According to the Bank’s website, certain economic sectors of Mongolia are facing labor shortages, particularly in agriculture, where both the quantity and skills of human resources are in high demand. At the level of technical and vocational education and training (TVET), despite approximately 1,000 students graduating annually over the past five academic years from a total of nine TVET programs in agriculture trades, the number of graduates entering agriculture-based employment has steadily declined. This trend contrasts with the 2024 Labor Market Barometer, which shows rising demand for graduates in the agriculture sector. These dynamics raise critical questions about how to better connect youth with agricultural skills and align labor supply with sectoral demand.

Output 1: Model specialized TVET institution cluster with a focus on applied technology and innovation-driven agriculture in targeted regions established

Output 1 will transform TVET delivery by establishing a model institution cluster specialized in modern agriculture in strategically selected agricultural regions of the country, specifically Darkhan-Uul and Selenge aimags. This transformation will create an integrated ecosystem for innovation, technology adoption, skills development and business incubation, driving sustainable agriculture and enhancing value addition and productivity in the sector. The project will stimulate regional cooperation in promoting and adapting applicable technology and emerging skills in the sector, especially with countries sharing similar climate context.

Output 2: Employment- and enterprise demand-driven quality skills development ecosystem strengthened

Output 2 will upgrade the target polytechnic colleges' capacities to provide competency-based training to the future agricultural and agri-business workforce with a focus on productivity, resilience and innovation. It will support implementation of the updated curricula, training programs, and teacher development programs through strong collaboration with industries and international exemplary institutions. Digital, smart and green technology will be mainstreamed across all programs to align with evolving labor market demands and international best practices.

Output 3: TVET sector management on responsiveness to labor market needs strengthened

Output 3 aims to enhance TVET sector capacity in planning, monitoring, and updating skills development programs to ensure alignment with dynamic labor market needs. It will foster close coordination among training institutions, government agencies, and private sector. Special emphasis will be placed on supporting women's economic empowerment in agriculture and agrobusinesses

Environment: B
Involuntary Resettlement: C
Indigenous Peoples: C

Loan (Ordinary capital resources): US$ 9.80 million
Loan (Concessional ordinary capital resources lending): US$ 10.20 million

No contacts available at the time of disclosure.

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