ADB Approves $25 Million Loan to Enhance Vocational Education in Georgia
The Asian Development Bank (ADB) has approved a GEL 68,198,000 (USD 25 million) budgetary loan to support Georgia's efforts to improve the quality and accessibility of vocational education. This funding represents the second subprogram under ADB's ongoing initiative, Modern Skills for Better Employment, which began in 2020.
The first subprogram introduced significant reforms, including:
- Improved enrollment procedures for vocational institutions.
- Adoption of a regulatory framework for adult education.
- Establishment of a voucher program with budget funding for private vocational providers.
- Increased salaries for vocational school teachers.
- Development of the "vocational hubs" concept.
- Pilot public-private partnership programs within the vocational education system.
These initiatives contributed to increased demand for vocational education and a historic low in unemployment rates.
The second phase of the program aims to:
- Improve the quality and relevance of vocational education in key economic sectors.
- Expand access to vocational training, particularly in regional and rural areas.
- Foster private sector involvement in developing vocational curricula and programs.
The Georgian government has taken several steps to align vocational education with market demands, including:
- Adoption of the Vocational Education Strategy 2024-2030, integrating gender and climate change considerations.
- Development of a qualification framework for vocational teachers, outlining professional standards and career advancement criteria.
- Institutionalizing collaboration between vocational institutions and businesses through the newly established Skills Agency. The agency is governed by a supervisory board with equal representation from civil servants and private entrepreneurs.
“This program helps reduce inequality and strengthen the economy by improving access to vocational education in regional centers, small towns, and villages,” said Mamatkalil Razayev, ADB’s Social Affairs Specialist. “Private sector involvement will enhance education quality, foster economic development, and improve graduate employment opportunities.”
The project will target rural areas and vulnerable populations by promoting vocational education in schools where colleges are unavailable. It also prioritizes empowering women through improved access to education and employment, while equipping students in socially and climate-vulnerable communities with modern skills tailored to address climate change challenges.
The funding for Subprogram 2 marks ADB’s first sovereign loan in local currency, aligning with Georgia’s debt management strategy to increase the share of government debt denominated in GEL. This shift will strengthen the economy's resilience to external shocks and contribute to sustainable growth.