ICT Training

Private Technical and Vocational Education and Training (TVET) for Development of Green Economy

UNDP Eurasia/Danil Usmanov

Private Technical and Vocational Education and Training (TVET) for Development of Green Economy

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Formal Education
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Decent Work and Economic Growth (SDG 8)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) No Poverty (SDG 1) Partnerships For the Goals (SDG 17)

Business Model Description

Establish and operate a private technical and vocational educational institution (TVET) with programs prioritizing subjects that promote a green economy, such as renewable energy, energy efficiency, sustainable tourism and organic agricultural programs, as well as Information Technology (IT) and creative programmes. The private TVET would generate revenue from tuition fees, programmes for continuing education and grants.

Expected Impact

Increase the supply of qualified workforce in the labour market, reduce youth unemployment, and boost economic productivity.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

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Country
Region
  • Kyrgyzstan: Osh Oblast
  • Kyrgyzstan: Bishkek
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Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Education

Development need
In 2020-2023, the number of pupils in secondary schools grew from 687,688 to 757,153, reflecting a 10% increase over five years. However, national assessments indicate that only half of the students demonstrate basic proficiency in reading, mathematics, and science. Additionally, only 21% of schools (459 in total) meet sanitary and epidemiological standards (1, 2, 3).

Policy priority
The Strategy for the Development of Education for 2021–2040 seeks to enhance access to quality education, align sanitation norms with SDG 6, promote teacher development, and retain qualified personnel. National Development Programme until 2026 recognizes digitalization, regional development, and links to science and businesses as key to sectoral development (4, 5).

Gender inequalities and marginalization issues
At the start of the 2021/2022 school year, most out-of-school children were from rural areas, with their numbers being twice that of urban areas. Urban children demonstrated 12.9% higher reading skills compared to rural peers. Although girls generally outperformed boys in reading and math, rural boys lagged behind urban boys by 14.6% (6).

Investment opportunities introduction
The government sees the main priority in developing primary education where the main investments will be directed. In 2023, foreign direct investments (FDI) into the education sector amounted to USD 1,154,000, making up 0.1% of the total FDI inflow into the country (5, 7).

Key bottlenecks introduction
A significant problem across the country is the lack of buildings and premises to ensure an effective learning environment and creative development for all children in the Republic (3).

Sub Sector

Formal Education

Development need
Only 23.9% of children aged 3-6 received preschool education in 2022, while over 240,000 youth (15-24) in Kyrgyzstan are not in education, employment, or training (NEET). Public schools face severe challenges, including overcrowding – 72% operate in two shifts – and a lack of qualified staff, as only 14% of teachers completed advanced training between 2017 and 2022 (3, 4).

Policy priority
The Strategy for the Development of the Education Sector for 2021-2040 aims to ensure the availability of preschool education, enhanced vocational education and youth employment, promotion of teacher development and retention of qualified personnel, and construction and renovation of physical school infrastructure by 2040 (4).

Gender inequalities and marginalization issues
Significant disparities in education quality persist across Kyrgyzstan's regions, particularly between rural and urban schools. While women made up 51% of university students in 2021-2022, men prevailed among students studying technical, agricultural, and medical programmes (4, 6).

Investment opportunities introduction
In 2024, the Kyrgyz government allocated KGS 64.9 billion to education (5.2% of GDP and 14.5% of total budget expenditure). Opportunities include constructing preschool and school infrastructure through public-private partnerships and launching higher education initiatives on climate change and green technologies (8, 9).

Key bottlenecks introduction
The sectoral development is aggravated by labour migration, with 46% of Kyrgyz migrants being youth aged 18-29, predominantly relocating to neighbouring countries (10).

Pipeline Opportunity

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Investment Opportunity Area

Private Technical and Vocational Education and Training (TVET) for Development of Green Economy

Business Model

Establish and operate a private technical and vocational educational institution (TVET) with programs prioritizing subjects that promote a green economy, such as renewable energy, energy efficiency, sustainable tourism and organic agricultural programs, as well as Information Technology (IT) and creative programmes. The private TVET would generate revenue from tuition fees, programmes for continuing education and grants.

Business Case

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Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 50 million - USD 100 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

44 privately owned colleges

Kyrgyzstan has 235 colleges, including at least 44 privately owned institutions, which can host up to 200 students. Tuition fees in the cities of Bishkek and Osh range between USD 1700 to USD 7,500 per year (12, 14, 29).

According to the Ministry of Education and Science, in the 2023-2024 academic year, 73,051 students graduated from the 11th grade, and over 128,000 students graduated from the 9th grade. However, in the same year, only 19,582 students enrolled in private TVET institutions (16, 17).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

Based on a payback period of 7 years, initial investment of USD 2-3 million as well as annual cash flow of USD 300,000 a year, the internal rate of return can reach up 17% in Kyrgyzstan (13, 15).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Private colleges in Kyrgyzstan reveal a payback period of over 7 years (13, 15).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Market - Highly Regulated

According to existing private companies, the main problem is overly complex regulations, such as the requirement to have your own building or to enter into a building management contract with the landlord, which limits choice (15).

Capital - CapEx Intensive

According to investors, unlike private preschools or schools, private vocational schools require more investment, for example, in their production facilities for practical classes. At the same time, there are not enough companies on the market that are willing to take students on internships (15).

Lack of sufficient number of qualified specialists in the market

Impact Case

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Sustainable Development Need

There is a market mismatch between the skills profile of vocational education graduates and national and regional economic priorities (4, 18).

As of 2021, the technical and vocational education and training (TVET) enrolment rate is limited, with 10.6%of young people aged 15-24 years in TVET, 2.3% in primary TVET, and 8.3% in secondary TVET (18).

Technical and vocational education institutions face significant challenges, including outdated curricula, obsolete equipment, and a shortage of qualified instructors (4).

Gender & Marginalisation

In 2022, 8.4% of the youth population was unemployed, but unemployment rates were significantly higher for women and in certain regions, reaching up to 15% (19).

In 2018, female enrolment in vocational programs was at 41% level (20).

A significant gender gap persists in energy sector training. In secondary and higher vocational institutions offering "Electric and Thermal Power Engineering," women comprise just 3.3% of students, while men account for 96.7% (24).

Expected Development Outcome

Private technical and vocational education and training with a focus on "green economy" programmes improve occupational skills and productivity in the young labour force increasing private sector development, diversifying economic activities and reducing poverty.

Private technical and vocational education and training increase enrolment into professional education institutions and reduces skills mismatch in the labour market.

New private vocational institutions enhance education curriculum, provide new equipment and facilities, and attract more qualified personnel.

Gender & Marginalisation

Private technical and vocational education and training enhance female employment in emerging fields such as renewable energy, energy efficiency, IT, organic agriculture, and tourism, driving higher wages and productivity while narrowing the gender unemployment gap.

Private technical and vocational education and training improve female participation in vocational education programmes.

Primary SDGs addressed

Quality Education (SDG 4)
4 - Quality Education

4.3.1 Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex

4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill

Current Value

The proportion of youth and adults with information and communications technology (ICT) skills was 29,7% in 2018. The proportion of women aged 15-24 with information and communications technology (ICT) skills in 2018 was 13.6% (21, 23)

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.6.1 Proportion of youth (aged 15–24 years) not in education, employment or training

Current Value

In 2019, there were more than 240,000 young people aged 15 to 24 who were not studying or working. The proportion of youth (aged 15–24 years) not in education, employment or training in 2023 was 18.6% (4, 22).

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
No Poverty (SDG 1)
1 - No Poverty
Partnerships For the Goals (SDG 17)
17 - Partnerships For the Goals

Directly impacted stakeholders

People

The young population benefits from improved access to professional education

Gender inequality and/or marginalization

Women, which tend to have a limited role in green economic development, benefit from improved access to professional education in the area.

Indirectly impacted stakeholders

Planet

The planet benefits from the population trained for green jobs that increases sustainable practices in the market, hence contributing to reducing emissions, conserving resources, and restoring ecosystems.

Corporates

Employers benefit from the increased number of qualified and professionally trained graduates.

Public sector

The government benefits from reduced unemployment rates and higher productivity.

Outcome Risks

Private education can disrupt the education sector by attracting the most qualified instructors, leading to a disparity in the quality of education between public and private institutions.

Impact Risks

If tuition fees are high and scholarship opportunities for talented students are not introduced, the business model's impact will be limited due to restricted beneficiary outreach.

If technical and vocational education does not consider current specialization trends and national economic priorities such as "green economy', the impact on the labour market will be hindered.

Impact Classification

C—Contribute to Solutions

What

Private technical and vocational education boosts youth TVET enrolment, reduces skills mismatch, lowers youth unemployment, and drives economic growth.

Who

Youth, particularly women, employers, and the government benefit from better access of young people to quality education.

Risk

High tuition fees and a lack of curriculum that matches the market needs may limit the impact of private technical and vocational education and training.

Contribution

Private TVET programs focused on green economy specializations produce highly qualified local professionals, a role previously fulfilled solely by universities.

How Much

Private TVET programs focused on green economy specializations can increase women's participation in energy and electricity-related fields by up to 8% (24).

Impact Thesis

Increase the supply of qualified workforce in the labour market, reduce youth unemployment, and boost economic productivity.

Enabling Environment

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Policy Environment

The Strategy for the development of the education sector 2021-2040, 2021: aims to ensure conditions for vocational education of young people and adults that meet the needs of regional, national and international labour markets and ensure employment by 2040 (4).

Program for the Development of the Green Economy in the Kyrgyz Republic for 2024-2028 (project), 2024: aims to increase the participation of women in secondary and higher vocational education programs focused on "Electricity and Heat Energy" and "Energy and Electricity Energy" (24).

National Development Strategy for the Kyrgyz Republic for 2018-2040, 2018: envisions an education system focused on professional development, designed to be flexible and responsive to evolving demands for specialists (25).

National Development Programme until 2026, 2021: emphasizes establishing direct collaboration between businesses and professional educational institutions to align training content and methods with current industry demands (5).

Financial Environment

Financial incentives: OJSC Salym Finance and OJSC Bank Bai-Tushum provide loans from KGS 5,000 (USD 57) to KGS 1.5 million (USD 17,153) for 2-6 years under 21.9-26.9% interest rates to pay tuition fees for technical education, among other purposes (31).

Regulatory Environment

Resolution of the Government of the Kyrgyz Republic No. 491 "On approval of the National Qualifications Framework", 2020: defined a unified scale of qualification levels for the development of industry qualification frameworks and professional standards (26).

Law of the Kyrgyz Republic No. 179 on education, 2023: defines secondary vocational education, specifies the rights of vocational education certificate holders, and highlights the role of social partnerships in enhancing training quality (27).

Marketplace Participants

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Private Sector

Compass College, Portal College, Technical School of Innovation AUCA

Government

Ministry of Science and Education, Ministry of Economy and Commerce, National Investments Agency under the President

Multilaterals

Asian Development Bank (ADB), Gesellschaft für Internationale Zusammenarbeit (GIZ), European Bank for Reconstruction and Development (EBRD)

Non-Profit

Aga Khan Foundation (AKF), Association for the Education Development in Kyrgyzstan (AED)

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
urban

Kyrgyzstan: Osh Oblast

Osh is the second largest city in Kyrgyzstan located in the south of the country and has the potential to provide high-quality professional private education for the southern regions of Kyrgyzstan. It hosts 17 out of 235 primary and secondary vocational institutions in the country (28, 29).
urban

Kyrgyzstan: Bishkek

Bishkek is Kyrgyzstan's primary educational centre, attracting students from across the country and abroad. It hosts the majority of public and private institutions, including 62 of the 235 primary and secondary vocational institutions nationwide (28, 29).

References

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