91544 THE WORLD BANK GROUP C O U N T R Y U P D A T E South Asia Region (SAR) Afghanistan INTRODUCTION Afghanistan has begun an enormous political, economic, and social transformation since it was suddenly catapulted onto the world stage two years 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 national government, held a national assembly—the Loya Jirga, elected a head of state, and approved a new constitution after widespread consultations with Afghan citizens. The government has prepared a national budget and development framework to guide the country’s reconstruction, and there are signs of economic recovery. 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 million students enrolled and another 1.5 million looking for schooling opportunities. Afghanistan still faces daunting challenges, however, with most Afghan people still living in dire poverty. According to figures from 2001 and early 2002, only 13 percent of its 23.5 The World Bank and Partners million population had access to improved drinking water sources (19 percent in urban and 11 percent in rural areas), and 12 percent had access to improved sanitation facilities (25 percent in urban and 8 percent in rural areas). Just 6 percent of the population had access Afghanistan Work in Progress: to electricity. Despite increases in agricultural production, a considerable number of Afghans depend on food assistance provided by the humanitarian community. More than  Keeping lights on in Kabul 70 percent of schools need repairs, as do most of the country’s primary roads. Life  Repairing roads expectancy at birth in Afghanistan is 43 years (compared to 59 years for low-income  Training female teachers countries worldwide).  Creating jobs  Connecting government to the The government also faces the enormous tasks of holding free and fair elections, internet developing a sound financial and banking system, and developing a professional national  Working with communities security architecture—all of this while the situation in the country remains highly volatile.  Cleaning up Kabul  Helping government manage WORLD BANK ASSISTANCE resources 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. The World Bank in Afghanistan: http://www.worldbank.org/af Since April 2002, the World Bank has committed $281.8 million in grants and an additional $221.4 million in no-interest loans, known as a “credits,� for development projects which are helping to meet urgent needs by providing jobs; improving roads; increasing the power supply in Kabul; cleaning up municipal waste; repairing schools, and improving health services. They are also building a foundation for the future, helping to mobilize communities; strengthen public administration, and develop the national highway and civil aviation programs. In addition, the Bank is administering five grants, totaling $7.7 million from the Japan Social Development Fund (JSDF), for support, including community rehabilitation, encouraging youth entrepreneurs, and local infrastructure development; and it is providing a $1.5 million grant from the World Bank Post Conflict Fund to finance a number of refugee education projects being implemented by nongovernmental organizations (NGOs) and United Nations-affiliated agencies. The World Bank is also supporting the government’s efforts to manage donor funds with transparency and accountability and to outsource program implementation to NGOs, the private sector, and communities. The Bank has been an active advocate of channeling donor resources through the government as a means of assuring that investments are World Bank staff consults project team aligned with national priorities and building the capacity and the legitimacy of the state — members from United Nations both critical to achieving stability in Afghanistan. Habitat and Kabul municipality In March 2003, the Bank finalized its Transitional Support Strategy for Afghanistan, which directly supports the government’s National Development Framework. It outlines the Bank’s assistance over a period of two years, by which time the government intends to hold elections. The strategy focuses on four key areas: improving livelihoods; assisting with the government’s fiscal strategy, developing and managing institutions; supporting governance and public administration reform; and helping to enable private sector development in Afghanistan. The World Bank is also acting as the administrator of the multilaterally supported Afghanistan Reconstruction Trust Fund, which is being used to cover government recurring costs and salaries, and also a number of new projects in areas such as microfinance, telecommunications, and infrastructure. STATUS OF OPERATIONS Emergency Infrastructure Reconstruction Project – US$33 Million Grant � Is supporting rehabilitation of urgently needed water supply and sanitation in secondary cities, sanitation in Kabul, and basic electricity for all cities. Urban public works generate short-term employment opportunities. Achievements to date include: Solid Waste Management in Kabul: Implementation began in Kabul in October 2002 for the collection of solid waste which had been lying throughout the city for months. To date, over 120,000 cubic meters of solid waste have been collected and 46 community organizations have been formed to help solve sanitation problems. To develop local capacity and “learning by doing,� all project staff are based within the municipality in order to work closely with the sanitation department. In addition to speaking with over 68,000 students, teams of professional female hygiene and health educators have visited over 170,000 households 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 Solid Waste Management Project in Kabul together with the Sanitation Department of Kabul Municipality. The project will end in April 2004 at which time the Municipality will assume full responsibility for the operation. Labor Intensive Municipal Public Works Program: Launched in December 2002, this program is implementing over 100 labor-intensive projects for infrastructure improvement and repair in the five main cities in Afghanistan. Project and municipal staff met with local communities in Kabul, Kandahar, Jalalabad, Mazar-i Sharif, and Herat to identify priority public infrastructure works. As of September 2003, the cash-for-work projects had generated approximately 3,000 person months of employment. The works will make much- The World Bank in Afghanistan: http://www.worldbank.org/af needed repairs, while providing short-term employment, and will include demolition of damaged buildings, recycling of rubble, 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, in coordination with Afghanistan’s Ministry of Urban Development and Housing. Recommissioning the Northwest Kabul Power Station: Both turbines of the 45 mw Northwest Kabul thermal power plant, which had remained inactive for 14 years, have been recommissioned and are operational. This has almost doubled the available power supply in Kabul, particularly critical during the winter months, when demand increases by one- third. The power has been used mainly to heat and light homes and offices and allow street lights to be lit. World Bank grant funds of $2.4 million were also used to purchase diesel fuel to operate the plant last winter. Fuel for the current winter is being funded by the multilateral Afghanistan Reconstruction Trust Fund and United States Agency for International Development (USAID). Power Sector Master Plan: A draft master plan to reform Afghanistan’s power sector was submitted in October 2003. It provides the basis for future investments in power generation Under the Emergency Infrastructure and transmission up to the year 2020. Reconstruction Project, the World Bank has committed $1.5 million for spare parts Emergency Public Works and Community Empowerment Project – US$42 Million for the 100 mw Naghlu Hydro Power Grant Plant which serves Kabul. It expects to spend another $5 to 10 million under a � Is supporting community mobilization and providing employment through infrastructure follow-up project. projects—mainly roads—which will, in turn, improve access to schools, healthcare, and markets in rural areas Support for the National Solidarity Program (NSP) - US$22 million: The NSP is the government’s flagship program to support small-scale reconstruction and development activities identified by communities across the country. Implementation is now in progress in around 950 village communities in more than 20 provinces, with a focus on conducting village development council elections and preparing community infrastructure projects. Elections have been conducted in over 340 village communities. A follow-up project—the Emergency National Solidarity Project—funded by an IDA Grant of $95 million was approved by the World Bank’s Board on December 23, 2003. Labor Intensive Public Works Project - US$16.5 million: The project is funding the start-up phase of the government’s National Emergency Employment Program (NEEP). The program is providing employment for poor people across the country through labor- intensive public works. Projects involve mainly road rehabilitation and repair, but also rehabilitation of local irrigation works and schools. In addition to its short-term employment benefits, investment in rural access infrastructure helps reduce poverty by improving access of the rural poor to basic services and markets. The Ministry of Rehabilitation and Rural Development (MRRD) and the Ministry of Public Works (MPW) are implementing the program, partnering with CARE International and the United Nations Office for Project Services (UNOPS) on subprojects. Provincial and district authorities are involved in the prioritization of subprojects proposed for funding. World Bank staff listen as Afghanistan’s Since implementation began in January 2003, a total of 267 road repair subprojects have Minister of Rural Rehabilitation and been completed, employing over 80,000 persons, generating 2.1 million person-days of Development and the head of a local employment, directly benefiting about 250,000 family members, and repairing 3,638 km of community explain how the National rural roads. Solidarity Program is working in this village north of Kabul. Salang Tunnel Rehabilitation – US$3.6 million: 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 Afghanistan to both Uzbekistan and Tajikistan. Typically, in the winter season poor ventilation and electricity connections combined with snow and ice accumulation have made the tunnel treacherous and often impassable. Work has included removing collapsed snow galleries, filling bomb craters, and removing sections of collapsed ventilation shafts. The World Bank in Afghanistan: http://www.worldbank.org/af In December 2003, the Salang tunnel project was substantially completed and opened for two-way traffic day and night for the first time since 1997. 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. The open tunnel will now greatly facilitate traffic, trade, and the economic recovery of Afghanistan. The Bank is also financing the task of upgrading the road from Kabul to Kunduz and onwards to the Tajikistan border at Sher Khan Bandar. Critical repairs of retaining walls and snow galleries and urgent mine clearance works have begun. Road works on the mountainous sections at Salang have been hampered by snow lately, but snow clearance has improved with new equipment and experts provided under the credit. National Emergency Employment Program for Rural Access – US$39.2 Million Credit/Grant The project is part of the Government’s National Emergency Employment Program (NEEP), which is providing much-needed jobs through infrastructure projects which will, in Salang Tunnel Rehabilitation has been turn, increase access to services and markets in rural areas. The credit portion is financing undertaken by Afghanistan’s Ministry of the reconstruction of secondary rural infrastructure, including main roads, bridges, and Public Works working with the French airfields. The grant is financing the rehabilitation of district- and village-level infrastructure NGO, ACTED, with funding from the World and the technical assistance to help the government with the implementation of NEEP. The Bank and the US Agency for International Ministry of Public Works and the Ministry of Rehabilitation and Rural Development are Development. implementing the credit and finance portions, respectively, partnering with the United Nations Office for Project Services (UNOPS) and International Labor Organization. Under Ministry of Rehabilitation and Rural Development subprojects, 24 Provincial Technical Advisers have been recruited and trained. Eighty-seven projects have been prioritized to repair 1,356 km of rural roads under 313 contracts. In one month, 28 subprojects totaling 567 km have been designed, and bids for 18 subprojects costing $1.39 million have been received. The Ministry of Public works led a planning process during which work on 355 km of secondary roads, 45 bridges, and four airfields have been prioritized. A key result of the financing has been the ability of the government to mobilize resources and keep its promise of a countrywide launch of the NEEP. 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 consultancy agents 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: A computerized check issuance system, coordinated with the Treasury Department in the Ministry of Finance, went on line in Kabul in October 2002. As a result, real-time reporting is possible for all expenditures processed in Kabul. Weekly expenditure reports are now produced and used by the Ministry of Finance to report to the Cabinet on budget expenditures. A pilot roll out of the Afghanistan Financial Management Information System to two provinces is underway. Work is progressing toward the World Bank staff member consults integration of a standard payroll module which will be piloted in two ministries. This is a first local citizens in Parwan Province step towards putting in place a system for making individualized payroll payments. Procurement Agent: By mid-November 2003, the procurement agent had facilitated 140 contracts valued at $248 million for the government. In addition, it was processing 44 additional contracts valued at about $169 million. Training has been provided for over 70 ministry staff in procurement rules and procedures with more courses planned. A draft procurement law and related regulations and bidding documents have been prepared and are under consideration by the government. The World Bank in Afghanistan: http://www.worldbank.org/af Audit Agent: Over 100 staff have participated in various training courses including computer and language training and technical audit courses. On the job training in modern audit working practices and procedures has been undertaken during audits of World Bank- funded projects and the Afghanistan Reconstruction Trust Fund. A strategic development plan is under preparation along with a review of the legal framework associated with audit activities. Second Emergency Public Administration Project – US$8.4 Million Grant The Second Emergency Public Administration Project (SEPAP) was approved by the World Bank’s Board on June 24, 2003. The project is financing the continued employment by the government of qualified firms to assist, on an interim basis, with procurement and financial management capacity building. In addition, SEPAP will provide assistance to the Independent Administrative Reform and Civil Service Commission to develop its capacity to undertake the development and oversight of merit-based appointments of senior civil servants and appeals, civil service management, and overall management and implementation of the public administration reform program. Further services will be provided to ministries for approved restructuring efforts and for studies and institution A crumbling bridge in Logar province building within selected entities. This aspect of the project is financed by the UK Department for International Development (DfID). 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 for the Institute of Polytechnic, the University of Education, and five faculties and dormitories of Kabul University and has been used mainly to improve student facilities including desks, chairs, windows, computers, and books. A committee consisting of the faculty, administrative staff, and students was formed at each location, deciding the priority activities to rehabilitate the institutions and improve the quality of education. A monitoring report is kept on the bulletin board to ensure transparency and accountability in the use of grants. A similar grant approach with greater focus on female enrollment has begun in higher education institutions outside Kabul. 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. Rehabilitating Primary Schools with Community Participation: Grants for rehabilitation of approximately 100 primary schools in three provinces (Bamyan, Palwan, and Logar) will be provided, through NGOs, by the Ministry of Education. Physical rehabilitation of schools will be combined with teacher training and other educational inputs. Support for the Ministry of Education at the Provincial Level: High frequency radio communication equipment has been provided to each of Afghan istan’s 32 provincial education offices to improve their school monitoring activities and communications with the Ministry of Education in Kabul. Women join in the English class at Kabul University Support for Policy Development: Technical Assistance has been provided to the Ministry of Education and Ministry of Higher Education to develop a medium-term policy framework and to conduct a study on private sector involvement in higher education. Kabul Distance Learning Center: The center has been established at the site of the Afghanistan Assistance Coordinating Authority (AACA). Its first international videoconference, held in mid-November 2002, connected experts in Tajikistan, Kazakhstan, Uzbekistan, and Washington, D.C., to discuss the region’s economic development prospects. The center is now regularly used to facilitate the sharing of development knowledge between people in Afghanistan —from the high official to the The World Bank in Afghanistan: http://www.worldbank.org/af grassroots level—and their counterparts around the world, through new information and communications technologies. The center is part of the World Bank-established Global Development Learning Network. Government Internet Connectivity Project: Seven government agencies (Ministries of Finance, Rural Reconstruction and Development, Foreign Affairs, and Communication; the President's Office; the AACA; and the Central Bank) have been connected to the internet and have access to email for the first time in history. They are also connected to the Kabul Distance Learning Center. Emergency Transport Rehabilitation Project – US$108 Million Credit � Will help remove key transport bottlenecks on an emergency basis, and also support the Government of Afghanistan's efforts to rehabilitate its highway and civil aviation programs. The work will improve physical access to goods, markets, and administrative and social services, all critical to Afghanistan's economic and social recovery. Afghanistan’s once splendid Darlaman Palace, degraded by years of conflict and Health Sector Emergency Reconstruction and Development Project – US$59.6 neglect Million Grant � Will help expand delivery of high-impact basic health services and ensure equitable access, particularly for women and children in underserved rural areas. It will help increase the Ministry of Health’s stewardship over the sector through a greater role in healthcare financing, coordination of partners, and oversight of NGOs. Achievements on the ground to date include: Three NGOs, two Afghan and one international, have begun work in the southwestern provinces of Helmand, Farah, and Nimroze. These NGOs are already expanding the Japan Social Development Fund provision of services available in the community and are strengthening the first-level referral hospitals. The JSDF was established by the Emergency Communications Project – US$22 Million Credit Government of Japan in 2000 as a means of supporting activities � Will expand the government communications network through providing policy advice which directly respond to the needs and developing the capacity of the Ministry of Communications and improving the of the poor and vulnerable groups, delivery of postal services. Achievements on the ground to date include: enhance their capacities, and strengthen their empowerment and A $14 million Government Communications Network has been launched and will build and participation in the development operate a telephone and internet system for ministries and other key government process. The fund is administered organizations in Kabul as well as every provincial capital and other sites in the provinces. by the World Bank. Japan Social Development Fund (JSDF) – US$7.7 Million Grants The Government of Japan and the World Bank agreed to set up a � Grants to support community development and supplement the government’s National special window within the JSDF to Solidarity Program. support activities in Afghanistan under a three-year program of NGO Support Program – US$2 Million Grant: Is enabling the Government of Afghanistan to assistance for the country’s grant funds to NGOs to help communities rebuild. Achievements to date include: reconstruction and transition toward political, economic, and So far, 37 NGOs have been contracted to work with communities to support subprojects in irrigation, drinking water supply, road repair, school rehabilitation, and income-generation social stability. and literacy programs for women. A total of 23 subprojects have been completed. The NGO support program was the first to provide a framework where the Government of Afghanistan and local NGOs could work together and has provided lessons on both how such a collaboration should be organized and the kind of constraints that need to be overcome for this collaboration to be replicated on a larger scale to the Ministry of Rural Rehabilitation and Development (MRRD). The World Bank in Afghanistan: http://www.worldbank.org/af The choice of project areas—Zabul, Shamali, Bamiyan, and Noristan—has demonstrated a commitment to ethnic equity, since these areas are inhabited by different ethnic groups, namely Pashtun, Tajik, Hazara, and Nuristani. Capacity Building for National Solidarity Program – US$1.5 Million Grant: Will develop capacity in the Ministry of Rehabilitation and Rural Development to implement the National World Bank Post-Conflict Fund Solidarity Program (NSP). The project will support ministry staff at the central and provincial levels to help them work with communities and manage the NSP. It will also contribute to the reconstruction of ministerial buildings damaged during the conflict. The PCF was established in 1997 to enhance the Bank’s ability to Creating Future Potential Entrepreneurs: Targeting Youth – US$2.98 Million Grant: Will quickly support countries in improve the economic and social status of youth by preparing them for careers and helping transition from conflict to them to generate income on a sustained basis. The program will work with boys and girls sustainable peace and economic ages 12 to 28. growth. The Fund makes grants to a wide range of partners (institutions, nongovernmental organizations, United Nations agencies, transitional authorities, governments, and other civil society institutions). Grants are focused on the restoration of the Capacity Building—First Microfinance Bank of Afghanistan – US$650,000 Grant: Will help lives and livelihood of war-affected finance the deployment of a microfinance system and provide relevant training to staff of population. the Bank. By providing access to financing to micro and small businesses, it will support scarce income-generating activities in Afghanistan’s post-conflict economy. Post-Conflict Fund Grants – US$4.3 Million � 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 $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. Afghan Female Teachers In-service Training Center – $300,000: Since operations began in October 2001, around 305 female teachers have been graduated from the course, which is designed to improve both teacher performance and average results of female students in standardized final examinations. With grant funding from the World Bank and six other donors, the Swedish Committee for Afghanistan established the center in Pakistan during the rule of the Taliban. In September 2002, the center was transferred to Kabul and is currently the only one of its kind operating in the country. The transfer has increased the available financial and human resources allowing for more teachers to be trained. Afghanistan Refugee Village Teacher-training Program – $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. Teachers share a light moment on their way to school Provision of Teacher Training for Afghan Refugees – $930,000: By June 2003, the German Technical Cooperation Agency (GTZ) had provided initial and follow-up training to 460 teachers (186 male, 274 female) identified as needing improved teaching skills. The program has so far covered 97 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 non-formal education, through literacy programs and home schools. As of June 2003, the program had provided non-formal The World Bank in Afghanistan: http://www.worldbank.org/af education to 4,693 participants (2,410 males, 2,283 females) in both home schools and the literacy programs through 200 non-formal education courses. Local ownership of the program has been fostered through community mobilization activities. Expanded Watching Brief: Enhancing Knowledge and Partnerships – $365,000: The grant aims to provide analytical foundations for designing reconstruction and assistance The Afghanistan Reconstruction programs as well as a means to continue building partnerships and coordinating Trust Fund (ARTF) assistance efforts in Afghanistan. It is financing economic and sector studies in areas of relevance to Afghanistan’s reconstruction and development; conferences and workshops The key principle guiding the to build knowledge and consensus on reconstruction issues; and capacity development for ARTF is ownership and leadership Afghan individuals and NGOs. To date the grant has financed training for Afghan women of the government, which is through the Afghan Institute of Technology and Management. It has also financed initial essential for the effectiveness of work on an Afghanistan Human Development Report as well as a program of private sector reconstruction assistance. The partnerships. The grant is administered by United Nations Development Programme ARTF supports a government- (UNDP). proposed program of activities prioritized from within the Expanded Watching Brief: Reconstruction Strategy for Afghanistan with Afghan and Other national budget. Stakeholders Participation – $860,000: The grant, which is Bank managed, aims to support the broader reconstruction strategy for Afghanistan by bringing in Afghan and other The Fund is designed to: expertise and facilitating Afghan participation in the reconstruction effort. It is providing quick response analytical inputs and expert advice in key areas of the reconstruction effort  Promote transparency and and is developing and maintaining a database of Afghan professionals currently outside accountability of Afghanistan who could contribute to future reconstruction efforts. In addition to the reconstruction assistance database, the grant has enabled expert advice to be provided to the Afghan authorities in areas such as budget preparation, civil service management, power sector reform, aid  Help reinforce the national coordination, and cement industry reform. budget as the vehicle to align the reconstruction AFGHANISTAN RECONSTRUCTION TRUST FUND program with national objectives 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  Reduce the burden on government, such as the salaries of teachers, health workers, and police; investments, limited government capacity including capacity building, feasibility studies, and technical assistance; and financing the while promoting capacity- return of expatriate Afghans. building over time  Help fund the recurrent Twenty-four donors have pledged $524 million to the ARTF, and over $410 million has been received. To date, over $271 million has been disbursed to the Government of budgetary expenditures Afghanistan. The fund has emerged as one of the main instruments for financing the required for the government country's recurrent budget deficit and is set to evolve into a major source of technical to function effectively assistance and investment support for Afghanistan. Channeling support through the ARTF has helped the government The ARTF is jointly managed by the Asian Development Bank, Islamic Development Bank, to avoid addressing the distinct United Nations Development Programme, and the World Bank. funding specifications of 22 different donors, allowing the Following are grants allocated from the ARTF: assistance to be used more efficiently and effectively without ARTF Microfinance Support for Poverty Reduction – US$5 Million the risk of duplication of work. Will assist the Government of Afghanistan in developing a sustainable microfinance sector under which poor people, particularly women, will have access to credit and other financial services, allowing them to invest in business opportunities, meet emergency needs, reduce vulnerability, and build assets. The grant was processed in June 2003, and so far, eight NGOs which also operate as Microfinance Institutions have qualified to on-lend funds and provide other services. Rehabilitation of Telecommunications Systems – US$3 Million Will establish international connectivity between Afghanistan and other countries, particularly its neighbors. The funds will also begin investment to shift Afghan Telecom from a state-owned department to a corporation as a key step for future partnerships with The World Bank in Afghanistan: http://www.worldbank.org/af the private sector. Repair of Major Kabul City Roads and Water Drainage Systems – US$3 Million Will improve the transport services on important roads within Kabul city through the rehabilitation of high priority road sections, as well as the repair of drainage systems along these roads. The overall objective is to achieve a relatively fast, effective, and visible contribution to the economic recovery of Kabul. This project is the continuation of an ongoing German-funded project being implemented by Kreditanstalt für Wiederaufbau (KfW) in Kabul City. All dollar figures are in US dollar equivalents. January 2004 For more information, please contact: In Kabul: Adbul Raouf Zia, Phone: (070) 280800; Email: azia@worldbank.org In Washington, D.C.: Zita Lichtenberg, Phone: 1 (202) 458-7953; Email: zlichtenberg@worldbank.org For more information, please visit: The World Bank and Afghanistan: http://www.worldbank.org/af The Afghanistan Reconstruction Trust Fund: http://www.worldbank.org/artf The World Bank in Afghanistan: http://www.worldbank.org/af