π Tender Overview
Project Name
Skills Development for Railway Sector Digitalization
Project Number
58310-001
Country / Economy
Azerbaijan
Project Status
Active
Project Type / Modality of Assistance
Technical Assistance
Source of Funding / Amount
TA 10524-AZE: Skills Development for Railway Sector Digitalization
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Sector / Subsector
Education / Education sector development
Gender
Effective gender mainstreaming
Description
The technical assistance (TA) will complement the newly approved Railways Digital Transformation Project by improving the quality of the workforce in the railway sector in Azerbaijan. The TA is aligned with three operational priorities (OP) of ADB's Strategy 2030, including addressing poverty and reducing inequalities by building human capital (OP1), accelerating progress in gender equality (OP2) and strengthening governance and institutional capacity (OP6) of Azerbaijan Railways Closed Joint Stock Company (ADY) through skilled workforce development.
The TA aligns with three operational priorities (OP) of ADB's Strategy 2030, including addressing poverty and reducing inequalities by building human capital within the railway system (OP1), strengthening governance and institutional capacity (OP6) of ADY through skilled workforce development, and fostering regional cooperation and integration (OP7) by enhancing the capacity of the railway system to support regional connectivity.
Project Rationale and Linkage to Country/Regional Strategy
The ongoing ADB-supported Railway Sector Development Program has implemented a comprehensive railway sector development reform in strengthening the management autonomy and governance, financial restructuring, reporting and control, operational efficiency, and corporate restructuring of the ADY. To further enhance the management of ADY, ADB approved additional support through Railways Digital Transformation Project, which will support the digitalization of ADY's business processes. These processes include rail transportation management, asset management, investment planning and management, freight client handling system, and corporate functions. The project will improve ADY's operational and financial performance through streamlined data management, optimized asset management and overall rail operations, reduced cost, enhanced rail safety, and better workforce efficiency. The digitalization process will significantly transform the railway industry, necessitating railway staff acquire new skills to effectively navigate and leverage emerging technologies. While digitalization promises increased efficiency, safety, and customer satisfaction, it also presents challenges related to workforce readiness. Digitalization of many functions previously carried out manually will also give way to jobs that are more attractive for women than before. ADY currently faces a skilled workforce shortage due to an aging staff with outdated skills