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Uzbekistan 03/03/2025 KfW Development Bank and Uzbekistan sign loan and grant agreements for vocational training enhancement

KfW Development Bank and Uzbekistan sign loan and grant agreements for vocational training enhancement

Tashkent, Uzbekistan (UzDaily.com) — In a significant milestone for Uzbekistan's vocational education sector, the Government of Uzbekistan, in collaboration with KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has finalized the signing of loan and grant agreements to enhance the country's technical and vocational education and training (TVET) system.

The agreements provide EUR 40 million in loan funding and EUR 2 million in grants, with the aim of modernizing Uzbekistan’s vocational training infrastructure and improving the quality of education to better meet the demands of a rapidly evolving labor market.

The project, entitled Support for Vocational Training in Uzbekistan (TVET II), is part of Uzbekistan’s broader strategy to strengthen its human capital and ensure youth are equipped with the skills necessary for success in today’s globalized economy.

The TVET II project will be delivered through two primary components:

Investment Component:

  • This component will focus on upgrading the infrastructure of vocational training facilities across Uzbekistan. It will include the renovation of existing buildings and the provision of modern training equipment tailored to the demands of the labor market.
  • Additionally, consultancy services will be provided to the Ministry of Higher Education, Science, and Innovations (MHESI) to ensure the successful and efficient implementation of the project.

Advisory Component:

  • The advisory component will support the development and implementation of labor market-oriented professional profiles, training standards, and curricula. The initiative will encourage closer collaboration between TVET institutions and both public and private sector employers.
  • Teacher training, with a focus on new technologies and equipment, will be an essential aspect of this component. The project will also establish and enhance Centers of Excellence, promoting best practices in vocational training.

Furthermore, the project aims to reform and establish robust job placement services, ensuring better employment outcomes for graduates. As part of the advisory component, the project will foster collaboration with leading German and EU-TVET institutions through a twinning arrangement.

A diverse range of TVET institutions from across Uzbekistan will benefit directly from the project. These include colleges and technicums specializing in sectors critical to Uzbekistan's economic development, such as construction, energy, textiles, transport, and public health. Notable institutions involved in the project include:

  • 1st Republican Abu Ali ibn Sino Public Health Technicum (Tashkent) – Health
  • Tashkent Railway Technicum (Tashkent) – Transport, Railways
  • Olmalıq Architecture-Construction Technicum (Tashkent Region) – Mining
  • Sh. Rashidov Region Vocational School No. 2 (Jizzakh Region) – Textile
  • Bukhara College of Oil and Gas Industry (Bukhara Region) – Energy
  • Chortok Vocational School No. 1 (Namangan Region) – Textile
  • Syrdarya Architectural and Construction Technicum (Syrdarya Region) – Construction
  • Ferghana College of Oil and Gas Industry (Fergana Region) – Industry
  • Andijan Architecture and Construction Technicum (Andijan Region) – Construction

The TVET II project marks a crucial step in Uzbekistan’s ongoing efforts to modernize and improve its vocational education system. By upgrading infrastructure, introducing cutting-edge training equipment, and aligning curricula with the needs of the labor market, the project will help build a highly skilled workforce capable of meeting the demands of a rapidly evolving economy.

The loan and grant agreements will provide essential financial resources for these initiatives and strengthen long-term partnerships with international stakeholders, ensuring the sustainable development of Uzbekistan’s vocational education sector.

KfW Development Bank is Germany’s leading promotional bank, owned by the Government of Germany and the German Federal States. As part of the KfW Bankengruppe, it is a key implementing agency for the German bilateral development cooperation. KfW supports sustainable economic, social, and environmental development in over 100 countries, focusing on poverty reduction, job creation, and the achievement of the United Nations Sustainable Development Goals (SDGs). The bank has been a strong partner in Uzbekistan as well as Central Asia, helping to promote long-term, inclusive growth in the region.

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