Restructuring Technical and Vocational Training in the Kingdom of Saudi Arabia (PPP Initiative) - PowerPoint PPT Presentation

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Restructuring Technical and Vocational Training in the Kingdom of Saudi Arabia (PPP Initiative)

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Title: Restructuring Technical and Vocational Training in the Kingdom of Saudi Arabia (PPP Initiative)


1
Restructuring Technical and Vocational Training
in the Kingdom of Saudi Arabia(PPP Initiative)
By Saleh Alamr, Vice Governor for Planning and
Development
2
The Kingdom of Saudi Arabia
  • Land Area 2,000,000 sq km
  • Total Population 27,136,977
  • 8,429,401 foreign workers
  • Population Growth 2.21
  • Life Expectancy 74 years

3
Larges Expansion Plan in TVET
  • 50 Colleges of Technology (Male)
  • 50 Higher Institutes of Technology (Female)
  • 162 Industrial Secondary Institutes
  • 4 Trainers Training Colleges

4
PPP Initative The overall project consists of 3
main phases second phase has just been
completed and third is about to start
May 2012
December 2011
July 2011
1
2
3
Activities
  • Develop analytic understanding of job demand and
    supply in the Kingdom
  • Understand setup and sizing of higher education
    sector (university vs TVET)
  • Deep dive on TVET and benchmark performance,
    provision and system setup
  • Develop/refine TVET strategy going forward
  • Perform due-diligence on existing vocational
    training institutions (financials and outcomes)
    to refine performance understanding
  • Test and refine strategic initiatives developed
    in first phase with international market
    participants training providers, regulators and
    employers
  • Refine and detail recommendations from phase 1
    based on market testing outcomes
  • Put enablers in place to implement strategy
  • Start implementation of recommendations

Today
5
Key recommendation of phase 1 was to massively
scale up the size of vocational training in the
Kingdom
ESTIMATES
TVTC
Partnerships
2011
2013
2015
2020
456
Students Thousand
259
420
176
110
188
98
10
78
71
36
144
Graduates Thousand
86
58
135
31
61
33
3
25
25
9
15.1
Budget SAR billion
8.6
7.3
13.7
4.9
6.1
4.5
1.4
3.5
2.5
2.8
1.4
6
and improve its quality further through 4 main
initiatives. However, several issues open at the
end of phase 1
Focus areas
Key recommendations
Key open issues
1
Scale up public-private partnerships
  • Expand involvement of international and private
    sector vocational and technical education
    providers
  • Ensure employer involvement in the design of
    vocational education programs, either through
    employer-lead model or with provider-lead model
  • Be very specific on framework and operating model
    to facilitate tendering process
  • How should new PPP model look like to ensure high
    performance but also keep costs under control?

2
TVTC transformation
  • Align TVTC colleges with expanded PPP model
  • How to ensure a consistent high-quality system
    across all colleges?

3
Establishing short work-readiness programs
  • Launch programs to provide short work-readiness
    training to the currently unemployed, possibly
    using employer-lead voucher model
  • How to align efforts of HRDF with future
    vocational activity?

Regulatory setup
  • Center should reduce its role to regulation,
    funding, information provision, policy
    coordination

4
  • How would new regulatory setup look like?

7
In the market testing phase we involved we set
out to refine our answers and address open issues
with lots of external input
Benchmarking effort
  • Expert interviews
  • Engaged inter-national experts to define key
    questions to be solved for PPP and regulatory
    model
  • International visits
  • Tested PPP and regulatory model with providers
    and regulators
  • Gauged institutions interest in supporting
    reform implementation in KSA
  • Local benchmarking
  • Tested PPP and regulatory model with employers
    and existing providers in KSA
  • Detailed due diligence on TVTC performance

Interviews conducted since December, 2011
  • UK
  • 5 education providers
  • 2 awarding bodies
  • 1 industry body
  • 1 regulator
  • Germany
  • 3 education providers
  • Ministry of Labor
  • 2 research and advisory organizations
  • Canada
  • 5 education providers
  • 1 accreditor
  • 1 association of colleges
  • KSA
  • 5 non-government colleges
  • Many employers
  • Philippines
  • Government regulator and manager
  • 2 education providers
  • US
  • 6 education providers
  • 2 accreditors
  • 1 association of colleges
  • Australia
  • 3 education providers
  • 1 association of colleges
  • Government regulator
  • Brazil
  • 1 education provider

8
Newly developed PPP model addresses these issues
and received strong, positive feedback from
providers abroad
Model Highlights
  • Provider-led model, employer representation incl.
    through subject matter experts
  • Provider developing curricula (with
    employer-input), screening and selecting
    students, providing training materials,
    administering institute and internal quality
    assurance
  • Curricula development based on new Occupational
    Standards developed with employer input
    Differentiated requirements and clarity on
    required graduate output quality
  • Providers bidding for new capacity (build but
    empty or upcoming) on a per-student funding
    basis, 15 of funding performance based
    (graduation, long-term employment), incentives
    for employer sponsorships and government
    offtake agreements (limited in time)
  • Modular course structure effective integration
    of short courses and regular TVET programs
  • Government provision of infrastructure, loans for
    equipment and process support

9
Further enablers need to be put in place to
finalize PPP model
  1. Develop detailed TVTC capacity forecasts (by
    region/program) to match need capacity with
    market needs (rough estimate for first batch of
    PPP colleges already existing)
  2. Start development of new NOSS to understand skill
    requirements per job and capture further benefits
    (create transparency, promote mobility and allow
    national skills testing)
  3. Conduct full cost-benefit analysis of vocational
    programs to complement demand view for new
    programs with view on macro-impact
  4. Continuous refinement of data accuracy on
    performance
  5. Communication campaign for new model
  6. Potentially other refinements, e.g., voucher
    scheme to give employers and students voting
    power

SOURCE Team
10
Providers will be selected through a rigorous RfP
evaluation process
Round 2 high-level business plan
Long list creation
Round 1 pre-qualification
Round 3 final bid
Proposals
20-30
10-20
30-50
Finalcontracts
Process
  • Pre-qualification based on
  • Accreditation
  • Students/staff1
  • International experience
  • Programs
  • Finance and performance
  • Three steps process
  • Individual discussions
  • Site visits to providers
  • High-level business plans
  • TVTC provides feedback and asks questions
  • Creation of a long list of potential providers
    based on
  • Benchmarking trips
  • Additional references from umbrella organizations
  • Site visits to KSA colleges
  • Providers develop final detailed business plan
  • Providers bid for colleges (binding)

Need to involve regional/low-cost providers in
RfP process to ensure cost-efficiency
especially for standard programs
1 In full-time equivalents
11
Quality assurance model will be central for
institutional and student level but left to
market mechanisms for programs
Rationale based on market feedback
Final recommendation
Institutional level
  • A single accreditor to ensure quality of all
    training providers, ideally in-house with
    external support to set it up (could also be
    outsourced)
  • Consistent standards
  • Organization operates at scale in KSA, with
    resources to inspect many colleges
  • Standards can be customized to KSA

Program level
  • International programmatic accreditation strictly
    voluntary1
  • Least intervention in the market
  • Program accreditation redundant if national
    student testing is in place

Student level
  • National testing of all graduates in order to
    receive degree
  • Existing teachers can be leveraged to run tests
    with minimal training
  • Existing college facilities can be used to host
    tests
  • Direct comparability of college performance
  • Skills requirements are driven by employers
  • National skills standards can be set up
    relatively quickly
  • Skill standards also helpful to calibrate
    required inputs and costs

12
To deliver up to 10 pilots with proposed PPP
model by the end of the year, enabler development
needs to be complemented by starting delivery
PRELIMINARY
Months
1
2
3
4
5
New proposal developed and aligned based on
revised TVTC data
  • Missing enablers/open issues to detail PPP
    package
  • Forecast capacity
  • Understand cost-benefit
  • Skill standards
  • Data accuracy
  • Communication
  • Further refinements

Private providers on board
Missing enablers
Detailed proposals developed and agreed upon in
last project phase
Final PPP model
PPP tender process (pilot in 2012 with up to 10
colleges)
  • Identify and select providers

TVTC PPP unit
  • Build internal unit to manage PPP relationships

Scale-up delivery
Build quality assurance and regulator
  • Design system governance

SOURCE McKinsey, TVTC
13
Thank You
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