Country Update ISSUE 053 “ Some 200,000 women have benefited from the NHLP, which has supported them ” to earn a sustainable livelihood. . page 52 page 4 page 6 page 34 page 38 world bank ongoing international afghanistan group support operations finance reconstruction corporation trust fund / The World Bank Group in Afghanistan/3 CONTENTS NEW SUPPORT FOR NEWS 22 results EDUCATION AND world bank ongoing ‘Life Improves in group support operations WOMEN’S ECONOMIC Rural Afghanistan’ page 4 -5 page 6-27 EMPOWERMENT page 4 page 6 New grants valued at $403 million World Bank projects and education and training will support the following projects: programs $298 million grant to the EQRA page 8 International Finance financial sector (education) Project, which aims to Corporation increase equitable access to primary 26 results and secondary education, particularly Multilateral Investment page 13 ‘Self-Sufficient through for girls, in selected lagging provinces, Guarantee Agency health Small Businesses’ and to improve learning conditions in Afghanistan. The grant comprises $100 million from IDA, $100 million page 5 page 15 from the ARTF, and $98 million to be Country Partnership Framework, 2017-2020 infrastructure provided by the Global Partnership for afghanistan receives continued support to reduce poverty and improve Education. page 24 Afghanistan Reconstruction Trust Fund rural development $100 million grant to the Women’s Economic Empowerment Rural Deve- inclusive growth Japan Social page 33 30 results lopment Project (WEE-RDP), which The Government of Afghanistan will The ARTF will also support economic Development Fund ‘Solidarity to fight aims to increase social and economic receive up to $2.485 billion in conti- growth and job creation, governance urban development empowerment of poor rural women nued support for its efforts in poverty and state effectiveness, and will pro- hunger’ in selected communities. The grant reduction, service delivery, and inclusive vide fiscal stability support for civilian comprises $25 million from IDA and growth under a three-year program ap- expenses of the government, including $75 million from the ARTF. proved in June 2018 by the Afghanistan civil service salaries. Reconstruction Trust Fund (ARTF), the “The ARTF represents a unique part- international finance $5 million additional grant to the largest source of on-budget financing nership between Afghanistan and its in- corporation ongoing Higher Education Develop- for Afghanistan’s development. ternational partners, one that has been page 34-37 ment Project (HEDP) from the ARTF. The project aims to increase access to The Partnership Framework and Fi- in place since 2002, working for a better, higher education, as well as improve nancing Program (PFFP), FY1397–1399 more prosperous future for Afghanis- its quality and relevance. (2018–2020), outlines how the govern- tan,” said Shubham Chaudhuri, World ment will spend those funds with sup- Bank Country Director for Afghanistan. results 44 50 results EQRA is expected to benefit some 7 port from international partners. Under “The 2018–2020 PFFP reaffirms the com- ‘Modernization through afghanistan ‘New Horticultural million children, especially girls, over the new PFFP, funding will continue to mitment of the ARTF partners to conti- Capacity Building’ reconstruction trust Practices’ the five-year implementation period. be provided for the priorities in the Af- nue working with the Government of fund WEE-RDP will work to increase wo- ghanistan National Peace and Develop- Afghanistan to improve the lives of all page 38-54 men’s participation in community-le- ment Framework, introduced at the 2016 Afghans.” vel women’s institutions, which will Brussels Conference on Afghanistan. This PFFP is the third three-year finan- page 40 be supported to enable economic The largest portion of ARTF funds, 37 cing strategy for the ARTF, a multidonor ongoing projects empowerment. HEDP will use the additional financing percent, will be devoted to poverty re- trust fund supported by 34 donors and to expand successful interventions, duction, service delivery, and citizen en- administered by the World Bank. such as postgraduate scholarships and gagement, including programs in health, c The report is available at: training for full-time teaching faculty. education, and the Citizens’ Charter. http://wrld.bg/F5cb30iMAoz 4/  Country Update/ / The World Bank Group in Afghanistan/5 WORLD BANK GROUP SUPPORT COUNTRY PARTNERSHIP World Bank projects cated building capacity and legitimacy of supporting the Investment program in access to finance, strengthening horticulture export, FRAMEWORK, Afghanistan Japan Social the state, and channeling donor resources and programs through the government to ensure invest- access to renewable energy, corporate gover- 2017–2020 Reconstruction Development Fund Since April 2002, the World Bank’s Interna- ments are aligned with national priorities. To this end, the World Bank works closely with nance structure enhancement, and invest- ment climate reform interventions. Trust Fund The Japan Social Development Fund (JSDF) The World Bank Group’s current tional Development Association (IDA) has other multilateral and bilateral agencies c For more information: see page 34. was established by the Government of Japan engagement with Afghanistan The Afghanistan Reconstruction Trust Fund committed over $4.1 billion for development across a number of sectors where aid coordi- in 2000 as a means of supporting activities (ARTF) is a partnership between the interna- and emergency reconstruction projects, and nation and government ownership are most over 2017–2020 is determined that directly respond to the needs of poor six budget support operations in Afgha- critical. Multilateral by the Country Partnership Fra- tional community and Government of Afgha- and vulnerable groups, enhance their capaci- nistan (GoA) to improve effectiveness of the nistan. This support comprises over $3.78 c For information about completed projects: Investment mework (CPF) strategy, which is reconstruction effort. As of July 22, 2018, 34 ties, and strengthen their empowerment and billion in grants and $436.4 million in no-in- www.worldbank.org.af – Projects & participation in the development process. terest loans known as ‘credits’. The Bank has Programs. Guarantee Agency closely aligned with the govern- donors have contributed over $10.6 billion, The fund is administered by the World Bank. making the ARTF the largest contributor to 16 active IDA projects in Afghanistan with ment’s Afghanistan National Peace The Government of Japan and the World the Afghan budget—for both operating costs International net commitment value of over $1.6 billion. The Multilateral Investment Guarantee Agen- and Development Framework. Bank agreed to set up a special window and development programs. Since the adoption of the Afghanistan cy (MIGA) has $116.5 million of gross expo- within JSDF to support activities in Afghanis- The World Bank Group strategy National Peace and Development Fra- Finance Corporation sure for two projects in dairy and cashmere aims to help Afghanistan: The ARTF’s support for National Priority Programs (NPPs), operating costs of govern- tan under a multi-year program of assistance mework (ANPDF), the World Bank’s enga- production. for the country’s reconstruction and transi- ment operations, and the policy reform gement has become increasingly program- The International Finance Corporation (IFC), Among MIGA’s global priorities for FY • Build strong and accountable tion toward political, economic, and social agenda is contributing to the achievement matic. Underpinned by advisory work, both the World Bank Group’s private sector deve- 2018–2021 are support for Foreign Direct institutions to support the go- stability. of the ANPDF goals. More than $5 billion has policy and investment lending focus on the lopment arm, continues to work with its Investment (FDI) with high developmen- As of September 2018, JSDF’s total commit- vernment’s state-building ob- been disbursed to the government to help main engagement clusters: macro-fiscal ma- investment and advisory services partners in tal impact in IDA countries and fragile and ment had reached $85 million. A number of jectives and enable the state to cover recurrent costs, such as civil servants’ nagement and institution building, stimu- Afghanistan. conflict affected situations. Afghanistan is a JSDF-financed projects have been completed. salaries, and over $5.1 billion had been made lating private investments and growth to IFC’s current cumulative committed invest- key country for MIGA in terms of delivering fulfil its core mandate to deli- c For more information: available, both for closed and active invest- create jobs, governance and anti-corruption, ment portfolio stands at over $200 million on these objectives. ver basic services to its citizens, http://go.worldbank.org/U5OQZVF200 n ment projects. As of July 22, 2018, 23 projects human capital development and service and its advisory services portfolio stands In 2013, MIGA launched its ‘Conflict Affec- and create an enabling environ- are active under the ARTF with net commit- delivery, citizen engagement and gender at $13.9 million. IFC’s investment portfolio ted and Fragile Economies Facility’ that uses ment for the private sector; ment value of $1.6 billion. equality, as well as urbanization, infrastruc- includes investments in the telecommunica- donor partner contributions and guarantees c For more information: see page 38. ture, and connectivity. tion sector, agribusiness, and financial mar- as well as MIGA guarantees to provide an • Support inclusive growth, with The Bank has actively supported key re- kets. The investment pipeline looks promi- initial loss layer to insure investment pro- a focus on lagging areas and ur- forms, particularly in the fiscal and public sing and includes investments in the power jects in difficult contexts. This facility could ban informal settlements; and administration spheres, and through its and education sectors. be used to boost the agencies’ exposure in budget support operations. It has advo- IFC’s advisory services program has been Afghanistan. • Deepen social inclusion through improved human development outcomes and reduced vulnera- bility amongst the most under- privileged sections of society, including the large numbers of internally displaced persons and returnees. 6/  Country Update/ / The World Bank Group in Afghanistan/7 ONGOING OPERATIONS / education and training ferred from the Ministry of Education and A new government organization, the Technical Deputy Minister for TVET to the TVETA, which and Vocational Education Afghanistan Second has been tasked to oversee the coordination and implementation of TVET policy. and Training Authority, has been set up recently Skills Development Upon request of the TVETA, the World Bank to streamline efforts to build market relevant Project (ASDP II) has initiated an institutional and capacity assessment of the Authority to improve ef- vocational and technical skills for economic growth cIDA grant $55 million ficiency and capacity in service delivery. A and development. With the support of ASDP II, The project supports the Government of second restructuring of ASDP II is currently the Authority will oversee underway to reflect and include the new in- significant new skills Afghanistan in its strategy to build mar- development reforms ket relevant vocational and technical skills stitutional setting. that the government has for economic growth and development. More than 600 TVET teachers have been launched, including those assessed and significant progress made in to improve women’s labor Building on the ongoing Afghanistan Skills force participation. Development Project, this program will strengthening the TVET institutional frame- continue to strengthen the Technical and work. Moreover, 100 National Occupational Vocational Education and Training (TVET) Skills Standards (NOSS) have been bench- institutional system, improve performance marked to an international level with the sup- of TVET schools and institutes, and improve port of an international certification agency, teacher competencies. and corresponding curricula developed for In July 2017, the project was restructured 15 trades. to reemphasize its focus on the development Four lead institutes located in Herat, Kabul, objective of improving TVET teacher compe- and Nangarhar have been competitively tencies and curriculum in selected priority selected for targeted support and capacity trades. building to serve as models for response and The purpose of restructuring was to sup- relevant TVET institutes. port implementation of the significant new Further, ASPD II is financing an academic skills development reforms that the govern- partnership contract with Pune University ment has launched. The reforms include (a) in India to enable 20 faculty members from realignment of the TVET sector with labor the National Institute of Management and market needs in eight priority trades, includ- Administration to undertake master’s degree ing areas with potential to improve women’s courses. labor force participation; (b) assessment A series of memorandum of understanding of the qualification of all TVET teachers; (c) is also being finalized with other host insti- training abroad offered to the best qualified; tutions in India to provide one-year diploma (d) mobilizing four lead institutes to support courses in specific trades to some 75 TVET teachers selected through a competitive Strengthening teacher assessments/training in the eight ernment to develop tools and methods and priority trades; (e) upgrading and standard- process. provide a platform to share experiences to in- izing competency-based curriculum across In addition, over 522 TVET graduates have Women’s Economic form the Women’s Economic Empowerment been supported with scholarships through the priority trades; and (f) implementing a teacher policy framework to guide reforms a voucher program, which facilitates further Empowerment Project National Priority Program (see page 54). The main beneficiaries will be poor women in teacher recruitment, management, and professional studies for meritorious students (SWEEP) in select rural and peri-urban areas. SWEEP training. who have graduated from TVET institutes. will support the development and capacity To support technical teacher training, an cJSDF Grant $2.7 million To streamline institutional capacity to building of clusters (self-help groups of com- deliver on the human capital development in-service Technical Teacher Training Institute SWEEP is a three-year pilot project im- munity-based saving groups), and provide agenda, the GoA has established a standalone (TTTI) was established in 2013. To date, 790 plemented by the Aga Khan Foundation- them with training, business development TVET Authority (TVETA) based on Presidential technical teachers have received training at Afghanistan in close coordination with the services, and access to finance. A baseline Decree No. 11, dated April 21, 2018. The man- the TTTI to improve their technical competen- Ministry of Labor, Social Affairs, Martyrs and survey was conducted in August and the in- date for vocational education has been trans- cies and pedagogical skills. Disabled. SWEEP was requested by the gov- tervention will start in October 2018. Country Update/ ongoing operations 8/  / The World Bank Group in Afghanistan/9 / financial sector Preliminary results will be available early 2019. Component 2: Improving access to fi- nancial services for small and medium Access to Finance enterprises (SMEs). The aim is to increase Project commercial bank and microfinance institu- tion (MFI) lending to SMEs and thus facilitate cIDA grant $50 million their access to financial services. It will sup- The Access to Finance Project aims to build port the expansion of the Afghanistan Credit institutional capacity to improve access Guarantee Facility and provide technical as- to credit of micro, small, and medium en- sistance to commercial banks to strengthen terprises. The project has the following their SME lending capacity. This component components: will include support to the Credit Guarantee Component 1: Improving access to finan- Facility to provide coverage to MFI lending to cial services for micro and small enterprises. the lower end of the SME market. This component aims to provide continuing Implementation of Component 2 started support to the microfinance sector through in June 2017, after an implementation part- the Microfinance Investment Support Facility nership agreement was signed between the for Afghanistan (MISFA), as well as, support- Ministry of Finance and the Afghanistan ing MISFA to take on a broader role as a cata- Credit Guarantee Foundation. Component 2 lyst for innovations to increase access and supports the provision of credit guarantees usage of financial services from the lower for SMEs. end of the market according to its new stra- A project restructuring is being initiated to tegic plan. It should, however, be underlined extend the TUP program to two more prov- that the role of MISFA is primarily that of inces and to engage on important topics, in- market facilitator, rather than direct techni- cluding digital financial services. cal assistance provider. Component 1 is under implementation and Afghanistan Financial MISFA has initiated a series of activities, in particular the scaling up of the Targeting the Sector Rapid Ultra-poor families in Response Project this village in Balkh Ultra Poor (TUP) program. The TUP program Province have had to eke has been completed in four provinces (Balkh, out a living from almost Kunar, Laghman, and Takhar) and is ongoing cIDA Grant $45.7 million nothing. Their lives have and transitioning to electronic, card or mo- A Movable Collateral Registry and a Public taken a positive turn since bile payments. The project will also provide Credit Registry are now fully operational. The in two more provinces (Kabul and Kandahar). The project is assisting the Da Afghanistan receiving livestock from Initial results from the baseline survey of further support to the Afghanistan Institute Movable Collateral Registry, established in Bank (DAB) to develop a set of action plans the Targeting the Ultra the impact evaluation component show that Poor program, enabling of Banking and Finance (AIBF) to allow it to February 2013, and the Public Credit Registry, to improve banking supervision and imple- them to earn a sustainable scale up its activities, in order to increase the launched in December 2013, are key build- the TUP selection process was able to iden- ment a modern payment system for effi- livelihood. “Now I don’t tify households that—across a range of di- availability of banking sector skills. ing blocks in the infrastructure of the Afghan cient and transparent payment transactions. have to beg,” says a mensions—were worse off than the average beneficiary. “I have money The project was restructured and a first financial system. Having both systems fully Specifically, the project aims to allow DAB to and a cow, I’m so happy.” additional financing to the project ($6.7 functional has streamlined SME applications resident in target areas, and arguably more accurately assess the financial situation of 10 in need of support. Overall, the very high ob- million) supported selected technical as- for banking loans and supported banks’ lend- commercial banks through audits conducted served poverty rates and low access to ser- sistance activities originally financed under ing decisions. in accordance with international standards. vices highlight the important challenges that the Financial Sector Strengthening Project, Establishment of the national card and The audits will lead to the development of these households face and how the program which closed in June 2014. The additional mobile payment switch has been finalized action plans to address weaknesses that are may help shift them closer to sustainable financing targeted activities to strengthen under the Afghanistan Payment System that identified, with oversight from DAB. livelihoods. DAB’s capacity and to establish a Public was officially inaugurated by the DAB gov- The project also aims to modernize the A follow-up impact survey is being under- Credit Registry. ernor on April 26, 2016. The contract to de- national payment system with the goal of re- taken to provide further insights on the multi- The audits of the 10 commercial banks velop the Automated Transfer System (ATS) ducing the use of cash transactions, the main dimensional impact of the TUP program. were completed in June 2012. was awarded to the recommended firm on means of making payments in Afghanistan, Country Update/ ongoing operations 10/  / The World Bank Group in Afghanistan/11 The operation will provide up to $300 million • Supporting the establishment and opera- of recurrent cost support to the Government tion of an Investment Project Preparation of Afghanistan to support vital services, mo- Facility (IPPF), including the development bilized against a series of high priority policy of its governance structure, institutional and institutional reforms. roles and responsibilities; and Supported reforms are organized under • Project management. two pillars: (a) strengthening the policy framework to support state effectiveness, private investment, and social inclusion; and Fiscal Performance (b) improving the policy and institutional Improvement Support framework for public financial management. The operation is the first of three planned Project (FSP) operations aligned with the government’s IDA Grant $25 million c current three-year program of policy reforms. ARTF Grant $75 million c Reforms under the first pillar support devel- The FSP is designed to improve management opment of e-payments and mobile money, of Afghanistan’s public finances by strength- civil service reforms, business environment ening the capacity of core government agen- reform, power sector reform, land titling, and cies involved, including Ministry of Finance, water productivity. Reforms under the sec- National Procurement Authority (NPA), and ond pillar support an improved public invest- Supreme Audit Office. ment management system, improved tax The project constitutes the implementa- administration, and improved accountability tion arm of the Government of Afghanistan’s of public finances. Fiscal Performance Improvement Plan (FPIP), an ambitious and comprehensive reform pro- Afghanistan: gram that covers the whole breadth of public financial management (PFM). The FPIP spans Additional financing Public-Private MoF, NPA, and Supreme Audit Office. The FSP to the Afghanistan Financial Sector Rapid Partnerships and will provide critical inputs in the form of up- front investments drawn directly from FPIP Response Project will enable the central bank, April 15, 2016. ATS will modernize the nation- A DAB delegation also visited Bangladesh Public Investment work plans. DAB, to better manage the banking sector’s al payment system for efficient and transpar- ent payment transactions. The new payments Bank in February 2018 for knowledge ex- change on their experience in implement- Advisory Project The project is organized around five com- plementary investment components: risk and strengthen its oversight through a new infrastructure and its subcomponents will ing core banking system upgrades. Activities (PPIAP) • The procurement subcomponent will build enhance financial intermediation and enable supporting the national payment systems core banking system. IDA Grant $20 million c on the long-standing partnership with the Additionally, DAB recently safety and efficiency of the financial system. are ongoing. NPA to advance a third generation of public launched a Talent ARTF Grant $30 million c A second additional financing ($20 mil- procurement reforms. This involves first re- Development Program to invest in staff capacity to enhance the effectiveness lion) was approved in October 2016. Under the additional financing, a new core banking Afghanistan The PPIAP will work with the government and, in particular, the central Partnerships viewing and stabilizing current reforms and the supportive legal, regulatory, and policy of its regulatory capacity. system will be in place to enable DAB to bet- Incentive Program Authority in the Ministry of Finance, to devel- framework. This will be built upon through ter manage the sector’s risk and strengthen its oversight. Development Policy op a pipeline of feasible privately and publicly funded projects. new reforms to implement open contract- ing to improve collection and disclosure There is increased focus to invest in DAB Grant (IP-DPG) The project is organized around three com- of public procurement data across the full staff capacity to enhance the effectiveness plementary investment components: contracting cycle; and to establish country- IDA Grant $90 million c of its regulatory capacity. To this effect, DAB’s Strengthening institutional and techni- •  wide Framework Agreements for procuring ARTF Grant $210 million c Talent Development Program was launched cal capacity of relevant institutions and large volume small value items of repeti- in February 2018 and will fund tuition for The IP-DPG operation supports continued pro- supporting the development of a Public tive purchase by various government enti- bachelor and master’s programs in Kabul for gress on key reforms under the Afghanistan Investment Management (PIM)-PPP ties. The most significant third generation eligible staff. National Peace and Development Framework. framework; reforms relate to assessment and piloting Country Update/ ongoing operations 12/  / The World Bank Group in Afghanistan/13 be implemented by the Ministry of Finance, derable progress during the past decade will contribute to the modernization, trans- thanks to strong government leadership, parency, and efficiency of the three Afghan sound public health policies, innovative ser- state-owned banks: New Kabul Bank, Bank vice delivery, careful program monitoring Millie Afghan and Pashtany Bank. and evaluation, and development assistance. It will modernize their IT infrastructure Data from household surveys (between 2003 and develop sustainable business models to and 2015) show significant declines in ma- support inclusive growth. ternal and child mortality. The project came into effect in April 2018. Despite significant improvements in the  coverage and quality of health services, as well as a drop in maternal, infant, and under- / health five mortality, Afghanistan health indicators are still worse than the average for low- Afghanistan income countries, indicating a need to fur- ther decrease barriers for women in access- Sehatmandi (Health) ing services. Project Afghanistan also has one of the highest levels of child malnutrition in the world. IDA Grant $140 million c About 41 percent of children under five ARTF Grant $425 million c suffer from chronic malnutrition, and both Global Financing Facility c women and children suffer from high levels Grant $35 million of vitamin and mineral deficiencies. The Maternal Mortality Ratio (MMR) The project aims to increase the utilization has fallen significantly from 1,600 per and quality of health, nutrition, and family 100,000 live births in 2002. The Afghanistan planning services across Afghanistan. Demographic Health Survey (ADHS) 2015 The project comprises three components: undertaken by the Central Statistics The capacity of core Component 1: To improve service delivery, Organization, with funding support from government agencies will this component will finance performance- USAID, indicated a MMR estimate of 1,290 be strengthened under based contracts to deliver the Basic Package per 100,000 live births. The ADHS, however, implementation of Electronic Government basic core public financial management the Fiscal Performance Improvement Support of Health Services (BPHS) and Essential notes that the MMR estimate seems to be Procurement (e-GP) that will follow a com- functions to underpin more ambitious as- Package of Hospital Services (EPHS) across Project, which is an overestimate. The United Nations Inter- prehensive process of re-engineering. pects of planned PFM and budget reforms. tasked to implement a the country. Agency Working Group for Estimation of •  Budget as a tool for development, which Institutional capacity building and perfor- •  comprehensive reform program that covers the Component 2: To strengthen the health Maternal Mortality will consider the avail- aims to increase budget credibility by im- mance management, which aims to build system and its performance, this compo- whole breadth of public able data to come up with the best estimate proving the efficiency of budget processes, the capacity of MoF staff and the requisite financial management in nent will support a systematic organized for MMR. realistic budget estimation and costing, systems for effective functioning of the Afghanistan. approach to establish a performance mana- The MMR estimate seems inconsistent linking budget with policy, and introducing ministry, and to reinforce overall FPIP per- gement culture in the Ministry of Public with the significant increases in coverage medium-term budgeting. formance management and coordination. Health (MoPH) and among stakeholders. of skilled birth attendance (50.5 percent up Revenue mobilization, which aims to •  Component 3: To strengthen demand and from 15.6 percent in 2003), improved qual- strengthen capacities of various revenue Modernizing Afghan community accountability for key health ity of care as shown by frequent health fa- administration departments to increase services, the third component will finance cility surveys, improved physical access to tax compliance and facilitate timely filing State-Owned Banks a range of activities, including communi- services (a fourfold increase in the number and payment. It further aims to enhance Project cation campaigns aimed at raising overall of facilities since 2002) shown in the ADHS, the government’s capacity to effectively awareness of health rights as well as specific as well as progress on other related impact regulate the minerals and hydrocarbon re- IDA Grant $40 million c health behaviors to support the MoPH and indicators (e.g., under-five mortality rate has sources sector. The project aims to strengthen corporate service providers to be more responsive to declined to 91 per 1,000 live births). Other •  Treasury management, accountability, and governance and enhance operational effi- community health needs. survey-based estimates also put the MMR transparency, which aims to consolidate ciency of state-owned banks. The project, to The Afghan health system has made consi- significantly lower than 1,290. Country Update/ ongoing operations 14/  / The World Bank Group in Afghanistan/15 HEALTH INDICATORS services through performance-based part- nership agreements between MoPH and ON POSITIVE TREND nongovernmental organizations, which de- livered health services as defined in these UNDER-FIVE MORTALITY RATE packages. DROPPED 34 percent from 137 to Component 2: Building the stewardship 91 per 1,000 live births from 2003 capacity of MoPH and system development to 2015. by supporting the following thematic ar- eas: strengthening subnational government; strengthening the healthcare financing di- NEWBORN MORTALITY RATE rectorate; developing regulatory systems FELL 32 percent from 53 to 36 per and capacities for ensuring quality phar- 1,000 live births from 2000 to maceuticals; working with the private 2015. sector; enhancing capacity for improved hospital performance; strengthening human NUMBER OF FUNCTIONING resources for health; governance and social HEALTH FACILITIES INCREASED accountability; strengthening the Health to more than 2,800 in 2018 from Information System and use of information 496 in 2002, while at the same technology; strengthening health promotion and behavioral change; mainstreaming gen- time the proportion of facilities der into Afghanistan’s health system; devel- with female staff increased. oping capacity for procurement delivery; and improving fiduciary systems. BIRTHS ATTENDED BY SKILLED Component 3: This component supported HEALTH PERSONNEL AMONG program management through financing THE LOWEST INCOME QUINTILE costs associated with system development INCREASED to 50.5 percent from and stewardship functions of MoPH, includ- 15.6 percent. ing incremental operating costs at central Thousands of villagers in and provincial levels and technical assistance. rural areas have benefited  PENTA3 IMMUNIZATION from improved health care and health facilities COVERAGE MORE THAN supported by SEHAT, System Enhancement vided to the population, particularly for the / infrastructure DOUBLED (a combination of five reflected in better health poor, and to enhance the Ministry of Public vaccines in one covering polio, indicators. The Sehatmandi for Health Action Project, which will succeed SEHAT, will continue in Transition (SEHAT) Health’s stewardship functions. SEHAT supported the provision of basic Afghanistan Digital diphtheria, Pertussis, tetanus, haemophilus influenzae type b, to support improved delivery of quality basic Program health and essential hospital services in both CASA 1 Project and hepatitis B) from 29 percent health care and essential rural and urban areas. It also contributed to IDA Grant $51 million c hospital services across IDA Grant $100 million c the strengthening of the national health sys- to 69 percent among children Afghanistan. ARTF Grant $517 million c The project aims to increase access to afford- tem and MoPH’s capacity at central and pro- age 12 to 23 months in the lowest Government of Afghanistan c able internet, attract private investors to the vincial levels. income quintile. $30 million sector, and improve the government’s capac- The project included the following three Multi-donor fund for health results c ity to deliver digital government services by components: supporting a regionally integrated digital CONTRACEPTIVE PREVALENCE innovation $7 million Component 1: Sustaining and improving infrastructure and creating enabling envi- RATE INCREASED (using any closed on June 30, 2018 the basic package of health services and es- ronment. The Ministry of Communications modern method) to 19.8 percent The program aimed at expanding the scope, sential package of hospital services; and and Information Technology will be the im- from 19.5 percent. quality, and coverage of health services pro- supporting the implementation of these plementing agency Country Update/ ongoing operations 16/  / The World Bank Group in Afghanistan/17 Afghanistan Strategic as well as the infrastructure required for 1,300 megawatts (MW) of sustainable elec- Grain Reserve Project tricity trade. The total project cost is estimated at $1.17 IDA Grant $20.3 million c billion, to which the World Bank has con- JSDF Grant $9.7 million c tributed $526.5 million in loans and grants The project will enable the Ministry of to the four countries. Several other devel- Agriculture, Irrigation and Livestock to estab- opment partners are also providing financ- lish a strategic wheat reserve to be available ing for CASA-1000, including the Islamic to Afghan households to meet their needs Development Bank (IDB), European Bank for following any unforeseen emergency situ- Reconstruction and Development (EBRD), ations that affect access to wheat for their United States Government, United Kingdom consumption, and to improve the efficiency Department for International Development of grain storage management. (DfID), and United States Agency for The project will support the establishment International Development (USAID). of a governmental semi-autonomous corpo- CASA-1000 will build more than 1,200 kilo- ration to be in charge of managing the grain meters (km) of electricity transmission lines reserve of the country and coordinate its ac- to transmit excess summer hydropower en- tivities with other governmental agencies ergy from existing power plants (such as the and donors. Toktogul power plant in Kyrgyz Republic and For the storage of grains, the project will Nurek power plant in Tajikistan) to Pakistan upgrade two existing storage facilities, build and Afghanistan. four new large facilities, as well as build na- At approval, CASA-1000 included the en- tional capacity in human resources to oper- gineering design, construction, and commis- ate these facilities according to international sioning of high voltage alternating current standards. It is estimated that by end of this (HVAC) transmission lines and associated five-year project, the overall storage capac- substation in Kyrgyz Republic and Tajikistan; ity for wheat will reach 200,000 metric tons, high voltage direct current (HVDC) trans- sufficient for the consumption of 2 million mission lines from Tajikistan to Pakistan Afghans for six months. via Afghanistan; and three new HVDC con- In addition to the World Bank support, verter stations in Tajikistan, Pakistan, and $9.7 million is expected to be provided by the Afghanistan. However, in 2016, the four Japan Social Development Fund. countries restructured the project, in which Under the Strategic the converter station in Kabul was dropped. Grain Reserve Project, Of the total project financing, Afghanistan the government will Central Asia South has received $316.5 million in the form of an establish a strategic wheat reserve to be pany under the Ministry of Energy and Water Assessment for the HVDC transmission line is Asia Electricity IDA grant. The grant will support construction available to Afghan households during (MoEW), is the implementing agency for the under implementation. DABS is in the process of about 560 km of an overhead HVDC trans- Afghanistan portion of this project, includ- of selecting an international consultant to Transmission and mission line from Sangtuda converter station unforeseen emergency situations that would ing a Security Management Plan for both the prepare the Resettlement Action Plan for the Trade Project in Tajikistan to Nowshera converter station affect their access to wheat. At the end of construction and operation phase. line. A contract for Project Owner’s Engineer in Pakistan. In addition, Afghanistan has re- The CASA-1000 project came into effect for the HVDC components of the CASA-1000 (CASA-1000) ceived a $40 million grant from the ARTF for the five-year project, it is expected that there on January 24, 2018. Three contracts for is under negotiation and is expected to be IDA Grant/Credit $526.5 million, c the CASA Community Support Program (see will be storage capacity the HVDC transmission line in Afghanistan signed later in 2018. page 42 ). for enough wheat for 2 including $316.5 million IDA grant to were given no objection by the World Bank Procurement for the majority of key in- million Afghans for six Afghanistan is expected to receive 300 in December 2017 and signed in the same frastructure packages under CASA-1000 Afghanistan months. MW of electricity import from Tajikistan and month. Survey and design works have start- in the other three countries has also been The Central Asia South Asia Electricity Kyrgyz Republic through the existing 220 ed. According to the contract’s schedule, con- completed, including the procurement for Transmission and Trade Project (CASA-1000), kV AC lines from Sangtuda substation, and struction of the line is expected to begin from the two convertor stations in Tajikistan and covering Afghanistan, Kyrgyz Republic, Tajikistan to Chimtala substation in Kabul the second quarter of 2019. Pakistan for which the contracts were signed Pakistan, and Tajikistan, will put in place the via Pul-e-Khumri. Da Afghanistan Breshna The contract for preparation of the coun- on September 21, 2018. commercial and institutional arrangements Sherkat (DABS), Afghanistan’s electricity com- try-specific Environment and Social Impact Country Update/ ongoing operations 18/  / The World Bank Group in Afghanistan/19 More than 1,200 financing effective from July 2016, IRDP en- kilometers of electricity transmission lines will be visages support to rehabilitate irrigation built under the CASA- systems serving some 215,000 hectares of 1000 project, which land and to design a limited number of small will enable sustainable electricity trade among multi-purpose dams and related works, while four countries, including establishing hydro-meteorological facilities Afghanistan. The and services. transmission lines will transmit excess summer Progress had been made in all areas. In the hydropower energy from irrigation component, a total of 181 irrigation existing power plants schemes has been rehabilitated, covering in Kyrgyz Republic and Tajikistan to Afghanistan over 190,000 hectares of irrigation command and Pakistan. area (compared to the end project target of 215,000 hectares and over 402,000 farmer households). In the small dam component, a pre- feasibility review of 22 small dams resulted in a feasibility study being conducted on the six best ranked dams in the northern river basin (which is not on international rivers). A letter has been sent to MoF for dropping the detailed social and environmental study be- cause the government will take the detailed design and construction of those six best ranked dams in the feasibility study. Further, the dam safety manuals and mi- nor repair works for two dams, Qargha and Darunta, are in progress. Work is also under- way on producing Dam Safety Guidelines, which is about 75 percent complete. In the hydro-met component, installation of 127 hydrological stations and 56 snow and meteorological stations located in various lo- Herat Electrification and upgrading the existing grid to provide ac- Irrigation Restoration cations on the five river basins in the country is completed and operations and mainte- cess to new or improved electricity service to Project other parts of Herat Province; and (iii) piloted and Development nance (O&M) work is ongoing. In addition, 40 cableway stations for flow measurement IDA Grant $60 million c construction of solar mini-grids and solar- hybrid mini-grids in villages that are unlikely Project (IRDP) at selected hydrology stations have been in- The project aims to support DABS to pro- to obtain grid electricity in less than five years. IDA Grant $97.8 million c stalled and installation of 30 cableways are ongoing. Further, a national O&M team has vide electricity to some 230,800 people, and The project will also support review of exist- ARTF Grant $118.4 million c 1,600 institutions and businesses in selected been established to take care of O&M of all ing standards and procedures and the prepa- Government of Afghanistan c areas in Herat Province. hydrological stations. ration of a grid code for the Afghan power $3.5 million The project will support investments system consistent with best international Progress to date also include: Panj-Amu for (i) building a new 110 kV transmission practices. The contracts for construction of The project builds upon and scales up ac- River Master Plan Concept Note approved; line to Karokh district and Karokh, Pahstun the 110kV transmission line, four 110kV sub- tivities supported under the completed transboundary policy presented to the cabi- Zarghoon, Obe, and Chesht-e-Sharif 110/20 stations and for electrification of the four dis- World Bank-financed Emergency Irrigation net, all comments incorporated, and now kV substations, and medium and low volt- Rehabilitation Project, closed in December under finalization; terms of reference for hy- tricts have been awarded and an initial survey age distribution networks in four districts of 2012. drogeology drilling test wells and geophysical of the sites have been conducted. Herat Province; (ii) extension, intensification, After project restructuring and additional survey for seven cities (Farah, Herat, Jalalabad, Country Update/ongoing operations 20/  / The World Bank Group in Afghanistan/21 Kabul, Kandahar, Mazar, and Zaranj) com- On infrastructure development, a total of pleted and recruitment of the implement- 14 contracts of various sizes were awarded, ing company for Kabul city is underway; and out of which 12 contracts have been com- hydrogeological maps have been prepared pleted and two (construction of the Aqina for the Preliminary National Ground Water boundary wall and Nimroz ICD truck parking) Potential Map and National Data Availability/ are in progress. The main reasons for the de- Well Depth-Water Level/Water Quality Maps. lay in completion of these two sub-projects were adverse weather conditions, security Additional Financing related incidents, and delay in vacation of site by other security agencies, which were all be- for Second Customs yond the control of ACD. The executive information system has Reform and Trade been further improved by including addition- Facilitation Project al SMS alerts and reports for management. The feasibility study for implementing the (SCRTFP) National Single Window system and Trade IDA Grant $21.5 million c Information Portal was awarded and the con- closed on June 30, 2018 sultant firm has commenced work. The study is expected to be completed by June 2019. The additional financing bridged the financ- The project also supported proofreading ing gap in SCRTFP to achieve the project de- of a Pashto tariff book and translation of velopment objective more fully and support explanatory notes. The third Customs User the government in finalizing its long-term Perception survey was completed in July priorities for customs and trade facilitation 2017. reform. The amendment to articles pertaining to In parallel, the additional grant also helped enforcement in the Customs Act has been finance the costs associated with scaling up approved by the President of the Islamic the necessary activities for preparing the Republic of Afghanistan through a legal next phase of the project. These activities decree. The Tashkeel (organisational struc- included continued rollout of automation to ture) of 1395 of the Afghanistan Customs the remaining border crossings and inland Department (which includes the Customs clearance depots (ICDs); continued refurbish- For years, farmers in several Law Enforcement Directorate) was approved ment, rehabilitation, or new construction of villages in Samangan by the Directorate of Administrative Reforms Province suffered from selected customs infrastructure; provision and Civil Services Commission. poor harvests because of of technical assistance and capacity building insufficient irrigation water. The project made good progress on im- Ghulam Khan-Khost-Kabul corridor. The link The implementation plan for setting up in key areas essential to introducing mod- Their lives have changed plementation of components. For example, between T1 customs form and DPS module an enforcement wing was completed. The ern approaches to customs administration; since IRDP rehabilitated their main irrigation canal. the ASYCUDA Declaration Processing System was created. In addition, the passenger and transfer and deployment of officers in the improved mechanisms for cooperation with “Most of the water-related (DPS) is operational in 19 Custom offices; the cash declaration module was implemented enforcement department has already started customs administrations of neighboring problems of the farmers risk management module was implemented at four locations. The vehicle control module and the teams have undergone short-term countries; and further improvement of sys- have been solved,” says a in 19 Custom offices; the valuation module is was amended by including the provision of capacity building courses at the Afghan farmer. “Now our crops do tems for monitoring customs performance not dry out because of lack operational in 10 Custom offices; the entry- motorcycle declaration. ICT connectivity was National Customs Academy. Special training through the use of an automated executive of irrigation water and we exit gate control system is working in six further improved, with 13 offices connected for the Customs Police was conducted at the dashboard and alerts mechanism. have better harvests.” Custom offices; and the E-payment system through fiber optic. Academy. The additional grant supported preliminary was implemented in six Custom offices. On Customs to Customs cooperation, the work for the design of a Trade Information Further, the international transit module system interface between the Iran Customs Portal and National Single Window system, was implemented in seven corridors, while system and Afghanistan ASYCUDA system and the development of a national training the TIR (international road transport) mo- was created and tested. Data exchange be- curriculum and preparation of relevant train- dule was implemented at three locations and tween Afghanistan and Pakistan is delayed ing materials. the transit module was implemented at the due to various reasons.  Country Update/ ongoing operations 22/  results life improves in Rural Afghanistan with Upgraded Infrastructure • Infrastructural upgrades to a main road connecting seven villages in Balkh Province have improved the quality of life and boosted local businesses. • The improvements were carried out under the Afghanistan Rural Access Project that aims to improve access for villagers to basic services and facilities through all-weather roads. • Residents have supported the project to upgrade infrastructure in their villages, contributing to the success in implementation and outcome. T he main road through Pul-e-Babo village is wide and smooth and vehicles of all sizes drive by. Shops along the road display colorful wares and the whiff of fresh kebabs being barbecued in the roadside restaurants entices passers-by. The scene is buzzing with activity even though it is peak winter with heavy snowfalls dominating life in nearby villages. Ghulam Rokay, a shopkeeper in the village in Dehdadi district in Balkh Province, recalls a different time. “We used to have many challenges when the Pul-e-Babo road was not paved, especially in winter,” he says, “the water- logging and lack of drainage led to water freezing on the road, the thick ice sheets made it difficult for cars to pass. We had to break the ice with axes and picks to be able to make our way through. Every week we had at least one car accident.” But the situation improved when a project to upgrade infrastructure in villages paved Pul-e-Babo road with as- “ phalt, fitted a standardized drainage system, and recons- tion of rural Afghanistan and also ensure greater access tructed the Qol Urdo Bridge located along the road. The to all facilities,” says Zekrullah Nabi, an ARAP engineer in infrastructure was built under ARAP at a total cost of 35 Balkh Province. million afghanis (about $530,000). The Pul-e-Babo project has led to visible improvements The road passes through seven villages, linking Mazar- in the quality of life for the villagers. The standardized It is no longer about us versus them; e-Sharif–Sholgarah to Nasaji road, both considered to be drainage system has improved hygiene and sanitation arterial roads in Balkh Province. With the upgrading of for thousands of inhabitants. Aware of the benefits the rural Afghanistan is matching cities the road, over 17,000 people are connected to each other and markets in all seasons. Daily commuter pressure on project would bring, the villagers gave it wholehearted support, says Sayed Mustafa, 46, chairperson of the ” in its development story, existing roadways also has reduced significantly in Deh- Community Development Council (CDC) for Markaz dadi district. Traffic flow has increased since the road was village, one of the villages along the road. “As people step by step. asphalted, improving business for many shops and kiosks understand the importance of roadways, they pitched dotted along the sides of the road. in to help the project and ensured it was implemented successfully.” Better Quality of Life Improving the connectivity between the villages and –Sayed Mustafa, chairperson, Markaz Community ARAP has rehabilitated 16 km of gravel roads and main- Mazar-e-Sharif city has led to symbiotic development, tained over 470 km of roads in Balkh Province. “Our main says Sayed Mustafa. “It is no longer about us versus Development Council, Dehdadi district goal is to build infrastructure for villagers to connect them; rural Afghanistan is matching cities in its develop- them with cities. This will improve the economic condi- ment story, step by step,” he says. Country Update/ ongoing operations 24/  / The World Bank Group in Afghanistan/25 / rural development Savings & Loan Associations (VSLAs), and Enterprise Groups. The project provides tech- Afghanistan Rural nical support to these groups so as to build a financial discipline through savings and Access Project (ARAP) internal lending practices, and technical sup- port to enterprises. c IDA Grant $125 million To date, the project has established 5,450 c ARTF Grant $312 million SGs with a membership of some 61,460 rural ARAP aims to enable rural communities poor (54 percent women) in 694 villages. The across Afghanistan to benefit from improved SGs have saved over $5.56 million and mem- access to basic services and facilities through bers have accessed more than 52,450 inter- all-weather roads. The project is expected to nal loans (65 percent by female members) increase the number of people living within for productive and emergency purposes with 2 kilometers (km) of all-season roads, reduce a repayment rate of 95 percent. travel time to essential services, and enable To generate economies of scale, 524 VSLAs rural communities to access essential servic- have also been established as federations of es more frequently. the SGs and are maintaining accurate and up- As of August 31, 2018, construction of 650 to-date records of accounts with good gov- km of secondary gravel roads, 260 km of sec- ernance structure in place. On average each ondary asphalt roads, and 1,345 km of ter- VSLA has $4,335 as loanable capital, which is tiary roads has been completed. In addition, further boosted with a seed grant injection. 1,450 linear meters of secondary bridges and This improves access to finance for group 1,700 linear meters of tertiary bridges have members who would like to increase produc- been built. In the meantime, routine main- tivity or engage in entrepreneurial activities tenance of 1,300 secondary roads and period but cannot access such funds from commer- maintenance of 500 km of secondary roads cial banks or microfinance institutions. were undertaken. Routine maintenance of AREDP also works toward strengthening 3,600 km of tertiary road and period mainte- market linkages and value chains for rural nance of 1,000 km of tertiary road were also enterprises by providing technical support to Support from AREDP completed. 1,436 Enterprise Groups (65 percent female) allowed the owner of this carpet store to expand his Rollout of the first nationwide inventory and 645 small and medium enterprises (15 business into a company and condition survey of rural roads has been percent female) that have been selected for that now employs over completed and over 90 percent of inventory their potential as key drivers of rural employ- 300 people. In supporting enterprises in the cities nership model with facilitating partners in Citizens’ Charter presence, access to fi- for secondary roads and above have been ment and income generation. such as this one in Mazar- completed for 32 out 34 provinces. Support was given to 161 Kochies (nomads) e-Sharif, AREDP is helping close collaboration with the Citizens’ Charter, nance, National Horticulture and Livelihood and 97 disabled people to enhance their en- ensure employment Business Development Service Provisions/ Project, and security and access. This has opportunities in rural Resource Persons strategies, formal finan- made its intervention strategy much more Afghanistan terprise development skills and producti- vity. AREDP uses Community Development areas as well. “Helping us cial linkages model, revised structure for inclusive with likely convergence of ongo- means helping the farmers Rural Enterprise Councils as an entry point into communities and people living in rural Pan-Afghanistan Intervention, Community ing poverty reduction programs of different areas, because they are Institution Development strategy, analyses stakeholders. Development Project and is currently working in 24 districts of five provinces: Balkh, Bamyan, Herat, Nangarhar, the people who weave of selected 6–8 value chains (women orien- the carpets for us,” says (AREDP) and Parwan. the owner of the carpet tated), and technical and marketing support In preparing to implement an anticipated enterprise. plans. c IDA Grant $28.4 million Women’s Economic Empowerment project Importantly, AREDP has selected the prob- c ARTF Grant $15.9 million able districts and provinces for the Women’s in 76 districts in 34 provinces, AREDP has AREDP aims to enhance economic mobili- reviewed and developed its policies and Economic Empowerment Rural Development zation and activities by organizing the ru- plans to place women at the center. These Project based on eight parameters, such as ral poor into Savings Groups (SGs), Village include implementation strategies, part- poverty rate, involvement of the ultra poor, Country Update/ ongoing operations 26/  results villagers find Opportunities to become Self-Sufficient through Small Businesses • Farmers who have cows for personal use are milking them for extra income after a milk collection center was set up in their village in Nangarhar Province. • The center was set up under the Afghanistan Rural Enterprise Development Program, which aims to increase employment and incomes in rural communities. • The program also provides the farmers training on bookkeeping and livestock husbandry. A group of men in Barshad Khan village have gathered to discuss milk prices, while their cows are out to pasture nearby. One of the men, Ghulam Haidar, 62, reads from a note- book in which he has recorded his earnings: “My monthly income from milk collection is about 18,000 afghanis (around $260).” It is good extra earnings to his main in- come of selling vegetables, he says. With the extra ear- nings, the father of 10 says, his children can go to school and he can meet their needs. Ghulam Haidar and 31 other residents of Barshad Khan village, in Khaiwa district in Nangarhar Province, are profiting by doing business with a milk collection center, named “Parmakhtak” in Pashto, which was set up two years ago. Through the center, Ghulam Haidar has learned to use the milk from his cows for profit. “I have learned not to waste a single drop of milk,” he says, “I keep orderly accounts. I collect the milk and bring it to tions are formed by several EGs coming together. Since the center. They sell it to a dairy company and I get paid 2010, the program has been active in seven districts of “ well.” Nangarhar Province and has set up 1,280 EGs and 62 Pro- Barshad Khan village milk collection center is one of ducer Associations. three centers in the province set up by a Producer Asso- The setting up of Producer Associations has enabled ciation established by AREDP. As a result of AREDP’s work, collect the milk I keep orderly accounts. I EGs to perform better and has improved earnings for many, like Ghulam Haidar, found that the cows they had always kept for personal use could be used as a source of their members. For example, while dairy farmers in an EG might not produce enough milk to make regular and bring it to the center. income. sales, several EGs could come together in a Producer ” Imam Jan, an AREDP employee in the village, points Association to combine resources to establish a milk col- out how the program has changed the lives of residents: lection center to supply markets. They sell it to a dairy company “There were dozens of cows in this village, but people never thought of turning them into a source of income. The Barshad Khan village milk collection center is a good example of the success a Producer Association can and I get paid well. However, when the project came to the village, things changed. AREDP’s activities were the most beneficial have. The centre collectively sends 300 liters of milk and 70 kilos of cheese to the market a day. experience for the residents of this village.” AREDP support also provided technical training on – Ghulam Haidar, farmer, Barshad Khan village, Nangarhar Province. bookkeeping and livestock husbandry. The training Improved Earnings taught the farmers to reduce disease and increase milk AREDP works to improve economic activity among the production in their livestock by maintaining a suitable rural poor by organizing them into various types of environment and ensuring proper nutrition for their groups, such Enterprise Groups (EGs). Producer Associa- cows. Country Update/ ongoing operations 28/  / The World Bank Group in Afghanistan/29 To date, over 8,700 bility for the implementation of the grants. Management. This component supports the Community Development Councils across the This subcomponent supports delivery of management and oversight of the project at country have been elected minimum service standards on rural infra- the national, provincial, and district levels in to help the government structure. Allocations per community will be rural areas and the municipal management deliver core infrastructure and social services under needs-based and based upon an initial gap units in the four regional hub cities. This in- the Citizens’ Charter. and needs assessment against the minimum cludes areas such as policy and operational Close to half of the office service standards. The investments include planning; capacity building; management bearers are women. water supply and a choice between basic road information systems; grievance redress access, electricity, or small-scale irrigation. mechanisms; human resource management; (1b) Urban Areas Block Grants. The communications; donor and field coordina- Independent Directorate of Local Governance tion; financial management and procure- (IDLG)—the project’s urban implementing ment functions; and safeguards oversight. agency—has overall responsibility for the Component 5 (new under Additional grants to 600 urban CDCs and 120 Guzars Financing): Social Inclusion and Maintenance (neighborhoods) in four major cities (Herat, and Construction Cash Grants (MCCGs). This Mazar-i-Sharif, Kandahar, and Jalalabad) to component will provide emergency short- fund small infrastructure works. The menu term employment opportunities through la- of options includes street upgrading, parks, bor-intensive public works, as well as support lighting, provision of potable water, solid for collective action activities beyond public waste management arrangements, and works that are aimed to foster greater social women’s economic activities. This subcom- inclusion and protect the ultra poor/vulner- ponent supports service delivery linkages be- able in communities. tween the CDC, cluster/Guzar, urban district, There are two subcomponents: and municipality. (i) Social Inclusion Grants and Collective Component 2: Institution Building. This Action Activities will take the form of a component supports capacity building, tech- “matching grant” up to a total value of nical assistance, and community facilitation $2,000 per community that will be used to services. In rural areas, MRRD works with 14 provide incentives for community philan- facilitating partners (FPs) in undertaking ca- thropy. The combination of the matching pacity building and training of provincial and grant and community donations will be used Citizens’ Charter The project will support the first phase of the Government of Afghanistan’s 10-year district staff to oversee, monitor, and report on project progress, and Social Organizers; in the first instance to initiate a food/grain bank for the ultra poor in each of the target- Afghanistan Project Citizens’ Charter National Program and will and provides engineering and technical sup- ed communities. It is expected that this will (Citizens’ Charter) target one third of the country. The Citizens’ Charter aims to improve the port to communities across all 34 provinces. In urban areas, IDLG works with UN Habitat, be replenished periodically with additional community donations. c IDA Grant $227.7 million delivery of core infrastructure and social ser- which serves as an Oversight Consultant, (ii) MCCGs are to serve as quick-disbursing c ARTF Grant $444.3 million EXPECTED CITIZENS’ CHARTER RESULTS vices to participating communities through as well as four FPs on capacity building and emergency grants for work/labor-intensive (includes additional financing of IDA strengthened Community Development training of municipality staff to supervise, public works schemes that are targeted at Results expected under the first phase include : Grant $127.7 million and ARTF Grant $44.3 Councils (CDCs). These services are part of a monitor, and report on project progress. vulnerable households within the commu- million for Citizens’ Charter Emergency • 10 million Afghans reached. minimum service standards package that the Component 3: Monitoring and Knowledge nities and managed through a community- • 3.4 million people gaining access to clean drinking water. government is committed to delivering to the Learning. This component includes robust driven development approach. The cash for Regional Displacement Response) citizens of Afghanistan. supervision and learning activities from vil- works will include repairs, rehabilitation, c Government of Afghanistan • Improvements to quality of service delivery in health, The project has been set up as an inter- lage to national levels, exchange visits across cleaning, expansion, or construction. Cash for $128 million education, rural roads, and electrification. ministerial program for the delivery of a pack- communities, especially for women, and sup- services will target ultra-vulnerable house- The Citizens’ Charter is the successor to • Increase in citizen satisfaction and trust in government. age of basic services and is structured around port for thematic studies and evaluations. It holds that cannot participate in public works. the highly successful National Solidarity • 35 percent return on investment for infrastructure projects. four components: covers a range of participatory monitoring Implementation progress to date includes: Programme (NSP), which introduced a com- Component 1: Service Standards Grants. and evaluation tools, including the rollout of In rural areas: Over 8,400 community profiles munity-driven development approach to- This component supports two types of grants simple citizens’ scorecards to be completed (CPs) completed; more than 8,150 new CDCs ward rural infrastructure and service delivery to CDCs: by CDCs and Social Organizers to report on elected; over 6,900 Community Development and reached about 35,000 communities over (1a) Rural Areas Service Standards Grants. the minimum service standards. Plans (CDPs) completed; and more than 5,700 14 years. It is expected to be implemented The Ministry of Rural Rehabilitation and Component 4 (new under Additional sub-project proposals prepared. over a period of four years. Development (MRRD) has overall responsi- Financing): Project Implementation and In urban areas: Implementation has been Country Update/ongoing operations 30/  results afghan villagers Stand in Solidarity to Fight Hunger • In a rural community of Balkh Province that depends on agriculture and livestock, poor families face hunger in the autumn and winter, when there is no work for them. • A new grain bank set up by the village’s Community Development Council, with support from the Citizens’ Charter Afghanistan Project, aims to alleviate their struggles. • The grain bank is part of a new government initiative to help communities set up philanthropic food reserves for the most vulnerable households, including internally displaced persons and returnees. Y oungsters and elders are gathered in a yard in Zargaran village, more than 20 kilometers outside the provincial capital of Mazar-e-Sharif. The villagers are discussing how best to support the poor through their newly established grain bank. Established by Zargaran’s Community Development Council (CDC) with support from the Citizens’ Charter Afghanistan Project (Citizens’ Charter), the grain bank aims to fight seasonal hunger by assisting the most vulnerable households in the community. Seasonal hun- ger is a major concern for over half the households in Zargaran. Mohammad Esa, 45, Chairperson of the CDC, says: “We established the grain bank through which we col- lect things like wheat, rice, clothes, and rugs. We register them in a book and then distribute the goods among people when they need them most.” The Zargaran village grain bank is part of a new ini- “ tiative by the Government of Afghanistan under the Citizens’ Charter, which supports collective community The CDC distributed the donations among the ultra poor action aimed at improving social inclusion and protec- families during the winter of 2017–2018. Abdul Wahid, ting the ultra poor and vulnerable, including internally 28, and his family were among those who received rice, We established the grain bank through which displaced persons and returnees. The poor and ultra poor families in Zargaran village wheat, and cooking oil from the grain bank. A laborer in dire circumstances, Wahid needed the sup- are mostly laborers. In the lean seasons when there is we collect things like wheat, rice, clothes, and rugs. port, particularly in autumn and winter, when there was no work, these households face food shortages and no work. “I have a family of eleven and because there is struggle with hunger, which is precisely the time the vil- no work in winters, I am not able to support my family,” We register them in a book and lage grain bank is used to their benefit he says. “Thank God, last winter the local CDC gave us foodstuff from the grain bank and it helped us a lot.” ” Poor Communities Willing to Contribute The Citizens’ Charter initiative demonstrates that then distribute the goods among people The Citizens’ Charter began working with Zargaran vil- lagers in 2017 to help them elect a CDC and start their even in poor communities, Afghans are willing to sup- port vulnerable households. “We have received encoura- when they need them most. development activities. The CDC formed a sub-commit- ging feedback from the villagers about this initiative and tee on vulnerable groups, which has led campaigns to they are helping us a lot in its implementation. I hope gather support for the effort to eliminate seasonal hun- our activities will bring the change we want to see in the ger, resulting in generous donations from those with villages,” says Nasir Ahmad Muslih, a social worker in –Mohammad Esa, Chairperson, Community Development means to the grain bank. Balkh district. Council, Zargaran village, Balkh Province Country Update/ ongoing operations 32/  / The World Bank Group in Afghanistan/33 design review, procurement, and office set up Technical assistance to create a database and This pharmaceutical are underway. To date, the land acquisition web architecture for key statistics, maps, and factory in Herat city for two segments of B2B has been completed geographic information system (GIS) data to produced only a few and the process is ongoing for the remaining facilitate better urban planning and results medical products in 2011, but has since grown to four segments. monitoring. manufacture 45 different The contract for the implementation con- Component 2: Urban Institutions: medical products with sultant has been signed and its technical team Institutional and Capacity Development. support of a World Bank- funded project. “Our mobilized on site to support the Ministry of Undertaking a functional review of current products have improved Public Works in project implementation. planning functions, practices, and capacities dramatically in quality The design review of all segments of the at MUDH and the five PCCs, and developing because of this support,” says a manager at the B2B road has been completed and is ready for an action plan to address deficiencies in le- pharmaceutical company. procurement. The procurement for segment gal/regulatory issues, processes, and staffing. 1 of B2B has been completed and contractors Support for four “work streams” to provide di- are on site, with the physical work started. agnosis and recommendations on key policy The procurement of segment 2 has been areas including urban planning and land use completed and is expected to be submitted management; affordable housing; urban re- for the Bank’s review shortly, while the pro- generation; and municipal finance. curement of the remaining three segments Component 3: Urban Integration: are scheduled to be completed during 2018. Strengthening Urban Planning at National Further, the procurement for a consult- and Local Levels. Financing the completion of ant to design the rehabilitation work of the Strategic Development Plans (SDPs) for each Salang Pass has been signed and the consult- of the PCCs that will identify medium-term ant’s technical team has been mobilized. The development goals, based on a consultative Inception report is expected to be prepared by stakeholder engagement process. The SDPs mid-October 2018. will draw from data inputs in Component 1, identify key challenges and development goals, and propose activity and investment / urban development plans to achieve them. The component will rolled out in over 666 communities. A total of to improve road transport links across the also build a culture of planning through de- 633 CPs completed; 633 CDCs elected; 592 Hindukush mountain range, including the re- velopment of curriculum for urban planning CDPs completed; and 509 sub-project pro- habilitation of the Salang road and tunnel. It Urban Development practitioners. posals approved. will develop existing mountain crossings into Support Project Component 4: Urban Investments: Feasibility and Design Studies for Urban Overall, 90 percent of CDC membership in dependable, all-season roads that will allow areas previously covered by the NSP comprise c IDA Grant $20 million Infrastructure. Preparation of multi-year the vital transport of passengers and goods new members (i.e., those who had never pre- to cross the Hindukush mountain range The project will support the Ministry of capital investment plans (CIPs) linked to the viously served on CDCs) and close to half (47 throughout the year. Urban Development and Housing (MUDH) SDPs for PCCs to undertake priority projects percent overall and 48 percent office bearers) There are currently only two road crossings to create an enabling policy framework and (no regret, quick-win projects) and catalytic are women. This is evidence that the new over the mountain range, with the Salang enhance urban policy-making capacity in rel- investments (identified under SDPs, economi- election system and norms on CDC govern- highway carrying most of the cross-Hin- evant agencies at the national level, as well cally transformative projects). The CIPs would ance are having a strong impact. dukush traffic, and an unpaved secondary as strengthen city planning, management, also be used to develop a pipeline of bankable crossing between Baghlan and Bamiyan. and service delivery capacity in five selected projects for financing under a future perfor- mance-based finance project. Trans-Hindukush The project will carry out civil works for the upgrading of the Baghlan to Bamiyan (B2B) provincial capital cities (PCCs). These cities are Herat, Jalalabad, Kandahar, Khost, and Road Connectivity road (152 km) into a paved road as well as the Mazar-e-Sharif. Project rehabilitation of the Salang road and tunnel The project consists of the following (87 km). components: c IDA Grant $250 million Component 1: Urban Information: Building Preliminary activities under the project The project aims to support GoA’s efforts have started. Land acquisition, engineering an Urban Management Information System. 34/  Country Update/ / The World Bank Group in Afghanistan/35 INTERNATIONAL FINANCE CORPORATION The International Finance Corporation’s key support the establishment of the first elec- prong of engagement has been through tronic Movable Collateral Registry and the advisory support focused on improving the Public Credit Registry. investment climate and building capacity, IFC has helped DAB establish the leasing while supporting selective investments in law and the regulatory framework for leas- sectors with high development impact ing. IFC also assisted DAB with the establish- and job creation. IFC’s current cumulative ment of a leasing licensing and supervision advisory portfolio in Afghanistan stands department to be the regulator of licensing at $13.9 million. IFC’s current strategy is in line with the ongoing World Bank Group’s and supervision of leasing companies. This Country Partnership Framework (2017 to was the first critical step to pave the way FY 2020). for developing leasing operations under the conducive completed legal framework. Investment Portfolio The project activities are focused on raising IFC provides a mix of investments services awareness and building capacity to increase in Afghanistan, with a focus on financial in- knowledge among stakeholders (both gov- clusion, services, telecommunications, ag- ernment and private sector) on the benefits ribusiness, and infrastructure. IFC’s current of leasing, thus improving access to finance cumulative committed portfolio stands at for micro, small, and medium enterprises. over $200 million, including investment in Roshan Telecom, First Microfinance Bank, Afghanistan Raisins Supply Chain Afghanistan International Bank, and Afghan Development Processing Plant (Rikweda). The project aims to support the develop- IFC investments have had a transforma- ment of raisin supply chains in Afghanistan tional impact in access to finance and out- by building the capacity of a raisin process- reach, particularly in the microfinance and ing firm, implementing and managing food telecommunication sectors. IFC will continue safety systems, financial management, and to seek new investment opportunities and supply chain development, thus, creating a engage with local players to support the de- best practice example for the rest of the in- velopment of Afghanistan’s private sector, dustry in the country. Investment Climate Climate’s sub-projects – (i) Business particularly in infrastructure, finance, manu- The program is designed to tackle business Licensing Reform project: phase II, and (ii) facturing, and agribusiness. Corporate Governance (CG) and investment climate challenges of the Business Enabling Environment Project. At present, IFC’s investment portfolio The CG project aims to address foundational country. The overarching goal of the program The pipeline under the investment climate includes investments in the telecommu- market failures in the Afghanistan banking is to support improvements in the business program includes studying Afghanistan nication sector and financial markets. The sector. Through scoping activities as well as environment and help the government fa- Women Entrepreneurship Legal Barriers, and investment pipeline looks promising and in- prior work in this sector, a combination of cilitate investment and trade. It aims at im- Trade Facilitation and Export Promotion. cludes investments in the power sector and market failures has been identified at all lev- proving the quality of business regulations, Business Licensing Reform Project – Phase II agribusiness. els, i.e., individual bank, regulatory, and sector. strengthening mechanisms for trade facili- The Business Licensing Reform Project Phase IFC is working with banks to help them tation and export promotion, and enhanc- II is building on the reforms achieved in improve firm performance (improved de- ing mechanisms for investment attraction Phase I—the establishment of a one-stop / ongoing advisory projects cision-making, risk management, operat- and retention to reduce private sector’s cost shop for business registration and licensing ing efficiency, profit, and valuations) and of compliance (cost savings) in Afghanistan. at MoCI—with the overall goal to reduce Access to Finance increase access to finance (reduced costs of IFC is currently working to support the the time and cost of business licensing and IFC provided assistance to DAB, the central capital, improved loan terms, and increased Afghan government in promoting an invest- renewals in the country, and rollout of busi- bank, in collaboration with the World Bank’s access to investors) by promoting better CG ment and business climate that is conducive ness licensing reforms to provinces. Financial Sector Strengthening Program to practices among the banks in Afghanistan. to private sector growth through Investment The goal of the project will be achieved Country Update/ IFC 36/  / The World Bank Group in Afghanistan/37 private dialogue mechanisms; and (iii) imple- areas. The impact will be achieved through ment a Systematic Investor Response Mecha- accelerating the development of a sustain- nism (SIRM) to increase investment retention. able commercial market for quality verified The project has two components: lighting products. The program works with Component 1: Improve business enabling the private sector to remove market entry bar- environment and support institutional ca- riers, provide market intelligence, foster busi- pacity building. It has three subcomponents: ness to business linkages, and raise consumer 1.1. Assist the Government of Afghanistan awareness on modern lighting options. in developing and implementing business environment reforms in a selected number Scaling Solar of areas measured by the Doing Business Scaling Solar is a “one stop shop” program project. for governments to rapidly mobilize privately 1.2. Establish and strengthen the institu- funded grid connected solar projects at com- tional mechanisms to support the invest- petitive tariffs. The program brings together ment climate reform program. a suite of World Bank Group services under 1.3. Identify gender-based differentiations a single engagement based on a template in legal and regulatory frameworks that approach to create viable markets for solar affect women’s equal access to business power in each client country. opportunities. The Government of Afghanistan signed a Component 2: Investment Retention and landmark transaction advisory agreement Promotion. In countries affected by fragility with IFC for the Scaling Solar project, where- and violence (such as Afghanistan), attract- by IFC will support GoI to attract private sec- ing new investors may be challenging but re- tor participation to develop the first solar taining existing ones is necessary. Retaining power plant of up to 40MW under Public investors in Afghanistan requires a clear re- Private Partnership (PPP). This agreement tention strategy and targeted investment in will enable IFC to support the government building an investment aftercare program in implementing a multi-year program to complemented by SIRM. develop 2,000 MW renewable energy-based by streamlining procedures and supporting is designed under the investment climate SIRM as an early warning and tracking generation under PPP. institutional capacity building. The project program to catalyze doing business reforms mechanism to identify and resolve com- objectives are to (i) streamline procedures in Afghanistan. plaints/issues that arise from government Strengthening Afghanistan Horticulture for new business licenses and license renew- The focus of the project is on doing busi- conduct. The implementation of SIRM en- Exports als; (ii) reduce time to obtain new business ness areas with the greatest potential to con- tails identifying an agency or a platform that IFC is working to develop Afghanistan’s hor- licenses and license renewals; and (iii) rollout tribute to improving the investment climate has the capacity to mediate a solution to the ticultural exports by helping agriculturists business licensing reforms from Kabul to 21 and investment facilitation. The goal will be problem facing an investor. enhance efficiency and supporting the ex- provincial offices of the Afghanistan Central achieved through supporting institutional tension of market opportunities, both na- Business Registry and Intellectual Property capacity building, improved inter-agency Lighting Afghanistan tionally and internationally. This project aims (ACBR-IP). coordination and public-private dialogue, This IFC market transformation program to improve the livelihood of horticulture The impact of the project is in the form and management of investor grievances for aims at increasing access to clean, afford- farmers by linking them to fruit processing of compliance cost savings for private sec- investment retention. able off-grid energy in rural Afghanistan. It companies through contract farming and tor that will be achieved after project The project objectives are to (i) streamline is an integral part of IFC’s “Lighting Global” supporting processing companies to expand completion. the legal and regulatory framework for doing program. their export markets. Afghanistan Business Enabling business reforms; (ii) strengthen inter-agency The program’s objective is to increase ac- Environment Project coordination mechanisms on investment cli- cess to modern solar lighting products and The Business Enabling Environment project mate reforms and establish effective public- services for 250,000 Afghans living in off-grid 38/  Country Update/ / The World Bank Group in Afghanistan/39 AFGHANISTAN RECONSTRUCTION TRUST FUND AFGHANISTAN RECONSTRUCTION The Afghanistan Reconstruction Trust Fund Investment Window provides grant financ- TRUST FUND (ARTF) was established in 2002 to provide a ing for national development programs in coordinated financing mechanism for GoA’s the development budget. The Research and Analysis Program aims The objectives of the ARTF are to: budget and national investment projects. Since its inception, 34 donors have contribu- to facilitate and promote evidence-based • Position the national budget as policy research and knowledge consolida- ted over $10.6 billion to the ARTF, making the key vehicle to align the tion through project-based and selected it the largest single source of on-budget reconstruction program with sector-wide/thematic research and impact financing for Afghanistan’s development. evaluation. national development Management objectives. Donor Contributions The ARTF has a three-tier governance frame- • Promote transparency and Donor contributions have increased year work (Steering Committee, Management Committee and Administrator), and three after year, with both old and new donors accountability of reconstruction contributing to the ARTF. Over the last few working groups. This sound framework has assistance. years the “preferenced” portion of donor con- enabled the ARTF to adapt to changing cir- • Reduce the burden on limited tributions has been the main factor driving cumstances and development priorities with consistency and consensus. The World Bank growth. The agreed ARTF rule is that donors government capacity while may not “preference” more than half of their is the Administrator of the trust fund. promoting capacity building annual contributions. This rule is to ensure The Management Committee consists over time. that the ARTF has sufficient funding to fi- of the World Bank, Islamic Development Bank, Asian Development Bank, United nance the Recurrent Cost Window and that • Enhance donor coordination it retains some flexibility in the approval of Nations Development Programme, Ministry for financing and policy projects in support of government priorities. of Finance, and United Nations Assistance dialogue. Mission in Afghanistan as an observer. The The Recurrent Cost Window (RCW) Management Committee meets regularly in The ARTF’s support of the Kabul to review ARTF finances and approve Grant $4.745 billion To date, the ARTF has disbursed $5 billion still finances around 16 to 20 percent of the funding proposals. The objective of the Recurrent Cost Window government’s priority programs, through the government’s non-security op- government’s non-security operating budget. The ARTF Strategy Group, consisting of do- is to provide a coordinated and incentives- policy reform agenda, and the erating budget. Domestic revenues continue nors and MoF, meets monthly to review the driven financing mechanism, enabling the non-security operating costs of to be insufficient to cover the costs of gov- The Investment Window implementation of the ARTF program and to Afghan government to make predictable, ernment. The ARTF RCW has therefore en- The Investment Window has increased sig- discuss strategic issues. timely, and accurate payments for approved government operations sured the basic functioning of government, nificantly in volume and scope. Since SY 1389 recurrent costs—related to salaries and wag- contributes to the achievement including the delivery of services such as (year 2010), investment commitments have How the ARTF works es of civil servants, and non-security related of Afghanistan’s national strategic healthcare and education. Given that around exceeded recurrent cost commitments. Donors contribute funds into a single ac- government operating and maintenance 60 percent of the non-uniformed Afghan Decentralized and national rural develop- count held by the World Bank in the USA. The expenditures. goals. civil service is accounted for by teachers, the ment programs, such as NSP, rural roads, and ARTF Management Committee makes deci- The Recurrent Cost Window was set up in Ministry of Education has in general received education, have been strongly supported by sions on proposed allocations at its regular 2002 to help the Afghan government meet about 40 percent of total ARTF resources. The the ARTF. meetings, and those decisions are translated its recurrent (operating) budget needs. The Ministries of Public Health, Foreign Affairs, As of July 22, 2018, there are 23 projects into funds through Grant Agreements signed RCW has been restructured several times, Labor, Social Affairs, and Higher Education active under the ARTF with a total commit- between the World Bank as Administrator most recently in 2018. For the first time, RCW have also been major recipients. ment value of $1.6 billion. Over $5.19 billion of the trust fund and the Government of support is being provided through standard It should also be highlighted that the RCW was made available, both for closed and ac- Afghanistan. World Bank instruments, including an annual resources are national in scope, ensuring the tive investment projects, of which $4.30 ARTF allocations are made through two $300 million Development Policy Grant sup- payment of salaries of around 62 percent of billion has been disbursed and the net undis- “windows”: the Recurrent Cost Window and porting key structural and policy reforms, and non-uniformed civil servants in all 34 prov- bursed amount is $885 million. the Investment Window. The Recurrent Cost a $100 million Fiscal Stability Facility, which inces of the country. Steady year-on-year in- c Full details of investment activities are Window reimburses the government for a will provide fast-disbursing support to overall creases in operating costs across government provided in the ARTF Reports: www.artf.af certain portion of eligible and non-security macroeconomic stability against a range of mean the RCW accounts for a declining share related operating expenditure every year. The sound fiscal management benchmarks. of the overall budget. Nevertheless, the RCW Country Update/artf 40/  / The World Bank Group in Afghanistan/41 / ongoing projects as through master’s and PhD programs; re- lease of four new wheat varieties against the target of five; and completing rehabilitation Afghanistan work at six research and seed production sta- Agricultural Inputs tions, while work at the remaining farms is at an advance stage of implementation. Project (AAIP) Component B: The work of nearly all Grant $67.25 million Border Quarantine Stations and the labora- tory complex has been completed and they AAIP aims to increase adoption of improved are expected to be operational shortly. crop production technologies. The agri- Work on the regulatory framework has culture sector is central to Afghanistan’s produced good results—the Plant Protection economy, employing 60 percent of the na- and Quarantine Law and Pesticide Law have tion’s workforce. As such, strengthening been approved. The project is supporting im- the institutional capacity of the Ministry of plementation of the legislation. Agriculture, Irrigation and Livestock (MAIL), In addition, over 3,000 farmers, traders, and increasing investments for the safety and MAIL staff, 205 of whom are women, and reliability of agricultural inputs are in- have been trained on safe handling, storage, valuable to support continued increase of and application of pesticides and the newly agriculture productivity. approved Pesticide Law. Firstly, the project seeks to improve the Component C: The pilot voucher schemes technical and economic efficiency of the in 2017 have been successfully completed, value chain of certified wheat seed. Secondly, in which 6,000 farmers received vouchers, 98 building on the legal and regulatory frame- percent of whom redeemed against part of work that the project helped build during the seed costs in four districts. The scheme was preparation phase, the project is developing well managed and demonstrated the value the necessary accredited facilities for plant of direct links between farmers and seed quarantine networks and quality control of companies. agro-chemicals. Thirdly, guided by the results of field sur- The reconstruction of veys carried out during the preparation Afghanistan On-Farm this irrigation canal phase, the project is designing and piloting in Kabul Province has a demand-led action plan to improve and Water Management alleviated conflict over 20 percent, and the irrigated area increased water distribution, develop market-based input delivery sys- Project by 20 percent. Physical rehabilitation of ir- reduced water wastage, tems for seeds. The sustainability of these and improved water flow. Grant $70 million rigation schemes exceeded its target with Farming has become interventions will be supported by capacity good quality and within the project budg- easier, says a farmer, who building programs involving civil servants, This pilot project is designed to support on- is able to spend more time et allocation and timeline: 207 irrigation farmers, and traders. farm water management investments in improving his farm instead schemes (mostly informal) have been reha- of having to constantly Component A: The project has continued five regions (Central, Eastern, Southwest, bilitated, covering a total of 52,000 hectares maintain and clean the old to deliver expected results in a satisfactory Northeast, Northern) covering a total of inefficient water canal. of irrigation command area. Rehabilitation way, both in soft activities, e.g., capacity 10,000 hectares (Phase Zero) (59,000 hectares of 59 irrigation schemes is ongoing, covering building and the development of new wheat end target in 2019). The project improves ag- 18,500 hectares of land. varieties, and hard infrastructures, includ- ricultural productivity in project areas by en- The establishment of 570 Irrigation ing refurbishing and developing selected re- hancing the efficiency of water use. Associations (IAs) has been completed. The search and seed production stations. Land productivity of wheat and other crops IAs are based on the traditional Mirab system Major achievements include training of has increased by 15–20 percent. Water pro- and have taken up the responsibilities for op- 470 staff in short and medium term, as well ductivity of wheat and other crops increased eration and maintenance. Country Update/ artf 42/  / The World Bank Group in Afghanistan/43 Capacity Building for Further, the project plans to pilot an inno- vative approach in 2-3 communities in part- Results Facility Project nership with IFC’s “Lighting Afghanistan” to for Afghanistan solar home systems and a “pay as you go” model in partnership with the private sector. Grant $150 million Capacity Building for Results (CBR) is a key DABS Planning ARTF investment that supports government in developing its internal human capacity, and Capacity organizational structures, and functions over Support Project the medium term to improve service delivery Grant $6 million to the population. CBR promotes accountability in line min- The Da Afghanistan Breshna Sherkat istries by introducing results-based reform Planning and Capacity Support Project aims and services improvement programs. CBR is to improve DABS capacity in distribution in- also one of the key tools for the government vestment planning, implementation, and op- to reduce reliance on external technical as- eration and maintenance. sistance and parallel structures. This project has two components: The grant helps finance the costs associat- Component 1: Staff capacity building, which ed with (i) technical assistance for preparation aims to support DABS capacity to plan and and implementation of capacity building pro- implement new investments in distribution grams; (ii) recruitment of some 1,500 mana- systems and to operate and maintain the in- gerial, common function, and professional vestments properly. staff for key positions in selected line minis- Component 2: Development of a train- tries; (iii) a management internship program; ing center in Kabul. DABS does not have any (iv) training of civil servants; and (v) project training facility for its staff, and this has been management, monitoring, and evaluation. identified as a critical gap in its overall capac- CBR is demand driven and open to all line ity building efforts. ministries and independent agencies. Based The project is supporting the preparation on pre-agreed criteria, including service de- and implementation of annual O&M plans livery potential and reform readiness, line for six major load centers using new proce- ministries and agencies are grouped as either dures based on good international practice Category 1 (high priority) or Category 2. Since the start of the adjusted for local conditions. The project- HEDP in 2015, enrollment Category 1 ministries/agencies receive supported training and a new training center in key priority disciplines full CBR reform support whereas Category 2 has increased by almost are expected to improve skills of 90 percent of ministries receive foundational (“CBR–readi- a quarter, from 64,200 DABS planning and O&M staff. to about 79,400 this year. ness”) inputs designed to upgrade them to Category 1. Ministries/agencies in both Central Asia South The focus on increasing female enrollment is also because the route still has not been finalized and there are more route alignment changes The project provided internship opportu- nity for newly graduated female engineers to categories must develop a comprehensive Asia-1000 paying off with female enrollment rising from proposed for the transmission line, while the work in DABS. In the first phase, eight female reform plan (to be implemented with exist- ing donor and government resources) with Community Support 11,400 to some 15,000 for the current academic year. agreement is that CSP will cover communities within the 4-km “corridor of influence” along engineers, who graduated from the civil and electrical engineering department of various a results framework to which they are held Program (CASA-CSP) the transmission line. universities, were hired as interns in the first accountable. It is estimated that there will be more than quarter of 2018, and in the second phase, Grant $40 million Of the advertised CBR positions, 929 have 580 communities in the seven provinces se- four new female engineers were hired in been contracted to date, 70 of whom are CASA-CSP supports communities along the lected. During a mission in September, it was September 2018. women (7 percent of contracted positions), CASA transmission line in Afghanistan. The agreed that work will begin soon in commu- Design of the training center is complete, with another 348 recruitments at various project was restructured last year and is now nities along the parts of the route that have and the construction work is expected to start stages of quality review and approval. CBR being implemented in alignment with the been confirmed and MRRD will hire social in the first quarter of 2019. Procurement of is also assisting salary harmonization for Citizens’ Charter Afghanistan Project and in mobilizers within 2-3 months to start the equipment for the training center and hiring donor-funded consultants embedded in or close collaboration with CASA-1000. social processes to form CDCs in the selected of a training consultancy package are at vary- working in support of government. The implementation has been a challenge communities. ing stages. Country Update/ artf 44/  results public universities on track to Modernization through Capacity Building • Public universities in Afghanistan are undergoing a systemic change to modernize through capacity building at all levels, from lecturers to chancellors. • The capacity building through scholarships and training is provided by the Higher Education Development Project, implemented by the Ministry of Higher Education. • To date, 250 scholarships have been awarded to lecturers from public universities to pursue a postgraduate degree in universities abroad. N argis Taimoory started as a lecturer at Ba- ghlan university in 2012 after passing a very tough competitive examination. Only a few years earlier, she had graduated from the Faculty of Biology and Chemistry at the same univer- sity in the Baghlan provincial capital, Puli Khumri. “I had just a BSc degree, no experience, and I was unfa- miliar with the new methods of teaching,” she recalls. Despite her best efforts and academic rigor, she felt her- self struggling and decided she needed to upgrade her skills to do justice to her job. Taimoory, 28, is now pursuing a master’s degree in natural resources management at the Asian Institute of Technology in Thailand. One of 250 HEDP scholarship recipients, she believes she could not have pursued her dream without the project’s help. “ “With HEDP support, I am studying in a good inter- national university in Thailand,” Taimoory says. “I have learned a lot and feel my master’s degree will improve the old and traditional systems that are being used in Through HEDP we would like to my teaching abilities and when I come back to Afgha- nistan, I will be able to teach my students much more public universities with a modernized and internationally recognized system, with serious attention to female par- efficiently.” transform the old and traditional systems ticipation,” says. Noor Ahmad Darwish, director of HEDP Afghanistan has 36 public universities and institutes in MoHE. of higher education across the country, most of which There is, moreover, a huge knowledge and skills defi- that are being used in public universities with were established or re-established only within the past cit, he says. HEDP is playing a key role to fill this gap. The decade. One of the most critical challenges they face is project has awarded scholarships to 200 lecturers, 60 the lack of well-qualified lecturers—as high as around a modernized and internationally of whom are women, to study in other Asian countries, 60 percent of all lecturers in public universities hold only such as Malaysia, India, Thailand, and Iran. They are pur- a bachelor’s degree. Based on the MoHE second National suing postgraduate degrees in various fields, including ” recognized system, with serious attention to Higher Education Strategic Plan, 2016–2020, all univer- engineering, environment, economy, agriculture, and sity lecturers require at least a master’s degree by 2021. medicine. female participation. The project endeavors to maintain a male-female Filling the Knowledge and Skills Gap HEDP is working to change the old system of higher edu- beneficiary ratio to ensure female academics are in- cluded and will fund another 250 lecturers by 2020, says cation to a more modern one to increase its relevance Dr. Elham Shaheen, director of Foreign Relations and –Noor Ahmad Darwish ,HEDP director, Ministry of Higher Education and efficacy. “Through HEDP we would like to transform Cultural Affairs in MoHE. Country Update/artf 46/  / The World Bank Group in Afghanistan/47 Higher Education Kabul Municipal Development Project Development Program Grant $55 million (KMDP) The Higher Education Development Project Grant $110 million (HEDP) aims to increase access to higher Kabul Municipality is responsible for imple- education in Afghanistan, as well as im- menting the project. The project objectives prove its quality and relevance. HEDP uses are to (i) increase access to basic munici- an Investment Project Financing instru- pal services in selected residential areas of ment based on the Results-based Financing Kabul city; (ii) redesign Kabul Municipality’s modality. Financial Management System to support Under component one, project funds are better service delivery; and (iii) enable early re- being disbursed against selected line items in sponse in the event of an eligible emergency. the annual budget of the Ministry of Higher The project is expected to deliver welfare Education (MoHE) up to capped amounts, and and human development benefits to over on condition that the agreed set of disburse- 700,000 people through services provided ment-linked indicators (DLIs) are achieved. in some 1,800 hectares of private land. The The DLIs reflect the priorities for develop- project also supported development of a ment. These include intermediate outcomes plan to improve the municipality’s financial that build cumulatively over the lifespan management and planning capacity to de- of HEDP to improve access to the higher liver improved services. The implementation education system and raise its quality and of the plan is underway, which will enhance relevance. This component supports the re- Kabul Municipality’s institutional capacity. forms initiated through the National Higher To date $64.09 million has been disbursed. Education Strategic Plan II and focuses on Over 1.36 million people (about 73 percent outcomes and results rather than inputs. women and children) have benefited from The project started in September 2015 and the construction of about 400 kilometers of MoHE is on track to meet the third round of neighborhood roads, 538 kilometers of com- the DLIs, which include increased female en- munity drains, and 27 kilometers trunk roads. rollment in first year of priority disciplines, For years, residents in Temporary employment of some 2.6 mil- establishment of functional ICT centers at this Kabul neighborhood lion people has been generated through the seven universities for ICT-based higher edu- faced almost impassable execution of contracts with labor intensive cation, and establishment of Internal Quality neighborhood streets in poor condition and work at an investment of $223/person per Assurance Units (IQAUs) functioning to inter- overflowing with litter. month. Durable infrastructure will generate national standards at eight universities. Their lives have changed secondary employment in the years ahead. Enrollment in key priority disciplines (those corporating e-learning into the university pare and implement Strategic Institutional since the upgrading of road infrastructure Importantly, KMDP has established a that contribute to economic and social de- curriculum, as well as recognition of blended Development Plans; (iii) training of teaching and drainage by Kabul strong foundation for gender inclusive velopment) has increased substantially from learning toward program credits. faculty in outcome-based education and stu- Municipality under the community participation in decision mak- 64,200 at the project baseline to about 79,400 The project has received additional financ- dent-centered learning; and (iv) grants to sup- KMDP. “On these newly paved ing over public expenditures in Guzars this year. The special focus on increasing fe- ing of $5 million, mainly to expand the fol- port individual and group research projects at streets, there is much (neighborhoods). male enrollment has also paid substantial lowing successful project interventions to universities. less dust and no mud or dividends with female enrollment increasing scale up project impact and development The project closing date has been extended puddles of water. I feel like I am walking in a from 11,400 to approximately 15,000 for the effectiveness: (i) provision of faculty scholar- from December 31, 2020, to December 21, whole new city!” says a current academic year. ships (150 postgraduate scholarships to pub- 2022, to allow sufficient time for completion neighborhood resident. MoHE has developed a policy and by-law lic university academics in priority disciplines of the additional activities and achievement for the practice of e-learning. This will support with one third allocated to female academ- of the final targets. gradual introduction of blended learning, in- ics); (ii) support to public universities to pre- Country Update/ artf 48/  / The World Bank Group in Afghanistan/49 Kabul Urban Naghlu Hydropower Transport Efficiency Rehabilitation Project Improvement Project (NHRP) (KUTEI) Grant $83 million Grant $90.5 million The NHRP development objective is to im- prove dam safety and sustainability of hy- The project aims to improve road conditions dropower and to increase the supply of and traffic flows on selected corridors of electricity at the Naghlu Hydropower Plant Kabul city. The project will focus on improve- (NHPP). The NHPP is of strategic importance ment of road infrastructure and provision of to Afghanistan's power generation portfo- technical assistance to Kabul Municipality in lio as it provides more than half of Kabul's specific areas. electricity. Investments in key road infrastructure The project came into effect in January will improve connectivity and make Kabul 2016, after the signing of the Grant more inclusive, while technical and knowl- Agreement. The main contract for the reha- edge support will gradually transform Kabul bilitation of turbine units 1 and 3 of the plant Municipality into a modern planning and was signed in December 2015 and came into implementing agency by adopting best in- effect in August 2016. ternational practice. Kabul Municipality Rehabilitation of unit 1 was completed in will be responsible for project implementa- March 2018, revitalizing 25 MW capacity of tion, including procurement and financial the power plant (25 percent of the total ca- management. pacity of NHPP). The equipment for rehabili- Progress toward the achievement of the tation of unit 3 has been supplied. This unit project development objectives will be meas- is expected to be operationalized by the last ured through the following indicators: (a) quarter of 2018 and will reactivate a further traffic capacity improvements will be meas- 25 MW capacity of the plant. ured by average vehicle speed during off- Work on dam safety enhancement is also peak hours; (b) people (within a 500-meter underway. Submersible water pumps have range under the project) in urban areas pro- been installed inside the dam’s drainage vided with access to all season roads; and (c) gallery to release upward water pressure. percentage of Kabul city’s trunk road network The Naghlu Hydropower Tenders for hiring a consultancy firm and a Rehabilitation Project in at least ‘fair’ condition. contractor to carry out a dam safety audit, is expected to increase To date, implementation of infrastructure bathymetric survey, and remove sedimenta- electricity supply contracts for six roads, totaling 19.3 km, has generated by the Naghlu tion in front of the flash out gate will be ad- Hydropower Plant, which been completed and the roads opened to vertised during the last quarter of 2018. To is of strategic importance training manual has been prepared and the traffic. The pace of project implementation is picking up and all planned civil works con- maximize security of the Naghlu dam site, to Afghanistan's power generation portfolio as it next step will be to hold the trainings. RESULTS EXPECTED UNDER THE NHRP the construction of a security wall around provides more than half Following a formal request from MoF, the tracts have been awarded. The implementa- the Naghlu dam and power plant premises is of Kabul's electricity. The • Revived 50 MW unoperational capacity of Naghlu Hydropower Plant (NHPP) by project will be restructured to include the tion progress for the newly awarded roads underway. project includes a benefit- sharing program for the rehabilitation and renovation of the Darunta rehabilitating Unit 1 and overhauling Unit 3. contracts stand at 80 percent. The project includes a benefit-sharing Hydropower Plant. The restructuring work The procurement for the consultancy con- local population, which • Improved routine operation and maintenance of the power plant for five years. program dedicated to the local population. will enjoy better access to on the NHRP is in progress. Three units of the tract for the design and review of 40 km of Under this program, electrification of villages electricity. • Enhanced staff capacity to operate and maintain the power plant. Darunta power plant will be renewed and new roads is in the last stages and the con- in Sorobi district is underway and the feasi- an administrative building and warehouse • Residents living near NHPP connected to electricity and local residents benefit tract is expected to be awarded soon. The bility of electrification of villages in Tagab will be constructed inside the power plant. from vocational training. project has prepared a detailed plan for the Province is being investigated by DABS. The The bidding document of this activity is near remaining activities and the procurement • Enhanced security and safety measures of the NHPP. Sorobi substation is under construction and completion and the tender is expected to be will be completed most likely by end of the expected to be completed by early January • Renovate and revive full capacity of Darunta Hydropower Plant. advertised in October 2019. Rehabilitation of year. 2019. Another aspect of the program is vo- the distribution system in Jalalabad city will cational training for villagers. A vocational also be considered. Country Update/ artf 50/  results new horticultural practices Bear Fruit in Kandahar Province • Target farmers in Kandahar Province are putting into practice new horticultural methods and seeing the fruits of their labor. • This is the result of technical training sessions on horticulture provided by the National Horticulture and Livestock Project, which aims to increase horticultural output and productivity across the country. • Project activities are currently implemented in 300 districts in 31 target provinces, numbers that may grow as conditions warrant. I t is a bright, fresh day and the orchards and farms are being prepared for planting. This day marks Farmer Field School (FFS) day in Roh Abad village in Dand district of Kandahar Province. In a newly established pomegranate orchard, engineer Mohammad Nasir slowly trims off extra branches from the trees. He explains why and at which specific points the branches of a newly planted tree should be cut off to ensure a strong and robust tree. He is mentoring a group of eight farmers who watch the process carefully. All of them will later gather with other farmers to share the new horticultural practices they have learnt. Aminullah, 28, is one of the farmers who participated in the lesson today. He owns about 100 jeribs (20 hec- tares) of farmland in the village and cultivates wheat, corn, and vegetables. He also owns and manages pome- granate orchards that were planted by his father. FFS training sessions have equipped him with the knowledge and skills to understand and implement new “ systems of horticulture. He has also learnt about seaso- nal diseases and the preventive measures he can take to Better Income, Better Life protect his orchards. “The sessions are really helpful for Aminullah turned 20 jeribs (4 hectares) of his farmland us,” he says, “now I understand that our orchards have into a pomegranate orchard in 2016 with support from Now I understand that been cultivated traditionally and I need to modernize the NHLP, which covered 75 percent of the cost. Farmers them for better productivity. I never thought about far- under the project are normally expected to contribute ming like this in the past.” between 20 percent and 50 percent of the cost. Their our orchards have been cultivated Aminullah was one of the first farmers to express inte- contribution starts low when new practices or products ” rest in the training when the National Horticulture and are introduced and increases over time. need to modernize traditionally and I Livestock Project (NHLP) started its work by holding FFSs The orchard was planted with trees certified by a reco- and information sessions in Roh Abad village. gnized organization, which will come into fruition after NHLP started its work in Kandahar Province in 2016, four years. Aminullah hopes that the additional income them for better productivity. covering 6 out of 17 districts. “Even though most people will translate into a better life for him and his family: in the province depend on agriculture and horticulture “With this horticulture system, which is very new for us, as their primary source of income, their use of traditio- we hope to earn more in the future.” nal methods of farming results in low farm output and –Aminullah, farmer, Roh Abad village, Kandahar Province productivity,” says Mohammad Nasir, NHLP’s provincial The project has also provided other technical training sessions on prevention of seasonal diseases and lives- coordinator for Kandahar. tock management. Country Update/ artf 52/  / The World Bank Group in Afghanistan/53 The project has three components: (i) hor- Regarding livestock activities, NHLP con- ticultural production; (ii) animal production tinues to focus on key activities, including and health; and (iii) implementation manage- poultry production and animal health and ex- ment and technical assistance support. These tension services, while expanding work pro- activities were initially implemented in 120 grams to other areas such as fishery and dairy. focus districts in 23 target provinces. Under the National Brucellosis Control The original budget of the project was Program in 360 districts, more than 2.2 mil- $100 million, but based on the high demand lion young female calves and over 11.5 mil- for NHLP services, the project has received lion young female sheep and goats have been an additional financing of $90 million to al- vaccinated. To ensure sustainability, the pro- low expansion of its work programs to more ject is gradually handing over this activity to farmers and add new activities. the General Directorate of Animal Health un- The project now covers 291 districts in all der the Ministry of Agriculture, Irrigation and 34 provinces, and, so far, have reached over Livestock. 600,000 farmers/beneficiaries, including To date, the project has supported 122,800 around 220,000 women. livestock farmers (78,968 women and 43,872 To date, NHLP has financed the establish- men), clustering them into producers’ groups, ment of 16,750 hectares (ha) of new pistachio including poultry producer groups, to benefit and fruit orchards in 32 provinces. In addition, from animal production and health servic- over 90,000 ha of existing orchards have been es. It has also extended its activities to new rehabilitated and some 96,000 kitchen gar- geographical areas under sanitary mandate dening schemes established. activities and is supporting MAIL’s relevant The project has supported construction of directorate to implement them. 1,037 small water harvesting structures, im- NHLP activities are based on cost sharing, proving farmers’ resilience to weather change accordingly it is expected that farmers will by allowing harvest and storage of water dur- contribute $28.2 million to the cost of ser- ing the rainy season and gradual release in vices and inputs received. the growing period based on crop needs. This has been implemented in partnership with NHLP activities have Community Development Councils. Non-formal Approach benefited 600,000 farmers, including about 220,000 To strengthen market supply, a large num- to Training ber of the targeted farmers, both male and women, covering 291 districts in all 34 provinces female, have been trained on harvesting Education and Jobs of Afghanistan. Some 96,000 kitchen gardening National Horticulture and post-harvest practices for horticultural in Afghanistan crops. They have also been provided with a schemes have been set up across the country, giving and Livestock Project large number of essential tools (e.g., pruning Project (NATEJA) women especially a means shears, ladders, bags) for proper harvesting of Grant $15 million to a sustainable livelihood. (NHLP) their products. Farmers are encouraged to work togeth- The objective of NATEJA is to increase the Grant $190 million er through the establishment of Producer potential for employment and higher earn- Afghan Farmers’ Contribution ings of targeted young Afghan women and Organization Groups (POGs), with 42 POGs $28.2 million men in rural and semi-urban areas through set up so far, having a membership of 300– NHLP aims to promote the adoption of im- 400 farmers per group. This structure helps non-formal skills training. The project focuses proved production and post-harvest prac- farmers with outsourced inputs and access to on improving labor market outcomes (e.g., tices and technologies by target farmers in markets. earnings and employment) for unskilled and the horticultural sector and to support the A total of 997 raisin drying houses has been semi-skilled youth through enhancing the livestock sector, with gradual rollout of farm- constructed on a cost-sharing basis to reduce quality of training delivery and providing en- er-centric agricultural services systems and post-harvest losses of grapes and improve the trepreneurship/apprenticeship support. investment support. quality of raisins produced. To date, 2,482 youth have received an en- Country Update/ artf 54/  trepreneurship grant. A series of field visits The WEE-NPP is led by a Project Coordination has reported that more than 95 percent of Office (PCO) in the Ministry of Labor, Social the targeted grantees have started their new Affairs, Martyrs and Disabled (MoLSAMD). businesses after receiving the grants. The The PCO is responsible for overseeing WEE- same percentage of grantees with existing NPP activities across six pillars: (i) increasing businesses has made further investments in the availability of gender statistics; (ii) remov- their businesses. A number of the targeted ing legal barriers to participation; (iii) training grantees made an additional investment in literacy, business management, and labor to complement the grant funding through skills; (iv) inclusive access to finance; (v) access NATEJA. to agricultural inputs, extension services, and The majority of visited grantees indicated markets; and (vi) access to creative economy that their business had improved as a result markets. of receiving the grant with an end-line survey The three-year Project Preparation Grant indicating that beneficiaries realized an aver- (PPG) has three components: (i) coordination age 55 percent increase in their earnings for and program management; (ii) provide tech- the month preceding the survey. About 60 nical assistance and capacity building to line percent of beneficiaries expressed satisfac- ministries carrying out WEE activities and tion with their work against 30 percent of the conduct relevant analytic work; and (iii) estab- control group. lish and operate an Innovation Fund to sup- Under the capacity building component, port women’s economic activities. 130 vocational trainers received training to Despite the slow progress of implementa- utilize national occupation standards in 22 tion of the PPG, several important steps have provinces. Furthermore, officials from the been taken to define and set up the overall Ministry of Labor, Social Affairs, Martyrs and institutional and coordination arrangements Disabled People were trained in areas of fi- for the WEE-NPP. The PCO’s working lines and nancial management, procurement, moni- coordination mechanisms within MoLSAMD toring and evaluation, and employment leadership, Technical Working Group for op- services or career guidance. One-third of the erational coordination, Steering Committee beneficiaries were women, particularly vul- (SC) for management-level coordination, and nerable female heads of household or less Human Development Council for high-level educated women. coordination have been established and their The project is proposed for early closure in roles and responsibilities defined and agreed October 2018, two months in advance of its upon by the relevant parties. official closing in December 2018. The SC, co-chaired by the Ministry of Women’s Affairs, MoLSAMD, and MoF, has met twice and formally endorsed the SC’s struc- Women’s Economic ture, roles and responsibilities. The program Empowerment has high visibility within the government. National Priority Program (WEE-NPP) Grant $5 million The objective of the WEE-NPP is to advance women’s agency, autonomy, and well-being Note: All dollar figures are in US dollar equivalents. by expanding women’s access to economic IDA, the International Development Association, is the resources. World Bank’s concessionary lending arm. The World Bank Group in Afghanistan www.worldbank.org.af Abdul Raouf Zia http://facebook.com/WorldBankAfghanistan phone +93 701 133 328 http://twitter.com/WorldBankSAsia infoafghanistan@worldbank.org photos and photo cover © Rumi Consultancy/World Bank/2018. House 19, Street 15, Wazir Akbar Khan, Kabul, afghanistan ©World Bank, October 2018.