ADB Partners with CEG and YIST for $200M Project to Advance Vocational Education in China

The Asian Development Bank (ADB), China Education Group Holdings Limited (CEG), and Yantai Institute of Science and Technology (YIST) have collaborated on a $200 million finance package aimed at enhancing vocational education in the People’s Republic of China (PRC). This initiative focuses on integrating climate-resilient infrastructure and promoting gender equality within the education sector.

Comprehensive Financial Support

The financing includes a $100 million loan from ADB, complemented by $100 million mobilized through co-financing partners such as the Asian Infrastructure Investment Bank, China Minsheng Bank Corporation Limited (CMBC) Yantai Branch, and Bank Sinopac (China) Limited Chengdu Branch (Sinopac). These institutions are participating through ADB’s complementary loan mechanism, offering local currency co-financing to diversify loan tenors and mitigate currency risks.

The funds will enable CEG to extend its short-term debt maturity while supporting YIST in the construction of a climate-adaptive campus in the Yantai Economic and Technological Development Zone. This new facility is set to foster advanced education programs aligned with the green and silver economies.

Focus on Emerging Economies and Inclusivity

The Yantai campus will expand its course offerings in fields such as health services, robotics engineering, automation, and intelligent manufacturing—industries critical to the PRC’s sustainable development goals. Additionally, a Gender Action Plan will introduce initiatives like a gender diversity and inclusion policy across all CEG institutions in the PRC and provide specialized training for teachers and counsellors.

“We are helping to build a more sustainable future for the next generation by investing in climate-resilient infrastructure and promoting gender-inclusive education,” said Suzanne Gaboury, ADB’s Director General for Private Sector Operations. “This marks ADB’s largest private sector investment in education and showcases our commitment to training workers for emerging industries that drive high-quality, sustainable development.”

Addressing Labor Market Needs

While the PRC’s education sector has grown significantly in recent decades, a persistent mismatch between graduate skills and labour market demands has emerged. By concentrating on higher vocational education and aligning training programs with industry needs, this project aims to bridge that gap, positioning the PRC for a transition to a high-quality green economy.

Sustainability and Industry Leadership

CEG’s Chief Executive Officer, Yu Kai, highlighted the sustainability goals of the project, stating, “This transformative project will allow us to expand our educational offerings and provide students with a state-of-the-art learning environment that meets the highest standards of sustainability and inclusivity. Our new Yantai campus achieving a two-star rating under the PRC’s Green Building Label underscores our commitment to a greener future.”

CEG is recognized as a leader in vocational education services in the PRC, focusing on cultivating a “dual-qualified” teaching workforce, fostering regional academia-industry collaboration, and advancing international education exchanges.

Building Toward a Green Future

This collaborative initiative exemplifies a forward-thinking approach to education, targeting emerging sectors while prioritizing inclusivity and climate resilience. It demonstrates how public and private sector partnerships can create scalable models for sustainable development and economic growth in education and beyond.