Co-Funding for Skills Recognition: A Coordinated Public Investment in Nepal’s Workforce

Initial vocational education and training
Asmita Manandhar, Chandra Prasad Timsina27.04.2026
Across Nepal, many workers develop valuable skills not through formal education but through years of practical experience. These competencies sustain livelihoods and local economies, yet without formal certification, workers often face barriers to better employment opportunities, fair wages, social recognition and jobs that match their abilities, both within Nepal and abroad.

Recognizing this gap, the Nepal Government with support from the Swiss Government has been strengthening systems that formally validate and certify skills regardless of how they are acquired. Swisscontact in Nepal through The Nepal Vocational Qualifications System Project (NVQS-P) has played a key role in advancing the Recognition of Prior Learning (RPL) approach, a process that assesses and certifies skills gained through experience, enabling workers to access recognition, mobility, and create opportunities.

Within this broader effort, co-funding scheme has emerged as a key innovation, a collaborative financing model that brings province and local governments into shared ownership of skill certification and helps embed RPL within Nepal’s federal governance system for its's sustainability.

Shared responsibility for skill recognition

Traditionally, skill development initiatives relied heavily on centralized programmes or external funding. Co-funding introduces a different approach: multiple government tiers jointly invest in skill recognition mobilizing business sectors.

Under this model, province governments, local governments, and the Council for Technical Education and Vocational Training (CTEVT), and the National Skill Testing Board (NSTB) collectively finance RPL skill testing and certification. The approach aligns workforce development process with Nepal’s federal governance system, allowing municipalities to actively shape and support local skills mapping and skills development initiatives. 

The scale of participation demonstrates growing commitment. In 2025, a total investment of approximately CHF 95,000 supported RPL implementation nationwide. Across all seven provinces, Gandaki Province recorded the highest level of engagement and budget allocation, with 16 municipalities contributing CHF 41,166. Local governments contributed 36 percent of the funding, province governments 23 percent, and federal government 41 percent. Gandaki and Karnali showed strong engagement and commitment with multiple municipalities allocating budgets and mobilizing candidates. 

More than financial contribution, this investment demonstrates increasing recognition, alongside strengthened leadership and ownership by provincial and local governments, that certified skills are central to local economic development.

Why Recognition of Prior Learning matters

RPL shifts the focus from training alone to the validation of competencies acquired through experience and diverse learning pathways.

Through RPL, workers undergo standardized assessments and receive nationally recognized certificates aligned with occupational standards. Certification provides practical advantages, such as formal recognition of skills gained informally, improved employment prospects and earning potential, and access to further education and training pathways. This approach is especially relevant in Nepal, where large numbers of workers in construction, agriculture, hospitality, and service sectors possess strong practical skills and competencies but lack formal credentials.

By decentralizing implementation through co-funding for this initiative, skill testing has increasingly reached communities beyond major cities.

How did policy translate to practice?

The co-funding process combined policy coordination with local implementation.

Province ministries initiated discussions and encouraged municipalities to allocate budgets for skills mapping and testing. Formal tripartite agreements were then established among CTEVT at provinces, province government authorities, and local governments. These agreements clarified roles: technical oversight from national institutions, coordination at the provincial level, and candidate mobilization and logistical support from municipalities.

Local officials received training on RPL procedures and digital data systems, enabling them to register applicants directly and manage implementation locally. Outreach campaigns helped identify skilled workers, followed by counseling sessions, assessments, and certification ceremonies recognizing successful candidates.

This structured process not only delivered certification services but also strengthened institutional capacity across governance levels.

Local leadership and community engagement

Many municipalities actively mobilized candidates and supported participation through transportation arrangements and local outreach. In Gandaki Province, for example, local governments adapted quickly when public transport disruptions affected candidate mobility, arranging alternative travel solutions to ensure participation.

Private sector actors also contributed at the community level by assisting with outreach and application processes, demonstrating how localized partnerships can expand programmes reach.

Challenges and lessons learned

Despite notable progress, several challenges remain. Limited availability of accredited skill assessment centers, along with budget and coordination challenges, have affected implementation in some areas. Variations in financial capacity among local governments have also led to uneven participation. 

Clearer role definitions, stronger monitoring systems, and earlier engagement of Accredited Skill Assessment Centers are essential to ensure consistent quality and foster greater ownership across all levels. These experiences underscore that institutional change takes time; however, collaborative approaches such as co-funding can accelerate progress. 

Looking ahead, efforts will focus on consolidating achievements and enhancing sustainability. Key priorities include expanding the network of accredited assessment centers, broadening the range of occupations available for skills assessment, strengthening quality assurance mechanisms, improving digital monitoring systems, and strengthening the capacity of local governments to independently manage RPL initiatives. Greater emphasis will also be placed on selecting occupations that not only reflect the informal sector but are also aligned with formal industrial employment, particularly roles within large-scale manufacturing and production-line environments.  

Once these foundations are in place, opportunities for private sector co-funding will be explored to further scale skill certification across Nepal.

The Nepal Vocational Qualifications System Project (NVQS-P) is a bilateral initiative of the Government of Nepal and the Government of Switzerland. The project is implemented by the Council for Technical Education and Vocational Training (CTEVT) through the National Skill Testing Board (NSTB) at the federal, and the Ministry of Social Development and other education-related ministries at the provinces. Swisscontact provides technical assistance on behalf of the Swiss Agency for Development and Cooperation SDC.

2020 - 2026
Nepal
Initial vocational education and training
Nepal Vocational Qualifications System (NVQS)
Youths entering the labour market in Nepal are compelled to remain unemployed or underemployed and work in low-pay jobs due to a lack of skills, and lack of certification and recognition of the skills they have. To provide wider opportunities and to enable Nepali youth without formal vocational training and education, and those who have gained skills through work experience to enter the labour market with recognized certificates for better employability and career path, the Government of Nepal (GoN) has initiated a National Vocational Qualifications System (NVQS) with the National Qualifications Framework (NQF) to be implemented.