ADB Approves $25M Loan to Enhance Vocational Education and Training in Georgia

This is ADB’s first local currency sovereign loan in Georgia, aligning with the country’s debt management strategy to reduce reliance on external currency debt.

The Asian Development Bank (ADB) has approved a 68.2 million lari ($25 million equivalent) policy-based loan to further support Georgia’s efforts to enhance vocational education and training (VET). This funding is part of Subprogram 2 under ADB’s Modern Skills for Better Jobs Sector Development Program, aiming to improve the quality, accessibility, and relevance of VET to meet the demands of the labour market.

Achievements Under Subprogram 1

Subprogram 1, approved in 2020, laid a strong foundation for VET improvement by:

Simplifying VET admissions processes and regulatory frameworks for adult education.

Expanding the government-funded voucher program to include private VET providers.

Increasing VET teachers’ salaries and piloting public–private partnerships in VET.

Developing the “skills hubs” concept to connect learners with industry needs.

These efforts have led to increased VET enrollment and contributed to Georgia’s historic low unemployment rate.

Focus of Subprogram 2

Subprogram 2 builds on these successes, emphasizing quality and inclusivity in VET by:

Enhancing Quality and Relevance:

Aligning VET programs with the needs of priority economic sectors.

Introducing a new VET teacher qualifications framework that ensures professional development and career growth.

Expanding Access:

Promoting VET education in rural areas and regions lacking colleges.

Integrating VET programs into general education schools to reach disadvantaged youth.

Strengthening VET-Industry Partnerships:

Institutionalizing collaborations through the newly established Skills Agency of Georgia, governed equally by public and private representatives.

Promoting Inclusivity:

Empowering women by increasing access to education and employment opportunities.

Providing tailored support for students from social and climate-vulnerable communities, equipping them with skills to address climate change challenges.

Local Currency Loan for Enhanced Resilience

This is ADB’s first local currency sovereign loan in Georgia, aligning with the country’s debt management strategy to reduce reliance on external currency debt. By increasing local currency-denominated public debt, Georgia aims to bolster its economy’s resilience to external shocks while promoting sustainable development.

Economic and Social Impact

ADB’s Director General for Central and West Asia, Yevgeniy Zhukov, emphasized that improving the quality and relevance of VET programs will enhance employability, foster local economic development, and contribute to Georgia’s overall progress. “Our support aims to provide Georgians, especially young people and women, with the skills needed to secure quality jobs,” Zhukov said.

ADB Social Sector Specialist Mamatkalil Razaev highlighted the broader societal impact, stating, “This program reduces inequalities by improving access to VET for rural and disadvantaged communities while fostering inclusive growth and sustainability.”

ADB’s Ongoing Commitment to Georgia

Since 2007, ADB has been a key development partner to Georgia, providing loans, grants, and technical assistance totaling $4 billion. The Modern Skills for Better Jobs Program is part of ADB’s broader commitment to sustainable development, economic resilience, and human capital investment in the region.

Through these initiatives, Georgia is set to empower its workforce with modern skills, reduce unemployment, and pave the way for inclusive and climate-resilient economic growth.