91516 Quarterly Country Update ISSUE 36OC TOBER 2010 Afghanistan Introduction On July 20, 2010, the Government of Afghanistan brought together representatives of more than 70 partner countries, international and regional organizations and financial institutions to deliberate and endorse an Afghan Government-led plan for improved development, governance, and stability. The International Conference The World Bank’s New on Afghanistan, the first of its kind in Kabul, marked a new phase in Afghanistan’s Access to Information engagement with the international community. Policy A key goal of the conference was to mobilize international confidence and resources for a new generation of “bankable” national On July 1, 2010, the programs, in accordance with the Afghanistan National Development Strategy and President World Bank made Karzai’s inaugural speech of November a groundbreaking 2009. Building on commitments made at the change in how it makes recent international London Conference, the conference supported a peaceful, stable information available and prosperous Afghanistan. The conference to the public, opening was opened by President Karzai, and UN Secretary General Ban Ki-Moon, and co- its documents and data chaired by Foreign Minister Zalmay Rasoul under a new Access to and UN Special Representative Staffan de Mistura. Information Policy. Now A student attends class at a primary school in central the public can get more Afghanistan conducted its second parliamentary elections on September 18, Logar Province. information than ever 2010. Over 4 million Afghans cast their known as “credits.” Currently, the Bank has 23 active before—information votes (around 47 percent turnout) to elect 249 members of the Wolesi Jirga (Lower projects in Afghanistan with net commitments of over about projects under $860.61 million. of House of the Parliament) for a five year preparation, projects term. The Election Complaint Commission (ECC) is now working on the handling of over So far, a number of Bank-financed projects have under implementation, been completed which include the rehabilitation 3600 complaints from across the country. analytic and advisory Preliminary results are due on 9 October and of education, emergency public works, the final results on 30 October. reconstruction of infrastructure, emergency transport activities, and Board rehabilitation, health sector reconstruction, emergency proceedings. This On September 28, the Afghan government communications project and the first phase of a public announced the membership of the proposed administration project as well as four budget support new policy reflects operations. For more information about closed High Council of Peace. The Council will have the views of member the responsibility for leading the opening projects, please visit: www.worldbank.org.af – Projects of talks with insurgents. President Karzai & Programs page. countries, civil has consistently stated that he will talk to society organizations, insurgents if they renounce violence, cut The World Bank has provided advice to help the government manage donor funds effectively and in academia, ties to terrorists and embrace the Afghan constitution - a position supported by NATO. a transparent way. The World Bank also supports parliamentarians, the government by providing analytical work on the media, the private WORLD BANK GROUP SUPPORT economy, public administration, gender, poverty, the Since April 2002, the World Bank has opium economy, and public finance management sector, international (PFM). The Bank has actively supported key reforms, committed over $2 billion for development and organizations, donor emergency reconstruction projects and four particularly in the fiscal and public administration budget support operations in Afghanistan. spheres, and through its budget support operations. agencies, and Bank It has advocated building capacity and legitimacy of This support comprises over $1.63 billion in staff. grants and $436.4 million in no-interest loans the State and channeling donor resources through the government to ensure investments are aligned with 1 THE WORLD BANK GROUP IN AFGHANISTAN The World Bank currently has 23 active projects in Afghanistan with net commitments of over $860.6 million. national priorities. To this end, its investment partners in to lead to a more in-depth The World Bank’s New the World Bank works closely Afghanistan. IFC now has advisory engagement. In Access to Information with other multilateral and an investment portfolio October IFC mobilized a bilateral agencies across a totaling more than $90 team of its experts from both Policy number of sectors where aid million in six companies. This Investment and Advisory coordination and government includes commitments in the Services to perform a Examples of newly ownership are most critical. financial (First Microfinance comprehensive diagnostic of available information Bank of Afghanistan, Kabul Bank. In partnership Effective July 01, 2010, BRAC Afghanistan Bank, with the World Bank’s include: the World Bank began Afghanistan International Private Sector Development • Minutes of implementation of its Bank), telecom (MTN team, IFC will assess the Board Committee new Policy on Access to Afghanistan), hospitality operational situation at Kabul meetings Information, one of several (Serena Kabul Hotel) and Bank and propose remedial major reforms the Bank has healthcare (Acomet Family actions to the Central Bank of • Summaries of undertaken to increase its Hospital) sectors. IFC Afghanistan. Discussion effectiveness, efficiency, continues to work in various • Annual and accountability. . The sectors through its pipeline of The Afghanistan new Policy provides for projects in Afghanistan. Reconstruction Trust Fund Reports of Board much greater access to (ARTF) is a partnership Committees information about projects between the international • under implementation to “The World Bank community and the Afghan Implementation enable the public to track a government for the improved project through the course Group’s IFC investment effectiveness of the Status and Results of its lifecycle. The new reconstruction effort. Since Reports (portions) Policy applies to the World in Afghanistan is early 2002, 32 donors have • Country Bank Group’s International currently more than contributed over $3.7 billion Portfolio Performance Bank for Reconstruction and (as of August 22, 2010), Development (IBRD) and $90 million.” making ARTF the largest Reviews International Development contributor to the Afghan • Concept notes Association (IDA) projects. budget – for both operating and consultation World Bank Group’s costs and development International Financial The IFC continues programs. ARTF’s support for plans for policy Corporation (IFC) and strengthening the financial national priority programs, for reviews that are Multilateral Investment sector through capacity operating costs of government subject to external Guarantee Agency (MIGA) building of various financial operations, and for the policy have their own disclosure institutions. IFC assisted reform agenda is contributing consultations policies. The Policy is First Microfinance Bank to the achievement of available on line at www. of Afghanistan to design; the Afghanistan National worldbank.org/wbaccess and pilot and roll out a housing Development Strategy will be translated into many microfinance (“HMF”) goals. More than $1.95 languages, including Dari product to help low income billion has been disbursed and Pashto. Afghans meet their housing to the Government of needs. Additionally, Business Afghanistan to help cover The International Finance Advisory Services (“BAS”) recurrent costs, such as civil Corporation (IFC), the has recently concluded an servants’ salaries, and over World Bank Group’s private SME Banking diagnostic of $1.83 billion had been made sector development arm, Afghanistan International available for investment continues to work with Bank (AIB). IFC expects this projects. 22 Utilizing the NSP block grants, some 22,455 communities completed over 42,500 community-based projects. The Japan Social Development and 22,455 communities livelihoods and income- Fund (JSDF), administered have successfully elected generation, 14 percent work by the World Bank, has Community Development on education infrastructure, provided a special window for Councils (CDCs). These and 2 percent go towards Afghanistan which operates CDCs are established through other investments. The NSP is in a harmonized manner to the assistance of 28 NSP active in 359 of Afghanistan’s support the national programs Facilitating Partners who 364 districts and all of of the government. As of mobilize the community, Afghanistan’s 34 provinces. As September 2010, JSDF’s total facilitate elections and of September 12, 2010, over commitment to Afghanistan community development $720 million of block grants since its establishment in planning through community had been disbursed to CDCs. 2002 had reached $81.3 consultation, assist in million. A number of JSDF project preparation and In addition to subproject financed projects have so implementation, and also implementation, NSP has far been completed. For provide capacity building to effectively strengthened more information, please CDC members. community-level governance visit http://go.worldbank.org/ by establishing a network U5OQZVF200. Approximately 50,500 of CDCs. CDCs are the community subprojects village-level representative STATUS OF ONGOING have been partially or fully body and form a basis for OPERATIONS financed, of which some interaction within and between 42,500 subprojects have been communities as well as with Emergency National completed. About 80 percent government bodies and other Solidarity Project (NSP) of the community subprojects aid agencies. The CDCs are ($398 million Grant, $618 involve infrastructure such also increasingly becoming the million ARTF Grant and as irrigation, rural roads, platform for dispute resolution $15 million JSDF Grant): electrification, and drinking at the community level. The This is the Government water supply, all critical for Financing Agreement for the of Afghanistan’s flagship the recovery of the rural third phase of the project has program to support small- economy, stability, and recently been signed with the scale reconstruction and governance. The community government. The third phase development activities subprojects financed under plans to achieve national identified by Community the NSP focus on social and coverage by rolling out to the Development Councils (CDCs) economic infrastructure and remaining 11,000 communities across the country. The World are based on the priorities of in the country and also provide Bank is one of the main the rural population. Of the a second block grant to 17,000 sources of financing for the currently funded community communities that have already NSP. Other sources include subprojects, 24 percent fully utilized their first block the ARTF, the JSDF, and address water and sanitation grant. More information is several bilateral contributors. issues, 16 percent rehabilitate available at: Between early-May 2003 and irrigation systems, 24 percent http://www.nspafghanistan.org. September 2010, the NSP improve transportation has reached over 18 million infrastructure (e.g. roads, National Emergency Rural Afghans. Approximately bridges), 15 percent provide Access Project (NERAP) 23,135 communities energy (e.g. micro-hydro, solar ($112 million and $50 have been mobilized, energy), 5 percent improve million ARTF Grant): The 3 World Bank continues to support the tertiary roads have been completed so have been formed. In Bamyan, 103 government’s rural access program. far out of a planned total of 1283 Km, female SGs and 85 male SGs have Following the successfully completed and 7616 meters of running structures been formed and in Nangarhar 59 National Emergency Employment have been completed out of a planned female SGs and 126 male SGs have Program for Rural Access project total of 13343 meters. The MPW has been formed. All groups have started (NEEPRA), the Bank, on December generated about 638,220 labor days saving and many have also started 13, 2007, approved a grant of $112 of employment so far, and the MRRD internal lending. The key enterprises million for the National Emergency over 826,699 labor days. Out of the that the EGs in Parwan are involved Rural Access Project. In keeping total budget of $162 million allocated in include saffron production, poultry with the overarching objectives of the for both MPW and MRRD for road development, livestock rearing and program, the project aims to provide rehabilitation, drainage works, and handicrafts. year-round access to basic services routine maintenance, approximately and facilities in the rural areas of $73 million has been disbursed to Expanding Microfinance Outreach Afghanistan to enhance the well date. and Improving Sustainability being of the population and promote Project (MISFA) ($30 million Grant economic growth in the country. Under Afghanistan Rural Enterprise and $183.3 million ARTF Grant): The the project, secondary roads are being Development Project (AREDP) ($30 project aims to assist the government rehabilitated by the Ministry of Public million Grant and $18 Million ARTF in developing a sustainable Works (MPW) and tertiary roads by Grant): enhances participation of microfinance sector that will provide the Ministry of Rural Rehabilitation and the rural poor in economic activities flexible, convenient, and affordable Development (MRRD). The project by providing business development financial services to poor people. The proposes to rehabilitate approximately services, improving their access to goal is to build an integrated financial 2,010 km of rural roads and some finance, and strengthening market sector and remove the barriers that 9,000 meters of drainage structures, linkages and value chains. The separate microfinance from the generating 2.13 million unskilled labor project will support the establishment broader mainstream financial system. days of employment. As of August 31, of 13,000 Savings Groups (SGs), Since its inception in 2003, the project 2010, out of 118 secondary roads and 6,500 Enterprise Groups (EGs) and has provided more than $172.5 million drainage contracts planned/agreed to 1,300 Village and Savings Loan in funds, including $120 million in be undertaken by MPW, 73 contracts Associations. The EGs will help loans. There are now 13 microfinance were awarded of which 39 contract maximize the economic potential institutions (MFIs), with a network of completed and 34 contracts are in of rural entrepreneurs to improve 301 branches in 26 provinces, and progress. The remaining are under market access, deliver technical more than 436,000 savings and loan development and at the procurement knowledge, raise basic business skills, clients. stage. Out of a planned total of 1105 and leverage economies of scale to Km of secondary roads, 486 km have increase the value of their sales. The “Sixty percent of the been completed so far.) Out of a project will also work with around 750 planned total of 1516 meters of running Small and Medium Enterprises (SMEs) 436,000 microfinance clients structures,197 meters have been which are likely to be key drivers of are women.” completed and 870 meters are under rural employment. It will support SMEs construction.. For tertiary roads, out of in building necessary skills, promoting the 360 contracts planned by MRRD, market development, and particularly 195 contracts have been awarded encouraging business linkages into the of which 121 contracts have been rural economy. AREDP has already set To date, the program has disbursed completed and 74 contracts are in up offices and recruited provincial staff a total of 1.5 million loans across progress. The remaining non-awarded in Parwan, Bamyan and Nangarhar Afghanistan worth $794 million. As of contracts are under development and provinces. In Parwan, 123 female July 31, the gross loans outstanding at the procurement stage. 617 Km of SGs; 121 male SGs; and 35 EGs were $120 million. Sixty percent of the 4 Under EQUIP, the construction work of nearly 532 school buildings are now complete. clients are women, and the loan of systems to support this of the Ministry of Finance, repayment rate is 73 percent. framework. Activities include: and new programs are being The sector now employs 4,019 added to support purchasing people, approximately 1,513 Procurement Advisor: The and control of assets. of whom are women; and over procurement advisor has 90 percent of professional facilitated 873 government Audit Advisor: The audit positions and 50 percent of contracts valued at $2.2 advisor has assisted the management positions in billion. A new procurement law Control and Audit Office (CAO) the sector are occupied by has been enacted and related with the audits of International Afghans. According to findings regulations and bidding Development Association of the Baseline/Impact study documents have also been (IDA) projects, ARTF projects of the microfinance sector prepared along with standard and cost expenditures, and conducted in 2007, each MFI bidding documents. the state budget. In addition, loan supports or creates 1.5 over 100 staff members have employment opportunities in Procurement Capacity participated in various training Afghanistan. More information Building Advisor: A courses, including computer is available at: comprehensive needs and language training, http://www.misfa.org.af assessment for procurement technical audit, and modern training and a plan for audit working practices and Public Financial addressing the needs have procedures. The CAO is being Management Reform been completed. Training equipped with computers and Projects ($60.4 million in procurement rules and training material; a strategic Grant): A series of four procedures is underway development plan has been operations support for procurement staff of all prepared and a new law on Afghanistan’s efforts to ministries at the Civil Service auditing is proposed. establish a transparent Training Institute for all and well-functioning public government procurement staff. Internal Audit Capacity financial management system Development: The Ministry to ensure better use of public Financial Management of Finance Internal Audit resources. The grants initially Operations Advisor: An Department is operating an concentrated on funding integrated accounting, budget auditing training program consulting firms to support control and check issuance which has already imparted a government officials in carrying system has been operating in four-month training program out procurement and treasury the Treasury Department in to 120 staff of the Ministry operations, but have now the Ministry of Finance since of Finance and other public shifted emphasis to building October 2002. All budget entities and has trained capacity in procurement transactions are recorded in internal audit staff from across and audit functions in the this system which generates government, including 40 new Treasury Department of timely and comprehensive auditors in the Ministry of the Finance Ministry. The reports on the government’s Defense. projects contributed to the budget execution and financial establishment of the current position. This system has The Education Quality modern legal framework for been expanded to all the line Improvement Program public financial management ministries in Kabul and all but (EQUIP) consists of two and to the implementation one of the provincial offices projects: 1) EQUIP I ($35 5 million Grant and $44 million ARTF Of this 532 are already completed, University, Kabul University, and four Grant) started in August 2004; and 888 school buildings are under regional universities (Balkh, Herat, 2) EQUIP II ($30 million Grant and construction and 242 new buildings Kandahar, and Nangarhar) — through $171.74 million ARTF Grant) which was are planned for this year. The priority is partnership programs with universities launched in May 2008. The program on schools for girls. The school grants in the region and in the West, as well provides district-based teacher training are used for establishment and training as through competitive block grants. and grants directly to communities of Shuras and enhancement of quality In June 2010 additional resources of nationwide. EQUIP is fully aligned to education. So far 8494 schools have $20 million equivalent through World the Ministry of Education’s National received the Grant and utilized it for Bank’s International Development Education Strategic Plan (NESP purchasing library books, computers, Association (IDA) Crisis Response 1385-1389) and enjoys multi-donor laboratory equipment, teaching Window (CRW) was approved to scale support from the ARTF. Funds are material and other needs. A total of up these activities while adding 6 more used directly by communities through 5,769,110 students - 2,072,334 girls public universities (Bamyan, Takhar, School Shuras for the rehabilitation or and 3,696,776 boys - have benefited Jouzjan, Khost, Kabul-Education and construction of school buildings and from this support. So far 10,172 active Alberoni Universities), in line with the for accessing quality inputs, such as School Shuras have been formed, with priorities identified in National Higher teaching and learning materials. The 1,828 more expected to be formed; Education Strategic Plan (NHESP). School Shuras are functioning in all over 110,000 teachers and around Funds will also be provided to set up provinces, and, as of now, 10,172 out 9000 school administrators have been an institutional base to develop an of 12,000 schools have these Shuras. trained; 2750 girls in 25 provinces are agenda for tertiary education, capacity Shuras are assisted by the Provincial building and reform. The program is Education Departments, NGOs and “Around 10,172 School Shuras envisaged as the first phase of a long- District Educational Departments in all term higher education development 34 provinces. EQUIP II supports the are established to oversee program in Afghanistan that will act as District Teacher Training Program in a catalyst to attract various resources 23 provinces (the 11 other provinces construction or rehabilitation to the Afghan tertiary education sector. are supported by the USAID). It also provides regional allowances for of schools.” Under this program, eleven lecturers in 730 Teacher Training partnerships have been formed Centers (TTC) as well as scholarships for five of the six participating for 2750 girls to attend Teacher Training receiving scholarships to complete universities with eight established Colleges for two years, following their two-year studies at TTC; and overseas universities. These partner which they are to join the teaching 750 qualified lecturers recruited in 18 universities include: Kansas State force in their local communities. It also provinces. For EQUIP II, the ARTF University (USA), University of supports the monitoring and evaluation Management Committee recently Hartford (USA), San Diego State of NESP (National Education Strategic approved its first phase of support University (USA), Asian Institute of Plan) programs, including the now of $50 million for 1388; additional Technology (Thailand), University of established Education Management funds of $35 million will be disbursed Brighton (UK), Delhi University (India), Information System at the Ministry in subsequent phases based on the Ruhr Bochum University (Germany) of Education. In December 2007, results. and Technical University of Berlin the MOE successfully completed the (Germany), focusing essentially on school survey of Solar Year 1386. Strengthening Higher Education Engineering, Computer Science, Updated survey data can be found on Program (SHEP) ($60 million Grant English Language, Natural Science the MOE website: and $32 million ARTF Grant): and Economics/Management. Most www.moe.gov.af The program aims to restore basic partnership contracts are coming to By the close of the two projects in operations at six core universities in an end in 2010 but will need to be 2012, about 1662 schools will be built. Afghanistan — Kabul Polytechnic extended to complete the deliverables. 6 Afghanistan’s Skills Development Project aims to increase the skilled work force of Afghans. The usage of block grants the Universities of Nangarhar, by the First Vice President. to procure books, teaching Balkh and Kandahar and are The CESP Secretariat has materials, and IT equipment, being implemented. been restructured and hiring of and to rehabilitate libraries the staff is ongoing. and classrooms and equip Afghanistan Skills laboratories is continuing. Most Development Project ($20 Component 2: In pursuance procurement packages have million Grant and $18 of its mandate to be a model been completed as per plan. million ARTF): The project TVET institution, National Also, SHEP, with the support is designed to increase the Institute of Management of other development partners, number of skilled Afghans and and Administration (NIMA) is supporting the Ministry create a high-quality Technical has been established and of Higher Education in the Vocational Education and it implements competency- implementation of the 5-year Training (TVET) system that is based curricula for its academic National Higher Education equitable, market responsive, programs. The Maxwell Stamp Strategic Plan, aligned to the and cost-effective. More PLC (MSP) took over the goals of the ANDS. To this specifically, the project aims academic management during end, the process for providing to develop a demand-driven the second semester with additional finances from IDA vocational education and 1,700 students. Meanwhile, (The World Bank) is being training system, and give the third semester was finalized. training institutions autonomy started with 1510 students. to plan and customize their A significant feature is a The ARTF Management programs and establish Placement System where a Committee approved a blanket partnerships with experienced cooperation-type sustainable commitment of $32 million in national and international industry- institution linkage is 2008 to support the construction training providers. The project being forged necessitating the of faculty buildings, libraries, has 4 components: development of competencies and gymnasiums, as well demanded by the industries. To as master plans and other Component 1: Mainly lend credence to the programs, activities to improve academic focuses on the establishment the MSP through the University delivery in the universities of of the Afghanistan National of Jyvaskyla will provide Balkh, Kandahar, Nangarhar, Qualifications Authority; international accreditation to and the Kabul Polytechnic. Afghanistan National the programs and possibly The first phase of the ARTF Qualifications Framework and national accreditation in the funded activities is currently Awarding Boards. Hiring of an event the Afghanistan National underway with $5 million in expert consultancy firm has Qualifications Authority the form of a Development been completed and contract becomes operational. Four Grant Agreement (DGA) that signed with CINOP (a Dutch computer laboratories essentially covers design consultancy firm) on May 19, have been equipped with consultancy costs of buildings 2010 to undertake the above 410 computers. The office and master plans, capacity mentioned activities over a equipment for NIMA institute building as well as the cost period of 24 months. The has been purchased. Several of supervising construction of setup for the Committee on TVET institutes are also being buildings. Contracts for these Education and Skills Policy supported by the Project: the activities have been signed for (CESP) is in place and chaired Afghanistan National Institute 7 Infant and under five mortality rates have declined from 13 percent in 2006 to 15 percent in 2008. of Music (ANIM), the School of Mechanical School (100 percent is completed and KBDS has been Blind, Auto-Mechanical Institute, complete); construction of the selected. The main purpose of Construction Institute, Women’s auxiliary building for DMTVET (80 these interventions is to improve Dormitory and some buildings for the percent complete); the construction the livelihoods of the above groups, Deputy Minister TVET’s (DMTVET) additional classes for Takhnike-Sanwi and especially those who can benefit headquarters. is under evaluation, construction of from training in improved production learning space for IT Institute (Darul- and marketing methodologies, and After a comprehensive evaluation Aman) has been announced, the more diversification. of the DMTVET and its institutes, termination of dining hall & cafeteria the German Education and Training for Jangalak have been cleared with A curriculum and material (GET) undertook and completed a procurement department of MOE and development specialist was hired to review/reorientation of procedures will to be announced and construction support the NSDP curriculum and and processes to prepare the of a women’s dormitory. The project standards development team in Deputy Ministry for a decentralized has likewise provided funds for development of Competency Based structure. Policy recommendations the purchase of equipment for the Training standards at different level have been put forward, and Blind School, such as stationary, for the most demanded skills. So far capacity building interventions slide board, stile (chalk), walking 84 standards have been developed have been initiated to prepare the stick, laptop and Braille computers by the team and some of these Deputy Ministry for a decentralized (completed and audio equipment have already been introduced to the management system. This covers covered by Canadian Embassy); training providers. human resource management, and Western musical instruments for curriculum development, quality ANIM. The Government of Norway and assurance, teacher training, planning USAID are co-financing the project and organization, among others. Component 3: Under the National in the amount of $12 million and As a result of this, interventions Skills Development Program $6 million respectively through the and capacity building measures (NSDP), contracts were signed ARTF. The project is expected to be are identified and designed for with local NGOs and training completed by February 2013. implementation. providers to train around 7500 poor women, marginalized farmers and The Strengthening Health In addition, the Project has provided unemployed youth in 13 provinces Activities for Rural Poor Project support to TVET buildings and namely (Khost, Zabul, Uruzgan, (SHARP) ($79 million Grant, $22 campuses in need of renovation Kandahar, Badakhshan, Samangan, million from ARTF, $17.9 million and physical rehabilitation. The Bamyan, Ghazni, Paktika, Kunduz, from JSDF, $12 million from physical up-gradation activities Baghlan, Faryab and Helmand) Multi Donor Trust fund for health undertaken are: Construction of in wage and self employment The results innovation): SHARP aims the Afghanistan National Institute training programs have progressed to improve the health and nutritional of Music (ANIM): Renovation of the well and more than 6500 participants status of Afghans, focusing especially ANIM is complete; the design for have completed the training so on women and children and the construction of new buildings for the far. In order to support the UN- underserved areas of the country. The Music School has been completed; Habitat Learning and Community project supports Afghanistan’s Health contract for construction of an Empowerment Project 2 (LCEP-2) and Nutrition Sector Strategy, which alternate building and construction the procurement process of hiring is the blueprint for the government’s of a library and computer center for a consultancy firm to provide TOT health sector program for the period the Auto-mechanical School have in Business Development Services 2008-13. been awarded and the construction (BDS) and follow up support for work is ongoing; construction of 1500 trainers of LCEP-2 and 150 The National Risk and Vulnerability the surrounding wall of the Auto trainers of other TVET providers Assessment 2007/08 indicate good 8 The World Bank’s Interim With the World Bank support in 18 provinces Strategy Note (2009-11) is aligned with Afghanistan’s since 2003, the number of health facilities has National Development Strategy (ANDS) and is designed around nearly tripled from 148 to 421. three main pillars: Building the capacity of the progress in reducing infant of Public Health (MoPH). package; and (b) improve and under-five mortality. The MOPH has signed all hospital services critical to state and its accountability to its Infant and under five mortality the BPHS service delivery reduce maternal and child citizens: The Bank will continue in 2008 has declined to contracts for 8 provinces of mortality. 111 (13 percent reduction) the country. SHARP also to strengthen core government and 161 per thousand live supports monitoring and Afghanistan HIV/AIDS systems as the basis for births (15 percent reduction) evaluation of health services Prevention Project ($10 respectively from 129 and in Afghanistan by financing a million Grant): is designed to credible state building. Efforts 191 per 1000 live births third party agency to conduct strengthen national capacity will be made to strengthen respectively in 2006. With annual balance scorecards to respond to the epidemic public financial management World Bank support in 18 for primary health care by scaling up prevention provinces since 2003, the facilities and hospitals. programs targeting people and fiscal sustainability, and number of health facilities engaged in high risk improve transparency and has nearly tripled from 148 to Implementation has just behaviors. These vulnerable 421. Health service utilization been initiated for an groups at high risk include accountability. Assessments increased among project innovative results-based injecting drug users (IDUs), of vulnerability to corruption area populations from a rate financing (RBF) mechanism sex workers and their clients, of 0.3 consultations per capita to improve coverage and truckers, and prisoners. will be integrated into ongoing annually at the outset to 1.64 quality of services in health The project also aims to work. per capita by the mid 2009. facilities. In addition, $17.9 improve the knowledge Health care for expectant million has been approved of HIV prevention among mothers expanded, with the through JSDF to co-finance the general population, Promoting growth of the rural number of deliveries assisted the SHARP project. This strengthen surveillance of in facilities by trained health allows the project to provide HIV prevalence and high risk economy and improving rural workers jumping from 6 BPHS services for Balkh, behaviors, map and estimate livelihoods: Support to the rural percent to 24 percent. The Samangan and urban Kabul the sizes of groups engaged economy and livelihoods will number of pregnant women for the coming 3 years. In in high risk behavior, and who received at least one addition, $22 million has use communications and remain a priority for the Bank. prenatal care visit rose been approved by the advocacy to reduce stigma Rural programs also serve from 11 percent in 2004 to ARTF to be used to co- related to HIV and AIDS. 36 percent in 2008. Child finance the implementation as important entry points for immunization rates are still of BPHS in 11 provinces Since its approval in July shifting economic incentives low but have improved from - in Helmand, Badghis, 2007, the project has 12 percent in 2005 to 33 Farah, Nimroz, Samangan, contributed to strengthening away from opium and toward percent in 2008. Around Balkh, Wardak, Sar-e-Pul) the capacity of the National alternative, legal, high value 20,000 community health through NGO contracts, Aids Control Program (NACP) workers—half of them and in Kapisa, Panjshir, through (i) recruitment of agricultural products. women—have been trained and Parwan through direct seven national advisors and and deployed throughout delivery by MOPH, under the one international advisor; the country, increasing stewardship of the Ministry (ii) participation of NACP Supporting growth of the formal access to family planning in guiding implementation staff in national/international private sector: The World and boosting childhood and policy dialogue for training activities; and (iii) Bank Group will continue to vaccinations. The number of the Essential Package of exposure of NACP staff to facilities with trained female Hospital Services. Recently, well performing HIV/AIDS address the overall constraints health workers rose from 25 the Bank has also approved programs abroad. The to private sector development percent before the project to Additional Financing from increased capacity of NACP 74 percent today. the Crisis Response Window has resulted in the adoption through lending and advisory in the amount of $49 million of the Afghanistan HIV work. It will identify and address SHARP finances provision equivalent to expand Code of Ethics, an important of the Basic Package of SHARP’s implementation milestone for the support and specific measures that catalyze Health Services in eight capacity to deliver basic protection of people living business growth and will invest provinces (Helmand, health and hospital services with HIV/AIDS in the country. Farah, Badghis, Nimroz, to the vast majority of the To achieve its objectives, directly in local companies, Samagan, Balkh, Wardak, poor. Provision is being made the NACP has signed 12 including banks, to help them and Saripul) through national to include (a) mental health contracts with national and and international NGOs and enhanced nutrition international organizations, expand business. contracted out by Ministry services in the new BPHS and the harm reduction 9 9 activities have been initiated. has been to improve the valuation of in 2007 to 104 in 2010. Improved Comprehensive integrated biological- goods, reduce leakage of revenues, telecommunications network has behavioral surveillance (IBBS 2009) and decrease the waiting time at been established to support ACD, has been completed among priority major border crossings. The ECMTFP with 11 locations across the country populations of injecting drug users, has been helping to computerize the connected through the Virtual prisoners, female sex workers, customs processes at five major Private Networks (VSAT VPNS). The and road transport workers. The border crossings, through which Customs and Revenue headquarters results of the survey have important a wide variety of essential goods- building in Kabul, the Inland Customs implications for Afghanistan’s AIDS including wheat, rice, sugar, tea, Depot building at Jalalabad, as program. Injecting drug use is the vegetable oil, cement, scrap iron, well as truck parking facilities and major source of new HIV infections, and motor vehicles-are imported into other allied infrastructure have been with transmission highest in Western Afghanistan. constructed. The Trade Facilitation Afghanistan. HIV prevalence component of the project has is significant among prisoners One of the project’s key achievements also demonstrated good results, and appears to be related to the has been the automation of customs specifically for WTO accession proportion of injecting drug users in processes with the Automated System review of transit agreements with prison. HIV prevalence is zero among for Customs Data (ASYCUDA). neighboring countries, improvement both sex workers and road transport Customs processes have been of freight forwarding industry, etc. workers, suggesting limited sexual automated at major Inland Customs Moreover, the Afghan National transmission. Standards Authority (ANSA), which “Customs processes have been was established with the help of the Based on the recommendations of project, has now been approved as an the mid-term review, the project was automated at major Inland independent government standards restructured in February 2010. The organization, carrying out regular restructuring includes: (i) Modification Customs Depots (ICD). “ testing of Petroleum Oil Lubricant of the project performance (POL) and consumer products;. indicators; (ii) cancellation of part All funds committed towards the 4.2 in schedule 1 to the Financing Depots (ICD) minimizing human project have been disbursed and all Agreement (innovative initiatives interface in customs transactions. activities under the project have been sub-component); (iii) expansion of This has tightened controls, thereby successfully completed. The project the project scope by extending the increasing the speed of clearance is scheduled to close by the end of provision of harm reduction services and reducing the opportunities for 2010. for injecting drug users (IDUs) to corruption. Similarly, ASYCUDA is Farah and Nimroz provinces where now functional at five transit axes, In addition to the initial contribution the HIV epidemic is believed to be which receive some 65 percent of of $31.2 million, extra financing high; and (iv) extension of the Project Afghanistan’s transit trade by value of $6.8 million was provided to Closing Date from December 31, thus improving the collection of extend computerization to additional 2010 to June 30, 2012. transit fees in major transit corridors customs check posts at all the trade in Afghanistan. Full Declaration corridors in the country. The aim The Emergency Customs Processing System is now operational is to ensure customs performance Modernization and Trade at 5 locations; customs related transit that is affordable, accessible, and of Facilitation Project (ECMTFP) ($31.2 infrastructure considerably improved adequate quality. Since 2004, when million Credit and $6.81 million with the construction, refurbishment the project began, customs revenues Grant): The Afghan government, and rehabilitation of various facilities; have soared from $50 million to over with Donor assistance, has focused Afghanistan ranking of Customs $400 million in 2008 and almost on reforming and modernizing its Logistics Performance Index (LPI) doubled at the end of March 2010, Customs administration. The aim has improved notably from 150 reaching over $700 million - an 10 Rehabilitation of medium and large size irrigation schemes serving 677,000 hectares of land in various parts of the country have been completed. increase of more than 1400 specifically focused on productivity and farm income, percent in six years. In fact, anticorruption and improve improve food security and in the last year, Customs the release of legitimate livelihoods, and reduce revenues have increased goods in a fair and efficient vulnerability due to droughts. by about 90 percent. This manner. The grant will help To date, six regional offices in was largely attributable to finance costs associated with: Kabul—Jalalabad, Kandahar, computerized control over countrywide computerization Balkh, Kunduz, and Herat— transit shipments, tighter of customs clearance have been established to control over the clearance operations; installation develop institutional capacity of goods, and the enhanced of executive information at the local level. As of July capacity of the Afghan Customs systems for customs allowing 31, 2010, 804 sub-project Department (ACD) staff. To real-time monitoring of proposals, costing about $97 date, customs processes operations; development million, had been prepared. have been automated at major of possible options for Of these, 779 sub-projects Inland Customs Depots (ICD), cross-border Customs- totaling $90.8 million have including at the Kabul Airport, to-Customs cooperation; been approved; contracts which receives approximately provision of selected customs for 758 sub-projects worth 55 percent of all the country’s infrastructure to enable $74 million are ongoing; and customs declarations. The modernized operations; 645 medium and large size waiting time for trucks at the and technical assistance to traditional irrigation schemes major border crossings has support the development of worth $51.1 million serving also decreased. For example, a regulatory, administrative, more than 677,000 ha of land at Torkham, at the eastern and institutional framework in various parts of the country border with Pakistan, over for customs. Through these have been completed. As a 90 percent of trucks are now initiatives, the project will result of the rehabilitation, an cleared in less than one and continue the World Bank’s additional 136,000 hectares a half hours, down from 18 efforts to reform and modernize of land area are now receiving hours in 2003. At the Kabul the Afghan customs process. irrigation supplies, and Inland Clearance Depot, the crop yields have increased average waiting time for trucks The Emergency Irrigation substantially. In addition, the is a quarter of what it used to Rehabilitation Project work under the Feasibility be before computerization. ($40 million Credit, $86.5 Study of the Lower Kokcha million Grant, and $6 million Irrigation and Hydropower Building on the overall success Government Funds): The Multipurpose Project on the of the ECMTFP, and to continue project is helping to provide Kokcha River in the Amu River with the reforms underway, water to farms in the project Basin has been completed, and a new follow-on $50.5 million areas, with more reliable the final report was submitted project (Second Customs and equitable distribution in April 2010. Installation of Reform and Trade Facilitation of irrigation water. The 105 of the 174 hydrology Project) was approved by rehabilitation of the national stations in different part of the the World Bank Board on irrigation system in all five country has been completed. June 25, 2010, to consolidate river basins of Afghanistan Work on installation of 40 the customs modernization, will help increase agricultural Cableways has commenced. 11 The power supply to Kabul, billing and collection have improved. The DABS has opened its first consumer care center and a helpline for supply- Japan Social Development Fund related complaints. (JSDF): The JSDF was established by the Government of Japan These facilities will enable and telecommunication latrines have been improved, in 2000 as a means of measurement of river flows sectors. There are potential 135 kms of drainage and supporting activities for future use in planning and projects which are now being 107 kms of roads have been which directly respond developing water resources examined. It is expected constructed or rehabilitated. in the country. that some more guarantees In each neighborhood, to the needs of poor will be underwritten shortly. community-based Gozar and vulnerable The Afghanistan Investment The total associated foreign Cooperative Shuras are groups, enhance Guarantee Facility (AIGF), investment of the projects formed to represent women in cooperation with Asian under the AIGF is about $107 and men of the area. The their capacities, and Development Bank (ADB), million with approximately shuras identify community strengthen their Department for International 730 jobs created as a result. needs which are integrated empowerment and Development (DFID), and Given the importance of the into a Community Upgrading par ticipation in World Bank’s Multilateral project in attracting foreign Plan (CUP) covering water Investment Guarantee direct investment, and at the supply, access roads and the development Agency (MIGA), aims to drains, sanitation, solid waste process. The fund assist Afghanistan in its management, and street “KURP provided 107 kms is administered by reconstruction efforts by lighting (i.e. urban services). the World Bank. stimulating foreign direct of improved access to Shuras are very important in investment through a program managing local infrastructure The Government of of political risk insurance and organizing a solid waste homes through grading Japan and the World in an environment where collection system where a Bank agreed to set the perception of political and surfacing roads.” collector/sweeper contracts risk by foreign investors is with the Shura, and health up a special window very high. The project is and hygiene campaigns on within the JSDF to designed to stimulate private request of Government of clean water and sanitation. support activities business activity and attract Afghanistan, the closing date in Afghanistan foreign private investment of AIGF has been extended The Emergency Power in a variety of sectors. It will for two years from September Rehabilitation Project under a multi-year stimulate the local economy, 30, 2009, to September 30, ($105 million Credit and program of assistance generate employment, create 2011. $20 million ARTF Grant): for the country’s tax revenues, and assist The project is working to reconstruction and in the transfer of modern Kabul Urban provide improved and more technologies and business Reconstruction Project reliable supply of electricity transition toward practices to Afghanistan. ($25 million Credit and $5.6 to the residents of Kabul. It is political, economic, million ARTF Grant): This doing so by rehabilitating and and social stability. Despite the deteriorating ongoing urban upgrading expanding city distribution business environment project benefits formal and networks; connecting the which impeded the flow of informal neighborhoods, Kabul city grid to the future foreign direct investment including four neighborhoods North East Transmission to Afghanistan, the AIGF in the Old City of Kabul. About System to allow for the has been making steady 65,000 persons have already import of lower cost power progress. To date, a total of received improved services, from Uzbekistan into the city; six guarantees have been and approximately another rehabilitating the 100 MW underwritten with the AIGF 50,000 are in the process of Naghlu Hydropower Plant for five beneficiaries covering receiving services. As of July (the largest hydro generation the agricultural, financial, 31, 2010, 7,432 street lights station in Afghanistan which pharmaceutical, construction, have been installed, 6,857 supplies power to Kabul) and 12 12 Under the Horticulture and Livestock Project, over 2,100 hectares of new orchards have been planted. the associated transmission supply-related complaints establishment of 200 small line; and restructuring and that are already established, scale broiler units and a commercializing the power DABS plans to open two more further batch of 5,800 semi utility to improve service centers in October 2010. commercial layer units are in delivery. the process. Emergency Horticulture Among the project and Livestock Project (HLP) Urban Water Sector Project components, Naghlu hydro ($20 million IDA Grant and ($17 million Grant): The project rehabilitation work $34.3 million ARTF Grant): project aims to: (i) transform has been lagging and has not The project is making good the Central Authority for picked up as expected. Ministry progress especially under the Water Supply and Sewerage of Energy and Water (MEW), Horticulture component. Over (CAWSS) into a technically DABS and SMEC teams have 2,100 ha of new orchards viable operation; (ii) establish been discussing the issue have been planted of the the financial sustainability with the contractor, TPE. The total of 3000 ha targeted. of the Afghanistan Urban parties agreed to a new work Over 600 female farmers Water Supply and Sanitation schedule to complete the have participated in the new Corporation (AUWSSC,); rehabilitation of the four units orchard’s scheme and besides (iii) increase access to and of the plant by June 2012. receiving input; they have reliability of the water supply Consequently the closing received extension messages. service in Kabul; and (iv) dates of IDA Credit and ARTF The component also supports prepare a follow-up project Grant has been extended existing orchards by providing under which more substantial from the original September extension messages and institutional and financial 30, 2010 and June 30, 2010 inputs through farmers’ field objectives can be achieved and respectively, to September 30, schools. coverage further expanded in 2012. Of the four units, Unit Kabul and provincial towns. no.4 is under rehabilitation Under the Animal Health To achieve these objectives, and is expected to be back in Component, in addition to the project includes three main service by September 2010. 114 government veterinary components: (i) institutional Of the four units, Unit no.4 was clinics transferred to trained development of AUWSSC; (ii) rehabilitated in September veterinarians for private financial support to AUWSSC 2010. Other units would be operation, 53 more clinics operations; (iii) and, an completed over the next 8 have been identified for extension of the Kabul water months. similar transfer. Equipment supply system. However, for the liquid nitrogen plant due to cost increases and The power supply to Kabul, will be installed soon. The the resulting large funding billing, and collection have Poultry subcomponent has gap, coupled with excessive significantly improved, and to helped poor women enhance delays in the preparation improve its cash flow, DABS their incomes from poultry of engineering design and started monthly billing to all production. Under this procurement documents, of its large customers from component, 7,000 intensive implementation of extension September 2010. Also in poultry units that were started of Kabul water supply system addition to its first consumer in July 2009 have produced did not proceed. Project care center and a hot line for over 13 million eggs. The restructuring as requested 13 by the Government is under IDA supports measures to enhance the Chinese company which was consideration and includes (a) regulatory capacity, foster private awarded the tender. The total amount modification of the project scope to sector development and adherence of the investment will be around $10 reflect the cancellation of the Kabul to international standards. This billion over the next 5 to 10 years, and water supply system component; (b) project is helping the government to an initial payment of $80 million has addition of two new activities for the ensure that the revenues from these been received by the government. In preparation of a new water supply valuable resources are available addition to strengthening the Ministry project for Kabul and a pilot scheme to the country as a whole and are of Mines’ capacity to supervise the for expanding water supply services transparently managed. Among the mining sector, the project is helping by small private operators; (c) approaches the government will use the government move towards its revision of the project development to manage the sector is the Extractive goal of ensuring transparency and objective and project’s results and Industries Transparency Initiative – a good governance in the sector. The indicators; and (d) extension of the set of principles that supports sector government has taken the important current grant closing date to June governance via the full publication step of endorsing the principles of the 30, 2012 to enable completion of the and verification of company Extractive Industries Transparency technical assistance and capacity payments and government revenues Initiative (EITI) and has been building activities for the water supply from oil, gas, and mining. In addition, awarded “candidate” status by the and sewerage utility. an International Advisory Council EITI secretariat in Oslo. has been established to assist Following the announcement of the government in evaluating the Private Sector Development (PSD) the sector policy and institutional strengths and benefits of contracts to Support Project ($25 million Grant): development plan in October 2005, ensure that best practices are applied The project aims to stimulate the local a Presidential Decree to corporatize to help Afghanistan in developing its economy to generate employment, CAWSS was issued in January natural resources. create income and alleviate poverty. 2006. The Articles of Incorporation It helps create an economic enclave of the new AUWSSC were approved Despite a number of constraints— for businesses operating in both the by the Cabinet on July 9, 2007, notably a difficult business domestic and export markets. The and gazetted by the Ministry of environment—the project has project supports: (i) constructing Justice on July 11 2007; the Board made steady progress since its an industrial park at Hisar-e-Shahi, of Directors is meeting regularly, inception. Significant strengthening (ii) establishing industries in 4 key the General Manager, Finance of the Ministry of Mines departments sectors (light engineering, food Manager, Operations Manager of responsible for cadastre and mine title processing, leather garments, carpet the management team and Internal management has been conducted washing and finishing); (iii) building Auditor and Heads of 6 Strategic as well as training courses for the AISA’s (Afghanistan Investment Business Units have been appointed Afghanistan Geological Survey. Support Agency) capacity in the and recruitment of the Deputy Mining regulations have been drafted Industrial Parks Development Technical Manager is underway. and environmental regulations are Department (IPDD) and Research AUWSSC took over the entire urban under preparation as well as other and Policy Department (RPD); and water supply and sewerage operation guidelines and procedures for the (iv) creating capacity in the Private in the country. External auditors have Ministry of Mines. Significantly, Sector Development Directorate been appointed, and the proposals the project has stimulated private (PSDD) of Ministry of Commerce for technical assistance are under sector investment in Afghanistan by and Industries (MoCI) to design evaluation. facilitating the successful tender of PSD related policies. The capacity the Aynak copper deposit, one of the of IPDD has been substantially Sustainable Development of largest such deposits in the world. improved in financial management, Natural Resources Project The government has concluded procurement, environmental and ($40 million Grant): The project the contractual agreements with social management, and project 14 The Bank’s new Global Food Crisis Response Program helped rehabilitate some 407 small irrigation schemes. supervision. However, the high park and install a Sub Station intakes. With rehabilitation of staff turnover has constrained to supply the power from the these schemes, over 6,900 the ability to implement grid to the park. A MOU has families in far remote areas projects independently. been signed between Da of Afghanistan have been Similarly, a number of staff in Afghanistan Brishna Sherkat provided with access to PSD department of MoCI have (DABS) and AISA, which improved irrigation systems been trained to improve their states that DABS will provide which will enable farmers to capacity in undertaking policy 25 MVA hydropower to the expand irrigated farmland. The analysis and implementing Hussar-e-Shahi industrial park. project also builds community projects. The transmission line from capacity to implement and Jalalabad City to the industrial maintain irrigation sector Civil construction work of park and the Sub Station is projects that address the park, which includes going to be financed under community needs. leveling, boundary walls, road the PSD Support Project. The work, storm water drainage contract for power distribution Civil Service Reform Project and water supply system, network and street lighting ($20.4 million Grant): is now fully completed. This is awarded and the process The project supports the represents 40 percent of the of hiring a design consultant Independent Administrative total project cost. The contract for the transmission line and Reforms and Civil Service for design consultants for sub-station is progressing. Commission (IARCSC) and wastewater treatment was The park is expected to be key government ministries in awarded in September. The operational in 2011. Once the improving their capabilities major constraint that the project is fully implemented, it for management of human project is experiencing is to is expected to generate 6,000 resources. To meet this provide power to the park. jobs in Afghanistan. objective, the project The project was designed in supports the government 2006, when the grid station Afghanistan Food Crisis in the development and was not available in Jalalabad Response Project ($8 implementation of clear rules City. Therefore, AISA had million Grant): The Bank’s and procedures for managing considered a diesel generator new Global Food Crisis civil servants. The project also power plant to energize the Response Program provides supports core ministries to park. this assistance for the reorganize their structures and rehabilitation of approximately staffing so as to better perform Currently, the Asian 500 small irrigation schemes, their tasks. In addition, the Development Bank (ADB) critical to the recovery of project supports ministries to is financing a transmission the country’s agriculture. So implement the Pay and Grade line from Naghlu (a district far, 556 of these schemes reforms. of Kabul) to Jalalabad City have been financed of which and building a Sub Station in 407 schemes have been Financial Sector Jalalabad. Since the project is completed. These schemes Strengthening Project ($8 located 20 km from Jalalabad included cleaning of canals/ million Grant): The project City, it is possible to extend the karezes, as well as building supports the Afghanistan ADB financed transmission of protection walls, gabion National Development line to Hisar-e-Shahi industrial walls, water dividers, and Strategy’s vision to establish 15 How the Afghanistan Reconstruction Trust Fund (ARTF) works: Donors contribute funds into a single account, held by the World Bank in the US. The ARTF Management Committee makes decisions on proposed allocations at its The Afghanistan monthly meetings, and those decisions Reconstruction Trust are translated into funds through Grant Agreements signed between the World Fund (ARTF) was Bank and the Government of Afghanistan. established in April ARTF allocations are made through two 2002 as a temporary “windows”: the Recurrent Cost Window and the Investment Window. The Recurrent means to finance the Cost Window reimburses the government government’s wage for a certain portion of eligible and non- bill. Now the ARTF has security related operating expenditure every year. The Investment Window provides developed into the main grant financing for national development multi-donor funding programs in the development budget. mechanism in the a modern and competitive raising awareness among the framework for safety nets, country – financing both financial sector. The relevant stakeholders, and and on that basis implement the essential running project will specifically providing advice regarding a pilot safety net program costs of government strengthen the capacity of the necessary IT systems. for needy households, with Da Afghanistan Bank (DAB) IFC is also engaged with the a subsequent proposal for a as well as key Afghan in the areas of banking Central Bank to establish the scaled up national approach. National Development supervision, accounting, legal framework for leasing. The project aims to develop internal audit, and human capacity in the Ministry of Strategy (ANDS) resource management. It The Afghanistan Credit Labor and Social Affairs to programs across the will also develop necessary Reporting Regulation was plan and administer programs financial infrastructure such approved by the Supreme in pensions and safety nets. country. The objectives as a public credit registry, Council of Da Afghanistan of ARTF are to: collateral registry, and the Bank on June 05, 2010. The A F G H A N I S T A N Afghanistan Institution of new regulation will be in force RECONSTRUCTION Banking and Finance (AIBF). after the official publication TRUST FUND • Position the national The consultants for the in the Gazette, and can positions of audit and human be considered one of the The Afghanistan budget as the key vehicle resources commenced work most modern in the region. Reconstruction Trust Fund to align the reconstruction at the start of February 2010. It allows both public and (ARTF) is a partnership program with national The other positions are private credit reporting to be between the international currently in the process of established in Afghanistan. community and the development objectives. being re-advertised. It also introduces, for the Afghan government for the first time, ample borrowers’ improved effectiveness of Through this project, IFC privacy rights and allows for the reconstruction effort. • Promote transparency is also providing technical the establishments of Private Since early 2002 until August and accountability of assistance to the Central Credit Bureaus in the future. 22, 2010, 32 donors had Bank in order to establish It has been constructed contributed over $3.7 billion, reconstruction assistance two basic financial sector to attract leading private making ARTF the largest infrastructures in the country: providers (mandatory sharing contributor to the Afghan (i) a Public Credit Registry and mandatory inquiries with budget—for both operating • Reduce the burden that will provide lenders with borrowers’ consent, closure costs and development on limited government information for efficient risk of the PCR to inquiries when programs. ARTF’s support for capacity while promoting assessment on borrowers; the first PCB opens) and national priority programs, for (ii) a Collateral Registry allows the participation of operating costs of government capacity-building over for movable property that regulated and non-regulated operations and for the policy time will provide lenders with entities. reform agenda is contributing the ability to effectively to the achievement of • Enhance donor use borrowers’ property as Afghanistan Pension the Afghanistan National coordination for financing collateral. IFC’s involvement Administration and Safety Development Strategy goals. in these two projects includes Net Project ($7.5): The and policy dialogue. an assessment of the legal project is designed to improve Management: The ARTF is and regulatory framework, the administrative capacity of managed by the Management support in the preparation the public pension system to Committee consisting of of the necessary new laws ensure the effectiveness of the World Bank (as the and regulations required a reformed pension scheme administrator), the Islamic for the establishment of this for public sector employees. Development Bank, the Asian infrastructure, assistance in It will also develop a policy Development Bank, and the 16 Under the Urban Water Supply Project (UWSS), construction of water supply systems in 12 provincial towns is currently ongoing. UN (UNAMA and UNDP). Projects. The Investment Window has The Management Committee in the last two years increased meets regularly in Kabul, with The Recurrent Cost (RC) significantly in volume and the Ministry of Finance as an Window ($1.95 billion): To scope. In the last two years observer, to carry out the day- date, the ARTF has disbursed (SY1387 and SY1388) to-day business of the fund. $1.95 billion through the investment commitments Once a quarter, ARTF Donors government’s operating have exceeded recurrent cost meet to discuss broader budget. Domestic revenues commitments. Disbursement strategy with the government continue to be insufficient to rates on ARTF investment and ARTF Management. cover the costs of government. have been very strong with 77 The ARTF Recurrent Cost percent of total investments “32 donors have Window has therefore disbursed as of August 22, ensured the basic functioning 2010. Consistently high rates co nt r i b u te d $3.7 of government including the of disbursement are strongly delivery of services such as influenced by the sectors million, making ARTF healthcare and education. in which ARTF invests. the largest contributor Given that around 60 percent Decentralized and national of the non-uniformed Afghan rural development programs, to the Afghan budget.” civil service is accounted such as NSP, NRAP and for by teachers, the Ministry Microfinance, have been of Education has in general strongly supported by the received around 50 percent ARTF. ARTF and Donor of total ARTF resources. Contributions: A total of 32 Ministries of Public Health, As of August 22, 2010, there donors have contributed to Foreign Affairs, Labor, and were 19 active projects funded the ARTF over the past seven Social Affairs and Higher through ARTF, with a combined years. Donor contributions Education have also been commitment value of over have increased year after major recipients. It should also $1.83 billion; of this, $834.50 year, with new donors joining be highlighted that the ARTF’s million was disbursed. Full and older donors increasing RC Window resources are details of investment activities their levels of contribution. national in scope, ensuring the are provided in the ARTF Nevertheless, over the last few payment of salaries of around Quarterly Reports available at years the “preferenced” portion 300,000 non-uniformed civil www.worldbank.org/artf. of donor contributions has servants in all 34 provinces of been the main factor driving the country. Steady year-on- The ARTF-financed Urban growth. The agreed ARTF year increases in operating Water Supply and Sanitation rules are that donors may not costs across government mean Project (UWSS) provides “preference” more than half the RC Window accounts for a $41 million to support the of their annual contributions. declining share of the overall government’s short-term This rule is to ensure that the budget. Nevertheless, the RC UWSS program. The project ARTF has sufficient funding Window still finances around has five components: to finance the Recurrent Cost half of the non-security costs Kabul water supply, Kabul Window and that it retains of government. sanitation, provincial towns some flexibility in the approval WSS, engineering support of National Priority Investment The Investment Window: and technical assistance, 17 and financial support to the Central Kabul Water Supply component. support institutional capacity building Authority for Water Supply and Contracts for goods (suction trucks for operation and maintenance of Sewerage (CAWSS) operations. The and container vehicles), small works the distribution systems, as well as Kabul water supply and provincial (co-composting pilot and construction the establishment, operation, and towns WSS components are based of workshops) have been completed, handover to DABS (Da Afghanistan on feasibility studies that have been and rehabilitation of a major dumpsite Brishna Shirkat – Afghanistan Power completed for Kabul (financed by (900 tons per day capacity) in Kabul Utility) of a customer care center in the KfW) and 11 provincial capitals served completed. Water sources have target area. by CAWSS. In addition, the ARTF been constructed in 5 provincial has also financed feasibility studies towns to abstract at 1,120 cum/hour, While majority of the project for 11 cities which were not served construction of storage reservoirs is in components are on track, there are by CAWSS. The Kabul sanitation progress in 5 towns, works of laying possibilities that the project may component is based on the strategic distribution pipeline and connections require further extension (from the sanitation plan and associated master are in progress in 12 towns. Financial revised closing date of September plan covering municipal solid waste, support to operations, effective since 2011) of few months. This is mainly on-site sanitation, and sewerage and August 2005, was terminated in March because the MEW has suspended storm water drainage. The project 2007. The CAWSS has been liquidated delivery of poles to all projects until cost increased to $100 million due and Afghanistan Water Supply and the test results satisfy the acceptable to (i) underestimation of the original Sewerage Corporation (AUWSSC) technical standards. Terrorist attacks project costs, (ii) change of scope in took over the existing water supply targeting Indians had led the Indian the provincial towns (design changes and sewerage operations in the urban contractors recall a major part of the for the networks on account of various areas. work force causing further delays in factors such as, relocation of wells/ execution of some contracts. reservoirs due to land availability, Kabul/Aybak/Mazar-e-Sharif Power relocation of wells due to aquifer Project ($57 million) is working to The physical progress of the Kabul constraints, connecting existing provide reliable and quality power to rehabilitation work is slow with only 57 networks with new networks, and consumers in the target areas of the per cent of the work completed as of bridging the gaps to reach tertiary cities of Kabul, Aybak, and Mazar- August 2010. Implementation work for networks), and (iii) price escalation e-Sharif. The project would support Feeder 07 (pilot project) under Mazar on account of delays in procurement. investments to: (i) strengthen the low- distribution works was completed and The project was restructured in March voltage distribution network through energised on 20th June, 2010 with 20 2010 to address the funding gap and rehabilitation/upgrading of old and distribution transformers connected to to focus on completing the works dilapidated infrastructure in parts of this new feeder. Approximately 3,000 contracts under implementation for Kabul with the aim of improving the consumers were connected to new water supply in the provincial towns. reliability and quality of electricity line, having 24-hour electricity supply However, a funding gap of $7 million supply and services in the target areas, from Mazar substation. Single phase still exists. as well as accountability of power voltage level has also increased from utility; (ii) construct a new 220/20 kV 58V-176V to average 230V.Civil and Construction of the water supply substation and associated 20 kV lines structural design approvals for both systems in 12 provincial towns is at Aybak to provide quality, reliable, Aybak and Mazar substations are -fully currently ongoing. All other investment and clean grid power to the residents completed. Construction works of the activities envisaged in the restructured of Aybak town; and (iii) rehabilitate boundary wall of Aybak substation has project have been completed. and augment the transmission been completed. Production and observation wells facilities for the medium- and low- have been completed to provide voltage distribution network in Mazar- The construction work of customer water at 1,420 cum/hour under the e-Sharif. In addition, the project would care center has started. The expected 18 Kabul Urban Roads Improvement Project supports rehabilitation of about 12 kms of existing roads. completion time is 4 months. and equipment deliveries are in has already funded the salaries The procurement of digital progress. The contractors have of Energy Efficiency Engineers metering package for single completed initial survey and at MEW, and is currently and three phase consumers design work on rehabilitation of discussing a plan of further has been completed. The first distribution networks for Pul-e support to the unit. lot of the meters is in transit Khumri, Charikar, Gubahar and in Mazar-e-Sharif border, the Jabul-Seraj. Vendor approval Kabul Urban Roads second lot is under factory has been undertaken for major Improvement Project ($18 acceptance tests. Installation equipment. Some material, million): The Project aims to is expected to be completed including pole assembly plant improve traffic flow on priority by November 2010. USAID is has been shipped. The work corridors or segments of the funding the installation of these on the Charikar substation to main urban roads in Kabul city. meters. be funded by the Government The Project will rehabilitate of India is still to start. The about 12 kms of existing roads; ARTF – Afghanistan Power team will continue to follow on construct and rehabilitate road Sector Development Project this through MEW, Ministry of side drains and walkways; ($35 million): The project Finance and Inter-Ministerial construct roundabouts at key supports the Government of Commission on Energy (ICE) intersections; and install street Afghanistan in increasing: meetings. There was some lights. The Implementation (i) access to grid power; and progress in internal approvals Consultant (IC) has completed (ii) the quantity of power of the Government of India the topographic survey, available to consumers in the authorities, as reported in last geotechnical investigations and target urban centers of Pul- ICE meeting. MEW/DABS has design for 75 km of roads under e-Khumri, Charikar, Gulbahar in the interim provided some their contract and has submitted and Jabul-Seraj. The project power at 20 kV from Chimtalla to the Kabul Municipality for consists of the following two substation. final approval. Under this components: Distribution project 12 km of the existing System Rehabilitation, and The fieldwork for a household roads will be rehabilitated in Institutional Capacity Building energy survey has been Kabul city. To date the physical and Project Management completed. The survey results progress is around 40 percent Support to Ministry of Energy will help understand the attitude and the financial progress is 30 and Water (MEW). The project and disposition of customers percent. The construction work would support establishment of towards the use of electricity is expected to be completed by a unit within MEW to promote in major towns of Afghanistan. the end of this year. energy efficiency and saving. The survey report is expected to be ready in September 2010. Afghanistan Justice Sector Work on the rehabilitation of Reform Project (Phase 1) distribution works at Pul-e- With a series of recent attacks ($27,75 million): In line with Khumri (MEW/S-506) and in Kabul, the contractors have the ANDS and National Justice Charikar, Gulbahar and Jabel- recalled a major part of the Sector Strategy (NJSS), es-Seraj (MEW/S-504) is under work force. Unless the situation the Justice Sector reform way. Soil testing has been improves significantly, this project’s (JSRP) objective is to completed and pole foundation impact project progress. The enhance capacity of the justice design is being done. MV/LV Project is supporting energy institutions to deliver justice. design has been completed and efficiency activities of Ministry This should be achieved is under final review. Material of Energy and Water. The Bank through more strategic human 19 capital and physical infrastructure management, the increase of the skills of legal professionals, enhancement of the physical infrastructure, the provision of legal aid and legal awareness program. The project implementation started in July 15, 2008 and the project should be completed in June 30, 2011. The project has three components: Enhancing the Capacity of Justice Institutions; Legal Empowerment; and Strengthening Implementation Capacity. Key activities include: (a) Human Resource Management (HRM) (with HRM for Judges and RIMU (Reform Implementation and Management Unit) to support the HRM for court staff, prosecutors and AGO employees); (b) Training and Training Management Capacity (TMC); (c) creation of Central and Provincial Legal Libraries; and (d) International and National Gatherings of Legal Professionals; (e) Legal Aid program; (f) Legal Awareness Program; and (g) Financing the institutional structure for the implementation of the NJSS and the Project. Though with different levels of success, the Justice Institutions (JIs) have made progress in project implementation. Accomplished results imply that the project is likely to achieve its objectives. The Ministry of Justice has been the strongest performer among the JIs, followed by the Supreme Court. The AGO has made the slowest progress. Building project’s implementation capacity presents by far the biggest challenge for the project. The Management Capacity Program ($35 million) helps ministries to improve their capacity in key managerial areas over the medium term. This enables the government to manage resources more effectively and deliver results faster on the ground. The program funds qualified and highly professional Afghan staff, currently working in NGOs and international agencies, to work in critical positions in government to apply for ‘line’ civil service posts in areas such as financial management, procurement, human resource management, policy, and administration. This program directly funds about 100 senior level government positions in about 17 ministries, mostly focused on common functions. These positions are filled through a transparent and merit based recruitment managed by the Independent Administrative Reform and Civil Service Commission (IARCSC). All dollar figures are in US dollar equivalents. THE WORLD BANK IN AFGHANISTAN Website: www.worldbank.org.af Abdul Raouf Zia Benjamin S. Crow Telephone: 0093 (0) 700280800 Telephone: 001 (202) 473-5105 Email: azia@worldbank.org Email: bcrow@worldbank.org House 19, Street 15 1818 H. Street, N.W. Wazir Akbar Khan, Kabul, Afghanistan Washington DC, 20443, USA 20