Program Implementation Document

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 3
A. The Results-Based Lending Program’s Overall Results 3
B. Disbursement-Linked Indicators 12
C. Disbursement-Linked Indicator Verification Protocols 17
D. Disbursement Allocation and Status 38
III. EXPENDITURE FRAMEWORK AND FINANCING 41
A. Expenditure Framework 41
B. Program Financing 41
IV. PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS 42
A. Monitoring and Evaluation System 42
B. Fiduciary Systems 44
C. Satisfying Procurement Member Country Eligibility Restrictions 50
D. Safeguard Systems 50
E. Gender and Social Dimensions 52
F. Communication and Information Disclosure Arrangements 52
G. Development Coordination 53
V. INTEGRATED RISKS AND MITIGATING MEASURES 53
A. Key Risks and Mitigating Measures 53
VI. PROGRAM ACTION PLAN 57
A. Status of Program Action Plan 57
VII. MONITORING OF KEY PROGRAM COVENANTS 61
VIII. ACCOUNTABILITY MECHANISM 61
IX. PROGRAM ORGANIZATIONAL STRUCTURE AND FOCAL STAFF 61
A. Organization Structure 63
B. Program Officers and Focal Persons 65
C. Project Implementation Organizations 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 results-
based 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 – Asian Development Bank

BACS – Budget and Accounting Classification System
DLI – disbursement-linked indicator
DMC – developing member country
EARF – environmental assessment and review framework
e-GP – e-Government Procurement
EMP – environmental management plan
GRS – grievance redress system
iBAS++ – Integrated Budget and Accounting System
IEE – initial environmental examination
IVA – Independent verification agency
M&E – monitoring and evaluation
MOF – Ministry of Finance
NHRDF – National Human Resource Development Fund
NSDA – National Skill Development Authority
OCAG – Office of the Comptroller Audit General
PAP – program action plan
PID – program implementation document
PPR – Public Procurement Rules
PSSA – Program Safeguards System Assessment
RBL – results-based lending
RRP – report and recommendation of the President
SDCMU – Skills Development Coordination and Monitoring Unit
SEC – small ethnic communities
SEIP – Skills for Employment Investment Program
STTL – smart textile technology living labs
TMS – trainee management system
TOR – terms of reference
TVET 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 industry-
required human resources and industry-oriented R&D activities, with attention to green technology
solutions and climate-resilient business practices.
1 Government of Bangladesh, Ministry of Finance. 2023. Skills Development Framework for Economic
Competitiveness. Dhaka.
2 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.
3 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.
4 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 Broader Government Program Results-Based Lending Program
Outcome Human capital enhanced for sustainable Technology-oriented skilled workforce
economic development and inclusive increased for priority and emerging
growth industries across skill levels
Key outputs (i) Increase advanced skilled workers for Selective initiatives of the government
priority manufacturing sectors program will be supported, focusing on:
(ii) Expand ICT-based skills and (i) advanced technical skills and
employment managerial capabilities for emerging
(iii) Increase R&D initiatives for innovation and priority industries,
in industry (ii) industry−university collaborations for
(iv) Expand equitable education and R&D projects with applications of
training opportunities. advanced or green technologies,
(iii) socially inclusive skilling and upskilling
for women and people from
disadvantaged groups, and
(iv) enhanced skills monitoring and
coordination.
5 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.
6 The RBL’s alignment with the Paris Agreement was assessed during the preliminary climate and disaster risk
screening.
7 World Bank. 2019. Bangladesh: Strengthening Public Finance Management Program to Enable Service Delivery.
Washington, DC.
8 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.
9 Following the RBL policy, the program will not include high-value procurement contracts and packages.
3
Item Broader Government Program Results-Based Lending Program

Activity types Establish new polytechnics and training Establish smart textile technology labs for
institutes, increase ICT training in advanced technical training, upgrade other
education, expand employment in high-tech centers for training on emerging
parks, incorporate STEM in higher technologies, redesign managerial training
education, establish technology centers of courses, develop competitive grants for
international standards; and increase skills industry-oriented R&D projects, sign
for improved productivity of low-wage training partnership agreements with public
workers. and private sector partners, and conduct
skills training for migrant workers.
Expenditure size $7.005 billion $708.9 million
Main financiers and Government: $6.110 billion Government: $408.9 million
their respective total World Bank: $300 million (ASSET) ADB: $300.0 million
amounts 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. RESULTS AND DISBURSEMENT
A. 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 multi-
skilling 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

Disbursement Share of
Allocated Total ADB
Indicator ($ million) Financing (%)
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 21 7.0
emerging sectors, with 65% job placement for new job seekers
DLI 2: Women and people from socially disadvantaged groups with employable 15 5.0
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 40 13.3
implemented, including green technical skills
DLI 4: Access to practical training in advanced technologies increased, 45 15.0
including green technologies and green skills
Output 2: Managerial capabilities and green innovation capacity
strengthened
DLI 5: Mid-level management courses redesigned and implemented 40 13.3
DLI 6: R&D projects through university–industry partnerships piloted, focusing
20 6.7
on applications of advanced and/or green technologies for industry
development
Output 3: Access to socially inclusive skilling and upskilling expanded
19 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 Share of
Allocated Total ADB
Indicator ($ million) Financing (%)
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 Baseline Value & Target Values and Results Indicators
(Yes Year Prior results 2024 (Year 1) 2025 (Year 2) 2026 (Year 3) 2027 (Year 4) 2028 (Year 5)
/ No)
Outcome: Technology-oriented skilled workforce increased for priority and emerging industries across skill levels
1. Skilled workers Yes Total number of (i) At least (i) At least (i) At least
across skill levels (DLI people under 80,000 people 120,000 people 160,000 people
produced for at 1) SEIP Tranche 2 improved sector- improved sector- improved sector-
least 10 priority (2017−2022) who relevant skills relevant skills relevant skills
and emerging completed training with certified with certified with certified
sectors (i.e., was 197,000. The training across all training across all courses across
advanced total consisted of skill levels. skill levels all skill levels
technical, 30% mid-level
managerial, and technical skill and (ii) At least 65% (ii) At least 65% (ii) At least 65%
entry-levels), with 70% entry-level of certified new of certified new of certified new
65% job skill training. Job job seekers are job seekers are job seekers are
placement for new placement rate for placed in job placed in job placed in job
job seekers new job seekers within 6 months within 6 months within 6 months
was 61.3%. (65% each for (65% each for (65% each for
[cumulative] men and men and men and
women). women). women).
2. Women and Yes Under SEIP At least 12,500 At least 20,000 At least 26,500
people from (DLI Tranche 3, about women and women and women and
socially 2) 4,100 women are socially socially socially
disadvantaged in training through disadvantaged disadvantaged disadvantaged
groups with special targeted people gained people gained people gained
employable work programs; about employable employable employable
and life skills 2,600 people from skills, including skills, including skills, including
increased through small ethnic life skills and life skills and life skills and
specially targeted communities; 275 entrepreneurship entrepreneurship entrepreneurship
programs (e.g., orphans; and 176 training (progress training (progress training (progress
people with people with for each of for each of for each of
disabilities, disabilities, in their socially socially socially
orphans, respective disadvantaged disadvantaged disadvantaged
transgender targeted groups to be groups to be groups to be
people, people programs. shown). shown). shown).
from small ethnic
communities)
[cumulative]
8
/ No)
Output 1: Capacity for advanced technical skills training developed for emerging and priority sectors
3. Industry- Yes Currently very few Standard At least 5 At least 15 At least 2,110 At least 3,200 At least 4,800
demanded (DLI job-ready contract and industry- advanced trainees enrolled trainees enrolled trainees enrolled
advanced 3) certificate-level training plan academic technical courses in advanced in advanced in advanced
technical skills courses are templates partnership commenced, technical technical technical
courses created available at the (including cost MOUs including those courses, with at courses, with at courses, with at
and implemented, advanced norms and (including related green least 15% least 15% least 15%
including green technical skill level implementation international skills. women women women
technical skills in technology guidelines) for partnerships) participation. participation. participation.
applications, advanced signed for
[cumulative for especially for technical skills advanced
trainees] emerging sectors. finalized and technical
endorsed. training for
emerging and
priority
industries
(e.g.,
automotive,
light
engineering) .
4. Access to Yes There are limited (i)Training Training of At least 20 At least 35
practical training (DLI opportunities for curriculum and trainers on the technology labs technology labs
in advanced 4) practical training operational use of or workshops or workshops
technologies in advanced plans for advanced operationalized operationalized
increased, technologies at advanced technologies are for advanced for advanced
including green present. smart textile in place and at training, training,
technologies and technology least [20] trainers incorporating incorporating
green skills (e.g., labs (STTLs) commenced barrier free, barrier free,
STTLs, BITAC, finalized and training (e.g., climate resilient climate resilient
BUFT, endorsed. BITAC, STTLs). and green and green
polytechnics- building features. building features.
automotive) (ii)Detailed
designs for
[cumulative for STTLs with
labs or climate
workshops] resilient
features and
green
technology
equipment
9
/ No)
finalized and
endorsed.
Output 2: Managerial capabilities and green innovation capacity strengthened
5. Mid-level Yes Under SEIP (i) Standard At least 500 At least 1,260 At least 2,100 (i) Sector-wise At least 3,250
management (DLI Tranche 2, 1,695 contract and people people enrolled people enrolled tracer and/or people enrolled
courses 5) people were training plan enrolled in in EDC courses in EDC courses evaluation in redesigned
redesigned and enrolled in mid- templates EDC courses (at least 15% (at least 15% studies EDC courses (at
implemented level management (including (at least 15% women). women). completed and least 15%
EDC courses at 4 updated cost women). disseminated. women).
[cumulative] partner norms and
universities implementation (ii) EDC courses
covering 4 guidelines) are updated based
industry sectors finalized and on tracer and/or
(9.7% women). endorsed. evaluation
studies.
(ii) Each
partnering
university EDC
courses
redesigned to
incorporate
green business
practices and
emerging
technology
trends.
6. R&D projects Yes No ongoing The guidelines At least 8 At least 7 R&D At least 5 R&D
through university- (DLI industry-university for competitive proposals based projects under project outcomes
industry 6) partnerships for grants on on university- implementation have been
partnerships industry-oriented industry- industry through piloted or
piloted, focusing R&D projects. oriented R&D partnerships university- adopted by
on applications of endorsed and selected for R&D industry industries.
advanced and/or disseminated. projects. collaborations.
green
technologies for
industry
development
7. A draft policy or No No ongoing A working A list of potential At least 3 At least 3 Draft policy or
program program or group formed NRB scientists consultative optional incentive program placed
developed to bring scheme. for and engineers workshops held schemes drafted for endorsement
non-resident establishment with government,
10
/ No)
Bangladeshi of procedures compiled by a academic, and for policy by relevant
(NRB) scientists for the working group. NRB discussions. authority.
and engineers for program, representatives.
collaborative R&D including one
projects NRB
representative.
8. Competency- Yes Under SEIP At least 9 At least 42,000 At least 90,000 (i) Training At least 160,000
based, job-ready (DLI Tranche 2, about industry people are people are performance people are
entry and mid- 7) 199,665 people associations or enrolled in enrolled in evaluated and enrolled in
level skills enrolled in other partners sector-specific sector-specific training courses sector-specific
courses competency- signed for training, with training, with revised based on training, with
redesigned and based, job-ready training 30% women. 30% women. sector-specific 30% women.
implemented for entry- and mid- partnerships job placement
at least 9 priority level technical with updated and partner
sectors with courses. training course performance
industry plans, covering records.
partnerships at least 9
priority sector (ii) At least
[cumulative] training. 135,000 people
are enrolled in
sector-specific
training, with
30% women.
9. Access to skills Yes Under SEIP At least 5 At least 8 agreed At least 14,500 At least 18,000
courses with (DLI Tranche 2, about international courses are people enrolled people enrolled
international 8) 2,100 people certification operationalized in international in international
certification enrolled in courses and commenced certificate certificate
increased for international identified and for skills training. courses (at least courses (at least
potential migrant certificate agreements 10% women). 10% women).
workers (at least courses. signed with
10% women) partner
organizations.
[cumulative for
courses and for
trainees]
11
/ No)
Output 4: Institutional capacity for skills monitoring and management enhanced
10. Skills program Yes Under SEIP, For advanced (i) TMS system (i) Annual (i) Internal audit (i) Tracer or (i) Internal audit
management, (DLI online trainee technical skills enhanced to analytic report on undertaken, evaluation undertaken,
monitoring, and 9) management programs, incorporate TMS data covering at least studies covering at least
evaluation system (TMS) Industry modules on produced and 5 implementing completed to 10 implementing
capacity monitors Advisory Board different levels disseminated, partners, and assess the partners, and
strengthened performance of is established of skills with action plans program action plans
training partners to guide on training; and disaggregated agreed. effectiveness and implemented.
with emerging disaggregated analysis by results are
disaggregated sector and data of gender and (iii) Performance disseminated. (ii) Second
data information; skills trainees socially audits of all performance
various M&E and requirements. available by disadvantaged implementing (ii) Annual audit report
fiduciary activities sex and other groups. partners analytic report on issued and
were undertaken individual completed, TMS data remedial actions,
during attributes (e.g., (ii) Performance performance produced and if any, are taken
implementation. ethnic audit plans for audit report disseminated. by SDCMU.
minorities, implementing issued, and
disabilities). partners (public remedial actions,
and private) in if any, are taken
(ii) An annual place; an by SDCMU or
internal audit independent incorporated into
plan for the auditor is on revised training
RBL program board; and the plans or
developed and performance amended
approved. audit contracts.
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 = results-
based 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 Target Values and Results Indicators
& Year Prior results 2024 (Year 1) 2025 (Year 2) 2026 (Year 3) 2027 (Year 4) 2028 (Year 5)
1. Skilled workers Total number of (i) At least (i) At least (i) At least
across skill levels people under 80,000 people 120,000 people 160,000 people
produced for at least 10 SEIP Tranche 2 improved sector- improved sector- improved sector-
priority and emerging (2017−2022) relevant skills relevant skills relevant skills
sectors (i.e., advanced who completed with certified with certified with certified
technical, managerial, training was training across all training across all courses across
and entry-levels), with 197,000. The skill levels. skill levels. all skill levels.
65% job placement for total consisted of
new job seekers 30% mid-level (ii) At least 65% (ii) At least 65% (ii) At least 65%
technical skill of certified new of certified new of certified new
[cumulative] and 70% entry- job seekers are job seekers are job seekers are
level skill placed in job placed in job placed in job
training. Job within 6 months within 6 months within 6 months
*The target here placement rate (65% each for (65% each for (65% each for
excludes those being for new job men and men and men and
counted under DLI 2 seekers was women). women). women).
61.3%.
2. Women and people Under SEIP At least 12,500 At least 20,000 At least 26,500
from socially Tranche 3, about women and women and women and
disadvantaged groups 4,100 women are socially socially socially
with employable work in training disadvantaged disadvantaged disadvantaged
and life skills increased through special people gained people gained people gained
through specially targeted employable employable employable
targeted programs (e.g., programs; about skills, including skills, including skills, including
people with disabilities, 2,600 people life skills and life skills and life skills and
orphans, transgender from small ethnic entrepreneurship entrepreneurship entrepreneurship
people, people from communities; training (progress training (progress training (progress
small ethnic 275 orphans; and for each of for each of for each of
communities) 176 people with socially socially socially
disabilities, in disadvantaged disadvantaged disadvantaged
[cumulative] their respective groups to be groups to be groups to be
targeted shown). shown). shown).
programs.
13

Output 1: Capacity for advanced technical skills training developed for emerging and priority sectors
3. Industry-demanded Currently very Standard At least 5 At least 15 At least 2,110 At least 3,200 At least 4,800
advanced technical few job-ready contract and industry- advanced trainees enrolled trainees enrolled trainees enrolled
skills courses created certificate-level training plan academic technical in advanced in advanced in advanced
and implemented, courses are templates partnership courses technical technical technical
including green available at the (including cost MOUs commenced, courses, with at courses, with at courses, with at
technical skills advanced norms and (including including those least 15% least 15% least 15%
technical skill implementation international related green women women women
[cumulative for trainees] level in guidelines) for partnerships) skills. participation. participation. participation.
technology advanced signed for
applications, technical skills advanced
especially for finalized and technical
emerging endorsed. training for
sectors. emerging and
priority
industries (e.g.,
automotive, light
engineering).
4. Access to practical There are limited (i)Training Training of At least 20 At least 35
training in advanced opportunities for curriculum and trainers on the technology labs technology labs
technologies increased, practical training operational use of or workshops or workshops
including green in advanced plans for advanced operationalized operationalized
technologies and green technologies at advanced smart technologies for advanced for advanced
skills (e.g., STTLs, present. textile are in place training, training,
BITAC, BUFT, technology and at least 20 incorporating incorporating
polytechnics- living labs trainers barrier free, barrier free,
automotive) (STTLs) commenced climate resilient climate resilient
finalized and training (e.g., and green and green
[cumulative for labs or endorsed. BITAC, building features. building features.
workshops] STTLs).
(ii)Detailed
designs for
STTLs with
climate resilient
features and
green
technology
equipment
finalized and
endorsed.
14


5. Mid-level Under SEIP (i) Standard At least 500 At least 1,260 At least 2,100 (i) Sector-wise At least 3,250
management courses Tranche 2, 1,695 contract and people enrolled people people enrolled tracer and/or people enrolled
redesigned and people were training plan in redesigned enrolled in in redesigned evaluation in redesigned
implemented enrolled in mid- templates EDC courses redesigned EDC courses (at studies EDC courses (at
level (including (at least 15% EDC courses least 15% completed and least 15%
management updated cost women). (at least 15% women). disseminated. women).
EDC courses at norms and women).
[cumulative] 4 partner implementation (ii) EDC courses
universities guidelines) are updated based
covering 4 finalized and on tracer and/or
industry sectors endorsed. evaluation
(9.7% women). studies.
(ii) Each
partnering
university EDC
courses
redesigned to
incorporate
green business
practices and
emerging
technology
trends.
6. R&D projects No ongoing The guidelines At least 8 At least 7 R&D At least 5 R&D
through industry−universi for competitive proposals projects under project outcomes
university−industry ty partnerships grants on based on implementation have been
partnerships piloted, for industry- industry- university− through piloted or
focusing on applications oriented R&D oriented R&D industry university- adopted by
of advanced and/or projects. endorsed and partnerships industry industries.
green technologies for disseminated. selected for collaborations.
industry development R&D projects.
7. Competency-based, Under SEIP At least 9 At least 42,000 At least 90,000 (i) Training At least 160,000
job-ready entry and Tranche 2, about industry people are people are performance people are
mid-level skills courses 199,665 people associations or enrolled in enrolled in evaluated and enrolled in
redesigned and enrolled in other partners sector-specific sector-specific training courses sector-specific
implemented at least for competency- signed for revised based on
15

9 priority sectors with based, job-ready training training, with training, with sector-specific training, with
industry partnerships entry- and mid- partnerships 30% women. 30% women. job placement 30% women.
level technical with updated and
[cumulative] courses. training course performance
plans, covering records.
at least 9
priority sector (ii) At least
training. 135,000 people
are enrolled in
sector-specific
training, with
30% women.
8. Access to skills Under SEIP At least 5 At least 8 agreed At least 14,500 At least 18,000
courses with Tranche 2, about international courses are people enrolled people enrolled
international 2,100 people certification operationalized in international in international
certification increased enrolled in courses and commenced certificate certificate
for potential migrant international identified and for skills training. courses (at least courses (at least
workers (at least 10% certificate agreements 10% women). 10% women).
women) courses. signed with
partner
[cumulative for courses organizations.
and for trainees]
9. Skills program Under SEIP, For advanced (i)TMS system (i) Annual (i) Internal audit (i)Tracer or (i) Internal audit
management, online trainee technical skills enhanced to analytic report undertaken, evaluation undertaken,
monitoring and management programs, incorporate on TMS data covering at least studies covering at least
evaluation capacity system (TMS) Industry modules on produced and 5 implementing completed to 10 implementing
strengthened monitors Advisory Board different levels disseminated, partners, and assess the partners, and
performance of is established to of skills training; with action plans program action plans
training partners guide on and disaggregated agreed. effectiveness and implemented.
with emerging sector disaggregated analysis by results are
disaggregated and skills data of trainees gender and (ii) Performance disseminated. (ii) Second
data information; requirements. available by sex socially audits of all performance
various M&E and and other disadvantaged implementing (ii) Annual audit report
fiduciary individual groups. partners analytic report on issued and
activities were attributes (e.g., completed, TMS data remedial actions,
undertaken ethnic (ii) performance produced and if any, are taken
during minorities, Performance audit report disseminated. by SDCMU.
implementation. disabilities). audit plans for issued, and
implementing remedial actions,
16

(ii) An annual partners if any, are taken
internal audit (public and by SDCMU or
plan for the RBL private) in incorporated into
program place; an revised training
developed and independent plans or
approved. 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 = results-
based 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
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 diploma- report 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
Information
each for men and women) any job or self-employment at the time of enrolling in the be completed
($3 million) training (i.e. new job seekers). Those trainees who The IVA will verify the by 30 April the
already had a job at the time of enrolling in training will be report based on TMS data following year.
2027 (Year 4) excluded from the calculation. or other detailed data
(ii) At least 65% of certified sources from SDCMU as
new job seekers are placed The targets are considered to be achieved when at least needed. The IVA will
in jobs within 6 months of 65% of the cumulative number of certified new job submit the verification
training completion (65% seekers are shown to be placed in jobs (calculated report to the Finance
each for men and women) separately for men and women), as documented in the Division and ADB.
($3 million) TMS data and validated by SDCMU.
2028 (Year 5) Partial disbursement: If at least 60% of certified new job

(ii) At least 65% of certified seekers (percentage based on cumulative numbers) are
new job seekers are placed placed in jobs by the cutoff date (combining men and
in jobs within 6 months of women), partial disbursement of $2 million will be made
training completion ($3 from the total allocated disbursement amount of $3
million) 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 The cut-off
At least 12,500 women and complete courses created specifically for women and generate the status report on DLI achievement date for TMS
socially disadvantaged those from socially disadvantaged groups, which include report on training based on TMS data that data will be 31
people gained employable people with disabilities, transgender people, orphans, and achievement are validated and submit December
skills, including life skills and people from small ethnic communities. For women, the annually, the report to IVA with data each year.
entrepreneurship training courses refer to those implemented by BWCCI and H&M disaggregated by sources. Verification will
($5 million) Foundation in collaboration with the Asia Foundation. women and by be completed
Women: 10,000 Additional targeted programs that are developed for the separate socially The IVA will verify the by 30 April the
Socially disadvantaged: same purpose by other partners will also be counted. disadvantaged report based on TMS data following year.
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
19
Information
Socially disadvantaged: released when the planned cumulative target is met
4,000 during the program duration.
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 Upon loan
Standard contract and SDCMU for all training programs, there will be a contract template approved report on DLI achievement effectiveness
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.
20
Information
No partial disbursement. When the contract template is
endorsed, disbursement will be made.
2024 (Year 1) Definition: The target refers to an MOU or similar type of Signed MOUs SDCMU will prepare a Required
At least 5 cooperation agreement signed for the purpose of report on DLI achievement documents in
industry−academic advanced technical skills training under output 1. The based on signed MOUs as place by 31
partnership MOUs (including MOUs cover (i) those signed between industries and described and submit the December
international partnerships) technical institutes (e.g, polytechnics, universities) that report to IVA with attached 2024;
signed for advanced identify advanced skills areas to be developed by the MOUs. verification to
technical training for institutes, and (ii) those signed between institutes and be completed
emerging and priority international agencies to support the development and/or The IVA will verify the by 30 April
industries (e.g., automotive, implementation of advanced skills training courses at the report based on the 2025.
light engineering) institutes (which may be a tripartite MOU including the attachment. The IVA will
($6 million) Finance Division). Other MOUs to be signed for the submit the verification
development of advanced technical skills will also be report to the Finance
included in the definition. The expected MOUs include Division and ADB.
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).
The target is achieved when at least 5 MOUs have been

signed for program creation, implementation, or technical
cooperation.
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.
2025 (Year 2) Definition: The target refers to advanced technical The TMS data will SDCMU will prepare a The cut-off
At least 15 advanced training courses to be implemented under output 1, which generate the status report on DLI achievement date for TMS
technical courses will include certificate-level or diploma-level courses. This report annually on based on TMS data that data will be 31
commenced, including those may include short-term courses as agreed under training training courses are validated and submit December
related to green skills contracts with training institutes under output 1. The under the report to IVA with data each year.
($6 million) courses to be implemented include (but are not limited to) implementation. sources. Verification will
21
Information
those implemented by BITAC (in Dhaka’s new advanced be completed
training facility), BRAC (computer science/IT or The IVA will verify the by 30 April the
pharmaceutical), BUFT, IBA leather technology institute, report based on TMS data following year.
automotive training at a polytechnic, and STTLs. Green or other detailed data
skills courses refer to courses proposed by BITAC (on sources from SDCMU. The
renewable energy) and BUFT (on circular fashions). IVA may carry out
Additional courses related to advanced green skills, additional verification
developed and implemented by other training institutes activities. The IVA will
during program implementation, will also be counted. submit the verification
report to the Finance
The target is achieved when at least 15 advanced Division and ADB.
technical skills courses in total offered by the institutes
under output 1 have commenced training.
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.
2026 (Year 3) Definition: The target in each year refers to the total The TMS data will SDCMU will prepare a The cut-off
At least 2,110 trainees cumulative number of trainees who have enrolled in generate the status report on DLI achievement date for TMS
enrolled in advanced advanced technical courses supported under output 1, report on total based on TMS data that data will be 31
technical courses, with at from the beginning of the program implementation period enrollment in are validated and submit December
least 15% women until the end of each respective year. The advanced relevant courses the report to IVA with data each year.
participation ($6 million) courses cover (but are not limited to) those offered by annually, sources. Verification will
BITAC (in Dhaka’s new advanced training facility), BRAC disaggregated by be completed
2027 (Year 4) (computer science/IT and pharmaceutical), BUFT, IBA sex. The IVA will verify the by 30 April the
At least 3,200 trainees leather technology institute, automotive training at a report based on TMS data following year.
enrolled in advanced polytechnic, and STTLs. There may be additional courses or other detailed data
technical courses, with at developed under output 1 during program implementation sources from SDCMU as
least 15% women which will also be included. These courses may be at needed. The IVA may
participation ($6 million) certificate- or diploma level. undertake additional
verification measures. The
2028 (Year 5) The percentage of women enrolled in the courses will be IVA will submit the
At least 4,800 trainees computed out of the cumulative number of trainees verification report to the
enrolled in advanced enrolled at the end of year 3, year 4 and year 5. Finance Division and ADB.
technical courses, with at
least 15% women Partial disbursement: Partial disbursement will be
participation ($6 million) 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
22
Information
(cumulative numbers) is achieved for the year; and (ii) at least 10% of the
cumulative enrollees up to that year are women.
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 Upon loan
(i) Training curriculum and engineering colleges: one in the existing college in that include training report on DLI achievement effectiveness
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.
23
Information
2025 (Year 2) Definition: The target refers to TOT programs for main The TMS SDCMU will prepare a The cut-off
Training of trainers on the trainers or faculty at BITAC, textile college in Chittagong generated data on report on DLI achievement date for
use of advanced (STTL), and new automotive center in Narsingdi TOT along with based on TOT progress for progress report
technologies are in place polytechnic, who will undergo training with their respective supporting trainers at BITAC, will be 31
and at least 20 trainers international partners. The target is met when at least 20 documents on TOT Chittagong college, and December
commenced training trainers from these institutes combined have started a progress by BITAC Narsingdi polytechnic with 2025.
($10 million) training program (or have completed training) provided by and Chittagong supporting documents. The Verification will
international partners. college report is submitted to IVA. be completed
by 30 April the
Partial disbursement. If at least 10 trainers have The IVA will verify the following year.
commenced or completed their training, partial report with supporting
disbursement of the amount proportional to target documents. The IVA will
achieved will be made. The remaining amount will be submit the verification
released when at least 20 trainers have commenced TOT report to the Finance
programs. If less than 10 trainers have commenced TOT Division and ADB.
programs, then no disbursement will be made.
2027 (Year 4) Definition: The target refers to practical training The building SDCMU will prepare a The cut-off
At least 20 technology facilities/workshops or technology (or testing) labs that will progress reports on report on DLI achievement date for
labs/workshops be established or renovated for advanced technical skills BITAC and STTL in based on the construction progress report
operationalized for training (output 1). The institutions considered under this Chittagong, or or use of new training will be 31
advanced training, target include BITAC, BUFT, STTL in Chittagong; and other relevant facilities, along with December
incorporating barrier-free, automotive training at Narsingdi polytechnic. If provision reports supporting documents on each year.
climate resilient and green of other labs is agreed during implementation, they will building descriptions. The Verification will
building features ($10 also be counted towards achievement of this target. The report is submitted to IVA. be completed
million) annual DLIs are considered met when the targeted by 30 April the
number of workshops or labs are ready with all equipment The IVA will verify the following year.
2028 (Year 5) set up for training. New buildings are to have barrier-free report with supporting
At least 35 technology accessibility and energy-saving features. documents or undertake a
labs/workshops site visit. The IVA will
operationalized for Partial disbursement: If at least 60% of the target submit the verification
advanced training, number is met for the given year, partial disbursement for report to the Finance
incorporating barrier free, the amount proportional to the achieved number will be Division and ADB.
climate resilient and green released. The remaining amount will be disbursed once
building features ($5 million) the targets are achieved. If target achievement is less
than 60%, then no disbursement will be made.

DLI 5. Mid-level management courses updated and implemented
Prior results (2023) Definition: Contract document SDCMU will prepare a Upon loan
(i) Standard contract and (i)New contract and training plan templates will be template endorsed report on DLI achievement effectiveness
training plan templates prepared for redesigned mid-level management (EDC) by relevant with relevant supporting
24
Information
(including updated cost program. The templates will reflect eligible cost categories authority and the documents and provide to
norms and implementation and ceiling amounts for each category, among other proposed an independent consultant
guidelines) are finalized and things. The contract template includes training (business) curriculum by EDC engaged under ADB TA for
endorsed ($2.5 million) plan document that should describe in detail the purpose universities verification.
of training programs, specific courses, target trainee
(ii) Each partnering numbers, implementation schedules, direct and indirect The consultant will verify
university EDC courses costs, unit cost per trainee, monitoring procedures, job the report with supporting
redesigned to incorporate placement requirement, payment schedules, and other documents, according to
green business practices training details. The SDCMU will update this template verification protocols. The
and emerging technology based on lessons from implementation of trainings under consultant will submit the
trends ($2.5 million) SEIP and endorsed/approved by MOF or relevant verification report to the
authority. It will ensure the cost norms are consistent and Finance Division and ADB.
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.
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2024 (Year 1) Definition: The target refers to the cumulative number of The TMS data will SDCMU will prepare a The cut-off
At least 500 people enrolled persons enrolled in redesigned EDC courses, including generate the status report on DLI achievement date for TMS
in redesigned EDC courses policy analysis courses. This will cover BRAC knitwear, report on total based on TMS data that data will be 31
(at least 15% women) ($5 BUTEX, East West University, IBA garments, and BIGM enrollment in have been validated. The December
million) courses. relevant EDC report is submitted to IVA each year.
courses annually, with data sources. Verification will
2025 (Year 2) The percentage of women enrolled in the courses will be disaggregated by be completed
At least 1,260 people calculated out of the cumulative number of trainees sex The IVA will verify the by 30 April the
enrolled in redesigned EDC enrolled by the end of year 1, year 2 and year 3. report based on TMS data following year.
courses (at least 15% or other detailed data
women) The annual target is considered to be achieved when the sources from SDCMU as
($10 million) cumulative enrollment reaches the target number needed. The IVA may
indicated for the given year and the target for women undertake additional
2026 (Year 3) trainees is met for that year. verification measures. The
At least 2,100 people IVA will submit the
enrolled in redesigned If the target for the proportion of women is not met, , then verification report to the
courses (at least 15% disbursement amounts will be reduced by $1 million for Finance Division and ADB.
women) year 1, $2 million for year 2, and $2 million for year 3. If
($10 million) the target is met cumulatively in the following year,
deducted amounts will be disbursed in that year.
[cumulative numbers]
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.
2027 (Year 4) Definition: (i) Each university/institution is to undertake a The summary SDCMU will prepare a The cut-off
(i) Sector-wise tracer and/or tracer study of training participants or an evaluation study document from report on DLI achievement date for
evaluation studies of the EDC programs. The study will examine the each university or based on documents from completion of
completed and disseminated relevance and effectiveness of each institution’s EDC institution as EDC universities/ activities by
($3 million) courses, benefits and outcomes of EDC courses for evidence for the institutions, which are EDCs is 31
trainees, and recommendations for improving EDC study conducted validated. The report is December
(ii) EDC courses updated programs. The target is considered achieved when each and for the submitted to IVA with 2027.
based on tracer and/or university/institution offering EDC courses has completed description and attachments. Verification will
evaluation studies ($2 the study and the results are disseminated. The coverage rationale for be completed
million) of institutions includes BRAC knitwear, BUTEX, East- updated curriculum The IVA will verify the by 30 April
West University, IBA-garments, and BIGM. or related activities report and consult relevant 2028.
institutions as needed. The
Partial disbursement: If at least three out of five IVA will submit the
universities/institutions complete the above (i), partial verification report to the
disbursement of $2 million will be made in case of three Finance Division and ADB.
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Information
institutions and $2.5 million in case of four institutions.
The rest will be disbursed when all has completed.
(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.
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.
At least 3,250 people persons enrolled in redesigned EDC courses, including generate the status report on DLI achievement date for TMS
enrolled in redesigned EDC policy analysis courses. This will cover BRAC knitwear report on total based on TMS data that data will be 31
courses (at least 15% and pharmaceutical, BUTEX, East West University, IBA- enrollment in have been validated. The December
women) garments, and BIGM courses. relevant EDC report is submitted to IVA 2028.
($5 million) courses, with data sources. Verification will
The percentage of women enrolled in the courses will be disaggregated by be completed
[cumulative] computed out of the cumulative number of trainees sex The IVA will verify the by 30 April
enrolled at the end of year 5. report based on TMS data 2029.
or other detailed data
The target is considered achieved when the cumulative sources from SDCMU as
enrollment reaches the target number. If the target for the needed. The IVA may
proportion of women is not met, then disbursement undertake additional
amount will be reduced by $1 million. verification measures. The
IVA will submit the
Partial disbursement: If at least 60% of the target verification report to the
enrollment is achieved, partial disbursement will be Finance Division and ADB.
number achieved.
DLI 6. R&D projects through university−industry partnerships piloted, focusing on applications of advanced or green technologies for industry
solution
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2024 (Year 1) Definition: The Finance Division will develop guidelines The final endorsed SDCMU will prepare a The endorsed
The guidelines for for competitive grants that will support industry-oriented or guidelines report on DLI achievement document to
competitive grants on applied R&D projects focusing on innovations in industry document and the with supporting documents. be ready by 31
industry-oriented R&D production processes or product development, with evidence of its The report is submitted to December
endorsed and disseminated priority for green technology applications. These R&D dissemination to IVA. 2024.
($5 million) projects are to be undertaken through academic and stakeholders Verification will
industry partnerships. There will be an application process The IVA will verify the be completed
where eligible proposals will be considered on a report by reviewing by 30 April
competitive basis for funds. The guidelines will describe supporting documents. The 2025.
the purpose of competitive grants, eligibility criteria for IVA will submit the
applicable R&D proposals, application and selection verification report to
procedures, implementation and outcome requirements, Finance Division and ADB.
and so on.
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.
There will be no partial disbursement.

2025 (Year 2) Definition: Following the guidelines, the Finance Division The R&D project SDCMU will prepare a Proposal
At least 8 proposals based and SDMCU will consider applications for proposed R&D proposals selected report on DLI achievement selection to be
on university-industry projects for industry innovations, which are based on for support with supporting documents completed by
partnerships selected for university-industry partnerships. The selection will be on selected proposals. The 31 December
R&D projects done by a technical committee to be established for this report is submitted to IVA. 2025.
($5 million) purpose. The target is considered to be met when at least Verification will
8 proposals have been reviewed, selected, and grants The IVA will verify the be completed
agreements signed. report by reviewing by 30 April
supporting documents. The 2026.
Partial disbursement: If at least 5 proposals are selected IVA will submit the
for support, partial disbursement of $3 million will be verification report to the
released. If 6 or 7 proposals are signed, $4 million will be Finance Division and ADB.
released. The remaining amount will be released upon
achievement of the target.
2027 (Year 4) Definition: The target refers to the implementation of Validated progress SDCMU will prepare a Validated
At least 7 R&D projects selected R&D projects for industry innovations. Each of reports from R&D report on DLI achievement progress
under implementation selected proposal teams is to submit quarterly or projects with supporting documents reports to be
through university-industry semiannual progress reports to SDCMU, and SDMCU is on validated progress ready by 31
collaborations ($5 million) to validate the progress from time to time. The target is reports from R&D projects. December
considered to be met when at least 7 projects—out of The report is submitted to 2027.
those selected for grants agreement by the committee— IVA. Verification will
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Information
are under implementation or have been completed with be completed
expected outcomes or results. The IVA will verify the by 30 April
report by reviewing 2028.
Partial disbursement: If at least 5 selected projects are supporting documents. The
under implementation or have been completed with IVA will submit the
expected results, $3 million will be released. If 6 selected verification report to
projects are ongoing or completed with expected results, Finance Division and ADB.
$4 million will be released. The remaining amount will be
released upon achievement of the target.
2028 (Year 5) Definition: The target refers to the outcomes of selected Validated progress SDCMU will prepare a Validated
At least 5 R&D project R&D projects. At least 5 industry solutions arising out of or outcome reports report on DLI achievement outcome
outcomes or solutions have the selected R&D projects are to be piloted or adopted by from R&D projects with supporting documents reports to be
been piloted or adopted by industries. Academic publications will not be counted on validated outcome ready by 31
industries ($5 million) towards achievement of this target. All selected projects reports from R&D projects. December
will submit the outcome status of their R&D projects as The report is submitted to 2028.
part of progress reports and as an outcome report. IVA. Verification will
be completed
The target is considered achieved if at least 5 outcomes The IVA will verify the by 30 April
from selected R&D projects are piloted or adopted by report by reviewing 2029.
industries. supporting documents. The
IVA will submit the
Partial disbursement: If at least 3 R&D outcomes or verification report to the
solutions are piloted or adopted, $3 million will be Finance Division and ADB.
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.
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
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Information
redesigned with updated course list. BWCCI will not be verification report to the
counted for this DLI. Finance Division and ADB.
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.
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.
At least 42,000 people are people enrolled in entry-level and mid-level training generate the status report on DLI achievement date for TMS
enrolled in sector-specific programs under output 3 that are offered and/or managed report on total based on TMS data that data will be 31
training, with 30% women by public institutes (DTE, BMET, BITAC except for cumulative have been validated. The December
participation ($12 million) Dhaka), industry associations, and NGOs (e.g., PKSF, enrollment for report is submitted to IVA each year.
Kumudini). The target also includes those enrolled in relevant programs with data sources. Verification will
motor driving courses. However, those enrolled in annually, be completed
2026 (Year 3) specially targeted training courses for women and socially disaggregated by The IVA will verify the by 30 April the
At least 90,000 people are disadvantaged groups (i.e., those offered or managed by sex report based on TMS data following year.
enrolled in sector-specific BWCCI, H&M and Asia Foundations, other specially or other detailed data
training, with 30% women targeted courses for women that may be developed sources from SDCMU as
participation ($12 million) during program implementation, programs for people with needed. The IVA may
disabilities, orphans, transgender people, and small ethnic undertake additional
communities) will not count towards achievement of this verification measures. The
target. This target will also exclude those enrolled in IVA will submit the
separate BMET courses for international certification. 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.

number achieved. The remaining amount will be released
upon achievement of the target.
2027 (Year 4) Definition: (i) SDCMU SDCMU will prepare a The cut-off
(i) Training performance (i) SDCMU will undertake a review of training performance documents on report on DLI achievement date for TMS
evaluated and training of each training partner, focusing on enrollment and job reviews of training based review documents data and
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courses revised based on placement rates for each training course. For those performance by and TMS data that have required
sector-specific job courses which are not in high demand or for which job training partners been validated. The report documents will
placement and training placement rates are low, training partners will replace the and revised training is submitted to IVA with be 31
partner performance records course or propose remedial actions to improve job plans (if applicable) data sources. December
($5 million) placement. This exercise will be done, preferably each 2027.
year, and a major review will be completed by Year 3 and (ii) The TMS data The IVA will verify the Verification will
(ii) At least 135,000 people revised training plans will be in place starting in Year 4, if will generate the report based on TMS data be completed
are enrolled in sector- required. status report on or other detailed data by 30 April
specific training, with 30% total cumulative sources from SDCMU as 2028.
women ($5 million) The target is considered to be achieved, when training enrollment for needed. The IVA may
plans of all training partners have been relevant programs undertake additional
reviewed by SDCMU and findings discussed with industry annually, verification measures, if
associations and other partners. disaggregated by needed. The IVA will
sex. submit the verification
Partial disbursement: If the review is completed at least report to the Finance
for 70% of all implementing partners, partial disbursement Division and ADB.
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

31
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At least 160,000 people are people enrolled in entry-level and mid-level training generate the status report on DLI achievement date for TMS
enrolled in sector-specific programs under output 3 that are offered and/or managed report on total based on TMS data that data will be 31
training, with 30% women by public institutes (DTE, BMET, BITAC except for cumulative have been validated. The December
($10 million) Dhaka), industry associations, and NGOs (e.g., PKSF, enrollment for report is submitted to IVA 2028.
Kumudini). The target also includes those enrolled in relevant programs with data sources. Verification will
motor driving courses. However, those enrolled in annually, be completed
specially targeted training courses for women and socially disaggregated by The IVA will verify the by 30 April
disadvantaged groups (i.e., those offered or managed by sex. report based on TMS data 2029.
BWCCI, H&M and Asia Foundations, other specially or other detailed data
targeted courses for women that may be developed sources from SDCMU as
during program implementation, programs for people with needed. The IVA may
disabilities, orphans, transgender people, and small ethnic undertake additional
communities) will not count towards achievement of this verification measures, if
target. This target will also exclude those enrolled in needed. The IVA will
separate BMET courses for international certification. submit the verification
report to the Finance
The target for each year is considered achieved when the Division and ADB.

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 SDCMU will prepare a List of courses
At least 5 international an international certificate based on the government’s identified and report on DLI achievement agreed by 31
certificate courses identified agreement with international accreditation agencies. agreed with BMET based on the courses December
and agreements signed with These courses would enable workers to go for overseas (or other agencies) identified and agreed with 2024;
partner organizations jobs with better wages. The courses would include those for international foreign agencies or verification to
($5 million) accredited by City & Guilds and others to be offered certification countries with evidence be completed
based on MOUs with other countries (e.g., Saudi Arabia, documents. The report is by 30 April
Singapore, Republic of Korea). BMET will sign submitted to IVA with 2025.
agreements with international agencies or countries to supporting documents.
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offer these courses. If other implementing partners pursue
courses for international certification, those will also be The IVA will verify the
counted. report based on supporting
documents and may
The target is considered achieved when at least 5 courses undertake additional
have been identified and agreed for implementation for verification measures. The
international certification. The number will refer to each IVA will submit the
course and count all the identified and agreed courses verification report to the
across foreign partner agencies. Finance Division and ADB.
There will be no partial disbursement for this target.

2026 (Year 3) Definition: The target refers to the number of courses for The TMS data will SDCMU will prepare a The cut-off
At least 8 agreed courses international certificates for which training has generate the status report on DLI achievement date for TMS
operationalized and commenced. This includes all the courses which allow an report on the based on TMS data that data will be 31
implemented for training international certificate, based on agreement with courses being have been validated. The December
($5 million) international accreditation or foreign government implemented for report is submitted to IVA 2026.
agencies. international with data sources. Verification will
certificates. be completed
The target is considered to be achieved when at least 8 disaggregated The IVA will verify the by 30 April
courses with international certification are under report based on TMS data 2027.
implementation. or other detailed data
sources from SDCMU. The
Partial disbursement: If at least 6 courses are being IVA may undertake
implemented, $3 million will be released as partial additional verification
disbursement. $4 million will be released if at least 7 measures. The IVA will
courses are being implemented. The remaining amount submit the verification
will be released upon achievement of the target. report to the Finance
Division and ADB.
At least 14,500 people people enrolled in training programs for international generate the status report on DLI achievement date for TMS
enrolled in international certificates. Most of these courses will be offered or report on total based on TMS data that data will be 31
certificate courses (at least facilitated by BMET, including those affiliated with City & cumulative have been validated. The December
10% women) ($5 million) Guilds. Other courses affiliated for international enrollment for report is submitted to IVA each year.
certificates, such as welding or nursing (at Kumudini) will relevant programs with data sources. Verification will
2028 (Year 5) be considered if trainees receive an international annually, be completed
At least 18,000 people certificate through these courses. disaggregated by The IVA will verify the by 30 April the
enrolled in international sex. report based on TMS data following year.
certificate courses (at least The target for each year is considered achieved when the or other detailed data
10% women) ($5 million) cumulative enrollment reaches the target number sources from SDCMU as
indicated for the given year. needed. The IVA may
undertake additional
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Information
Partial disbursement: If at least 60% of the target verification measures. The
enrollment is achieved, partial disbursement will be IVA will submit the
released for the amount proportional to the cumulative verification report to the
number achieved. The remaining amount will be released Finance Division and ADB.
DLI 9. Skills program management, monitoring, and evaluation capacity strengthened
Prior results (2023) Definition: The Industry Advisory Board is to be Approval notice or SDCMU will prepare a Upon loan
For advanced technical skills established to guide the Finance Division and SDCMU in letter including report on prior results along effectiveness
programs, Industry Advisory developing a workforce with advanced technical skills. TOR and list of with required documents.
Board is established to The Industry Advisory Board will help identify emerging Industry Advisory The report is submitted to
guide on emerging sectors requirements for advanced technical skills across priority Board members. an independent consultant
and skills requirements ($10 sectors and advise effective ways to foster partnerships engaged under ADB TA for
million) between industries and universities/technical institutes for verification.
skills development.
The consultant will verify
The target is achieved when the establishment of the the report with supporting
Industry Advisory Board is approved by the Ministry of documents, according to
Finance or the relevant authority, and TORs and a list of verification protocols. The
board members are cleared. No partial disbursement will consultant will submit the
be applicable. verification report to the
Finance Division and ADB.
2024 (Year 1) (i) Definition: The current TMS covers training providers (i) Documents SDCMU will prepare a Supporting
(i)TMS enhanced to and trainees enrolling mostly entry-level skill training, such ascertaining the report on DLI achievement documents
incorporate modules on as those under output 3, along with mid-level managerial updates in TMS; with supporting documents. ready by 31
different levels of skills training programs under output 2. The TMS will be The report is submitted to December
training; and disaggregated enhanced by creating additional modules to capture and (ii)annual internal IVA with data sources. 2024 and
data of trainees available by monitor advanced technical skills training under output 1 audit plan verification
sex and other individual and specially targeted skills trainings under output 3. The document, which The IVA will verify the completed by
attributes (e.g., ethnic TMS will also ensure documentation of disaggregated was approved report based on supporting 30 April 2025.
minorities, disabilities) ($3 data of trainees’ gender and socioeconomic documents. The IVA may
million) characteristics. The additional modules will also be set up undertake additional
to track progress of DLIs, particularly those with verification measures. The
(ii) An annual internal audit quantitative targets. IVA will submit the
plan (on a rotating basis) for verification report to the
the RBL program developed The target is considered achieved when SDCMU has Finance Division and ADB.
and approved ($2 million) 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.
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(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.
2025 (Year 2) (i) Definition: TMS includes rich data on individual (i) Annual analytic SDCMU will prepare a Supporting
(i) Annual analytic report on trainees, as well as training progress and performance by reports using TMS report on DLI achievement documents
TMS data produced and training providers. Currently TMS is mostly used to track data; with supporting documents. ready by 31
disseminated, with progress in enrollment, certification, and job placement. The report is submitted to December
disaggregated analysis by The TMS data will be used for more analytic reports to (ii) performance IVA. 2025 and
gender and socially assess various aspects of training participation and audit plan verification
disadvantaged groups performance by trainee background info at the aggregate document and The IVA will verify the completed by
($2 million) level, as well as training subject matters. SDCMU is evidence of audits report based on supporting 30 April 2026.
expected to produce annual reports during undertaken for documents. The IVA may
(ii) Performance audit plans implementation to assess various individual and provider- implementing undertake additional
for implementing partners specific factors associated with training across different partners verification measures. The
(public and private) are in skill levels. IVA will submit the
place; an independent verification report to the
auditor is on board; and the The target is considered to be achieved when SDCMU Finance Division and ADB.
performance audit produces 1 or 2 analytic reports by Year 2 and
commenced ($3 million) 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
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Information
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.
2026 (Year 3) Definition: (i) An internal audit SDCMU will prepare a Supporting
(i) Internal audit undertaken, (i) Based on the internal audit plan developed by Year 1, report for report on DLI achievement documents
covering at least 5 SDCMU’s internal audit team will undertake the tasks that implementing with supporting documents. ready by 31
implementing partners, and cover at least 5 implementing partners (both public and partners including The report is submitted to December and
action plans agreed ($2 private partners) by Year 3. The audit results will generate action plans; IVA. verification
million) action plans for implementing partners, which will be completed by
discussed and agreed with follow-up review timelines. (ii) A performance The IVA will verify the 30 April the
(iii) Performance audits of all audit report for report based on supporting following year
implementing partners The target is considered achieved when internal audits for implementing documents. The IVA may
completed, performance at least 5 implementing partners have been completed partners and the undertake additional
audit report issued, and and action plans have been discussed with relevant overall report verification measures. The
remedial actions, if any, are implementing partners. There will be no partial IVA will submit the
taken by SDCMU or disbursement for this target. verification report to the
incorporated into revised Finance Division and ADB.
training plans or amended (ii) Based on the performance audit plan, audits are
contracts. ($3 million) 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.
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Information
2027 (Year 4) Definition: (i) Tracer or/and SDCMU will prepare a Supporting
(i)Tracer or evaluation (i) A tracer study or evaluation studies for training evaluation study report on DLI achievement documents
studies completed to assess programs across skill levels will be completed and results reports; with supporting documents. ready by 31
the program effectiveness disseminated by Year 4. For these activities, a consulting The report is submitted to December
and results are disseminated firm should be on board by Year 3 and all required (ii) Annual analytic IVA. 2027 and
($3 million) activities should be completed by Q2 Year 4 for reports using TMS verification
dissemination during Q3-Q4 Year 4. Depending on the data The IVA will verify the completed by
(ii) Annual analytic report on skill levels (outputs 1-3), different types of studies may be report based on supporting 30 April 2028.
TMS report produced and undertaken; for example, some type of evaluation studies documents. The IVA may
disseminated ($2 million) may be conducted for advanced technical skills and EDC undertake additional
programs, while a tracer study may be done for trainings verification measures. The
under output 3. IVA will submit the
verification report to the
The target is considered achieved when the studies (or a Finance Division and ADB.
study) are completed and the report findings are
disseminated. There will be no partial disbursement for
this target.
(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.
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.
2028 (Year 5) Definition: (i) Internal audit SDCMU will prepare a Supporting
(i) Internal audit undertaken, (i) Based on the internal audit plan developed by Year 1, reports with agreed report on DLI achievement documents
covering at least 10 SDCMU’s internal audit team will continue to undertake action plans; with supporting documents. ready by 31
implementing partners, and the tasks that cover at least 10 implementing partners The report is submitted to December
action plans implemented (both public and private partners) by Year 5. The audit (ii)Second IVA. 2028 and
($2 million) results will generate action plans for implementing performance audit verification
37
Information
partners, which will be discussed, and implementation has reports with The IVA will verify the completed by
(ii) Second performance commenced with relevant partners. remedial action report based on supporting 30 April 2029.
audit report issued and plans documents. The IVA may
remedial actions, if any, are The target is achieved when internal audits for at least 10 undertake additional
taken by SDCMU ($3 implementing partners have been completed and action verification measures. The
million) plans have been discussed with relevant implementing IVA will submit the
partners. There will be no partial disbursement for this verification report to the
target. Finance Division and ADB.
(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 = results-
based 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.
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 winding-
up 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 ADB. 2022. Loan Disbursement Handbook. Manila.

21 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)
Total ADB Share of Total Prior
2024 2025 2026 2027 2028
Financing ADB Financing Results
Disbursement-Linked Indicators (Year 1) (Year 2) (Year 3) (Year 4) (Year 5)
Allocation (%) (2023)
Outcome
DLI 1. Skilled workers across skill levels produced for
(i) 4 (i) 4 (i) 4
10 priority and emerging sectors, with 65% job 21 7.0
(ii) 3 (ii) 3 (ii) 3
placement for new job seekersa
DLI 2. Women and people from socially
disadvantaged groups with employable work and life 15 5.0 5 5 5
skills increased through specially targeted programs
Outputs
DLI 3. Industry-demanded advanced technical skills
courses created and implemented, including green 40 13.3 10 6 6 6 6 6
technical skills
DLI 4. Access to practical training in advanced
(i) 10
technologies increased, including green technologies 45 15.0 10 10 5
(ii)10
and green skillsa
DLI 5. Mid-level management courses redesigned (i) 2.5 (i) 3
40 13.3 5 10 10 5
and implementeda (ii) 2.5 (ii) 2
DLI 6. R&D projects through university-industry
partnerships piloted, focusing on applications of
20 6.7 5 5 5 5
advanced and/or green technologies for industry
development
DLI 7. Competency-based, job-ready entry and mid-
(i) 5
level skills courses redesigned and implemented at 64 21.3 20 12 12 10
(ii) 5
least for 9 priority sectors with industry partnerships a
DLI 8. Access to skills courses with international
20 6.7 5 5 5 5
certification increased for potential migrant workers
DLI 9. Skills program management, monitoring, and (i) 3 (i) 2 (i) 2 (i) 3 (i) 2
35 11.7 10
evaluation capacity strengtheneda (ii) 2 (ii) 3 (ii) 3 (ii) 2 (ii) 3
Total 300 100.0 45 46 48 50 58 53

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.

41
2. Disbursement Status
Table 7: Disbursement Status

(as of May 2023 to be updated periodically during program implementation)
ADB Share of Expected Actual Share of Total
Financing Total ADB Disbursement by Disbursement by ADB Financing
Allocation Financing {month and year} {month and year} Disbursed
DLIs ($ million) (%) ($ million) ($ million) (%)
Not applicable at this
stage
Total 100.0
ADB = Asian Development Bank, DLI = disbursement-linked indicator.
III. EXPENDITURE FRAMEWORK AND FINANCING
A. 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) Share of Total (%)
1. Nondevelopment expenditures 333.9 47.1
2. Development expenditures
a. Civil works and equipment 90.0 12.7
b. Training implementation 160.0 22.6
c. Capacity development 20.0 2.8
d. Research and development pilots 15.0 2.1
e. Monitoring, management, and other costs 90.0 12.7
Total 708.9 100.0
FY = fiscal year.
Sources: Ministry of Finance and Asian Development Bank estimates.
B. 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)
Amount Share of Total
Source ($ million) (%)
Government 408.9 57.7
Asian Development Bank
Ordinary capital resources (concessional loan) 300.0 42.3
Total 708.9 100.0
ADB = Asian Development Bank.
Sources: Government of Bangladesh and Asian Development Bank.
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)
Cumulative Share of
Share of Total Amount of Total
Financing in Financing in Financing to Cumulative
{Previous {Previous Date Financing to
Year} Year} (Year–Year) Date
Source ($ million) (%) ($ million) (%)
Government 0.0 0.0 0.0 0.0
Development partners 0.0 0.0 0.0 0.0
Asian Development Bank 0.0 0.0 0.0 0.0
Ordinary capital resources 0.0 0.0 0.0 0.0
(concessional loan)
Total 0.0 100.0 0.0 100.0
IV. PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS
A. 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 wage-
employment). 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) 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.
(ii) 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.
(iii) 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.
(iv) 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.
(v) 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)
Sub-
Organizational organizational Economic Broad RBL
Institution Code Code Code Budget Items Program Program %
Civil works and
MOF 109 1090101 4111, 4112 equipment 3,672.3 90.0 2.5%
Training and
capacity
MOF 109 1090101 3231 development 284.1 180.0 63.4%
Research and
development
MOF 109 1090101 3257 pilots 100.9 15.0 14.9%
1090101, Monitoring,
1310134, management
1410202, 3111, 3211, and other
1400204, 3256, 3911, administrative
MOF 109 1600207 3257 costs 2,943.2 423.9 14.4%
Total 7,000.5 708.9 10.1%
MOF = Ministry of Finance, RBL = result-based lending
Source: Government of Bangladesh, Ministry of Finance and Asian Development Bank.
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 semi-
annual 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) Post-bidding negotiations shall not be allowed with the lowest evaluated or any
other bidder;
(ii) The lottery system in award of contracts shall not be allowed;
(iii) Bidders’ qualification and experience requirements shall be mandatory;
(iv) There should be no automatic disqualification of bids based on percentage above
or below the estimated cost; and
(v) 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.
28 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).
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. INTEGRATED RISKS AND MITIGATING MEASURES
A. Key Risks and Mitigating Measures
Table 12: Status of Integrated Risk Assessments and Mitigating Measures

Rating Without
the Mitigating
Risks Measures Key Mitigating Measures Updated Status
Results
Limited technical Substantial (i) For new advanced technical courses,
capacity and capabilities international partnerships are incorporated
may delay the to support training of trainers, preparation
implementation of new of learning materials, and continuous
advanced technical skills capacity building support for training
courses and affect timely delivery and course management; (ii) all
achievement of DLIs 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.
For newly established Substantial (i)Training plan proposals by training
advanced technology institutes are to include the details of
labs in public institutes, annual target trainees, implementation
relevant ministries may schedules, staff requirements, and
not properly plan for associated operating budgets, for the
increased recurrent ministry’s budget planning; and (ii) the
budget, such as Finance Division ensures the relevant
54
Rating Without
the Mitigating
increased training and ministries receive the required budget and
management staff, and execute the budget as approved for timely
thus create a risk in achievement of DLIs.
delivering annual target
trainees under DLIs
The SDCMU’s M&E Moderate The SDCMU will (i) enhance its TMS with
system, especially the additional modules for the expanded
TMS, do not fully capture scope of training across skill levels; (ii)
all the data required for structure the TMS to capture data
program monitoring and information aligned with DLIs; (iii) regularly
reporting, and may validate the TMS data based on random
include some inaccurate checks and monitoring visits; (iv) conduct
data 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.
Operating environment
Multiple implementing Substantial The SDCMU under the SEIP has
partners across the successfully managed multiple partners by
public, private, NGO designating assistant project directors to a
sectors may make group of stakeholders, supported by an
program management expert team, a quality assurance team,
complex and results and monitoring specialists. For the RBL
achievement challenging 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.
Recurring global Moderate With experiences from the COVID-19
diseases or other shocks pandemic, some training courses may be
may disrupt the delivered through online classes as much
execution and as possible, especially for training of
implementation of trainers and management staff courses.
training programs Once the disruption is ended, extra efforts
will be made to fill the gap in training
delivery.
Slow improvement in the Moderate Based on the experience of SEIP
capacity of industry implementation, the SDCMU will engage
associations and training industry associations with successful
providers to deliver performance to screen training providers
quality training linked to during the training plan review process.
job placement may Industry associations with inadequate job
adversely affect program placement records will be required to
outputs redesign their training courses and deploy
remedial measures, such as job fairs and
55
Rating Without
the Mitigating
outreach activities, to improve job
placement.
Expenditure and financing
Delayed budget release Moderate The funds will be allocated and released
and slow budget through iBAS++, which has simplified
execution 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.
Fiduciary
The current SDCMU has Substantial The program will strengthen the existing
an internal audit internal audit function in the SDCMU by
specialist, but the scope engaging one additional specialist and
and function of internal preparing annual internal audit plans,
audit are not clearly which will be discussed with the secretary
defined 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 SEIP has been Substantial The SDCMU and Finance Division, MOF
submitting its APFSs on will liaise with the OCAG to ensure that
time with a clean the RBL program is part of the annual
auditor’s opinion. The audit plan and it is completed on time. The
FAPAD has conducted SDCMU will ensure timely preparation of
audits of the SEIP. For annual program financial statements for
the RBL program, audits submission to the OCAG. Audit
may be conducted by observation shall be closely monitored and
another OCAG resolved in a timely manner. The audit
directorate that may not observations shall be included as part of
be familiar with the semiannual progress reports.
auditing standards
acceptable to ADB
Limited knowledge of Moderate The SDCMU will organize regular
government procurement procurement workshops to familiarize the
rules and standard implementing partners with government
procurement documents procurement rules and regulations, and
among implementing the RBL program’s procurement
partners, especially procedures. The SDCMU will update its
those from the private operations guidelines for the RBL
sector program, including a manual for
procurement of goods, works, and
services. Limited procurement will be done
56
Rating Without
the Mitigating
by implementing partners; all major
procurement will be done by the SDCMU.
Lack of systematic Moderate The SDCMU will develop a web-based
database on procurement monitoring system that can
procurement information track the progress of procurement
at the SDCMU and activities from advertising until contract
inadequate monitoring of completion.
procurement
transactions of ADB will conduct an annual procurement
implementing partners 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.
Governance and integrity
Varying capacity among Substantial The SDCMU will (i) ensure all training
implementing partners service agreements include clauses on
(e.g., industry anticorruption; (ii) provide periodic
associations, orientation training to implementing
universities) may partners;(ii) strengthen an internal audit
increase potential fraud team that will help build internal audit
and corruption risks 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.
Safeguards
Inadequate capacity to Moderate The SDCMU will strengthen its existing
continuously monitor engineering team with a full-time
environmental safeguard environment safeguard specialist to
issues during monitor and implement EMPs during
construction of several construction and address other safeguard
technology labs and concerns. The progress of EMPs will be
training facilities 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 = results-
based 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.
57
VI. PROGRAM ACTION PLAN
A. Status of Program Action Plan
Table 13: Program Action Plan

(as of 10 May 2023)
Responsible Time Frame for Status of
Actions Agency Implementation Implementation
Area 1: Technical Aspects
1.1. For all proposals by implementing partners SDCMU During program
(e.g., industry associations, NGOs), be sure implementation
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 SDCMU (i) MOUs by Sep
sure to (i) sign the MOUs (or renew if 2023; and
existing) for international technical (ii) Support
cooperation, including BITAC and STTLs; packages by
and (ii) sign formal agreements on technical Dec 2023
and capacity support packages.
1.3. Develop M&E plans incorporating new FD-MOF and By Jan 2024
advanced technical skills aligned with SDCMU
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 SDCMU By Jan 2024 and
for (i) training of trainers or management each year
staff (separately for different skill levels, as afterward
needed); (ii) occupational health and safety;
and (iii) financial management staff of all
training providers.
1.5. For EDC programs, sustainable institutional SDCMU and By Dec 2026
development plans (including financing with EDC
subsidies) developed by each university, universities
discussed, and finalized with
implementation timelines.
1.6. Plan for tracer and/or evaluation studies SDCMU TOR ready by Mar
with TOR and start the recruitment of 2026; consulting
qualified consulting firms to complete and firm on board by
disseminate the studies by Sep 2027. Aug 2026
Area 2: Gender and Social Inclusion
2.1. Be sure to incorporate targeted training for SDCMU Sep 2023−Dec
women across skill levels, which may 2024
include advanced technical skills (e.g.,
women’s polytechnics), women business
leadership training, and upskilling or multi-
skilling programs.
2.2. Women’s percentage for training courses SDCMU During program
will be (i) at least 15% for advanced implementation
technical courses (output 1), (ii) at least
15% for mid-level managerial courses
(output 2), and (iii) at least 30% for entry-
and mid-level skills courses.
58

2.3. Ensure that any capacity building activities SDCMU During program
planned (e.g., leadership training, training of implementation
trainers) include at least 20% women.
2.4. All new infrastructure development (e.g., SDCMU During program
training facilities, dormitories, classroom implementation
buildings) will have gender- and disability-
friendly 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 SDCMU During program
awareness raising and outreach activities, implementation
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 SDCMU During program
awareness materials (e.g., video clips, implementation
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 SDCMU During program
employers as well to promote employment implementation
for women and socially disadvantaged
groups.
2.8. All monitoring and progress reports, SDCMU Jun 2023−Jun 2029
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 FD-MOF and By loan signing
RBL program to ease accounting, SDCMU
monitoring, reporting, and auditing of the
program’s financial transactions.
3.2. Appoint additional accountants and internal FD-MOF and By Sep 2023
audit staff to support the SDCMU. SDCMU
3.3. External audit: FD-MOF, (i) By Nov 2023
(i) Finalize the statement of audit need SDCMU, and (ii) 9 months after
(see the PID) and request the OCAG to OCAG end of each
include the RBL program in the annual audit fiscal year
plan; (iii) 45 days after
(ii) Ensure that OCAG conduct annual end of Jun and
financial audits of the program and submit Dec each year
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) SDCMU (i) By Nov 2023
(i) Prepare an annual internal audit work (ii) By Dec 2023
plan according to the risk- based audit (ii) FD-MOF for year 1; and
approach. The scope will include and SDCMU 2 months
identification and assessment of before the start
59

anticorruption and integrity risks relating to of each fiscal
procurement, financial management, and (iii) SDCMU year for year 2
effectiveness of internal controls. onward
(ii) Gain approval of the internal audit plan (iii) 45 days after
by the secretary of FD-MOF and/or national the end of Jun
project director. and Dec each
(iii) Incorporate the status of monitoring and year
reporting of internal audit observations and
recommendations into semiannual
progress reports.
3.5. Performance audit: Two performance SDCMU and Jan 2024−Dec
audits will be carried out in accordance with relevant audit 2028
the agreed terms of reference to identify agency (firm)
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 FD-MOF and By Oct 2023
consultant on board for timely procurement SDCMU
activities
4.2. (i) Ensure the integration of annual FD-MOF and (i) Annually
procurement plans int the annul work plan SDCMU
for approval. (ii) – (iv)
(ii) Be sure to include ADB non-member During program
country restrictions in the procurement plan implementation
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 and By Dec 2023
SDCMU procurement team to shift to the CPTU
use of e-GP for the RBL program.
4.4. Provide training to AEPDs, procurement SDCMU By Feb 2024 and
staff, and other relevant SDCMU staff to periodically
improve procurement planning and training
contract management and to avoid delays
in implementation.
4.5. Provide training on the national SDCMU By Feb 2024 and
procurement rules and the RBL program’s periodically
procurement procedures to private sector
implementation partners, including
universities.
60

4.6. Conduct an annual procurement review for SDCMU and Dec 2024 and
a sample of 30% of the total contracts ADB annually
awarded in the respective year. afterwards
Area 5: Environment and Social Safeguards
5.1. Appoint a full-time environmental specialist SDCMU By Dec 2023
in the SDCMU engineering team during
construction period and a part-time after
construction completion.
5.2. Ensure IEEs are prepared, shared with SDCMU As required
ADB, disclosed as required, and ensure
EMPs are available in Bangla at
construction sites.
5.3. Obtain an environmental clearance SDCMU As required
certificate for the 10-story building at East
West University and ensure it is renewed
annually.
5.4. Prepare semiannual environmental SDCMU and During program
monitoring reports during construction and ADB implementation
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 Sep 2023−Dec
language and cultural sensitivity in planning 2028
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 Sep 2023−Dec
data disaggregated by SEC beneficiaries 2028
and representatives.
5.7. Enhance existing grievance redress SDCMU By Dec 2023
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 By Dec 2023
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 (i) By Jun 2024
especially its accuracy and consistency for (ii) By Jun 2025
tracking DLI progress, (i) develop in-built and Jun 2027
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 Dec 2024−Dec
reports, with disaggregated analysis by 2028
gender and socially disadvantaged group.
61

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.
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 Management Roles and Responsibilities
Organizations
Project steering committee 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.
63
A. Organization Structure
Figure 1: Project Implementation Structure
Finance Division, Ministry of

Finance
(Executing Agency) Independent
Verification
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
National Human Skills Development Coordination and Monitoring National Skills

Resource Unit Development
Development Headed by Executive Project Director Authority
Fund (At Additional or Joint Secretary level) (NSDA)
with core staff appointed competitively
DTE BMET MOI MOTJ Universities Industry Associations 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

Number Key Government Staff and Positions Key ADB Staff and Positions
1 Ms. Fatima Yasmin Gi Soon Song
National Project Director for SEIP Director
Senior Secretary Human and Social Development Division (SAHS)
Ministry of Finance South Asia Regional Department
2 Mr. Md. Walid Hossain Sunhwa Lee

Joint Secretary Principal Social Sector Specialist, SAHS
Finance Division, Ministry of Finance
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 Background General SICIP-Related Support
Responsibility and Responsibility from SICIP
Mandate
1. NSDA Established in • Prepare and update • Registration of Coordinate for
2018 under the national skills training institutes and quality assurance of
Prime Minister’s development policy, preparation of skills entry- to mid-level
Office strategy and plan of standards short term training
actions • Support SICIP’s courses
Headed by • Provide quality training (entry- to
Executive assurance mid-level) with
Chairman mechanisms for certification and
(Secretary to the short-term skills assessment
Government) training • Participate in SICIP’s
PSC
2. NHRDF Registered as not- Provision of funding Coordinate with SICIP Provide capacity
for-profit company for selected skills for overlapping support building support to
in 2017 and in training providers in for training providers NHRDF
operation (Chaired public, private, and
by Managing NGO sectors
Director)
3. MOE Line ministry for Formulate, implement, • Serve as focal Technical support to
post-primary and monitor post- ministry for SICIP, build capacity of
education primary education support to TSCs and select polytechnic,
policy and programs polytechnics TSCs, and DTE
including TVET • Participate in SICIP
PSC
66

Mandate
• Mobilize BTEB and
DTE
4. MEWOE Line ministry for Formulation and • Serve as focal Technical support to
expatriates’ implementation of ministry for SICIP build capacity of
welfare and overseas employment, support to TTCs TTCs and BMET
overseas expatriates’ welfare, • Participate in SICIP
employment and related skills PSC
development training
5. MOI Line ministry for Formulation and • Serve as focal Technical support to
industries implementation of ministry for SICIP build capacity of
industrial policy support to BITACs BITACs
• Participate in SICIP
PSC
6. BB-SME Part of the Central Also involved in Serve as Financial and
Bank of the entrepreneurship implementation partner technical support to
country development activities for providing skills train for
through SME training for entrepreneurs and
It is also engaged Department entrepreneurship SMEs
in training for development
SMEs
7. BTEB Statutory body, • Developing and • Course Capacity building
Examination Board regulating formal accreditation, through technical
under MOE TVET programs assessment, and support; facilitate
• Developing and certification twinning
introducing new arrangement if
courses required
• Registration of
institutions and
accreditation of
courses
8. DTE Directorate under • Providing and • Focal unit for the • Financial and
TMED, MOE promoting MOE technical support
vocational education • Implement SICIP for strengthening
• Providing technical and provide skills DTE and training
and financial training through the centers
supports to the training institutes • Support for
public vocational under DTE training in TSCs
training providers • Establish linkage under DTE
between industry • Support for motor
and institutes under driving training in
DTE TSCs under DTE
9. BITAC Institution under • Development of light • Implement SICIP • Financial and
MOI engineering industry training programs technical support
through skills • Establish a modern for SICIP
training and advanced implementation
consultancy engineering training • Support the
services for small institute in BITAC in renovation of
and medium Dhaka training facilities
businesses. and provision of
equipment for
advanced
training facilities
67

Mandate
10. BMET Bureau under • Promoting and • Serve as focal unit • Financial and
MEWOE implementing of for SICIP technical support
skills development • Implement SICIP to strengthen
training • Provide institutional BMET operation
• Collection and training through and capacity
dissemination of TTCs building of
labor market • Implement training centers
information international • Support for
• Employment certificate courses training in TTCs
services both in and under BMET
outside the country
and welfare of
migrant workers
11. Industry Organization for • Welfare of the • Serve as focal Financial and
associations sector industries member industries implementation units technical support for
• Assist in for sector-focused implementation of
developing market- skills training skills training and
led training courses • Organize, manage, capacity building
monitor skills
training with job
placement support
12. BRTC Corporation under Operation and • Provide training on Financial and
Road Transport management of public motor driving with technical support for
and Highways road transport basic maintenance implementation of
Division skills training and
capacity building
13. Executive Established in two Develop mid- to • Provide training to Financial and
Development public universities higher-level industry managers technical support to
Centers and private management to and fresh graduates implement
(EDCs) at universities as part support the industrial from universities for management
Four of SEIP supported growth mid managerial training programs
Universities programs development and capacity
• Bangladesh building
University of
Textiles; BRAC
University; Dhaka
University; and East
West University
14. BIGM Policy research Policy research and • Provide policy Financial and
institute affiliated training analysis training for technical support for
with Dhaka public and private implementation of
University sector officials policy analysis
course and capacity
building
15. PKSF Not-for-profit Implementation of • Mobilize NGOs/ Implement training
company microcredit and skills training institutes to program through
registered under training program provide skills partner
the Companies Act through member/ training organizations/
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.
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
Data Sources and Risks and Critical
Results Chain Performance Indicators Reporting Mechanisms Assumptions
Outcome By 2029:
Technology- a. At least 160,000 people (at least 30% a.−c. Semiannual R: Recurring global
oriented skilled female) improved sector-relevant progress reports, TMS diseases or other
workforce technical and managerial skills across reports shocks may disrupt
increased for skill levels for 10 priority and emerging the execution and
priority and sectorsb,c (2023 baseline: Not applicable) implementation of
emerging industries (DLI 1) (OP 1.1; 2.2) training programs.
across skill levels
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 By 2028:
1. Capacity for 1a. At least 5 industry–academic 1a.−1e. Semiannual A: Industries
advanced technical partnerships established for advanced progress reports, TMS continue to adopt
skills training skills programs (2023 baseline: Not reports technological
developed for applicable) advances and
emerging and demand for higher-
priority sectors 1b. At least 20 advanced technical level skills to
courses implemented based on industry improve business
demands, including at least 3 courses performances.
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 69

2. Managerial 2a. By 2028, at least 3,250 people (15% 2a.−2e. Semiannual A: Industries
capabilities and women) enrolled in mid-level managerial progress reports, TMS continue to adopt
green innovation training at EDCs, covering at least 4 reports technological
capacity industry sectorsb (2023 baseline: 1,695 in advances and
strengthened SEIP Tranche 2) (DLI 5) (OP 1.1.1; 2.1.1; demand for higher-
2.3.1) level skills to
improve business
2b. By 2026, sustainable institutional performances.
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 By 2028: 3a.−3e. Semiannual R: Slow

socially inclusive 3a. At least 12 performance (results)- progress reports, TMS improvement in the
skilling and based training contracts signed and reports capacity of industry
upskilling expanded implemented with industry and NGO associations and
partners, covering at least 9 priority and training providers to
emerging sectors (2023 baseline: 12) deliver quality
(OP 1.2.2) training linked to
job placement may
3b. At least 160,000 people (at least 30% adversely affect
women) enrolled in competency-based program outputs.
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

potential migrant workers (2023 baseline:
2,100 in SEIP Tranche 2) (DLI 8) (OP
1.1.1)
4. Institutional 4a. By 2024, an industry advisory board 4a.−4f. Semiannual
capacity for skills established to provide guidance on progress reports, TMS
monitoring and sector coverage and emerging skills reports, and annual audit
management requirements for advanced level training reports
enhanced (2023 baseline: Not applicable) (DLI 3)
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

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 mid-
level 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, agro-
processing, 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.
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 ADB. 1965. Agreement Establishing the Asian Development Bank (ADB Charter), Article 14(vi). Manila
2 ADB. 2022. Operation Manual J7: Financial Reporting, Auditing, Management and Monitoring in Sovereign
Operations. Manila.
3 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. .
4 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.
5 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 non-
consulting 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. 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.
6 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.
9 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”.
Appendix 2 75
F. 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) 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.
(ii) 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.
(iii) 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 79
(iv) Review the contracts signed between SDCMU and implementing partners and
evaluate compliance by implementing partners with the agreements.
(v) 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.
(vi) 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.
(vii) Validate accuracy and validity of data and supporting documents such as
enrollment records, attendance records, assessment, certificates of training
completion, and job placement records.
(viii) 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) legal agreements from ADB;

(iii) legal agreements with implementing partners;
(iv) agreements between implementing partners and training providers;
(v) enrollment records, attendance records, assessment, certificate of training
completion, and job placement records;
(vi) monthly or quarterly activity reports (programmatic as well as financial);
(vii) important correspondence pertaining to implementation matters of the program;
(viii) internal audit reports relevant to the expenditures or any systems, governance or
other issue which may impact the program; and
(ix) 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 ADB. 1966. Agreement Establishing the Asian Development Bank. Manila.

2 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) “Abuse” is theft, waste or improper use of assets related to ADB-related activity,
either committed intentionally or through reckless disregard.
C. 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 83
party’s exclusion from participating in an RBL-financed activity or any other ADB-

related activity indefinitely or for a stated period of time;3
(v) 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
(vi) recognize sanctions determined by other multilateral development banks in
accordance with the Agreement for Mutual Enforcement of Debarment Decision
3 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.

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Skills for Industry Competitiveness and Innovation Program (RRP BAN 55148)

Program Implementation Document

Project Number: 55148-001

People’s Republic of Bangladesh: Skills for Industry

1. Design and Monitoring Framework 68

ADB – Asian Development Bank

2. Rationale. Bangladesh’s aspiration to reach a high-income status by 2041 is highly

Table 1: Program Scope

Item Broader Government Program Results-Based Lending Program

II. RESULTS AND DISBURSEMENT

A. The Results-Based Lending Program’s Overall Results

8. Output 2: Managerial capabilities and green innovation capacity strengthened.

leather goods and footwear.

Table 2: Disbursement-Linked Indicators

1. Program Results Framework

Table 3: Results-Based Lending Program Results Framework

1. Description of Disbursement-Linked Indicators

Table 4: Disbursement-Linked Indicators

Result Indicators Baseline Value Target Values and Results Indicators

Result Indicators Baseline Value Target Values and Results Indicators

Output 2: Managerial capabilities and green innovation capacity strengthened

Result Indicators Baseline Value Target Values and Results Indicators

Result Indicators Baseline Value Target Values and Results Indicators

C. Disbursement-Linked Indicator Verification Protocols

1. Description of the Verification Protocols

Table 5: Disbursement-Linked Indicator Verification Protocols

2028 (Year 5) Partial disbursement: If at least 60% of certified new job

The target is achieved when the contract and training plan

The target is achieved when at least 5 MOUs have been

Partial disbursement: If at least 3 MOUs are signed,

Partial disbursement: If at least 10 advanced technical

If the aggregate target is met in each year, but the target

(ii) The target is achieved when detailed designs of STTL

Partial disbursement: For (i), when all tasks are

Output 2: Managerial capabilities and green innovation capacity strengthened

The target is achieved when the contract and training plan

(ii) EDC partner universities will prepare redesigned

Partial disbursement: If only one of the two prior results

(ii) Definition: Each university/institution is expected to

Partial disbursement: If at least three out of five

The target is considered achieved when the guidelines

There will be no partial disbursement.

The target is considered to be met when at least 9

Partial disbursement: If at least 7 industry associations

Partial disbursement: If at least 60% of the target

(ii) The target refers to the cumulative number of people

The target for each year is considered achieved when the

Partial disbursement: If at least 60% of the target

There will be no partial disbursement for this target.

The target is achieved when an annual internal audit plan

(ii) Definition: Under RBL, SDCMU will undertake

The target is considered to be achieved when

The target is achieved when performance audits have

Partial disbursement: If performance audits have been

(ii) TMS includes rich data on individual trainees, as well

The target is achieved when SDCMU produces analytic

(ii) Based on the performance audit plan generated from

The target is achieved when performance audits have