Announcement of Turkey to Strengthen Vocational Training with Help of World Bank Loan on January 8, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK RELEASE NO. 87/34 Contact: Fawzi Rihane (202 )-4 77-5325 TURKEY TO STRENGTHEN VOCATIONAL TRAINING WITH HELP OF WORLD BANK LOAN WASHINGTON, January 8 -- Turkey will increase and improve the supply of skilled labor for its manufacturing industries and improve employment opportunities for disadvantaged groups with a project supported by a $58.5 million World Bank loan. The project will strengthen Turkey's non-formal vocational training (NFVT) programs and make them more relevant to labor-market needs by creating 16,300 training places and re-equipping another 16,600 in existing NFVT facilities. The project will also support areas critical to the quality of training such as training design and development, instructor training, instructional materials development, skill testing and certification. Since 1980, Turkey has had a development strategy which gives greater importance to market forces and encourages the growth of export-oriented and technology-based industries, especially in the private sector. The project will help Turkey meet these industries' increasing demand for skilled manpower. Further, the project will support the equipping of about 270 training institutions, many located in eastern Turkey, one of the least-developed parts of the country, where availability of facilities has been below national averages. Programs to be assisted in these centers will increase the employability and income-generating opportunities of groups with limited access to formal education and training. About 200 revolving funds will be established under the project. These funds will be used by NFVT institutions for the purchase of materials that will be used for the production of salable goods. The funds will help institutions generate additional revenues while providing students with practical experience. The government is contributing $12.6 million to the project, which will cost a total of $71.1 million. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.