SICIP — Skills for Industry Competitiveness and Innovation Program
Government of Bangladesh & Asian Development Bank

Skills for Industry Competitiveness and Innovation Program

About the Program

Who We Are

The Skills for Industry Competitiveness and Innovation Program (SICIP) is designed to cultivate a workforce proficient in emerging technologies, with a particular focus on priority and new industries in Bangladesh.

  • Results-based loan fromAsian Development Bank (ADB)
  • Co-financed byGovernment of Bangladesh (GoB)
  • Executed and implemented byFinance Division, Ministry of Finance, through SDCMU
Total program
US$375M
ADB Result Based Lending
US$300M
Government of Bangladesh
US$75M
New and existing workers to benefit
220,000

What SICIP sets out to do

  1. Increase the technology-oriented skilled workforce across emerging and priority sectors
  2. Promote inclusive skilling and upskilling for women and socially disadvantaged groups
  3. Encourage industry–university partnerships that build innovation capacity and competitiveness
  4. Foster skills for climate-resilient manufacturing and green technologies

Supported by US$300 million from the Asian Development Bank (ADB) Result Based Lending facility, measured by Disbursement-Linked Indicators (DLIs), and US$75 million from GoB, SICIP aligns with the Government of Bangladesh’s Skills Development Framework for Economic Competitiveness 2023 and the Eighth Five Year Plan.

SICIP runs for six years, FY2024 to FY2029, and builds on the Skills for Employment Investment Program (SEIP), which the Finance Division has run since 2014.

Emerging sectors
  • Electronics
  • Automotive
  • Pharmaceutical
Priority sectors
  • Textiles
  • Garments
  • and more: at least 10 sectors in all
Schemes & Outputs

SICIP Schemes

SICIP is delivered through three schemes, run by SDCMU from late 2023 to 30 June 2029. Together they produce four outputs, measured by nine Disbursement-Linked Indicators (DLIs).

Scheme 1

Advanced Technical Skills, Managerial Capabilities, and R&D Driven Innovation Capacity Development for Priority and Emerging Industries

Outputs
1 & 2
Linked to
DLIs 3–6

Headline targets by 2028

  • 4,800people in advanced technical courses (15% women)
  • 3,250people in mid-level managerial courses at EDCs (15% women)
  • 35advanced technology labs or workshops
  • 7R&D projects through university–industry partnerships
All targets for Outputs 1 & 2
Scheme 2

Expansion of Skills for Employment and Socially Inclusive Training for Priority and Emerging Sectors

Output
3
Linked to
DLIs 7–8

Headline targets by 2028

  • 160,000people in job-ready basic and mid-level courses (30% women)
  • 23,000women in women-targeted skills programs
  • 10,000people from socially disadvantaged groups in targeted programs
  • 18,000potential migrant workers in internationally certified courses
All targets for Output 3
Scheme 3

Enhancing Institutional Capacity for Skills Monitoring and Management

Output
4
Linked to
DLI 9

Headline targets by 2028

  • 2024Industry Advisory Board established
  • 2024Trainee Management System (TMS) upgraded to track every DLI
  • 10implementing partners covered by internal audits
  • 2rounds of performance audits of the program
All targets for Output 4

Program-wide results

The outcome all three schemes add up to: a larger technology-oriented skilled workforce for priority and emerging industries.

  • 160,000people with certified, sector-relevant skills across all skill levels, in at least 10 sectors, by 2028 DLI 1
  • 65%of certified new job seekers placed in jobs within 6 months, for men and women alike, by 2029 DLI 1
  • 26,500women and socially disadvantaged people gaining employable, life and entrepreneurship skills, by 2028 DLI 2
Scheme 1 · Outputs

Outputs under Scheme 1

Advanced Technical Skills, Managerial Capabilities, and R&D Driven Innovation Capacity Development for Priority and Emerging Industries

Output 1

Capacity for advanced technical skills training developed for emerging and priority sectors

Higher-level technical skills for emerging sectors (e.g. electronics, automotive, pharmaceutical) and priority sectors (e.g. textiles, garments), built through partnerships between industries and polytechnics, colleges and universities.

Targets by 2028

  • 5 industry–academic partnerships for advanced skills programs
  • 20 advanced technical courses based on industry demand, including at least 3 for women
  • 4,800 people enrolled in advanced or emerging technology courses (at least 15% women) DLI 3
  • 35 practical training labs or workshops in advanced and green technologies DLI 4
  • 3 international partnerships for advanced technical courses

What it delivers

  • Automotive technology training center at Narsingdi Polytechnic Institute, with the Fair Group
  • Smart textile technology living labs (STTLs) at the Textile Engineering Colleges in Chattogram and Gazipur, with the Korea High-Tech Textile Research Institute (KOTERI)
  • New advanced engineering training at BITAC’s training center in Tejgaon, with the Korea University of Technology and Education (KoreaTech)
  • Advanced certificate courses at BGMEA University of Fashion and Technology (BUFT)
  • IT/engineering and pharmaceutical quality-assurance courses at BRAC University
  • Leather production technology courses at the Institute of Leather Engineering and Technology, University of Dhaka
Read the full description

It will cultivate higher-level technical skills for existing priority and newly emerging sectors, such as electronics, automotive, and pharmaceutical, through partnerships between industries and education and/or training institutes (DLI 3). The skill requirements will be identified by leading industries, particularly for high-demand technology-related skills. Industries will be involved in developing curricula and instructors as well. The Finance Division in the Ministry of Finance is setting up an industry advisory board for the program, consisting of leading industries. Some polytechnics in industrial areas will be converted into specialized polytechnics to offer customized skills courses for emerging industries. This output will also enhance the institutional capacity to produce skilled workers adept at emerging technologies, including green technologies (DLI 4). It will create an automotive skills training center at a polytechnic institute, establish smart textile technology living labs in two textile engineering colleges, and set up high-demand technology-based courses in garments universities and in a light engineering institute. Many of these technical courses will have international partnerships for transfer of knowledge, training of instructors, and capacity development.

Output 2

Managerial capabilities and green innovation capacity strengthened

Mid-level managerial training through Executive Development Centers (EDCs) at partner universities, and competitive grants for applied R&D that solves industry problems.

Targets by 2028

  • 3,250 people enrolled in mid-level managerial training at EDCs (15% women), covering at least 4 industry sectors DLI 5
  • 4 EDCs with sustainable institutional plans finalized (by 2026)
  • 7 R&D projects implemented through university–industry collaborations DLI 6
  • 5 R&D project outcomes piloted or adopted by industries or government agencies

What it delivers

  • EDC courses redesigned around emerging technology trends and green business practices, at BRAC University, Bangladesh University of Textiles (BUTEX), East West University and IBA, University of Dhaka
  • Policy analysis, leadership, and environment and climate change management courses for mid-career civil servants at the Bangladesh Institute of Governance and Management (BIGM)
  • Competitive grants for applied R&D projects, in two rounds, selected by a technical committee
  • A program or policy drafted to engage non-resident Bangladeshi scientists and engineers in industry-focused R&D
Read the full description

Building on the SEIP’s introduction of executive development centers (EDCs) that impart customized mid-level managerial training through university–industry partnerships, the government will further institutionalize the EDCs in partnering universities (e.g., Bangladesh University of Textiles, BRAC University, Dhaka University, and East West University). EDC courses will be redesigned to align with industry’s technology trends and global environmental standards, including green technologies and business practices (DLI 5). This output will also promote applied R&D for industry solutions and incubation opportunities (DLI 6) by providing competitive grants. This initiative intends to foster collaborative innovations in industrial production processes and value-added product or service development. Applied R&D projects supporting the growth of small and medium-sized enterprises and climate-resilient products or services will be prioritized. The government will make efforts to bring overseas scientists and engineers of Bangladeshi origin to contribute to the transfer of knowledge and skills, which will connect local industries and academies to the global network. This will become a basis of developing a government policy or program.

Scheme 2 · Output

Output under Scheme 2

Expansion of Skills for Employment and Socially Inclusive Training for Priority and Emerging Sectors

Output 3

Access to socially inclusive skilling and upskilling expanded

Industry-aligned basic and mid-level skills training across at least nine priority sectors, with programs designed for women, socially disadvantaged groups and potential migrant workers.

Targets by 2028

  • 12 performance-based training contracts with industry and NGO partners, covering at least 9 sectors
  • 160,000 people enrolled in competency-based, job-ready basic and mid-level courses (at least 30% women) DLI 7
  • 23,000 women enrolled in women-targeted programs, including multi-skilling and green skills
  • 10,000 people from socially disadvantaged groups (e.g. orphans, people with disabilities, transgender people, people from small ethnic communities) in targeted programs
  • 18,000 people enrolled in internationally certified courses for potential migrant workers (at least 10% women) DLI 8

What it delivers

  • Sector training with industry associations, public training institutes and NGOs, coordinated with NSDA and NHRDF
  • Women-targeted programs with BWCCI, and with the H&M Foundation and The Asia Foundation for women garment workers
  • Employable, life and social skills programs for socially disadvantaged groups
  • Internationally certified courses in welding, construction, light engineering, and nursing and caregiving
  • Motor driving courses with basic auto-maintenance training
  • Training for trainers and staff: occupational health and safety, financial management, and trade-specific skills, including overseas training for master trainers
Read the full description

This output will continue to support basic and mid-level skills training of new entrants or existing workers with industry partnerships, following the SEIP's sector-focused training models, covering at least nine priority sectors (DLI 7). These will be implemented in close coordination with the NSDA and NHRDF. It will also create specially targeted skills programs for socially disadvantaged groups (e.g., people with disabilities, transgender people, and people in small ethnic communities); women garment sector workers who are at high risk of job loss because of automation; and those who may be negatively affected by the transition to a low-carbon economy. For women, upskilling and multi-skilling for future garment work or alternative livelihoods, community-based support for empowerment, and green entrepreneurship skills will be provided in partnership with the H&M Foundation and the Asia Foundation. The government will also scale up skills courses with international certification for potential migrant workers, which will enable them to gain better employment opportunities overseas and increase remittance flows (DLI 8).

Scheme 3 · Output

Output under Scheme 3

Enhancing Institutional Capacity for Skills Monitoring and Management

Output 4

Institutional capacity for skills monitoring and management enhanced

Stronger program management, monitoring, audit and evaluation, so that results are measured reliably and the training models that work are kept.

Targets

  • 2024 Industry Advisory Board established to guide sector coverage and emerging skills for advanced training DLI 3
  • 2024 TMS modules enhanced to report on all skill levels and track DLI progress, with data by gender and other attributes DLI 9
  • Yearly analytic reports from TMS data, by gender and socially disadvantaged groups (by 2028) DLI 9
  • 10 implementing partners covered by internal audits, with action plans based on the results DLI 9
  • 2 rounds of performance audits of the program and its implementing partners, with action plans implemented DLI 9

What it delivers

  • SDCMU strengthened with additional staff and units aligned to the program’s outputs and DLIs
  • A Program Steering Committee and the Industry Advisory Board
  • M&E plans and guidelines for every output, and an independent M&E firm
  • Annual financial audits by OCAG, risk-based internal audits and independent performance audits
  • Gender and social inclusion plans, social marketing, and environmental and social safeguards
Read the full description

This output will support the establishment of an Industry Advisory Board for output 1 activities, which will guide the development of advanced technical skills courses by ensuring the coverage of emerging sectors and new skills requirements. The output will continue to enhance monitoring mechanisms, such as the online trainee management system created under SEIP to monitor training performance and track its outcomes. Analytic studies, such as a tracer study and industry skills trends analysis, will be undertaken to assess the effectiveness of new skills programs and to institutionalize effective training partnership models. The output will ensure effective management and governance of skills development systems overall, by undertaking financial audits, internal audits, and performance audits of the RBL program.

What makes SICIP different

Novelties of SICIP

Unlike other skills development projects, SICIP has a number of innovative features that make it unique, even compared with its predecessor, SEIP.

Funding model

Results-based lending (RBL)

ADB releases money when results are achieved, not simply when funds are spent. Each disbursement is linked to a specific result, a Disbursement-Linked Indicator (DLI), with yearly targets that are independently verified.

9DLIs: 2 for outcomes, 7 for outputs

How the program is funded and run

Program approach, not a project

SICIP moves from the traditional project (DPP/TPP) approach to a program approach. Funds are channelled directly from the Ministry of Finance, so the Planning Commission and IMED have no role in approving the program or monitoring its activities.

Industry Advisory Board

7 to 10 industry leaders, business experts and academics, appointed by the Finance Division, meet every quarter to advise SDCMU on emerging sectors, skills needs, curricula, R&D and industry–university partnerships.

Audits built in

Annual financial audits by OCAG, risk-based internal audits under annual plans approved by the Finance Division Secretary, and two rounds of independent performance audits of the program and all implementing partners.

What trainees learn

From mid-level to high-level skills

SEIP focused on entry- and mid-level skills; SICIP adds advanced technical and managerial skills, through new technology-based training centers and upgraded institutes in automotive, engineering, textiles and garments, IT, pharmaceutical and leather technology.

International certification

Courses with international certification for potential migrant workers expand beyond welding to construction, light engineering, and nursing and caregiving, through agreements with certification bodies such as City & Guilds and DNV-GL.

Green technology and environment

Training on green skills, green technology and green business practices; green building designs for new and renovated training facilities; and modern equipment with energy and water conservation and pollution control features.

Research and innovation

BIRDI grants

Competitive grants for applied, industry-focused R&D through university–industry partnerships, run as Bangladesh Industry Research Development and Innovation (BIRDI). Target: at least 7 projects, with 5 outcomes piloted or adopted by industry.

Visit BIRDI

Brain circulation

SICIP engages non-resident Bangladeshi scientists, engineers and expert professionals in industry-focused R&D, connecting local industries to global networks, and is drafting a program or policy to make this lasting.

STTL and NATI

Smart textile technology living labs at the Textile Engineering Colleges in Chattogram and Gazipur, with KOTERI of Korea, and an automotive technology training center at Narsingdi Polytechnic Institute, with the Fair Group.

CINTEC

With East West University, SICIP is establishing the Center for Innovation and Technology (CINTEC), a “Living Lab” centre of excellence for industrial automation and environmental sustainability: automated ETP monitoring, smart energy systems and AI-driven process optimisation.