91548 C O U N T R Y U P D A T E INTRODUCTION Afghanistan has begun an enormous political, economic, and social transformation since it was suddenly catapulted onto the world stage just a little over a year ago. Progress to date has been encouraging, but tremendous challenges remain. After 23 years of conflict, the Afghan people are working with a strong sense of urgency to restore peace and prosperity. They have installed a new national government, held a national assembly—the Loya Jirga, and elected a head of state. The government has prepared a national budget and development framework to guide the country’s reconstruction, and there are signs of economic recovery. Agricultural production has increased by an estimated 82 percent compared to 2001. With international assistance, the government has undertaken a tremendous effort to eradicate polio and vaccinate against measles and TB. The numbers of students and teachers returning to school as a result of a donor-assisted Back-to-School Campaign have far exceeded expectations, with 3.0 million students enrolled and another 1.5 million looking for schooling opportunities. The World Bank and Partners Afghanistan is far from being secure in these achievements, however. It still faces daunting challenges as it heads into the harshest winter months, with most Afghan Afghanistan Work in Progress: people still living in dire poverty. Only 23 percent of Afghans have access to safe water, 12 percent to adequate sanitation, and just 6 percent to electricity. Despite Keeping lights on in Kabul increases in agricultural production, an estimated 7 million people remain Training female teachers vulnerable to hunger, and the risk of famine is still high. More than 70 percent of Creating jobs schools need repairs, as do most of the country’s primary roads. Life expectancy at Connecting government to the birth in Afghanistan is 44 years (compared to 59 years for low-income countries internet worldwide). Keeping Salang Tunnel open all winter The government also faces the enormous tasks of drafting a constitution, Working with communities introducing a new Afghani currency, developing a sound financial and banking Cleaning up Kabul system, holding free and fair elections, and developing a professional national Helping government manage security architecture—all of this while the situation in the country remains highly resources volatile. The World Bank in Afghanistan: http://www.worldbank.org/af WORLD BANK ASSISTANCE In February 2002, the World Bank reopened its office in Kabul, where a country manager and a permanent staff of around 20 are now stationed. The Bank has been working closely with the government and bilateral and multilateral development agencies to help ensure that international assistance is well coordinated and efficient. In doing so, it has stepped primarily into areas where it has the most comparative advantage in providing financing and technical assistance, including public administration; infrastructure development at the village and provincial levels, as well as in urban areas; and education. The Bank is also providing assistance in the national highways, health, and financial sectors and is supporting the government’s efforts to strengthen its administration and create the institutions and policies needed for sustainable growth. In addition, the World Bank is the administrator of the multilaterally supported Afghanistan Reconstruction Trust Fund, which is being used mainly to cover government recurring costs and salaries. In the fiscal year ending June 30, 2002, the World Bank committed US$100 million World Bank staff consults project team in grants for four development projects, which the government has begun to members from United Nations Habitat and implement. In addition, the Bank is administering a US$2 million grant from the Kabul municipality Japan Social Development Fund for Afghanistan and a US$1.5 million grant from the World Bank Post-Conflict Fund to finance a number of refugee education projects being implemented by NGOs and United Nations-affiliated agencies. The World Bank has also focused on building government capacity to manage donor funds with transparency and accountability and to outsource program implementation to NGOs, the private sector, and communities. The World Bank has been an active advocate of the importance of channeling donor resources through the government. Channeling funds through the government helps assure that investments are aligned with national priorities. Equally important, it helps build the capacity and the legitimacy of the state, which are both critical to help achieve stability in Afghanistan. STATUS OF OPERATIONS Emergency Infrastructure Reconstruction Project - US$33 Million Grant Supports rehabilitation of urgently needed water supply and sanitation in secondary cities, sanitation in Kabul, and basic electricity for all cities, including Kabul. Urban public works generate short-term employment opportunities. Achievements on the ground to date include: Solid Waste Management in Kabul. Implementation began with the Municipality of Kabul in October 2002 for the collection of thousands of tons of solid waste which have been lying throughout the city for months. To date, 26 project staff (13 for the community mobilization component and 13 for supervision of the waste collection Work commences on Solid Waste activities) have been recruited to work in 12 districts of Kabul. In order to facilitate Management Project in Kabul capacity building and “learning by doing,” all project staff are based within the municipality in order to work closely with the sanitation department. Teams of professional female hygiene and health educators will go to each household to speak with families about the correct and safe clearing of their rubbish. The project is being implemented by Habitat, the United Nations Human Settlements Program. The World Bank in Afghanistan: http://www.worldbank.org/af Labor Intensive Municipal Public Works Program. In July 2002, local communities began to meet with project and municipal staff to identify priority public infrastructure works in the five participating cities (Kabul, Kandahar, Jalalabad, Mazar-i Sharif, and Herat). The works will make much-needed repairs while providing short-term employment. The works will include demolition of destroyed buildings, recycling of rubble involving the recovery of useable building material, clearing of drains, reconstruction of schools and clinics, and the revitalization of urban parks. The program is being overseen by Habitat, the United Nations Human Settlements Program, in coordination with Afghanistan’s Ministry of Urban Development and Housing. Recommissioning the Northwest Kabul Power Station. Work began in September 2002 by the Swiss company Alstom to recommission the 45 MW Northwest Kabul thermal power plant, which has remained inactive for 14 years. The first turbine is expected to be running by December 2002, and both turbines together are expected to almost double the power supply in Kabul. The power will be used mainly to heat and light homes and offices and allow street lights to be lit. World Bank grant funds of US$2.4 million are being used to procure diesel fuel. Salang Tunnel rehabilitation begins Emergency Public Works and Community Empowerment Project - US$42 Million Grant Delivers grants directly to communities for small rehabilitation works and development of community assets aimed at kick starting economic activities. The project underpins the government's National Solidarity Program in bringing assistance to communities across Afghanistan. Community-driven planning has begun in 119 communities in four provinces. First disbursements to communities are expected to begin in January 2003. Preparations are underway to bring the program to the first group of 7,000 communities by March 2003. Labor Intensive Works Projects. This will create employment in rural areas for ex- combatants and returning Afghans who had fled drought, conflict, or both. In October 2002, the project began field surveys, including meetings with leaders of rural communities in more than 20 provinces to determine priorities and prepare projects to repair provincial and district roads. Nine NGOs funded by the Ministry of Rural Rehabilitation and Development have started works in seven provinces (Badghis, Bamian, Faryab, Ghazni, Logar, Nooristan, and Zabul). The Ministry of Public Works has conducted field surveys in 15 provinces, and works will begin on the ground during December. The project is expected to create more than 2 million mandays of employment. Salang Tunnel Rehabilitation. Emergency maintenance and improvement work started in September 2002 on the 2.7 km tunnel, which covers a critical section of the highway that connects the city of Kabul to eight provinces and the country of World Bank staff member consults local Afghanistan to both Uzbekistan and Tajikistan. The goal is to secure two-way citizens in Parwan Province operation for daytime travel for the winter season when, traditionally, poor ventilation and electricity connections combined with snow and ice accumulation have made the tunnel dark, treacherous, and often impassable. The tunnel is the only entry point to Kabul for humanitarian aid and other goods as well as for returning refugees from the North. Besides protecting human lives, ensuring continued safe passage through the tunnel and upgrading the mountain road will help keep down the price of essential goods such as food and clothing. Efforts have been coordinated with the French NGO ACTED, with added funding from the The World Bank in Afghanistan: http://www.worldbank.org/af US Agency for International Development. Emergency Public Administration Project - US$10 Million Grant Is supporting Afghanistan’s efforts to lay the foundation for a transparent, well- functioning public administration by facilitating better use of public resources. The grant is financing the employment of international experts who are working with government officials to carry out procurement, financial management, and audit functions; develop the administration’s capacity in these areas; and assess existing systems and procedures to recommend suitable policy reforms. Achievements on the ground to date include: Financial Management Agent. Working closely with the Treasury Department in the Ministry of Finance, the agent has helped computerize the treasury’s check issuance system, so the Ministry can now generate accurate monthly expenditure reports, by Ministry, location, and budget code. The next stage of the work will extend to a fuller revenue and expenditure management system, introduce functionality in the Dari language, and introduce customized reporting. Procurement Agent. By mid-November 2002, the agent placed 33 contracts valued at US$29.6 million for the government. In addition, it was processing 69 additional contracts valued at about US$65 million. Audit Agent. Initial computer and language training has commenced, and it is expected that fuller support to enhancing audit capacity will be provided starting in January. Emergency Education Rehabilitation and Development Project - US$15 Million Grant Is helping to rehabilitate university faculties and facilities, rehabilitate primary schools, support the Ministry of Education in developing education policy and institutional development plans, and establish a government intranet and global distance learning center. Special emphasis has been placed on increasing access to educational opportunities to girls. Achievements on the ground to date include: Assistance to Higher Education Institute. A grant has been provided to the Institute Women consult reference books of Polytechnic, the University of Education, the Medical Institute, and five faculties in the Kabul University Library and dormitories of Kabul University to support rehabilitation of buildings and improve the quality of teaching. Grants for rehabilitation of approximately 100 primary schools in three provinces (Bamyan, Palwan, and Logar) will be provided by the Ministry of Education through NGOs. Physical rehabilitation of schools will be combined with teacher training and other educational inputs. The selection process for the position of Chair of the university’s newly established Women’s Leadership Department has begun. Funds for the position are being provided by the World Bank President's Contingency Fund. Kabul Distance Learning Center. The center has been established at the site of the Afghanistan Assistance Coordinating Authority (AACA). Its first international videoconference was held in mid-November and connected experts in Tajikistan, Kazakhstan, Uzbekistan, and Washington, D.C., to discuss the region’s economic development prospects. The center is part of the World Bank-established Global Development Learning Network and will facilitate the sharing of development knowledge between Afghanistan and top development officials from around the The World Bank in Afghanistan: http://www.worldbank.org/af world through new information and communications technologies. Government Internet Connectivity Project. Seven government agencies (Ministries of Finance, Rural Reconstruction and Development, Foreign Affairs, Japan Social Development Fund Communication, President's Office, the AACA, and the Central Bank) have been The JSDF was established by the connected to the internet and have access to email for the first time in history. They government of Japan in 2000 as a means are also connected to the Kabul Distance Learning Center. of supporting activities which directly respond to the needs of the poor and Japan Social Development Fund NGO Support Program - US$2 Million vulnerable groups, enhance their capacities, and strengthen their Will enable the government of Afghanistan to grant funds to NGOs who will empowerment and participation in the help communities rebuild through community public works and provision of development process. The fund is training in such areas as microfinance and the operations of savings and credit administered by the World Bank. associations. The program will also support training of women particularly in areas such as microfinance, vocational skills, and small business The Government of Japan and the World management, and it will disseminate important equal rights laws and policies Bank agreed to set up a special window through awareness campaigns. Achievements on the ground to date include: within the JSDF to support activities in Afghanistan under a three-year program of Eighteen NGOs have begun work with communities to provide training and assistance for the country’s reconstruction literacy programs and to support public works in irrigation and clean water supply, and transition toward political, economic, with another seven scheduled to start implementation shortly. The project is and social stability. providing a rare and valuable opportunity for the government of Afghanistan to administer funds to and build direct relations with local NGOs. Post Conflict Fund Grants - US$3.3 Million since November 2001 Grants offered to help assess needs, lay groundwork for projects, and provide training, particularly for women, in the areas of teaching and business administration. Education for Afghan Refugees - US$1.5 million. In May 2001, a US$1.5 million Post-Conflict Fund grant was approved by the World Bank for teacher training for Afghan Refugees from the Taliban regime. The projects were implemented by the Swedish, US, and German development agencies. The following is a breakdown of grant fund distribution. World Bank Post-Conflict Fund Afghan Female Teachers In-service Training Center (Swedish Committee for The PCF was established in 1997 to Afghanistan: US$300,000). Since operations began in October 2001, around enhance the Bank’s ability to quickly 144 female teachers have been graduated from the course, which is support countries in transition from designed to improve both teacher performance and average results of female conflict to sustainable peace and economic students in standardized final examinations. With grant funding from the growth. The Fund makes grants to a wide World Bank and seven other donors, the Swedish Committee for Afghanistan range of partners (institutions, established the center in Pakistan during the rule of the Taliban. In August nongovernmental organizations, United Nations agencies, transitional authorities, 2002, the center was transferred to Kabul and is currently the only one of its governments, and other civil society kind operating in the country. institutions). Grants are focused on the restoration of the lives and livelihood of Afghanistan Refugee Village Teacher-training Program (Save the Children war-affected population. US: US$300,000). With grant funding, Save the Children US developed a field-based, pre-service training course to train graduates of its schools in Balochistan, Pakistan, to become teachers. It also developed an in-service training module for practicing teachers in Afghan refugee village schools. The project officially started in March 2002, and by the end of 2002 had graduated 22 men and six women from the first pre-service training course and assigned them to schools to begin teaching. The World Bank in Afghanistan: http://www.worldbank.org/af Provision of Teacher Training for Afghan Refugees (German Technical Cooperation (GTZ): US$930,000). The German Technical Cooperation agency (GTZ) has provided initial and follow-up training to 249 teachers (188 male, 61 female) identified as needing improved teaching skills. The program has so far covered 50 refugee schools in remote areas in Pakistan’s North West Frontier Province. Approximately 12,500 students are expected to directly benefit from these activities. The program is also providing nonformal education, through literacy programs and home schools, to almost 5,000 people, nearly half of them female. Local ownership of the program has been fostered through community mobilization activities. AFGHANISTAN RECONSTRUCTION TRUST FUND The multilateral Afghanistan Reconstruction Trust Fund (ARTF) was set up in May 2002 to provide support to Afghanistan for three main areas of expenditure: recurrent costs of the government, such as the salaries of teachers, health workers, and police; investments, including capacity building, feasibility studies, and technical assistance; and financing the return of expatriate Afghans. Women join in the English class at Kabul Twenty-three donors have so far pledged US$210 million, of which over US$137 University million has been paid in and US$50 million has been disbursed. The fund has emerged as one of the main instruments for financing the country's recurrent budget deficit and is set to evolve into a major source of technical assistance and investment support for Afghanistan. In addition, channeling support through the fund has helped the government to avoid addressing the distinct funding specifications of 21 different donors, allowing the assistance to be used more efficiently and effectively without the risk of duplication of work. The ARTF is jointly managed by the Asian Development Bank, Islamic Development Bank, United Nations Development Programme, and the World Bank. For more information, please contact: In Kabul: Adbul Raouf Zia, Phone: (070) 276002 In Washington, D.C.: Zita Lichtenberg, Phone: 1 (202) 458-7953; Email: zlichtenberg@worldbank.org For more information visit: The World Bank and Afghanistan: http://www.worldbank.org/af The Afghanistan Reconstruction Trust Fund: http://www.worldbank.org/artf All dollar figures are in US dollar equivalents. December 2002 The World Bank in Afghanistan: http://www.worldbank.org/af