; (iv) implement action plans by the end
of 2026; (v) start the second audit in 2027;
and (vi) complete the second performance
audit by June 2028.
Area 4: Procurement
4.1. Additional experienced procurement
consultant on board for timely procurement
activities
4.2. (i) Ensure the integration of annual
procurement plans int the annul work plan
for approval.
(ii) Be sure to include ADB non-member
country restrictions in the procurement plan
and information on country of origin in the
SDCMU reporting template.
(iii) Ensure compliance with the ADB
sanctions list.
(iv) Ensure all conditions and modifications
of the country system—as described in PID
section on procurement—for all
procurement under the RBL program.
4.3. Arrange training on e-GP by CPTU for the
SDCMU procurement team to shift to the
use of e-GP for the RBL program.
4.4. Provide training to AEPDs, procurement
staff, and other relevant SDCMU staff to
improve procurement planning and training
contract management and to avoid delays
in implementation.
4.5. Provide training on the national
procurement rules and the RBL program’s
procurement procedures to private sector
implementation partners, including
universities.
Responsible
Agency
(iii) SDCMU
Time Frame for
Implementation
of each fiscal
year for year 2
onward
(iii) 45 days after
the end of Jun
and Dec each
year
SDCMU and
relevant audit
agency (firm)
Jan 2024−Dec
2028
FD-MOF and
SDCMU
By Oct 2023
FD-MOF and
SDCMU
(i) Annually
(ii) – (iv)
During program
implementation
SDCMU and
CPTU
By Dec 2023
SDCMU
By Feb 2024 and
periodically
SDCMU
By Feb 2024 and
periodically
Status of
Implementation
60
Actions
4.6. Conduct an annual procurement review for
a sample of 30% of the total contracts
awarded in the respective year.
Responsible
Agency
SDCMU and
ADB
Time Frame for
Implementation
Dec 2024 and
annually
afterwards
Area 5: Environment and Social Safeguards
5.1. Appoint a full-time environmental specialist
SDCMU
in the SDCMU engineering team during
construction period and a part-time after
construction completion.
5.2. Ensure IEEs are prepared, shared with
SDCMU
ADB, disclosed as required, and ensure
EMPs are available in Bangla at
construction sites.
5.3. Obtain an environmental clearance
SDCMU
certificate for the 10-story building at East
West University and ensure it is renewed
annually.
5.4. Prepare semiannual environmental
SDCMU and
monitoring reports during construction and
ADB
annual reports during operation until the
program is financially closed for ADB’s
review, approval, and disclosure.
5.5. For any activities in SEC areas, incorporate SDCMU
language and cultural sensitivity in planning
any schemes. In designing training-related
schemes, carefully consider socioeconomic
dimensions to avoid unintended migration.
5.6. For all training-related data, be sure to have SDCMU
data disaggregated by SEC beneficiaries
and representatives.
5.7. Enhance existing grievance redress
SDCMU
mechanisms to ensure SEC representation
in SEC areas.
Area 6: Monitoring and Evaluation System
6.1. (i) Expand and enhance the scope of the
SDCMU
TMS by incorporating an additional module
to monitor advanced technical skills
partners and courses; (ii) align the training
data along DLIs to track progress and target
achievement; and (iii) use the TMS to
generate a report on DMF monitoring and
DLI verification.
6.2. To ensure robustness of TMS data,
SDCMU
especially its accuracy and consistency for
tracking DLI progress, (i) develop in-built
and automated checks to flag
inconsistencies in data entry and reporting;
and (ii) undertake a system audit of the
TMS every other year and resolve any
issues in a timely manner.
6.3. TMS data will be used to produce analytic
SDCMU
reports, with disaggregated analysis by
gender and socially disadvantaged group.
By Dec 2023
As required
As required
During program
implementation
Sep 2023−Dec
2028
Sep 2023−Dec
2028
By Dec 2023
By Dec 2023
(i) By Jun 2024
(ii) By Jun 2025
and Jun 2027
Dec 2024−Dec
2028
Status of
Implementation
61
Responsible
Time Frame for
Status of
Agency
Implementation
Implementation
Actions
Area 7: Program Management
7.1. Program operation guidelines updated,
FD-MOF and
By Oct 2023
including financial management manual and SDCMU
anticorruption guidelines, and issued to all
implementing partners and training partners.
7.2. All program action plans (including gender,
SDCMU
During program
social inclusion, and capacity development
implementation
plans) implemented; progress and results
are incorporated into semiannual progress
reports.
ADB = Asian Development Bank, AEPD = assistant executive project director, BITAC = Bangladesh Industrial Technical
Assistance Center, CPTU = Central Procurement Technical Unit, DMF = design and monitoring framework, DLI =
disbursement-linked indicator, EDC = executive development center, e-GP = e-Government Procurement, EMP =
environmental management plans, FD-MOF = Finance Division in the Ministry of Finance, M&E = monitoring and
evaluation, MOU = memorandum of understanding, NGO = nongovernmental organization, NHRDF = National Human
Resource Development Fund, OCAG = Office of the Comptroller and Auditor General, PAP = program action plan, PID
= program implementation document, PSSA = program safeguards systems assessment, RBL = results-based lending,
SDCMU = Skills Development Coordination and Monitoring Unit, SEC = small ethnic communities, SICIP = Skills for
Industry Competitiveness and Innovation Program, STTL = smart textile technology living lab, TMS = trainee
management system, TOR = terms of reference.
Source: Asian Development Bank.
VII.
MONITORING OF KEY PROGRAM COVENANTS
63.
The compliance status of key program covenants set forth in the loan agreement will be
shared with ADB through the submission of semiannual program progress reports by the Finance
Division and SDCMU, which will be reviewed and confirmed through ADB’s regular review missions.
The aide memoires during review missions will summarize major issues and compliance status of
program covenants, along with remedial measures to address the issues.
VIII.
ACCOUNTABILITY MECHANISM
64.
The Accountability Mechanism provides an independent forum and process whereby people
adversely affected by ADB-assisted operations can voice and seek a resolution of their problems,
as well as report alleged violations of ADB’s operational policies and procedures.34 People who are,
or may in the future be, adversely affected by a program supported by the RBL may submit
complaints to ADB’s Accountability Mechanism.
65.
Before submitting a complaint to the Accountability Mechanism, affected people should
make a good faith effort to resolve their problems and/or issues by working with the concerned ADB
operations department. Only after doing that, and if they are still dissatisfied, should they approach
the Accountability Mechanism.
IX.
PROGRAM ORGANIZATIONAL STRUCTURE AND FOCAL STAFF
66.
The Finance Division in the MOF will be the executing and implementing agency. The
SDCMU—established under SEIP—will continue to serve as the program management unit to
facilitate, coordinate, and monitor all project activities. The SDCMU is headed by the executive
project director (EPD). The national project director (currently senior secretary of the Finance
Division) will continue to provide policy advice, review funding, and release funds for the RBL
34
ADB. 2012. Accountability Mechanism Policy 2012. Manila.
62
program. All the staff of the SDCMU are recruited competitively with required expertise and
experience. The SDCMU is responsible for facilitating, coordinating, and monitoring the
implementation of the RBL program.
67.
An inter-ministerial project steering committee (PSC), chaired by secretary of the Finance
Division, includes selected senior officials from key ministries, institutions, and NSDA, with the EPD
of the RBL program as the member-secretary. The PSC will provide overall policy advice and
oversight, approve annual operation plans, review achievements against targets, and ensure
compliance with fiduciary oversight arrangements.
68.
The key implementing partner ministries include the Technical and Madrasah Education
Division in the Ministry of Education; Bureau of Manpower, Employment and Training in the Ministry
of Expatriates’ Welfare and Overseas Employment; Ministry of Industries; and Ministry of Textiles
and Jute. The Skills Development Implementation Committee (SDIC) headed by the EPD with
representatives from all the public and private partner agencies will provide a common forum to
discuss implementation issues and to make joint efforts to resolve problems emanating from
implementation. If problems cannot be resolved at this level, these will be escalated to the PSC
level for resolution.
69.
Table 14 provides management roles and responsibilities of PSC and SDCMU. Figure 1
provides the overall organization chart and Figure 2 shows the composition of SDCMU.
Table 14: Key Implementation Arrangements
Project Implementation
Organizations
Project steering committee
Management Roles and Responsibilities
Be responsible to:
• oversee the program implementation;
• help solve policy-related issues that may arise;
• provide guidance to the SDCMU;
• approve annual work plans and procurement plans;
• ensure timely budget release and disbursement of funds;
• review disbursement and utilization of funds;
• review and ensure compliance with fiduciary oversight arrangements;
• ensure oversight and guidance of PPP activities;
• ensure the implementation status of PAP; and
• review implementation activities are in accordance with EARF and EMPs
Implementing agency
Be responsible to:
(SDCMU)
• serve as program management unit;
• carry out all mandated functions related to project management, coordination,
monitoring, procurement, financial management, M&E;
• coordinate implementation activities;
• review program implementation progress;
• provide periodic capacity building on financial and procurement matters to all
implementing partners;
• ensure improved monitoring and reporting systems;
• oversee M&E activities; and
• present annual procurement plans and annual work plans for PSC approval.
EARF = environmental assessment review framework, EMP = environmental management plan, M&E = monitoring
and evaluation, PAP = program action plan, PPP = public–private partnership, PSC = program steering committee,
RF = resettlement framework, SDCMU = Skills Development Coordination and Monitoring Unit, SEC= small ethnic
communities.
Source: Asian Development Bank.
63
A.
Organization Structure
Figure 1: Project Implementation Structure
Finance Division, Ministry of
Finance
(Executing Agency)
Industry
Advisory
Board
Project Steering Committee
Chaired by Sr. Secretary, Finance Division
Other members from other implementing partner
ministries, NSDA, Industry Advisory Board
key ministries, private and university partners
Skills Development Coordination and Monitoring
Unit
Headed by Executive Project Director
(At Additional or Joint Secretary level)
with core staff appointed competitively
National Human
Resource
Development
Fund
DTE
Independent
Verification
Agency
BMET
MOI
MOTJ
Universities
Industry Associations
National Skills
Development
Authority
(NSDA)
NGOs
BMET = Bureau of Manpower, Employment, and Training, DTE = Directorate of Technical Education, MOI =
Ministry of Industries, MOTJ = Ministry of Textiles and Jute, NGO = nongovernmental organization.
64
Figure 2: Skills Development Coordination and Monitoring Unit Organizational Chart
AEPD = Assistant Executive Project Director, DEPD = Deputy Executive Project Director, EDC = executive development center, FM = Fund Management, IT =
Information Technology, M&E = monitoring and evaluation, QAO = quality assurance officer, R&D = research and development, TVET = Technical and Vocational
Education and Training.
Source: Government of Bangladesh and Asian Development Bank.
65
B.
Program Officers and Focal Persons
1.
Initial Arrangements
Table 15: Program Officers and Focal Persons
(as of 13 March 2023)
Number
1
Key Government Staff and Positions
2
Key ADB Staff and Positions
Ms. Fatima Yasmin
National Project Director for SEIP
Senior Secretary
Ministry of Finance
Gi Soon Song
Director
Human and Social Development Division (SAHS)
South Asia Regional Department
Mr. Md. Walid Hossain
Joint Secretary
Finance Division, Ministry of Finance
Sunhwa Lee
Principal Social Sector Specialist, SAHS
Unika Shrestha
Social Sector Economist, SAHS
3
Melinda Tun
Senior Counsel, OGC
ADB = Asian Development Bank.
C.
Project Implementation Organizations
70.
Table 16 provides information on the key stakeholders of the RBL program—both
government and private sector—and other agencies that are involved directly or indirectly in
program implementation and coordination.
Table 16: Other Concerned Agencies in Skills for Industry Competitiveness and
Innovation Program
Institutions
1.
NSDA
Background
Established in
2018 under the
Prime Minister’s
Office
Headed by
Executive
Chairman
(Secretary to the
Government)
2.
NHRDF
3.
MOE
Registered as notfor-profit company
in 2017 and in
operation (Chaired
by Managing
Director)
Line ministry for
post-primary
education
General
Responsibility and
Mandate
• Prepare and update
national skills
development policy,
strategy and plan of
actions
• Provide quality
assurance
mechanisms for
short-term skills
training
Provision of funding
for selected skills
training providers in
public, private, and
NGO sectors
Formulate, implement,
and monitor postprimary education
policy and programs
including TVET
SICIP-Related
Responsibility
Support
from SICIP
• Registration of
training institutes and
preparation of skills
standards
• Support SICIP’s
training (entry- to
mid-level) with
certification and
assessment
• Participate in SICIP’s
PSC
Coordinate with SICIP
for overlapping support
for training providers
Coordinate for
quality assurance of
entry- to mid-level
short term training
courses
• Serve as focal
ministry for SICIP,
support to TSCs and
polytechnics
• Participate in SICIP
PSC
Technical support to
build capacity of
select polytechnic,
TSCs, and DTE
Provide capacity
building support to
NHRDF
66
Institutions
Background
4.
MEWOE
Line ministry for
expatriates’
welfare and
overseas
employment
5.
MOI
Line ministry for
industries
6.
BB-SME
Part of the Central
Bank of the
country
It is also engaged
in training for
SMEs
Statutory body,
Examination Board
under MOE
7.
BTEB
8.
DTE
Directorate under
TMED, MOE
9.
BITAC
Institution under
MOI
General
Responsibility and
Mandate
Formulation and
implementation of
overseas employment,
expatriates’ welfare,
and related skills
development training
Formulation and
implementation of
industrial policy
Also involved in
entrepreneurship
development activities
through SME
Department
• Developing and
regulating formal
TVET programs
• Developing and
introducing new
courses
• Registration of
institutions and
accreditation of
courses
• Providing and
promoting
vocational education
• Providing technical
and financial
supports to the
public vocational
training providers
• Development of light
engineering industry
through skills
training and
consultancy
services for small
and medium
businesses.
SICIP-Related
Responsibility
Support
from SICIP
• Mobilize BTEB and
DTE
• Serve as focal
ministry for SICIP
support to TTCs
• Participate in SICIP
PSC
Technical support to
build capacity of
TTCs and BMET
• Serve as focal
ministry for SICIP
support to BITACs
• Participate in SICIP
PSC
Serve as
implementation partner
for providing skills
training for
entrepreneurship
development
Technical support to
build capacity of
BITACs
• Course
accreditation,
assessment, and
certification
Capacity building
through technical
support; facilitate
twinning
arrangement if
required
• Focal unit for the
MOE
• Implement SICIP
and provide skills
training through the
training institutes
under DTE
• Establish linkage
between industry
and institutes under
DTE
• Implement SICIP
training programs
• Establish a modern
advanced
engineering training
institute in BITAC in
Dhaka
• Financial and
technical support
for strengthening
DTE and training
centers
• Support for
training in TSCs
under DTE
• Support for motor
driving training in
TSCs under DTE
• Financial and
technical support
for SICIP
implementation
• Support the
renovation of
training facilities
and provision of
equipment for
advanced
training facilities
Financial and
technical support to
train for
entrepreneurs and
SMEs
67
Institutions
Background
General
Responsibility and
Mandate
• Promoting and
implementing of
skills development
training
• Collection and
dissemination of
labor market
information
• Employment
services both in and
outside the country
and welfare of
migrant workers
• Welfare of the
member industries
• Assist in
developing marketled training courses
10. BMET
Bureau under
MEWOE
11. Industry
associations
Organization for
sector industries
12. BRTC
Corporation under
Road Transport
and Highways
Division
Operation and
management of public
road transport
13. Executive
Development
Centers
(EDCs) at
Four
Universities
Established in two
public universities
and private
universities as part
of SEIP supported
programs
Develop mid- to
higher-level
management to
support the industrial
growth
14. BIGM
Policy research
institute affiliated
with Dhaka
University
Policy research and
training
SICIP-Related
Responsibility
Support
from SICIP
• Serve as focal unit
for SICIP
• Implement SICIP
• Provide institutional
training through
TTCs
• Implement
international
certificate courses
• Financial and
technical support
to strengthen
BMET operation
and capacity
building of
training centers
• Support for
training in TTCs
under BMET
• Serve as focal
implementation units
for sector-focused
skills training
• Organize, manage,
monitor skills
training with job
placement support
• Provide training on
motor driving with
basic maintenance
Financial and
technical support for
implementation of
skills training and
capacity building
• Provide training to
industry managers
and fresh graduates
from universities for
mid managerial
development
• Bangladesh
University of
Textiles; BRAC
University; Dhaka
University; and East
West University
• Provide policy
analysis training for
public and private
sector officials
Financial and
technical support for
implementation of
skills training and
capacity building
Financial and
technical support to
implement
management
training programs
and capacity
building
Financial and
technical support for
implementation of
policy analysis
course and capacity
building
15. PKSF
Not-for-profit
Implementation of
Implement training
• Mobilize NGOs/
company
microcredit and skills
program through
training institutes to
registered under
training program
partner
provide skills
the Companies Act through member/
organizations/
training
partner NGOs
NGOs
BB-SME = Bangladesh Bank Small and Medium Enterprise Department, BIGM = Bangladesh Institute of Governance
and Management, BITAC = Bangladesh Industrial Technical Assistance Center, BMET = Bureau of Manpower,
Employment and Training, BRTC = Bangladesh Road Transportation Corporation, BTEB = Bangladesh Technical
Education Board, DTE = Directorate of Technical Education, ISC = industry skills council, MEWOE = Ministry of
Expatriates’ Welfare and Overseas Employment, MIS = management information system, MOE = Ministry of Education,
MOI = Ministry of Industries, NGO = nongovernmental organization, NHRDF = National Human Resources
Development Fund, NSDA = National Skills Development Authority, PKSF = Palli Karma-Sahayak Foundation, PSC =
program steering committee, SICIP = Skills for Industry Competitiveness and Innovation Program, SME = small and
medium enterprise, TMED = Technical and Madrasah Education Division, TSC = technical school and college, TTC =
technical training center, TVET = technical and vocational education and training.
Source: Asian Development Bank.
68
Appendix 1
APPENDIX 1
DESIGN AND MONITORING FRAMEWORK
Impact the Program is Aligned with
Technology-ready workforce developed for a diversified and innovation-driven economy (Perspective Plan of
Bangladesh, 2021−2041)a
Results Chain
Outcome
Technologyoriented skilled
workforce
increased for
priority and
emerging industries
across skill levels
Performance Indicators
By 2029:
a. At least 160,000 people (at least 30%
female) improved sector-relevant
technical and managerial skills across
skill levels for 10 priority and emerging
sectorsb,c (2023 baseline: Not applicable)
(DLI 1) (OP 1.1; 2.2)
Data Sources and
Reporting Mechanisms
Risks and Critical
Assumptions
a.−c. Semiannual
progress reports, TMS
reports
R: Recurring global
diseases or other
shocks may disrupt
the execution and
implementation of
training programs.
1a.−1e. Semiannual
progress reports, TMS
reports
A: Industries
continue to adopt
technological
advances and
demand for higherlevel skills to
improve business
performances.
b. At least 65% of certified new job
seekers across skill levels are placed in
jobs (2023 baseline: Not applicable) (DLI
1) (OP 1.1; 2.2)
c. At least 26,500 women and people
from socially disadvantaged groups (e.g.,
people with disabilities, transgender
people, people from small ethnic
communities) acquired employable work
and life skills through specially targeted
programs, including green skillsc (2023
baseline: Not applicable) (DLI 2) (OP 1.3;
2.5)
Outputs
1. Capacity for
advanced technical
skills training
developed for
emerging and
priority sectors
By 2028:
1a. At least 5 industry–academic
partnerships established for advanced
skills programs (2023 baseline: Not
applicable)
1b. At least 20 advanced technical
courses implemented based on industry
demands, including at least 3 courses
specifically targeted for women (2023
baseline: Not applicable) (OP 3.2.2)
1c. At least 4,800 people (at least 15%
women) enrolled in industry-demanded
advanced or emerging technology
courses (2023 baseline: Not applicable)
(DLI 3) (OP 1.1.1; 2.1.1; 2.2.1)
1d. At least 35 practical training labs or
workshops in advanced technologies
created and operational for training (e.g.,
BUFT, STTLs, BITAC, polytechnics),
including green technologies (2023
baseline: Not applicable) (DLI 4) (OP
3.1.3; 3.2.5)
1e. At least 3 international partnerships
established for advanced technical
courses (2023 baseline: Not applicable)
(OP 7.3.3)
Appendix 1
Results Chain
2. Managerial
capabilities and
green innovation
capacity
strengthened
Performance Indicators
2a. By 2028, at least 3,250 people (15%
women) enrolled in mid-level managerial
training at EDCs, covering at least 4
industry sectorsb (2023 baseline: 1,695 in
SEIP Tranche 2) (DLI 5) (OP 1.1.1; 2.1.1;
2.3.1)
69
Data Sources and
Reporting Mechanisms
2a.−2e. Semiannual
progress reports, TMS
reports
Risks and Critical
Assumptions
A: Industries
continue to adopt
technological
advances and
demand for higherlevel skills to
improve business
performances.
3a.−3e. Semiannual
progress reports, TMS
reports
R: Slow
improvement in the
capacity of industry
associations and
training providers to
deliver quality
training linked to
job placement may
adversely affect
program outputs.
2b. By 2026, sustainable institutional
plans finalized by 4 EDCs for
implementation from project year 4 (2023
baseline: Not applicable)
2c. By 2028, at least 7 R&D projects
implemented for industry development
through university–industry
collaborations (2023 baseline: Not
applicable) (DLI 6)
2d. By 2028, at least 5 R&D project
outcomes have been piloted or adopted
by industries or government agencies,
including those using green technologies
or skills (2023 baseline: Not applicable)
(OP 3.1.5)
2e. By 2028, a program or a policy
drafted to incentivize nonresident
Bangladeshi scientists and engineers for
collaboration on industry-focused R&D
projects (2023 baseline: Not applicable)
3. Access to
socially inclusive
skilling and
upskilling expanded
By 2028:
3a. At least 12 performance (results)based training contracts signed and
implemented with industry and NGO
partners, covering at least 9 priority and
emerging sectors (2023 baseline: 12)
(OP 1.2.2)
3b. At least 160,000 people (at least 30%
women) enrolled in competency-based
job-ready basic and mid-level skills
courses (2023 baseline: 199,665 in SEIP
Tranche 2) (DLI 7) (OP 1.1.1; 2.1.1)
3c. At least 23,000 women enrolled in
women-targeted skills programs,
including multi-skilling courses and green
skills programs (2023 baseline: 1,000
BWCCI courses) (OP 2.1.1)
3d. At least 10,000 people from socially
disadvantaged groups (e.g., orphans,
people with disabilities, transgender
people, people from small ethnic
communities) enrolled in targeted skills
programs (2023 baseline: 600) (OP
1.1.1)
3e. At least 18,000 people enrolled in
international certificate courses for
70
Appendix 1
Results Chain
4. Institutional
capacity for skills
monitoring and
management
enhanced
Performance Indicators
potential migrant workers (2023 baseline:
2,100 in SEIP Tranche 2) (DLI 8) (OP
1.1.1)
4a. By 2024, an industry advisory board
established to provide guidance on
sector coverage and emerging skills
requirements for advanced level training
(2023 baseline: Not applicable) (DLI 3)
Data Sources and
Reporting Mechanisms
Risks and Critical
Assumptions
4a.−4f. Semiannual
progress reports, TMS
reports, and annual audit
reports
4b. By 2024, TMS modules enhanced to
report on different levels of skills training
and track progress in DLIs, with
disaggregated data of trainees by gender
and other attributes (2023 baseline: Not
applicable) (DLI 9)
4c. By 2028, analytic reports based on
TMS data produced annually, with
disaggregated analysis by gender and
socially disadvantaged groups (2023
baseline: Not applicable) (DLI 9)
4d. By 2028, internal audits conducted by
covering at least 10 implementing
partners according to annual internal
audit plans, and action plans developed
based on audit results (2023 baseline:
Not applicable) (DLI 9)
4e. By 2028, two rounds of performance
audits of the RBL program (including
implementing partners) undertaken and
action plans implemented (2023
baseline: Not applicable) (DLI 9)
4f. By 2028, program action plans
implemented (e.g., gender, social
inclusion, and capacity development
plans) and semiannual progress reports
provided to ADB, including social and
environmental safeguards reports (2023
baseline: Not applicable)
Key Program Actions
1. Capacity for advanced technical skills training developed for emerging and priority sectors
1.1 Finalize partnership agreements, business plans, and contract templates for advanced skills programs (Q4
2023)
1.2 Endorse industry advisory board terms of reference and its membership (Q4 2023)
1.3 Sign international cooperation agreements for relevant agencies (e.g., BITAC, STTLs, BUFT) (Q3 2023−Q2
2024)
1.4 Finalize upgrading of training facilities and equipment plans for advanced skills courses and commence
bidding (Q3 2023−Q4 2024)
1.5 MOTJ prepares manpower and budget requirements for STTLs for finalization and approval (Q3–Q4 2024)
2. Managerial capabilities and green innovation capacity strengthened
2.1 Revise EDC training plans and curriculum to incorporate technology and green business trends (Q3–Q4 2023)
2.2 Finalize institutional development plans for new or renovative EDC facilities (Q3−Q4 2025)
2.3 Finalize guidelines on competitive grants for industry R&D projects and establish the evaluation committee
(Q3−Q4 2024)
2.4 Organize consultation meetings to discuss a “brain circulation” program for nonresident Bangladeshi scientists
and engineers (Q1−Q4 2024)
3. Access to socially inclusive skilling and upskilling expanded
Appendix 1
71
Data Sources and
Risks and Critical
Results Chain
Performance Indicators
Reporting Mechanisms
Assumptions
3.1 Finalize and issue guidelines on the roles and responsibilities among the NSDA, NHRDF, and SDCMU (Q4
2023)
3.2 Revise the SEIP’s performance-based training contracts and associated training (business) plans with cost
norms for key expenditure categories (Q3−Q4 2023)
3.3 Finalize MOUs with the H&M Foundation and the Asia Foundation for women’s skills for future work program
(Q3–Q4 2024)
3.4 Finalize MOUs or agreements for international certification skills courses (Q3 2023−Q4 2024)
4. Institutional capacity for skills monitoring and management enhanced
4.1 Finalize the restructuring plan of the SDCMU with required manpower (Q3−Q4 2023)
4.2 Establish monitoring and evaluation plans for all training partners (Q1−Q2 2024)
4.3 Finalize and implement plans for training of trainers and assessors (Q1 2025−Q4 2027)
4.4 Hold periodic coordination meetings with the NSDA and NHRDF for quality assurance of training
implementation and avoid overlapping financing support for training providers (Q4 2024−Q4 2027)
Financing Plan
Total program financing (FY2024−FY2029): $708.9 million
Government of Bangladesh: $408.9 million
Asian Development Bank: $300.0 million (loan: concessional ordinary capital resources)
A = assumption, ADB = Asian Development Bank, BITAC= Bangladesh Industrial Technical Assistance Center, BUFT
= Bangladesh University of Fashion and Technology, BWCCI = Bangladesh Women Chamber of Commerce and
Industry, DLI = disbursement-link indicator, EDC = executive development center, FY = fiscal year, MOTJ = Ministry of
Textiles and Jute, MOU = memorandum of understanding, NGO = nongovernment organization, NHRDF = National
Human Resource Development Fund, NSDA = National Skills Development Authority, OP = operational priority, Q =
quarter, R = risk, R&D = research and development, RBL = results-based lending, SDCMU = Skills Development
Coordination and Monitoring Unit, SEIP = Skills for Employment Investment Program, STTL = smart textile technology
living labs, TMS = trainee management system.
a Government of Bangladesh, Ministry of Planning. 2020. Making Vision 2041 a Reality: Perspective Plan of
Bangladesh 2021−2041. Dhaka.
b The number of priority or emerging sectors for which training is provided differs across skill levels. For entry- to midlevel skills (output 3), it will cover at least 9–10 priority sectors based on the ongoing SEIP’s training, including
garments, textiles, leather goods and footwear, information technology, light engineering, construction, agroprocessing, hospitality and tourism, and specialized nursing. For mid-level managerial training (output 2), EDCs have
so far focused on four sectors (garments, knitwear, textiles, and leather goods and footwear), which is expected to
continue. For advanced-level technical skills (output 1), the program will support existing priority sectors according
to specific industry demands, along with emerging priority sectors such as automobiles, electronics, and
pharmaceuticals. Additional advanced technical skills courses may be supported based on industry demands during
program implementation.
c For outcome indicators a and c, improved sector-relevant skills or acquired employable skills mean that trainees
received a certificate from relevant courses. In cases where the receipt of a certificate is delayed, completion of
training (or its assessment) is considered the equivalent of receiving a certificate.
Contribution to Strategy 2030 Operational Priorities
The expected values and methodological details for all OP indicators to which this operation will contribute results are
in Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 2). In
addition to the OP indicators tagged in the DMF, the program will contribute results for OP 6.1. Entities with improved
management functions and financial stability and OP 6.2. Entities with improved service delivery.
Source: Asian Development Bank.
72
Appendix 2
APPENDIX 2
STATEMENT OF AUDIT NEEDS
DRAFT TERMS OF REFERENCE FOR FINANCIAL AUDIT
A.
Objectives
1.
Asian Development Bank (ADB) Charter requires the Bank to take necessary measures to
ensure that the proceeds of any loan, grant or technical assistance are used only for the purposes
for which the loan/grant/technical assistance was granted with due attention to considerations of
economy and efficiency.1 To fulfil this, for each loan/grant/technical assistance, a legal agreement
is signed between ADB and the Government of Bangladesh, which requires the borrower through
its executing agency and/or implementing agencies to maintain separate financial records for each
program, prepare annual Program Financial Statements (PFS), have them audited by an
independent auditor acceptable to ADB and submit the audited statements to ADB annually.2
2.
The objective of an audit of the PFS is to enable the auditor to express an independent and
objective reasonable assurance opinion as to whether or not – the PFS present fairly, in all material
respects, the project financial position as on [the closing date of audit reference period] and its
financial performance for the period then ended.3
3.
In addition, the auditor shall provide reasonable assurance report on whether:
a. the proceeds of the loan/grant were used only for the intended purposes of the program
and in accordance with the legal agreements;
b. the time-bound financial covenants outlined in the legal agreement (if any) were fulfilled
and supported by computations;4 and
c. the aggregate ADB financing for an RBL is equal to, or less than, the aggregate eligible
program expenditure incurred from ADB member countries (and non-member countries,
where universal procurement applies).5
B.
Standards
4.
The audit will be carried out in accordance with the auditing standards acceptable to ADB.
ADB recognizes the use of the International Standards on Auditing (ISA), International Standards
1
2
3
4
5
ADB. 1965. Agreement Establishing the Asian Development Bank (ADB Charter), Article 14(vi). Manila
ADB. 2022. Operation Manual J7: Financial Reporting, Auditing, Management and Monitoring in Sovereign
Operations. Manila.
For RBLs, ADB may discuss and agree with the government and the auditor on specific terms of reference, if
necessary due to project specific circumstances. .
If the time-bound financial covenants pertain exclusively to the program, the program auditors may issue an opinion.
If they pertain to the entity, the entity auditor would usually issue such additional opinion.
Specific activities shall be excluded from the RBL program, such as procurement of works, goods, and services
under high value contracts whose estimated value exceeds specific monetary amounts. The following contracts are
considered high value:(i) $50 million and above for works, turnkey, and supply and installation contracts; (ii) $30
million and above for goods contracts; (iii) $20 million and above for information technology systems and nonconsulting services contracts; and (iv) $15 million and above for consulting services contracts. In exceptional
situations, high-value contracts may be eligible for RBL program financing if they are deemed to be important to the
RBL program outcomes. Decisions on whether to include high-value contracts consider the procurement
environment, the type and complexity of the procurement undertaken, the competitiveness of the market, and the
level of fiduciary risk. The inclusion of high-value contracts under exceptional cases must be endorsed by ADB.
Calculation of aggregate eligible program expenditure shall exclude such high value contracts exceeding the ceiling.
Appendix 2
73
of Supreme Audit Institution (ISSAI), or national auditing standards (Bangladesh Government
Auditing Standards).6
C.
Scope of Audit
5.
The audit scope shall be in accordance with the legal agreements and arrangement agreed
between ADB and the government and documented in the respective Program Implementation
Document (PID). The PID would specify the project implementation arrangements, agencies
involved with corresponding description of respective roles and responsibilities, program timeline,
disbursement arrangements, and other financial management arrangements. The audit shall be
conducted in accordance with the auditing standards acceptable to ADB including International
Standards on Auditing or the auditing standards issued by the International Organization of
Supreme Audit Institutions (INTOSAI).
6.
The scope of audit would cover the entire program (i.e., covering all sources and application
of funds, including the ADB, co-financiers and the government contribution). Disbursements will be
in accordance with ADB’s Loan Disbursement Handbook and detailed arrangements agreed
between the borrower and ADB. Disbursement of loan proceeds will be made to an account to be
designated by the borrower based on the verification of achievement of disbursement-linked
indicators (DLIs) for which disbursement is requested. The agreed disbursement procedures are
described in the PID. All financing, irrespective of the disbursement procedure shall form part of the
program financial statements and be subject to audit.
7.
6
In conducting the audit, special attention should be paid to the following:
a.
The use of program funds in accordance with the relevant legal agreement. The
program has complied with the financial management arrangements set out in the
program documents. The program documents include, loan/grant/technical
assistance agreement, PID, and other program linked documents.7
b.
All necessary documents, records and accounts have been kept in respect of all
program transactions. Clear linkage should exist between the program books of
accounts and PFS.
c.
Verification of DLIs conducted by an Independent Verification Agent in accordance
with the verification protocols agreed between the government and ADB and as
indicated in the PID. Evidence of achievement of DLIs must be submitted together
with the withdrawal application.
d.
Any weaknesses in internal control.
e.
The PFS is prepared and presented in accordance with the applicable financial
reporting framework as mentioned in the Notes to the PFS.
d.
The provision of counterpart funds in accordance with the relevant agreement and
their use only for the purposes intended.
International and national auditing standards are updated from time-to-time, the auditing standard that will be adopted
for the ADB financed projects shall be based on prevailing standards applicable for the reporting date.
7 ADB. Projects Documents.
74
Appendix 2
f.
The expenditures reported in the PFS should be carefully examined for project
eligibility by reference to the relevant legal agreement and program documents.
Where ineligible expenditures are identified as having been included in the PFS,
these should be separately disclosed by the auditor.8
g. Unless universal procurement is approved for the program, the aggregate ADB financing
for a RBL must be equal to, or less than, the aggregate eligible program expenditure
incurred from ADB member countries.9
h. Specific activities excluded from the RBL program, such as procurement of works, goods,
and services under high value contracts whose estimated value exceeds specific
monetary amounts (footnote 5). Such expenditure shall be excluded in the RBL program
and the calculation of aggregate eligible expenditures.
D.
Program Financial Statements
8.
The auditor should verify that the PFS have been prepared in accordance with the agreed
financial reporting standards and provide an assurance that the PFS have been audited in
accordance with the acceptable auditing standard. The content of the PFS is specific to the program
design. The preparation of the PFS is the responsibility of the management and shall be in
accordance with the requirements of the relevant financial reporting standards. It should include the
following:
a. Statement of receipts and payments and cash balances thereof, which include the
sources and uses of funds showing the funds received from ADB, government and
other financiers for the program, where applicable.
b. Statement of budget vs. actual showing expenditure for the current year, prior year
and cumulative inception to date (where applicable).
c. Detailed notes to the financial statements including accounting policies and
explanatory notes.
d. Annexure to the program financial statements shall include the (a) Statement of
Expenditure, (b) Disbursement Details, and (c) Statement of Reconciliation with ADB
Loan and Grant Financial Information Services
9.
The PFS shall be signed by the management. Further, the same PFS on which the auditor
gives opinion also needs to be signed by the auditor.
E.
Management Assertion Letter
10.
The executing agency and/or the implementing agencies shall provide the auditor with a
written acknowledgement of its responsibilities for the preparation and fair presentation of the PFS
and the assertion that the program funds have been used in accordance with the intended purpose
and following the program documents. The Management Assertion Letter shall be prepared in
accordance with the requirements of the relevant auditing standards being applied for the program
financial statements audit.10
8
The auditor shall assess the impact to the audit opinion of the misstatement arising from ineligible expenditures.
If aggregate eligible program expenditure from ADB member countries is less than the aggregate ADB
disbursements at the end of the program, the excess will need to be refunded to ADB.
10 ISA 580, ISSAI 2580 or national equivalent standard on “Written Representation”.
9
Appendix 2
F.
75
Audit Report
11.
An audit report on the PFS should be prepared in accordance with the acceptable auditing
standards stated in Section C above. Those standards require an audit opinion to be rendered
related to the financial statements taken as a whole, indicating clearly whether it is unmodified or
modified and, if the latter, whether it is qualified in certain respects or is adverse or a disclaimer of
opinion. Relevant templates of audit reports are available in the applicable auditing standards.
12.
The auditor should submit the audited PFS and audit report to the EA/IA. The audited PFS
together with the audit report should be submitted by the EA/IA to ADB within the timeline specified
in the respective legal agreement.
G.
Management Letter
13.
The auditor shall prepare a management letter containing the findings and
recommendations on internal control and other matters coming to the attention of the auditor during
the audit examination. The management letter report with details of auditor's findings and
recommendations shall be in English. The content of the management letter should be discussed
with EA/IAs and shall incorporate management responses to each findings including status of
previous years findings and recommendations. If no deficiencies or weaknesses are identified, the
auditor should provide a written confirmation.
H.
General
14.
The auditor should be given access to any information relevant for the purposes of
conducting the audit. The information made available to the auditor should include, but not be
limited to, copies of the program documents and legal agreements. All documents will be provided
by the program staff to the auditor.
76
Appendix 3
APPENDIX 3
INDICATIVE TERMS OF REFERENCE FOR INTERNAL AUDIT
A.
Objective
1.
The objectives of the internal audit are to (i) review the adequacy of the program financial
management arrangements, and (ii) provide the program management with timely information on
appropriateness and effectiveness of internal controls and financial management activities of the
program to enable appropriate corrective/ follow-up action. The Internal Auditor shall be
responsible for internal checks and controls to ensure credibility, effectiveness, and efficacy of
the systems and procedures for program management aimed at accountability, transparency, and
compliance to the relevant guidelines/rules.
B.
Scope of Work
2.
The internal audit of the program will be performed throughout the program
implementation period. The internal auditor scope will include the Skills Development
Coordination Management Unit (SDCMU) and the implementing partners (public and private).
The internal audit would visit relevant offices and implementing partners and/or training institutes
to verify processes, internal controls and supporting documents. The internal audit would be
carried out in accordance with international or national standards and aligned with the Internal
Audit Charter and Methodology developed by the Bangladesh government. The scope of the
assignment would cover the program activities and transactions. The responsibility of the internal
auditor expert includes supporting SDCMU Internal Audit Division to report on adequacy of
internal controls, accuracy of transactions, the extent to which the assets are accounted and
safeguarded, and the level of compliance with government and Asian Development Bank’s (ADB)
requirements. The following are the key responsibilities.
•
•
•
•
•
•
•
•
Preparation and submission of annual internal audit scope and work plan.
Ascertain and evaluate the adequacy and effectiveness of financial management and
internal controls of the program. This would include aspect such as adequacy and
effectiveness of accounting, financial and operational controls exercised by relevant
agencies, units and/or institutes to the extent of the RBL program.
Review and report on procurement, contracting, disbursements, financial management
and assets and inventory processes.
Ascertain compliance with Government and ADB’s guidelines.
Identify and report areas for improvement and critical weaknesses, if any.
Provide program management timely information and recommendation on financial
management aspect of the program to enable timely corrective actions, as necessary.
Support the internal audit function to furnish periodic audit report. The audit report shall
include the (i) objective of the audit, (ii) methodology used for the audit, (iii) the status of
implementation of financial management records, systems and internal controls, (iv) status
of compliance of the previous audit report, (v) key areas of weaknesses, and (vi)
recommendations for improvements.
Support in the follow-up of audit recommendations to further improve the internal controls
of the project.
3.
The Internal Audit to be conducted on semiannual basis and report should be submitted
to the Project Director within 60 days of end of each semiannual period. The Internal auditor
should verify that the program is effectively and efficiently in compliance with agreed reporting
protocols with the Asian Development Bank. The Internal Auditor shall serve as a focal person for
Appendix 3
77
the program auditing activities and shall develop all the auditing policies/systems and their
implementation thereof related to ADB Project’s finances which shall serve as the basis for all
managerial decisions besides effective financial management of funds. This shall require close
coordination and communication with SDCMU, representatives from primary stakeholder,
external consultants and field staff when appropriate.
C.
Minimum Qualification Requirements
4.
The Consultant shall meet the following minimum requirements:
(i)
Must be a Qualified Chartered Accountant firm or qualified chartered
accountants/certified internal auditor (in case of individual consultants).
(ii)
Should have preferably, minimum seven (7) years of progressive experience
related to auditing in public/private, preferably, development sector.
(iii)
Experience of preparing accounting and audit statements/reports for large
projects, preferably foreign/donor funded projects.
(iv)
Excellent command on MS Office and relevant Accounting Software.
D.
Person Months Requirements
5.
The consulting service will be implemented from month 202x to month 202x, with
intermittent person month inputs of -- person months.
Appendix 4
78
APPENDIX 4
INDICATIVE TERMS OF REFERENCE FOR PERFORMANCE AUDIT
1.
Objective of the assignment. The primary objective of this assignment is to conduct a
performance audit of the Skills for Industry Competitiveness and Innovation Program. The
performance audit should be an independent, objective, and reliable examination of whether
government undertakings, programs, systems, operations, activities and/or organizations
involved in the implementation of the program are operating in accordance with the principles of
economy, efficiency and/or effectiveness and whether there is room for improvement. The
performance audit will also contribute to good governance, accountability, and transparency of
the program. The performance audit will cover the overall operation and performance of the
program, including the performance of the SDCMU and all the implementing partners in delivering
the program intended outcome and outputs, training and fiduciary management. The performance
audit will recommend areas for further improvements in overall program operations. 1
2.
Scope of work. The auditor’s review should include an audit of the systems and overall
operating procedures of the program. The auditor review shall include an analysis of:
(i)
(ii)
(iii)
Economy. Aims at “keeping the cost low.” It focuses on how the audited entities
succeeded in minimizing the cost of resources (input), taking into account the
appropriate quality of these resources. The auditor should conclude whether the
skills training and services were available in due time and of appropriate quantity
and quality.
Efficiency. Seeks “making the most of available resources.” It evaluates whether
the inputs have been put to optimal or satisfactory use, or whether the same or
similar outputs (in terms of quality and turnaround time) could have been achieved
with less resources. In other words, it answers the following question: “Are we
getting the most output in terms of quantity and quality – from our inputs and
actions?” The auditor should conclude whether the available resources have been
fully utilized and delivered to appropriate recipients.
Effectiveness. Pursues “Achieving the stipulated aims or objectives.” It deals with
results by focusing on whether and how the SICIP is meeting its goals. It can be
split in two aspects: (a) the attainment of specific objectives in terms of outputs
(also called efficacy); and (b) the achievement of intended results in terms of
outcomes. The auditor should conclude whether the targeted groups to receive the
skills development were completed and in a timely manner.
3.
Specific areas for audit. Based on the preliminary risks identified and prioritization made
by the auditor, the scope of the audit will include (but not limited to) the following areas:
a. Training performance and management
(i)
Analyze the adequacy of coverage of training courses and assess whether it
complies with the program requirements.
(ii)
Assess effectiveness of reach of the program to the target beneficiaries, especially
by each of implementing partners for sector-relevant training.
(iii)
Evaluate adequacy of selection process of training providers by implementing
partners, especially the capacity of training facilities and qualifications of trainers
for the proposed training courses.
1
INTOSAI, 2019. ISSAI (3000 – 3899): International Standards of Supreme Audit Institutions on Performance Auditing;
2020 Performance Audit ISSAI Implementation Handbook.
Appendix 4
(iv)
(v)
(vi)
(vii)
(viii)
79
Review the contracts signed between SDCMU and implementing partners and
evaluate compliance by implementing partners with the agreements.
Review the agreements signed between implementing partners and outsourced
training providers and evaluate if the agreements include all required provisions
and they are complied with.
Assess the performance of training delivery in terms of planned targets and
implementation schedules, analyze the reasons for any variance, and recommend
areas for improvement.
Validate accuracy and validity of data and supporting documents such as
enrollment records, attendance records, assessment, certificates of training
completion, and job placement records.
Review the functioning of training monitoring mechanism of SDCMU and
implementing partners, and assess their effectiveness and feedback
communication channels, which may include: (a) appropriateness of monitoring
reports within SDCMU; (b) appropriateness of monitoring reports by PIUs of
implementing partners that include regular plans being submitted to SDCMU and
whether they are implemented as planned; (c) actions taken to address the
findings; and (d) overall oversight of implementing partners by SDCMU in this
regard.
b. Financial management
(i)
Assess the sufficiency and timeliness of budget allocation and availability of funds
in SDCMU.
(ii)
Assess whether audit observations are being resolved in a timely manner and
action plans are in place to prevent recurring observations.
(iii)
For implementing partners, review and assess the milestone payments (a) whether
they are in line with training results being reported; (b) claims are being made in a
timely manner; and (c) check the appropriateness of supporting documents for job
placement together with TMS data records.
(iv)
Evaluate whether financial resources are utilized for the activities, as stipulated in
the contract signed between implementing partners and SDCMU.
c. Procurement
(i)
Review the procurement process in SDCMU and implementing partners whether
government procurement act and rules are being followed.
(ii)
Review annual procurement plans are being prepared by SDMCU and they are
being executed in a timely manner.
(iii)
Assess if procured materials are appropriate as approved and its utilization
requirements.
d. Record keeping and documentation
(i)
Evaluate the information system and accuracy of data used for reporting and
monitoring.
(ii)
Evaluate appropriateness of supporting documents, records and books of
accounts relating to program activities have been kept.
(iii)
Review appropriate authorization/approval of expenditures.
(iv)
Assess the effectiveness of the communication plan.
(v)
Other areas depend on the risk assessment of the auditor.
4.
Documentation. In undertaking the audit, the auditor shall review the following
documents (including any update to such documents).
(i)
program documents from ADB;
80
Appendix 4
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
legal agreements from ADB;
legal agreements with implementing partners;
agreements between implementing partners and training providers;
enrollment records, attendance records, assessment, certificate of training
completion, and job placement records;
monthly or quarterly activity reports (programmatic as well as financial);
important correspondence pertaining to implementation matters of the program;
internal audit reports relevant to the expenditures or any systems, governance or
other issue which may impact the program; and
other relevant documents and data.
5.
Conduct of audit. The performance audit should follow the International Standards on
Audit (e.g., ISSAI 3000).2 These standards require that the auditor comply with ethical
requirements and plan and perform the audit to obtain sufficient, appropriate evidence and
provide a reasonable basis for the findings and conclusions based on the audit objectives.
According to the standards, the auditor will assess the risk of fraud when planning the audit and
be alert to the possibility of fraud throughout the audit process.
6.
Audit report. The audit will start from year 2 in 2025 (following the first year’s training
implementation), which will cover the overall program including activities supported by the
implementing agencies. The first performance audit report shall be prepared by June 2026. The
second performance audit should start in 2027 (year 4 implementation) and completed by June
2028. All reports must be presented in the English language by June of year 3 (2026) and year 5
(2028) of the program implementation. The auditors are expected to produce a report which
should contain, at the minimum, the following information:
(i)
Background - Covering the objective, scope, the legal and government framework,
information on financing, status of implementation of the program, etc.
(ii)
Roles and Responsibilities - For maintaining records, monitoring and reporting the
use of funds, and for the implementation of the program.
(iii)
Audit objectives and methodology used - Informing the (a) subject matter, (b) audit
objective(s) and/or questions, (c) audit criteria and its sources, (d) audit-specific
methods of data gathering and analysis applied, (e) time period covered, and (f)
sources of data.
(iv)
Limitations to the data used.
(v)
Audit findings - This part should cover the main findings and responses obtained.
(vi)
Conclusions - This should contain professional opinions based on the objectives
and results of the audits, following applicable international auditing standards.
(vii)
Recommendations - This part should provide the recommended measures to help
strengthen the SICIP processes and procedures. Additionally, this section should
identify gaps and possible actions to strengthen the program.
2
INTOSAI. 2019. ISSAI 3000 - Performance Audit Standard. Luxembourg.
81
Appendix 5
APPENDIX 5
ADB GUIDELINES TO PREVENT OR MITIGATE FRAUD, CORRUPTION, AND OTHER
PROHIBITED ACTIVITIES IN RESULTS-BASED LENDING FOR PROGRAMS
A.
Purpose and General Principles
1.
The developing member country (DMC) is responsible for the implementation of programs
supported by results-based lending (RBL). The Asian Development Bank (ADB) has a fiduciary
responsibility to ensure that its loans and other forms of financing used only for the purposes for
which they were granted, in accordance with the Agreement Establishing the Asian Development
Bank (the Charter).1 To uphold that obligation, ADB presents these guidelines to prevent or
mitigate fraud, corruption, and other prohibited activities (referred to as ‘integrity violations’ in
ADB’s Integrity Principles and Guidelines, 2015 as amended from time to time, or ‘IPG’ for brevity)
in RBL operations financed in whole or in part by ADB. These guidelines build upon the legal
obligations presented in the loan agreement and apply to operations funded by the RBL (the
programs).2
2.
These guidelines do not limit any other rights, remedies, or obligations of ADB or the DMC
under the loan agreement or any other agreement to which the ADB and the DMC are both parties.
3.
All persons and entities participating in the programs are bound by ADB’s Anticorruption
Policy (1998, as amended to date) and the IPG, and as such must observe the highest ethical
standards; take all appropriate measures to prevent or mitigate fraud, corruption, and other
integrity violations; and refrain from engaging in such actions in connection with the programs.
B.
Definitions
4.
These guidelines address the following practices as defined by ADB:
(i)
A “corrupt practice” is the offering, giving, receiving, or soliciting, directly or
indirectly, anything of value to influence improperly the actions of another party.
(ii)
A “fraudulent practice” is any act or omission, including a misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit, or to avoid an obligation.
(iii)
A “collusive practice” is an arrangement between two or more parties designed to
achieve an improper purpose, including influencing improperly the actions of
another party.
(iv)
A “coercive practice” is impairing or harming, or threatening to impair or harm,
directly or indirectly, any party or the property of the party to influence improperly
the actions of a party.
2.
In addition, ADB may investigate conflicts of interest and abuse, as defined below, as well
as other integrity violations enumerated and defined in the IPG:
(i)
A “conflict of interest” is a situation in which a party has interests that could
improperly influence a party’s performance of official duties or responsibilities,
contractual obligations, or compliance with applicable laws and regulations. To the
extent that conflicts of interest may provide an unfair competitive advantage or
compromise the integrity of financial and governance systems, conflicted persons
and entities must be excluded from participating in relevant program activities.
1
2
ADB. 1966. Agreement Establishing the Asian Development Bank. Manila.
ADB may support a part (or a slice) of a government program or the entire government program through RBL. The
program or the part that is supported by RBL is referred to as the RBL program.
82
Appendix 5
(ii)
C.
“Abuse” is theft, waste or improper use of assets related to ADB-related activity,
either committed intentionally or through reckless disregard.
Developing Member Country’s Actions to Prevent Fraud, Corruption, and Other
Integrity Violations in Results-Based Lending for Programs
3.
Unless otherwise agreed in writing by the DMC and ADB, the DMC will take timely and
appropriate measures to:
(i)
ensure that the program is carried out in accordance with these guidelines;
(ii)
avoid conflicts of interest in the program;
(iii)
prevent fraud, corruption, and other integrity violations from occurring in the
program, including adopting, implementing, and enforcing appropriate fiduciary
and administrative practices and institutional arrangements to ensure that the
proceeds of the loan are used only for the purposes for which the loan was granted;
(iv)
promptly inform ADB of allegations of fraud, corruption, and other integrity
violations found or alleged related to a program;
(v)
investigate allegations of fraud, corruption, and other integrity violations and report
preliminary and final findings of investigations to ADB;
(vi)
respond to, mitigate, and remedy fraud, corruption, or other integrity violations that
are found to have occurred in a program and prevent its occurrence;
(vii)
cooperate fully with ADB in any ADB investigation into allegations of fraud,
corruption, and other integrity violations related to the program, and take all
appropriate measures to ensure the full cooperation of relevant persons and
entities subject to the DMC’s jurisdiction in such investigation, including, in each
case, allowing ADB to meet with relevant persons and to inspect all of their relevant
accounts, records and other documents and have them audited by or on behalf of
ADB; and
(viii) ensure that persons or entities sanctioned or temporarily suspended by ADB do
not participate in RBL programs in violation of their sanction or temporary
suspension.
D.
ADB’s Actions to Prevent Fraud, Corruption, and Other Integrity Violations in
Results-Based Lending for Programs
4.
Unless otherwise agreed in writing by the DMC and ADB, ADB will:
(i)
inform the DMC of credible and material allegations of fraud, corruption, and other
integrity violations related to a program, consistent with ADB’s policies and
procedures;
(ii)
have the right to investigate allegations, in accordance with the IPG, independently
or in collaboration with the DMC, including, in each case, meeting with relevant
persons, and inspecting all of their relevant accounts, records and other
documents and having them audited by or on behalf of ADB;
(iii)
inform the DMC of the outcome of any investigation, consistent with ADB policies
and procedures;
(iv)
have the right to impose sanction and other remedial action on any individual or
entity for engaging in practices defined above, or to temporarily suspend any
individual or entity during the course of an investigation, in accordance with ADB’s
policies and procedures; sanctions and temporary suspensions may result in that
Appendix 5
(v)
(vi)
3
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party’s exclusion from participating in an RBL-financed activity or any other ADBrelated activity indefinitely or for a stated period of time;3
assess ways to respond pursuant to the Anticorruption Policy and other ADB
policies and procedures, and may refer the case to appropriate authorities of a
concerned DMC, if investigative findings indicate that a government official has
engaged in fraud, corruption, and other integrity violations related to a program;
and
recognize sanctions determined by other multilateral development banks in
accordance with the Agreement for Mutual Enforcement of Debarment Decision
Pursuant to ADB’s Integrity Principles and Guidelines (2015, as amended from time to time), if a sanctioned party
has an ongoing contract financed by ADB, the debarment or temporary suspension may not affect existing
contractual obligations. However, any contract variation must be endorsed by OAI to ensure that a contract variation
involving a sanctioned or temporarily suspended party is not an attempt to circumvent the sanction.