$79m skills development deal signed with IDA

8 July 2010, 18:00 PM

Unb, Dhaka

The government yesterday signed a credit agreement worth US $79 million with the International Development Association (IDA) for Skills and Training Enhancement Project (STEP). The project, approved by the World Bank board on June 11, will assist Bangladesh in developing its human capital resources, said a World Bank release. Under the initiative, public and private training institutions will be strengthened to improve skills of the workforce. The project will focus on improving the technical and vocational education and training system to develop high-quality workers so that they can respond to the needs of both the domestic and international labour markets. Arastoo Khan, ERD additional secretary, and Zahid Hussain, World Bank acting country director, signed the agreement on behalf of their respective sides. The credits from the IDA have 40-year maturity with a 10-year grace period, and a service charge of 0.75 percent. Zahid Hussain said an increasingly skilled labour force is vital to accelerate economic growth in Bangladesh. He said enhancing vocational training will help Bangladesh get overseas employment opportunities. He said skilled workers can command higher wages in international markets and lead to an increase in Bangladesh's remittance earning.