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Social Due Diligence Report Uzbekistan: Skills And

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Social Due Diligence Report Uzbekistan: Skills And Social Due Diligence Report Project number: 51012-003 July 2020 Uzbekistan: Skills and Development for a Modern Economy Project Report prepared by the transaction technical assistance consultants as part of the project preparation exercise. This social due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. O,ZBEKISTON RESPUBLIKASI МИНИСТЕРСТВО ЗАНЯТОСТИ И ВЛNDLIКЧАМЕНNАТ ТРУДОВЫХ ОТНОШЕНИЙ МUNОSАВЛТLЛRI VAZIRLIGI РЕСПУБIIИКИ УЗБЕКИСТАН l000З l, Tosкent, Mirobod ko'chasi, l5­чу l0003 l, Ташкент, ул.Мирабад. l5­дом Tel: + 998 7l 2з9­41­2l,е­mаil: infoa4mehnat.uz Тел: + 998 7l 2з9­41­2l, e­maili infoarmehnat.uz www,mehnat.uz www.mehnat,rrz "\\ \о 20Цу доdоо­оr\6­8зт Ms. Cindy Malvicini Соuпtrу Dirесtоr uzbekistan Residential Mission Asian Development Bank Dear Ms. Сiпdу Malviciпi, Herewith we would like to extent оur appreciation to you and уоur colleagues fоr the assistance provided with the рrераrаtiоп of the Skills Development Гоr а Моdегп Есопоmу Project. This letter is to rесоrd the endorsement Ьу MOELR dated 28 SерtеmЬег through an email fоr disclosure of the following documents on the ADB website: l. Initial environmental examination; and 2. Social due diligence rероrt. In оur tum we would like to iпfоrm you that these reports will also Ье published оп the website of the Мiпistгу of Employment and LаЬоr relations, the executing аgепсу of the plarrned pýect. I avail myself of this opportunity to express to You mу best wishes and assrrrances ofthe highest consideration. Respectfully, Erkin Mukhitdinov ИД116 First Dерчф Мiпistеr of Employment and LаЬочr Relations of the Republic of Llzbekistan i Table of Contents ACRONYMS .................................................................................................................................... ii A. INTRODUCTION ..................................................................................................................... 1 B. OBJECTIVES OF THE DUE DILIGENCE EXERCISE .......................................................... 2 C. POTENTIAL COLLEGES FOR ADB PROJECT SUPPORT ................................................ 2 D. SOCIAL SAFEGUARD DUE DILIGENCE METHODOLOGY ............................................... 4 E. FINDINGS FROM THE PROJECT SITES VISIT ................................................................... 5 F. SOCIAL SAFEGUARD ISSUES AND SOCIAL IMPACT ASSESSMENT ........................... 6 G. SOCIAL SAFEGUARDS DUE DILIGENCE DURING PROJECT IMPLEMENTATION ....... 6 H. SOCIAL MANAGEMENT PLAN ............................................................................................. 6 I. OTHER ISSUES NOT AFFECTING THE SOCIAL SAFEGUARDS ..................................... 7 J. SOCIAL SAFEGUARDS CATEGORIZATION ....................................................................... 7 Appendixes ................................................................................................................................ 8 Acronyms ADB – Asian Development Bank CVE – Center for Vocational Education EA – executing agency IA – Implementing agency MHSSE – Ministry of Higher and Specialized Secondary Education MOELR – Ministry of Employment and Labor Relations PC – Professional College PIU – Project Implementation Unit PTC – Professional Training College PWD – people with disabilities SPS – Safeguard Policy Statement TRTA – Transaction Technical Assistance TVEI – technical and vocational educational institution TA-9727 UZB: Preparing the Skills Development for a Modern Economy Project Social Safeguards Due Diligence A. Introduction 1. The project addresses the issue of lack of increase of employment despite the country halving the poverty rate from 27.5% in 2001 to 11.4% in 2018. The unemployment rate was reported at 9.3% in 2018, and even higher at 17.4% for people aged 16-25 years. Skills shortages have been identified as the critical constraint for private sector growth and economic diversification. According to the project's concept paper, 35% of firms reported that employee skills posed a ‘major’ or ‘very severe’ obstacle to growth, and industrial enterprises experienced the most difficulty in finding the right skills. It has been identified that employment and workforce development services are not in line with the needs of employers and jobseekers. Further, there is limited quality and relevance of skills development. 2. To address such issues, the project will support the government to modernize and improve relevance of skills development, expand and upgrade reskilling service to the unemployed, and forge demand-driven partnerships with the industries, including the private sector. The project proposes solutions through three outputs: Output 1: Employment and workforce development services improved; Output 2: Quality and relevance of skills development enhanced; Output 3: Sector governance and management strengthened. 3. For achieving the proposed outputs and the outcome of market-driven skills learnt by students and jobseekers, the project preparation has several components, such as, physical reconstruction of the classrooms, curriculum upgrading, and the provision of equipment. It is in the context of the reconstruction activities that the social safeguard issue, particularly, involuntary resettlement, is being considered. 4. The Ministry of Employment and Labor Relations (MOELR) is the executing agency (EA) for the project. It is agreed that two project implementation units (PIUs) – one under MOELR and the other under the Ministry of Higher and Specialized Secondary Education (MHSSE) – will be established to be responsible for day-to-day implementation of the project. 5. During the ADB TA review mission on 23 September – 4 October 2019 it was agreed that the ADB loan will be used to finance the renovation of the targeted professional training colleges (PTCs) under MOELR, approximately 30, and MHSSE will have 16 (confirmed) technical and vocational educational institutions (TVEIs) to be covered. It will ensure the improvement in energy saving and people with disabilities (PWD)-friendly access in buildings. ADB loan will also cover the design and supervision of the renovation of the targeted PTCs. 6. The project implementation period will be six years with the following reasons: (i) the project will include a large number of beneficiary schools; (ii) civil works procurement will start only after the site specific safeguard reports are cleared and the detailed design is finalized; and (iii) MOELR will work with ADB for the first time and is not yet familiar with ADB’s guidelines and operational policies. Y1 will be 2020-2021and the last year (Y6) will be 2025-2026. 2 B. Objectives of the Due Diligence Exercise 7. The purpose of the assignment is to support MOELR (and MHSSE) to prepare and comply with ADB’s requirements of the social safeguards for the project. The scope of work included (i) assessing the capacity of the executing agency and implementing agencies in planning, implementing, and monitoring social safeguards including indigenous peoples and (involuntary) resettlement, although all civil works are expected as brown field; (ii) conducting field visits to PTCs and TVEIs in different regions to assess their social impact of training activities (for possible impact on [involuntary] resettlement, and on indigenous peoples, etc.); (iii) designing a safeguard management framework and a resettlement plan and/or framework for the project as needed; and (iv) summarizing the social safeguard risks and mitigation measures. 8. Accordingly, the consultants visited all selected PTCs and TVEIs and made an assessment of possible social impacts of the project implementation. As the description in the following pages would show, there is no case of involuntary land acquisition or involuntary restrictions on land use or on access to legally designated parks and protected areas in a single instance. As such, ADB’s involuntary resettlement (IR) safeguard requirements are not triggered. This due diligence report describes the due process followed. C. Potential Colleges for ADB Project Support 9. The project originally selected during the Transaction Technical Assistance (TRTA) inception mission in June 2019 a total of 30 colleges from around the country for the ADB project support, belonging to both MOELR and MHSSE. All 14 provinces were represented (Tashkent City has been considered a province for this purpose). Two colleges from each province were identified (except Fergana and Tashkent City, each putting up three colleges), one under the MOELR and the other under Centre for Vocational Education (CVE) of the MHSSE. The third college in Fergana and Tashkent City each related to the one for the PWD. 10. The TRTA social safeguards consultants carried out field work in August 2019 accordingly and covered all the 30 colleges then proposed. As a result of the Presidential Decree 5812 (“Additional Measures to Further Improve the Vocational Education System”) in July 2019, however, the impact of which became known in September/October 2019,
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