Guangxi Modern TVET Development Demonstration Program

completed

The Chinese Ministry of Finance has applied to KfW for a promotional loan to support the Guangxi Modern TVET Demonstration Programme in the Guangxi Autonomous Region of the Zhuang Nationality. The Chinese State Council has also included the project in the investment plan. Together with the Asian Development Bank (ADB), the programme is being implemented as co-financing under the Results-Based Lending (RBL) modality. With this form of financing, payments are only made after certain, predefined payment-relevant indicators (disbursement-linked indicators, DLI) have been achieved. Promoting vocational training is a key goal of Chinese education policy. The project will help overcome investment bottlenecks and achieve the goals set in the five-year plan for vocational training in Guangxi Province. A higher supply of qualified specialists and improved career options for graduates have a positive effect on the economy of the region, including the neighboring provinces. Vocational training offers members of ethnic minorities in particular easier access to economic participation. In the medium term, the rising level of qualifications will also have an impact on the development of wage levels and thus on the standard of living in the region. Vocational training projects such as this one make a substantial contribution to improving educational opportunities, promoting qualified employment and increasing income prospects. They can therefore be seen as structurally building in the Chinese context. In addition, the project is in line with the focus of the BMZ education strategy on aligning vocational training systems more closely with the labor market. The program includes the further development of the vocational training system in Guangxi Province towards a practice-oriented, modern vocational training system. The program funds will primarily finance measures in the following areas of the province's vocational training system: i) improving teaching and learning conditions by promoting both the necessary infrastructure and the training of teachers; ii) increasing the quality of professional standards and teaching quality, including through the use of modern information and communication technology (ICT); iii) promoting regional integration with a focus on the ASEAN region and iv) strengthening cooperation between industry and vocational schools and thus labor market relevance. The borrower is the People's Republic of China, represented by the Ministry of Finance (MoF) based in Beijing. Of the total project costs, up to EUR 170 million will be financed through an FC loan and USD 250 million from the ADB (total project costs approximately USD 6 billion).