Strengthened Management and Governance of the TVET System

1.         This output will strengthen management and governance of the TVET sector by (i) reviewing and strengthening the policy and regulatory framework for TVET, including increasing flexibility in employment arrangements for TVET teachers and introducing a unit cost funding system for TVET; (ii) improving quality assurance in the seven public TVET institutions, four private TVET institutions and VEDC; (iii) strengthening TVET information systems by developing an education management information system, including design and system development, and strengthening capacity to operate and maintain the system; (iv) establishing a labor market information system, including design and system development, and strengthening capacity to operate and maintain the system; and (v) strengthening the capacity of management in the MOE's Technical and Vocational Education Department (TVED), VEDC and the seven public and four private TVET institutions.

2.         Strengthen the policy   and regulatory framework. The project will help the government (i) design and implement a new unit-cost-based funding system and more flexible employment arrangements to provide TVET institutions with greater operating flexibility, and (ii) provide scope for TVET institutions to offer programs that are more relevant to the labor market. Both of these reforms represent government policy, agreed as part of the ESDF approved by the Prime Minister in January 2009. The mechanism for introducing the unit-cost- based funding system will be aligned with the policies and timeline adopted by the government.

 

3.         Improve information on the labor market and TVET sector. To address the lack of information on labor market demand and the TVET sector, the project will (i) establish an LMIS that will provide information to MOLSW and MOE on labor market indicators such as skill shortages and salaries for TVET-trained workers, and (ii) strengthen the TVET education management information system. MOE will use LMIS information to inform funding allocation decisions, and TVET institutions will use it to inform decisions on program and course offerings. Tracer studies will be undertaken as part of this work. The LMIS will be housed at MOLSW. The education management information system will be strengthened to include a wider range of information on the TVET sector and link nonfinancial and financial data on the education sector.