MANILA, PHILIPPINES (22 November 2024) — The Asian Development Bank (ADB) has approved a 68,198,000 lari ($25 million equivalent) policy-based loan to support ongoing efforts to improve the quality and access to vocational education and training (VET) in Georgia.

The financing is part of Subprogram 2 of ADB’s Modern Skills for Better Jobs Sector Development Program. Under the first subprogram approved in 2020, access to VET education was improved by streamlining VET admissions procedures, regulatory framework for adult education, and expanding government-funded vouchers program to private VET providers. VET teachers’ remuneration increased, the “skills hubs” concept was developed, and public–private partnerships in VET were piloted.

“We see promising results of the government’s policy actions in increased VET enrollment and historic low unemployment rate, and ADB is committed to continuing to support Georgia’s education reforms,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “By improving the quality and relevance of the VET programs, we aim to increase the employability of young people and adults while also fostering local economic development through better skilled labor.”

Subprogram 2 supports actions that help improve the quality and relevance of VET in priority economic sectors, increase access to the VET, and involve the private sector in improving the relevance of VET programs and curriculum. Among the government’s actions were the approval of the VET Strategy of Georgia for 2024–2030, which incorporate gender and climate considerations and the approval of a new VET teachers qualifications framework that sets professional standards, development, and career progression to attract and retain qualified teachers. The program has institutionalized VET–industry partnerships administered by the newly established Skills Agency of Georgia governed by an independent supervisory board with equal public and private representation.

“This program is helping to reduce inequalities and foster economic growth by enhancing Georgians’ access to quality VET in and outside regional centers and secondary cities,” said ADB Social Sector Specialist Mamatkalil Razaev. “The structured involvement of the private sector in the country’s VET system governance and delivery leads to better employability of graduates, inclusive economic development, and quality jobs.”

By promoting VET programs at general education schools in regions with no colleges, the program will help improve opportunities for young people in rural areas and those coming from disadvantaged backgrounds. It will also empower women by improving their access to employment and education opportunities. The program will also equip students from social and climate-vulnerable communities with the modern knowledge and solutions that are essential to respond to climate change.

The financing under Subprogram 2 is ADB’s first local currency sovereign loan in Georgia. The program aligns well with Georgia’s debt management strategy which seeks to increase local currency-denominated debt in public debt, improve the economy’s resilience to external shocks, and drive sustainable growth.

ADB has supported Georgia since 2007 and is one of the country’s largest multilateral development partners. To date, ADB’s loans, grants, and technical assistance to Georgia total $4 billion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.