ADB Commits $150 M Loan to Bangladesh for Enhancing TVET, Boosting Skills and Employment

By enhancing governance systems, the program seeks to embed sustainable improvements in TVET delivery that align with global best practices and emerging industry standards.

The Asian Development Bank (ADB) and the Government of Bangladesh have signed a landmark $150 million loan agreement aimed at transforming Technical and Vocational Education and Training (TVET) in Bangladesh. The program is designed to improve access to quality education and training, thereby increasing opportunities for decent employment and enhancing the country’s competitiveness in the global market.

The loan agreement was signed today at a ceremony held at the Economic Relations Division (ERD) office in Dhaka by Md. Shahriar Kader Siddiky, Secretary of ERD, and Hoe Yun Jeong, ADB Country Director for Bangladesh. This partnership reflects ADB’s ongoing commitment to support Bangladesh’s economic diversification and human capital development agenda.

Focusing on Key Technology Clusters to Drive Economic Growth

Aligned with Bangladesh’s broader economic priorities, the new program will target five strategic technology clusters: mechanical engineering, electronics and electrical engineering, information and communication technology (ICT), civil engineering, and food and agriculture. These sectors have been identified as critical drivers of industrial growth and employment generation within the country.

Hoe Yun Jeong emphasized the importance of this initiative: “The program supports Bangladesh’s priority agenda of job creation, addresses non-income dimensions of poverty and social exclusion, and enhances access to decent employment and competitiveness in the global market. It aligns closely with the government’s Integrated TVET Development Action Plan (ITDAP), which is a cornerstone policy framework for skills development in the country.”

Expanding Access and Quality of TVET Teacher Training

A key feature of the program, known as the Technical and Vocational Education and Training Teachers for the Future Program, is to expand access to modern, high-quality teacher training—especially focusing on underserved regions beyond the capital city of Dhaka. This addresses a crucial bottleneck in TVET effectiveness: the availability of skilled and well-trained instructors.

By the conclusion of the program, at least 10,000 new and existing TVET teachers across Bangladesh will have significantly enhanced their pedagogical and technical skills, particularly in emerging and evolving technologies. This improvement is expected to benefit over 250,000 students nationwide by fostering a more competent and adaptable workforce ready for current and future labor market demands.

The program will also establish a robust nationwide system for continuous professional development. This system will ensure that TVET teachers receive ongoing training and support, sustaining the quality and relevance of technical education long after the program’s completion.

Strengthening Systems and Governance for Sustainable Impact

In addition to upgrading teacher skills, the program aims to strengthen the institutional frameworks governing TVET teacher development, management, and reporting. This will help improve transparency, accountability, and evidence-based decision-making in Bangladesh’s TVET sector.

By enhancing governance systems, the program seeks to embed sustainable improvements in TVET delivery that align with global best practices and emerging industry standards.

ADB’s Role in Inclusive and Sustainable Development

The loan marks another milestone in ADB’s long-standing support to Bangladesh’s development efforts. ADB is a leading multilateral development bank that supports inclusive, resilient, and sustainable growth across Asia and the Pacific. Since its founding in 1966, the bank has worked closely with its 69 members—50 from the region—to tackle complex development challenges through innovative financing and strategic partnerships.

ADB’s engagement in Bangladesh focuses on building human capital, infrastructure, and social services that contribute to poverty reduction and sustainable economic growth. The TVET Teachers for the Future Program fits squarely within this mission by equipping the country’s workforce with the skills needed to compete in increasingly dynamic global markets.

Looking Forward: Empowering Bangladesh’s Workforce

Bangladesh has witnessed rapid economic growth over the past decade, driven by robust manufacturing, agriculture, and service sectors. However, the challenge remains to ensure that this growth translates into inclusive opportunities for all citizens, particularly youth and disadvantaged groups.

By investing in TVET teacher capacity and modernizing technical education, this program promises to empower thousands of students with skills that match market demands and support Bangladesh’s ambitions to become a middle-income country. Moreover, by targeting underserved regions, the initiative promotes regional equity in educational and employment outcomes.

As Bangladesh continues to diversify its economy and integrate more deeply into global value chains, investments in human capital development such as this will be critical for sustainable development and social progress.