Country Update ISSUE 048 APR. 2016 “ The project aims to increase the employment potential ” and earnings of TVET graduates. page 6 page 4 page 6 page 24 page 26 world bank ongoing international afghanistan group support operations finance reconstruction corporation trust fund / The World Bank Group in Afghanistan/3 CONTENTS ongoing 10 results World Development NEWS operations ‘Access to Health Care’ Report 2016: world bank page 6-23 Digital Dividends group support page 4 -5 page 6 education and training The main message of the report is page 4 that digital development strategies page 7 World Bank projects and financial sector need to be much broader than programs information and communication International Finance page 8 18 results strategies. ‘Connectivity for all’ health remains an important goal and a Corporation ‘Rural Development Program’ tremendous challenge. The report’s stakeholder consultations underpin Multilateral Investment page 12 infrastructure key points emphasize that: Guarantee Agency page 16 • Digital technologies can be transformational by promoting systematic country diagnostic page 5 rural development inclusion, efficiency, and The World Bank Group (WBG) carried out public consultations with a wide range of Interim Strategy Note, stakeholders on Afghanistan’s Systematic Country Diagnostics (SCD) in September 2015. page 20 innovation. These technologies 2012-2015 SCD is an evidence-based, diagnostic report to identify key constraints and priorities social safety net yield real benefits by expanding for Afghanistan to accelerate progress toward reducing poverty and promoting sha- Afghanistan the information base and red prosperity in a sustainable way. Reconstruction Trust Fund page 21 22 results enabling greater inclusion; The SCD engagement process involved meetings with a number of stakeholders, urban development ‘Women Empowerment’ including government officials, private sector, civil society representatives, and de- Japan Social by lowering the information velopment partners. Upon completion of SCD, the World Bank Group started prepa- Development Fund cost, allowing for greater rations to develop its WBG Country Partnership Framework for 2017-2020. Another efficiency; and by creating round of public engagement and consultative process is scheduled to take place later information goods, fostering this year. international finance greater innovation. corporation world development report highlights • Benefits often remain unrealized page 24-25 as development impacts have fallen short. more action to reap digital dividends • The digital divide is still wide, Afghanistan and four Central Asian countries came together recently in Almaty, Ka- both in access and in capability. zakhstan, to discuss the World Development Report 2016, which focused on the impact afghanistan reconstruction trust • The largest barriers are not in of digital technologies and its dividends that have yet to be reaped by all countries. results 38 fund technology; the digital The report points out that digital dividends—that is, the broader development bene- ‘Quality of education’ fits from using digital technologies—have lagged behind. page 26 -42 revolution also brings risks. A better understanding of how The report suggests that for countries to benefit most out of the digital revolution, page 26-27 they need to strengthen the ‘analog complements’ i.e., by strengthening regulations what is the artf technology interacts with that ensure competition among businesses, by adapting workers’ skills to the de- how the artf works other essential elements of mands of the new economy, and by ensuring that institutions are accountable. development is needed to At the Almaty meeting, the Ministry of Communications and Information Techno- page 28 logies informed participants that Afghanistan has developed a road map for activi- ongoing projects maximize digital dividends. ties under its E-Governance program. It is expected that almost 70 percent of govern- • The digital revolution needs a ment services will be available electronically by the end of 2018. The Government of strong analog foundation by Afghanistan is actively working to create a better environment for the private sector strengthening regulations, skills, and private investors, including adopting new regulations, upgrading to internatio- and institutions. nal standards, and shared infrastructure. 4/  Country Update/ / The World Bank Group in Afghanistan/5 WORLD BANK GROUP SUPPORT The World Bank Interim Strategy Afghanistan Japan Social World Bank projects the state, and channeling donor resources infrastructure sectors. IFC Advisory Services is Note for Reconstruction Development Fund through the government to ensure invest- also very active in Afghanistan with six active and programs ments are aligned with national priorities. projects during the reporting period. Afghanistan, Trust Fund The Japan Social Development Fund (JSDF) To this end, the World Bank works closely c For more information: see page 24. 2012-2015 The Afghanistan Reconstruction Trust Fund was established by the Government of Japan Since April 2002, the World Bank’s Interna- with other multilateral and bilateral agen- in 2000 as a means of supporting activities cies across a number of sectors where aid (ARTF) is a partnership between the interna- tional Development Association (IDA) has committed over $3.3 billion for development coordination and government ownership Multilateral The World Bank’s approach is to tional community and GoA to improve effec- that directly respond to the needs of poor and vulnerable groups, enhance their capaci- and emergency reconstruction projects, and are most critical. Investment support GoA in implementing tiveness of the reconstruction effort. As of ties, and strengthen their empowerment and five budget support operations in Afghanis- c For information about completed projects: February 2016, 34 donors have contributed participation in the development process. tan. This support comprises over $2.9 billion www.worldbank.org.af – Projects & Guarantee Agency elements of the most important over $8.9 billion, making ARTF the largest The fund is administered by the World Bank. National Priority Programs (NPPs) in grants and $436.4 million in no-interest Programs. contributor to the Afghan budget—for both The Government of Japan and the World loans known as ‘credits’. The Bank has 15 The Multilateral Investment Guarantee in a way that will build legitimacy operating costs and development programs. Bank agreed to set up a special window Agency (MIGA) has $154 million of gross and capacity of the institutions. ARTF’s support for National Priority Pro- active IDA projects in Afghanistan with net commitment value of over $1.3 billion. International exposure in Afghanistan, supporting tele- grams (NPPs), operating costs of government within JSDF to support activities in Afghanis- tan under a multi-year program of assistance One of GoA’s greatest priorities The World Bank has provided advice to Finance Corporation communication and agribusiness projects. will be to build domestic sources operations and the policy reform agenda for the country’s reconstruction and transi- help the Government of Afghanistan (GoA) The telecommunication project (MTN) is also is contributing to the achievement of the tion toward political, economic, and social manage donor funds effectively and trans- The International Finance Corporation (IFC), receiving financing from IFC. The two agri- of growth and jobs to replace Afghanistan National Development Strategy stability. parently. The Bank also supports the govern- the World Bank Group’s private sector deve- business projects are in dairy and cashmere donor/military assistance and goals. More than $3.8 billion have been dis- As of February 2016, JSDF’s total commit- ment by providing analytical work on the lopment arm, continues to work with its production. bursed to GoA to help cover recurrent costs, ment had reached $85 million. A number of to sequence NPPs to concentrate economy, public administration, gender, investment and advisory service partners In 2013, MIGA launched its ‘Conflict Affec- such as civil servants’ salaries, and over $4.1 JSDF-financed projects have been completed. ted and Fragile Economies Facility’ that uses on foundational investments for billion had been made available, both for poverty, opium economy, and public finance in Afghanistan. IFC Investment Services has c For more information: management. a committed investment portfolio totaling donor partner contributions and guarantees growth. closed and active investment projects. As http://go.worldbank.org/U5OQZVF200 n The Bank has actively supported key re- some $54 million in four companies, which as well as MIGA guarantees to provide an ini- Under the Interim Strategy of February 19, 2016, 20 projects are active forms, particularly in the fiscal and public include commitments in the financial, tele- tial loss layer to insure investment projects in under ARTF with net commitment value of Note period, the Bank’s program administration spheres, and through its communication, and hospitality sectors. IFC difficult contexts. This facility could be used to $2.8 billion. boost the agencies’ exposure in Afghanistan. is built around three interlocking c For more information: see page 26. budget support operations. It has advo- is exploring investment opportunities across cated building capacity and legitimacy of the manufacturing, financial markets, and themes: • Building the legitimacy and capacity of institutions. • Equitable service delivery. • Inclusive growth and jobs. 6/  Country Update/ / The World Bank Group in Afghanistan/7 ONGOING OPERATIONS / education and training Students at the National Institute of Management and Administration Afghanistan Second (NIMA) pursue a two- year business program Skills Development equivalent to a Bachelor’s degree. Enrollment has Project (ASDP II) tripled in two years, with female enrollment improving significantly. c IDA Grant $55 million NIMA is supported by the Afghanistan Second Skills The objective of ASDP II is to increase the Development Project, potential for employment and higher earn- which aims to increase the ings of graduates from Technical, Vocational potential for employment and higher earnings of Education and Training (TVET) schools and graduates from TVET institutes through improvements in the skills schools and institutes delivery system. The project focuses on pro- through improvements in the skills delivery system. viding incentives to schools and institutes offering formal TVET programs to improve quality of learning, while simultaneously strengthening the institutional system for the TVET sector as a whole. Component 1: The project has made sig- nificant progress in strengthening the TVET institutional framework. In addition to devel- oping an overarching TVET strategy, 100 na- tional occupational skills standards (NOSS) have been benchmarked to an international level with the support of an international certification agency, and corresponding cur- Component 3: The project supports a ‘chal- Component 4: The fourth component fi- credit of micro, small, and medium enterpris- sion of the Afghanistan Credit Guarantee ricula developed for 15 trades. ASDP has laid lenge fund’ scheme to identify and scale up nances technical assistance for the skills es. The project has the following components: Facility, and provide technical assistance to the groundwork for an assessment and cer- good practices in TVET schools and institutes. team, as well as costs of third party monitor- Component 1: Improving access to finan- commercial banks to strengthen their SME tification system for TVET graduates, and, in To date, over 35 institutes have benefited ing and evaluation, and a public awareness cial services for micro and small enterprises. lending capacity. This component will include partnership with the International Labour from two rounds of a Recognition Grant, campaign. The project has also established This component aims to provide continuing support to the Credit Guarantee Facility to Organization, about 30 ‘master’ assessors while an additional eight institutes have been a Project Management Information System, support to the microfinance sector through provide coverage to MFI lending to the lower have been trained in competency assess- selected for a Development Grant, which sup- which provides real time updates on all the Microfinance Investment Support Facility end of the SME market. ment methods, and seven assessment cent- ports reforms to improve academic manage- aspects of project implementation (pro- for Afghanistan (MISFA), as well as, support- Component 1 is under implementation and ers identified. ment, school administration, linkages with curement, financial management, human ing MISFA to take on a broader role as a cata- MISFA has initiated a series of activities (in Component 2: ASDP supports the im- local industries, and curriculum revision. resources, civil work, student enrollment and lyst for innovations to increase access and particular the scaling up of the Targeting the proved performance of selected TVET In addition, over 500 TVET graduates have graduation). usage of financial services from the lower Ultra Poor Program). The procurement process schools and institutes. One such institute is been supported with scholarships through end of the market according to its new stra- related to the scale up of the Targeting the the National Institute of Management and a voucher program, which facilitates further tegic plan. It should, however, be underlined Ultra Poor Program was completed and the Administration (NIMA), which has a two-year professional studies for meritorious students / financial sector that the role of MISFA is primarily that of contract awarded in July 2015. Component 2 business program equivalent to a Bachelor’s who have graduated from TVET institutes. market facilitator, rather than direct techni- has not yet started, as discussions are ongo- degree. Enrollment has risen from 300 to over 1,000 students in two years, with female To support technical teacher training under Component 3, an in-service Technical Teacher Access to Finance cal assistance provider. Component 2: Improving access to finan- ing between the Ministry of Finance and the Afghanistan Credit Guarantee Foundation for enrollment improving significantly. With the Training Institute was established in 2013, Project cial services for small and medium enterpris- an agreement to be signed. support of an implementing partner (Ball from which two cohorts have graduated. An es (SMEs). The aim is to increase commercial c IDA Grant $50 million State University), seven rounds of a transpar- additional 270 in-service technical teachers bank and microfinance institution (MFI) lend- ent entrance exam have been conducted, and were assessed and trained in 2016, in close The Access to Finance Project aims to build ing to SMEs and thus facilitate their access to is considered a best practice in the sector. collaboration with GIZ. institutional capacity to improve access to financial services. It will support the expan- Country Update/ ongoing operations 8/  / The World Bank Group in Afghanistan/9 Health Outcomes on Positive Trend Afghanistan Financial pending the signing of the contract with the selected vendor. The implementation of this under-five mortality rate and infant mortality rate Sector Rapid assignment will take 18 months to complete. dropped to 97 and 77 per 1,000 Response Project live births from 257 and 165, c IDA Grant $25.7 million / health respectively. The project is assisting the Da Afghanistan Bank (DAB) to develop a set of action plans to System Enhancement Maternal mortality ratio improve banking supervision and implement a modern payment system for efficient for Health Action in fell to 327 per 100,000 live births, compared to 1,600 in 2002. and transparent payment transactions. Transition (SEHAT) Specifically, the project aims to allow DAB to accurately assess the financial situation of 10 Program Number of functioning commercial banks through audits conducted c IDA Grant $100 million health facilities increased in accordance with international standards. c ARTF Grant $516 million to more than 2,000 in 2012 from The audits will lead to the development of c Government of Afghanistan 496 in 2002, while at the same action plans to address weaknesses that are $30 million time the proportion of facilities identified, with oversight from DAB. c Multi Donor trust fund for health The project also aims to modernize the with female staff increased. results innovation $7 million national payment system with the goal of re- ducing the use of cash transactions, the main The program aims to expand the scope, quali- Births attended by skilled means of making payments in Afghanistan, ty, and coverage of health services provided to health personnel among and transitioning to electronic, card or mo- the population, particularly for the poor, and bile payments. The project will also provide to enhance the Ministry of Public Health’s the lowest income quintile further support to the Afghanistan Institute (MoPH) stewardship functions. The project increased to 35 percent from of Banking and Finance (AIBF) to allow it to supports the provision of basic health and 15.6 percent. scale up its activities, in order to increase the essential hospital services in both rural and availability of banking sector skills. urban areas. It also strengthens the national PENTA3 immunization The System Enhancement The project was restructured and addi- health system and MoPH’s capacity at central for Health Action in tional financing to the project ($6.7 million) and provincial levels. The project includes the coverage more than Transition Program supported selected technical assistance ac- following three components: doubled (a combination of five has contributed to the considerable progress in performance; strengthening human resour- vice delivery, careful program monitoring tivities originally financed under the Financial Component 1: Sustaining and improv- vaccines in one covering polio, the coverage and quality ces for health; governance and social ac- and evaluation, and development assistance. of health services across Sector Strengthening Project, which closed in ing the basic package of health services and diphtheria, Pertussis, tetanus and countability; strengthening the Health Data from household surveys (between 2003 Afghanistan, reflected June 2014. The additional financing targeted essential package of hospital services; and hepatitis B), from 29 percent to 60 in continuing declines Information System and use of information and 2011) show significant declines in mater- activities to strengthen DAB’s capacity and supporting the implementation of these in maternal, infant and technology; strengthening health promotion nal and child mortality. percent among children aged 12 to under-five mortality. The the establishment of a Public Credit Registry. services through performance-based part- and behavioral change; developing capa- Despite significant improvements in the The audits of the 10 commercial banks nership agreements between MoPH and 23 months in the lowest income number of functioning city for procurement delivery; and improving coverage and quality of health services, as health facilities increased were completed in June 2012. A Movable non-governmental organizations, which will quintile. to more than 2,000 in 2012 fiduciary systems. well as a drop in maternal, infant and under- from 496 in 2002. Collateral Registry and a Public Credit deliver the defined health services. Component 3: Strengthening program five mortality, Afghanistan health indicators Registry, set up in 2013, are now fully opera- Component 2: Building the stewardship Contraceptive prevalence management by supporting and financing are still worse than the average for low in- tional. The process for modernization of the capacity of MoPH and system development costs associated with system development come countries, indicating a need to further rate increased (using any payment system is in progress. The mobile/ by supporting the following thematic ar- and stewardship functions of the MoPH in- decrease barriers for women in accessing ser- eas: strengthening subnational government; modern method) to 30 percent card national payment switch, operated by cluding incremental operating costs at central vices. Afghanistan also has one of the high- Afghan Payment Systems, is being installed strengthening the healthcare financing di- from 19.5 percent. and provincial levels and technical assistance. est levels of child malnutrition in the world. and will be operationalized soon. The imple- rectorate; developing regulatory systems The Afghan health system has made con- About 41 percent of children under five suffer mentation of the Real Time Gross Settlement and capacities for ensuring quality pharma- siderable progress during the past decade from chronic malnutrition, and both women (RTGS) Automated Clearing House (ACH) and ceuticals; working with the private sector; thanks to strong government leadership, and children suffer from high levels of vita- Central Securities Depository (CSD) is still enhancing capacity for improved hospital sound public health policies, innovative ser- min and mineral deficiencies. Country Update/ ongoing operations 10/  results improved access to health care brings polio to near eradication in Kandahar Province • Kandahar Province is on the verge of eradicating polio as a result of improved access to health services and extensive health awareness programs. • It is one of many significant outcomes of the System Enhancement for Health Action in Transition program, implemented by the Ministry of Public Health. • The project aims to expand the scope, quality, and coverage of health services provided to the population, particularly to the poor. W omen wait patiently in line outside the examination room of the gynecology and obstetrics department of the Shams Kakar Clinic. Among them is Bibi Khadija, 50, who has accompanied her daughter-in-law for a check-up. “This clinic has solved many of my family’s health problems,” says Bibi Khadija. “As it is near our house, we come here whenever someone is sick in my family.” She is also pleased to hear that other Kandahar residents have similar access to clinics in almost every part of the province. One of the biggest triumphs of increasing access to clinics such as Shams Kakar has been the near eradica- tion of polio in Kandahar Province. Thanks to the vac- cination centers in the clinics, the province has seen a “ dramatic decrease in polio cases, from 36 cases in 2011 to just one in 2016 so far, and without a single case in the successful work is the near eradication of polio in 2015. Clinic doctors are hopeful that continued vacci- One good proof of the successful work the province. We recorded zero cases of polio in 2015 in nation and health service provision will lead to the ulti- mate eradication of polio in the province. Kandahar Province.” ” of the health centers and outposts is the near eradication The increase in access to basic health services, inclu- ding vaccinations, is a result of the System Enhance- Extensive health education program ment for Health Action in Transition (SEHAT) program, Shams Kakar Clinic is one of the clinics run by BARAN of polio in the province. implemented by the Ministry of Public Health (MoPH). and one of nearly 46 health centers in Kandahar Pro- The program aims to expand the scope, quality, and vince operating under the umbrella of the SEHAT pro- coverage of health services provided to the population, ject. A total of 18 staff take care of some 2,500 patients –Dr. Mirza Khan Basharmal, provincial health coordinator, BARAN, Kandahar Province particularly to the poor. SEHAT is supported by the International Develop- every month. The clinic also offers health education to neighbo- ment Association (IDA), the World Bank Group’s fund for rhood residents through its 14 health outposts and edu- the poorest countries, and Afghanistan Reconstruction cational sessions at the clinic to raise their awareness Trust Fund (ARTF), in partnership with multiple donors. of health issues, including polio. Various topics covered In Kandahar Province, most of the health services are include maternal health, nutrition, childcare, first aid, delivered by BARAN, a non-governmental organization, and prevention of diseases. in 17 districts. “Our activities through 46 health centers Each health outpost has two voluntary health workers and 1,102 health posts have had a great impact,” says from the local community. Each outpost also has a vac- Dr. Mirza Khan Basharmal, BARAN’s provincial health cination center, which has helped in the dramatic reduc- coordinator for Kandahar Province. “One good proof of tion of polio cases in the province. Country Update/ ongoing operations 12/  / The World Bank Group in Afghanistan/13 / infrastructure their ideas on how mobile technologies could help address challenges in various sectors in- Afghanistan cluding agriculture, education, and health. The ICT business incubator complex has Information and been constructed in the ICT Institute area of Communication MoCIT and eight start-up business entities have undergone training programs in the Technologies (ICT) complex to date. Under the Capacity Building Program of MoCIT, 443 ministry staff mem- Sector Development bers have been trained so far. Project c IDA Grant $50 million The project builds on the success of earlier Central Asia South projects and catalyzes the next phase of ICT Asia Electricity development in the country. It supports poli- Transmission cy and regulatory reforms and strategic infra- structure investment to expand connectivity and Trade Project and enable more users to access high qual- (CASA-1000) ity mobile and Internet services. It also helps mainstream the use of mobile applications c IDA Grant $526.5 million to improve public service delivery and pro- The Central Asia South Asia Electricity gram management in strategic government Transmission and Trade Project (CASA-1000), sectors. The project helps develop the local IT covering Afghanistan, Kyrgyz Republic, industry by expanding the pool of skilled and Pakistan, and Tajikistan, will put in place qualified IT professionals, and supporting the the commercial and institutional arrange- incubation of ICT companies in Afghanistan. ments as well as the infrastructure required Major milestones under the project in- for 1,300 megawatts (MW) of sustainable clude progress in construction of optical fiber electricity trade. The total project cost is es- cable, completion of about 440 kilometers of timated at $1.17 billion and several other ducting, and operationalization of the four development partners will provide financ- nodes on the northeast segment. A total of ing for CASA-1000, including the Islamic Farmers in Bamyan Province are increasing 1,500 Afghans have been trained under the Development Bank and United States Agency productivity of their IT skills development program and another round of specially designed job-oriented for International Development (USAID). CASA-1000 will build more than 1,200 farmlands because of more efficient irrigation as a tion of about 560 km of overhead transmis- sion line to connect the electricity network Irrigation dams and related works, while establishing hydro-meteorological facilities and services. training programs will run in 2016. kilometers (km) of electricity transmission result of the reconstruction of canal systems. The via the northern and eastern provinces of Restoration and Progress had been made in all areas. In the The Ministry of Communications and Information Technology (MoCIT) is preparing lines for associated sub-stations to transmit excess summer hydropower energy from ex- reconstruction work is being carried out under Afghanistan. It will also finance the engineer- ing design, construction, and commission- Development Project irrigation component, a total of 98 irrigation schemes have been rehabilitated, benefit- an open access policy for the national back- isting power generation stations in Tajikistan the Irrigation Restoration and Development Project, ing of a 300-MW converter station in Kabul. (IRDP) ing 100,000 hectares of irrigation command bone network, ensuring non-discriminatory and the Kyrgyz Republic to Pakistan and Afghanistan is expected to connect more area (compared to the end project target of which supports the c IDA Grant $97.8 million access to wholesale Internet bandwidth Afghanistan. The project finances the engi- rehabilitation of irrigation households and businesses to the power grid 300,000 hectares) and 63,000 farmers. systems serving some c ARTF Grant $48.4 million for all firms. The Common Services Delivery neering design, construction, and commis- by importing 300 MW of electricity through In the small dam component, the complet- 300,000 hectares of land. c Government Funds $2.5 million Platform (mobile governance hardware and sioning of transmission lines and three new CASA-1000. Da Afghanistan Breshna Sherkat ed pre-feasibility study selected seven dam software) has been commissioned and 30 converter stations. The power generation (DABS), Afghanistan’s electricity company, The project builds upon and scales up ac- sites in the northern provinces. A feasibility mobile applications have been developed stations that provide the energy to be traded and the Ministry of Energy and Water will im- tivities supported under the completed study of the six best-ranked small dams in the and hosted on the platform; line ministries over CASA-1000, including Toktogul in Kyrgyz plement Afghanistan’s portion of this project, World Bank-financed Emergency Irrigation northern river basin (which are not on inter- are in the process of developing the contents. Republic and Nurek in Tajikistan, are already including a Security Management Plan for Rehabilitation Project, closed in December national rivers), selected from a pre-feasibility The platform allows any citizen with a mo- in place. both the construction and operation phase. 2012. It supports the rehabilitation of irri- study of 22 small dams, has been completed. bile phone to access a set of public services. Of the total project financing, Afghanistan gation systems serving some 300,000 hec- Furthermore, dam development studies for a Two rounds of the Innovation Support will receive $316.5 million in the form of an tares of land, and design and construction Social and Environmental Impact Assessment Program awarded 15 local innovators for IDA grant. The grant will support construc- of a limited number of small multi-purpose are planned for the 3-4 first ranked dams. Country Update/ ongoing operations 14/  / The World Bank Group in Afghanistan/15 In the hydro-met component, installation Migration from the ASYCUDA++ version of 127 hydrological stations and 56 snow to the newer web-based ASYCUDA World and meteorological stations located in vari- platform has been completed in 12 sites, ous locations on the five river basins in the with both international and national transit country is ongoing. In addition, 40 cableway covered. stations for flow measurement at selected Infrastructure development was complet- hydrology stations have been installed. The ed successfully, with 10 large and 21 smaller project is currently under restructuring and a civil works related contracts completed, in- proposed additional financing of $70 million cluding a new Customs House at Khost, and from ARTF is under process. improvements to Kabul, Jalalabad, Kandahar, and Nimroz Customs Houses. Substantial progress has been made in Second Customs preparation of a Customs Modernization Action Plan, Post Clearance Audit (PCA) im- This all-women enterprise in Bamyan Province is Reform and Trade plementation plan, Risk Management policy finding success in the potato chip business, Facilitation Project and procedure, and Customs Strategic Plan. A Customs-to-Customs Cooperation supplying schools as well providing employment (SCRTFP) Agreement between Tajikistan and to women. It is one of many small enterprises Afghanistan was signed on March 26, c IDA Grant $50.5 million across the country 2014, and real time data exchange com- receiving support from SCRTFP builds on the overall success menced from July 2015. A Customs-to- the Afghanistan Rural of the completed Emergency Customs Enterprise Development Customs Cooperation Agreement between Project. The program Modernization and Trade Facilitation Project Afghanistan and Iran is expected to be signed is providing support to and continues with the ongoing reforms. soon. ACD has also started negotiations with almost 300 small and The project is assisting the Afghanistan medium enterprises and United Arab Emirates and Turkey for signing 1,000 saving groups, Customs Department (ACD) to consolidate similar cooperation agreements. creating employment the customs modernization process, improve opportunities for some governance, and improve the release of le- 12,000 people in Bamyan Province. gitimate goods in a fair and efficient manner. The project aims to achieve this through Sustainable (i) countrywide computerization of customs Development of clearance operations; (ii) installation of ex- has been established to ensure the trans- ecutive information systems for customs, Natural Resources parency of the negotiations process. Other monitoring is in progress. Other ongoing ac- tivities under this project include the prepa- nal and small-scale mining of Afghanistan; and implementation of the Extractive allowing real-time monitoring of operations; Project areas of progress include collection of new ration of the Resettlement Policy Framework Industries Transparency Initiative (EITI). (iii) development of possible options for geodata and the digital capture of existing and the associated Environmental and Social Afghanistan EITI (AEITI) has successfully c IDA Grant $43 million cross-border customs-to-customs coopera- historical geodata for the development of a Management Framework; the preparation completed its fourth reconciliation report, tion; (iv) provision of selected customs infra- The project aims to assist the Ministry modern computerized geo-database in order of a Strategic Environmental and Social which was published after approval of Multi structure to enable modernized operations; of Mines and Petroleum (MoMP) and the to attract the exploration interest necessary Assessment for the sector; development Stakeholder Group (MSG). Recommendations and (v) technical assistance to support the National Environmental Protection Agency to sustain discovery of new deposits and of a computerized mining cadastre system of the Independent Administrator (Reconciler) development of a regulatory, administrative, (NEPA) in further improving their capacities for sector growth; and the preparation and (AMCS+) for MoMP; 3D laser scanning and in the report showed the areas in the extrac- and institutional framework for customs. effectively to regulate Afghanistan‘s mineral publication of 18 sub-sector development imaging at Mes Aynak; development of tive sector where key reforms are needed. The World Bank Board of Executive resource development in a transparent and policies by commodity to guide sustainable corporatization and commercialization op- The AEITI communication team is carrying Directors has approved an additional $21.5 efficient manner, and foster private sector development. tions for state-owned enterprises; provision out public awareness campaigns through million grant. The Automated System for development. An independent external inspection and of technical assistance to the MoMP and workshops and trainings. After completing Customs Data (ASYCUDA) full declaration Steady progress has continued under this contract compliance monitoring system has Ministry of Information and Culture (MoIC) the first round of the workshops in the north- processing (DPS) is now fully operational project including transaction support for the been established. At the same time, capacity on the intersection between the extractive ern and eastern provinces, the communica- in 13 computerized customs offices, cover- tender and negotiations of the main Hajigak building of NEPA and MoMP officers on in- industries and cultural heritage; addressing tion team carried out awareness workshops ing more than 95 percent of declared trade. contract. An International Advisory Panel spectorate services functions and regulatory the economic and social subsector of artisa- for eight relevant ministries and authorities. Country Update/ ongoing operations 16/  / The World Bank Group in Afghanistan/17 The third round included workshops in the southern and western provinces in March Afghanistan Rural and April 2016. Enterprise The excavation of nearly 80 percent of the archeological red zone at Mes Aynak is Development Project underway. The employment of six interna- (AREDP) tional archeologists, 17 Afghan archeologists, c IDA Grant $30 million management and 18 field support staff, and c ARTF Grant $6.2 million some 550 laborers from surrounding com- munities is also in progress. Over the past AREDP aims to enhance economic mobili- year, the MoMP and MoIC have significantly zation and activities by organizing the ru- increased their level of coordination (a bot- ral poor into Savings Groups (SGs), Village tleneck to progress in the past) and owner- Savings & Loan Associations (VSLA) and ship over the project. Enterprise Groups. The project provides tech- nical support to these groups so as to build a financial discipline through savings and / rural development internal lending practices, and technical sup- port to enterprises. To date, the program has established 5,561 Afghanistan Rural Savings Groups with a membership of some Access Project (ARAP) 68,000 rural poor (52 percent women) in 747 villages. The SGs have saved over $3.37 mil- c IDA Grant $125 million lion and members have accessed more than c ARTF Grant $207 million 27,000 internal loans for productive and ARAP aims to enable rural communities emergency purposes with a repayment rate across Afghanistan to benefit from improved of 95 percent. access to basic services and facilities through To generate economies of scale, 415 Village all-weather roads. The project is expected to Savings & Loan Associations have also been Small-scale infrastructure increase the number of people living within established as federations of the SGs, and are projects, such as this micro-hydroelectric dam, 2 kilometers (km) of all-season roads, reduce maintaining accurate and up-to-date records Third Emergency are having significant travel time to essential services, and enable of accounts with good governance structure impact on the lives of ted and 10 PSAs are underway. Support and supported subsequent rounds of CDC was given to 113 Kochies (nomads) and 143 elections in over 11,500 of these communi- in place. On average each VSLA has $6,500 as National Solidarity rural communities to access essential servic- rural communities. The construction of the dam, disabled people to enhance their enterprise ties. More than 490,000 CDC members have es more frequently. loan-able capital, which is further boosted Project (NSP) funded by the National As of February 2016, construction of 550 with a seed grant injection. This improves Solidarity Project, in a development skills and productivity. AREDP been elected, registered, and trained in a km of secondary gravel roads, 150 km of sec- access to finance for group members who small village has meant uses Community Development Councils as variety of areas including in their roles and that residents now an entry point into communities and is cur- c IDA Grant $40 million ondary asphalt roads, and 1,213 km of ter- would like to increase productivity or engage responsibilities, basic accounting, basic pro- enjoy modern electrical rently working in 20 districts of five provinces: c ARTF Grant $1.05 billion curement, basic project management, and tiary roads have been completed. In addition, in entrepreneurial activities but cannot ac- conveniences and the local cess such funds from commercial banks or school is able to provide Parwan, Bamyan, Nangarhar, Balkh, and Herat. c JSDF Grant $9.59 million linkages with other government and devel- 1,100 linear meters of secondary bridges and regular computer classes. opment actors. Over 950,000 community 1,484 linear meters of tertiary bridges have microfinance institutions. GoA’s flagship program is in its third phase been built. In the meantime, routine main- AREDP also works towards strengthening and aims at generating a strong sense of members also have been trained to support tenance of 1,032 secondary roads and period market linkages and value chains for rural ownership and social stability while enhanc- the CDCs with project management and/ maintenance of 132 km of secondary roads enterprises by providing technical support to ing service delivery and security through em- or operations and maintenance. In a sign of were undertaken. Routine maintenance of 1,238 Enterprise Groups (65 percent female) powerment and development activities that ownership, communities have contributed 3,300 km of tertiary road and period main- and 563 (13 percent female) Small Medium communities identify, plan, manage, and over $161.3 million in cash, kind, and volun- tenance of 500 km of tertiary road were also Enterprises that have been selected for their monitor on their own. tary labor towards the sub-projects imple- completed. Half of the first nationwide in- potential as key drivers of rural employ- Since 2003, NSP has successfully estab- mented through NSP. ventory and condition survey of rural roads ment and income generation. Six Provincial lished Community Development Councils Specifically under the current phase, some have been completed. Situation Analysis (PSA) have been comple- (CDCs) in more than 35,000 communities, 14,800 new CDCs have been established and Country Update/ ongoing operations 18/  results bridge connects rural community to the world • The lives of residents in a rural village in Bamyan Province have been transformed by a new bridge that straddles the village divided by a river. • The bridge, which provides all-season access to both sides of the village as well as to services and markets in the cities, was built by the Afghanistan Rural Access Project, under the Ministry of Rural Rehabilitation and Development. • The project aims to benefit rural communities by improving access to basic services and facilities through all-weather roads. T he sun is setting and Ali Juma, 37, is herding his flock of sheep home from the pasture, taking them over the bridge to the other side of Kajabi village where he comes from. Located in Panjab district of Bamyan Province, Kajabi village is surrounded by soaring mountains and divided by a fast flowing river. A sturdy steel and concrete bridge unites the village and allows easy passage for livestock, vehicles, and pedestrians. Ali Juma is grateful that he can now herd his sheep safely and quickly across the river, which was not pos- sible before. “Before this bridge existed, there were only two poles that served as a bridge that connected both sides of the village,” he recalls. “Both people and lives- tock faced numerous challenges and risks while crossing the wooden bridge.” Funding support for the construction of the 12-meter- long and 5-meter-wide bridge was provided through the Afghanistan Rural Access Project (ARAP), under the Mi- trucks using the bridge and taking a more direct route to nistry of Rural Rehabilitation and Development (MRRD). “ the markets. The project aims to benefit rural communities across “Kajabi villagers now have easy access to markets,” Afghanistan by improving access to basic services and says Khodabakhsh Sultani, an ARAP engineer in Bamyan facilities through all-weather roads. It is supported by Province. “Ever since we completed our bridge project, Since the bridge was constructed, the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and Afghanistan Reconstruction Trust Fund (ARTF). many villagers, who had left the area for bigger cities, have come back to their village.” In the past, access to the other side of the village was we have convened vital literacy courses for children The bridge, which took a year to build, and adjacent almost entirely blocked during winter and early spring. road are maintained by the MRRD’s maintenance pro- “In winter, we could not cross the wooden bridge, fearing gram, with funding support from ARAP. Under the pro- ” snow and ice. In spring, frequent flooding made it im- who had missed school. Now all families send gram, 100 meters of road were graveled on both sides of possible to cross the river during the first two months,” the bridge. explains villager Sher Hossain, 58. Thanks to the bridge, village children are able to attend their children to school. Benefits to young and old Over 2,500 people benefit from this bridge. It has school throughout the school year. Mohammad Reza, 30, a resident and teacher in Kajabi village, says: “Students enabled residents to have all-season access to both sides could not attend school until late May. However, since –Mohammad Reza, teacher, Kajabi village, Bamyan Province of the village, as well as to basic services and markets in the cities. Farmers are enjoying better revenue because the bridge was constructed, we have convened vital literacy courses for children who had previously missed of lowered costs such as lower freight fees as a result of school. Now all families send their children to school.” Country Update/ ongoing operations 20/  / The World Bank Group in Afghanistan/21 over 11,500 been re-elected. Together, over The project will carry out civil works for the 26,000 community development plans have upgrading of the Baghlan to Bamiyan (B2B) been prepared, and more than 42,700 sub- road (152 km) into a paved road as well as the project proposals designed. About 42,400 rehabilitation of the Salang road and tunnel of these proposals have been financed with (87 km). According to the project plan, the block grants totaling $968 million, and construction work for the first segment of of these, some 31,800 have closed while B2B is scheduled to begin in July 2016. the others are ongoing. The financed sub- projects include transportation (30 percent), water supply and sanitation (25 percent), / social safety net irrigation (26 percent) power (5 percent) and other small-scale infrastructure schemes (14 percent). Afghanistan Safety Cumulatively, over all the NSP phases to Nets and Pensions date, CDCs have received over $2.3 billion, of which some $1.6 billion have gone to com- Support Project munities through block grants to finance over c IDA Grant $20 million Micro and small 89,600 sub-projects. Some 79,000 sub-pro- businesses, such as this The objectives of the project are to: (i) im- jects have closed, while the rest is ongoing. flower-making enterprise, prove the administration of the public pen- are being given the Some 8.8 million families have benefited sion schemes; and (ii) develop administrative opportunity to expand as from NSP-financed sub-projects. NSP has cre- a result of a government systems for safety nets interventions, with ated temporary rural employment by gener- initiative to provide them focus on targeting and benefit payment de- greater access to financial ating over 53 million labor days over the past livery, to deliver cash benefits to the poorest services. The Microfinance 13 years. Investment Support families in targeted pilot districts. Facility for Afghanistan c For more information: Key elements of a reformed and mod- aims to develop a viable, www.nspafghanistan.org ernized Public Sector Pension System are inclusive financial sector for the poor, and the in place, including a revised institutional underserved smaller and human resources structure of the businesses. Trans-Hindukush Pension Department, a comprehensive new Management Information System (MIS), a Road Connectivity set of business processes, fiscal forecasting Project models for revenues and expenditures, and a / urban development markets. The project specifically aims to sup- with 430 firms and associations. Moreover, new chart of accounts of the pension system. port some 750 enterprises and 10 business FNMD has processed 74 additional grant c IDA Grant $250 million Around 55,000 pensioners are registered in Afghanistan New associations through a cost-sharing facility agreements with the SMEs that successfully the new pension MIS and are paid through to access business development services. The completed their first cycle of agreements. The project aims to support GoA’s efforts to improve road transport links across the bank accounts. Market Development project is expected to create around 1,500 Through FNMD, over 1,500 jobs have been Hindukush mountain range, including the re- The first phase of the pilot provided sup- Project jobs in the short term with much higher job created across the country, including more habilitation of the Salang road and tunnel. It port in the form of cash transfers to over growth over the longer term. than 30 percent for women, with 166 new or 16,000 poor and vulnerable families (around c IDA Grant $22 million The project is implemented by the Ministry improved products introduced in either do- will develop existing mountain crossings into dependable, all-season roads that will allow 80,000 individuals) selected by community The project aims to pilot a business develop- of Commerce and Industry. The General mestic or export markets. the vital transport of passengers and goods committees in eight target districts in five ment program in the four urban centers of Director of the Private Sector Development The project was originally scheduled to to cross the Hindukush mountain range provinces. The second phase of the safety net Kabul, Mazar-e-Sharif, Jalalabad, and Herat, Department acts as the Project Director. close on February 29, 2016. However, a six- throughout the year. pilot was launched in another five districts, which are the major hubs of economic activity. The Facility for New Market Development month no-cost extension has been approved There are currently only two road cross- using a transparent and objective targeting It helps enterprises gain market knowledge, (FNMD), created under the project, was of- in order to complete remaining activities un- ings over the mountain range, with the method and technology-based payments. improve product quality, boost productive ca- ficially launched on March 12, 2013. It has der the project, bringing the new closing date Salang highway carrying most of the cross- The pilot is subject to a randomized impact pacity, acquire new technologies, and devel- received 1,051 applications from small and to August 31, 2016. Hindukush traffic, and an unpaved second- evaluation, with preliminary results expected op and implement business plans to increase medium enterprises (SMEs), and signed cost- ary crossing between Baghlan and Bamiyan. at the end of 2016. their presence in both domestic and export sharing grant contracts worth $10 million Country Update/ ongoing operations 22/  results empowered women see a bright future in Balkh Province • Women in Balkh Province are being given the opportunity to shape their own future through training courses and jobs that enable them to be financially independent. • This opportunity is a result of support to small and medium enterprises and business associations by the Afghanistan New Market Development Project, implemented by the Ministry of Commerce and Industries. • The project seeks to enhance the productive capacity of enterprises and encourage innovation through product and market diversification. I n a brightly lit basement, over 30 women are care fully folding and sewing pieces of fabric to pro- duce fashionable garments for men, women, and children. Their products are uniquely successful in the market, often attracting more customers than simi- lar imported garments. The garments are produced by the Balkh Women’s Bright Future Social Association. It was set up in 2011 by 10 women activists for the purpose of empowering women to make a livelihood without having to depend on others. Located in the Kart-e-Brishna area of Mazar- e-Sharif city in Balkh Province, the business association has more than 250 members. It also undertakes capa- city building activities, including literacy courses. Bakhtawar Azimi, 18, an association member, is happy to be working at the sewing workshop. “I could never imagine that one day I would be able to work and earn a living but now I can do that. I learned how to sew and I New skills lead to sustainability “ make money through it,” she says. The association has been able to improve its activities ANMDP, launched in May 2011, is a cost-sharing program aimed at empowering women like Bakhtawar as a result to support Small and Medium Enterprises and Business By enhancing the quality and of support from the Afghanistan New Market Develop- Associations to access to Business Development Services ment Project (ANMDP). The project is operated by the to enhance their productive capacity and encourage Ministry of Commerce and Industries and funded by the innovation through product and market diversification. productivity of the association, World Bank. In 2013, ANMDP enabled the association to offer training opportunities to 90 members in tailoring, The Facility for New Market Development, as the core window through which firms access assistance, ope- the trainings have brought about significant needlework, and business communication in English rates in four key cities of the country—Kabul, Mazar-e- through six-month programs. Sharif, Jalalabad, and Herat. ” Mahboba Ibrahimi, a senior member, says that the With ANMDP support and training, members of Balkh improvements in its business and ANMDP support has brought profound changes to both the association and its members. “By enhancing the qua- Women’s Bright Future Social Association not only learnt a new vocation, but also developed new skills to deal transformed the lives of its members. lity and productivity of the association, the trainings have with potential clients. This has led to an increase in the brought about significant improvements in its business association’s sales by 50 percent in four years, enabling and transformed the lives of its members,” she says. it to be self-sustainable. Bakhtawar is one of the many young women who “In the beginning, the activities of the association –Mahboba Ibrahimi, member, Balkh Women’s Bright Future Social Association underwent ANMDP training to learn a skill, which has were very limited and they lacked significant achieve- enabled her to be self-sufficient. She earns an average ment. But since ANMDP support in 2013, it has gone of 3,000 afghanis ($50) a month as a tailor in the asso- through a broad and deep transformation,” Mahboba ciation and supports her family. Ibrahimi says. 24/  Country Update/ / The World Bank Group in Afghanistan/25 INTERNATIONAL FINANCE CORPORATION The International Finance Corporation’s and agribusiness. IFC will continue to seek than 9,000 individuals (3,935 women), along (IFC) key prong of engagement has been new investment opportunities and engage with employees from 801 micro, small and through advisory support focused on impro- with local players in order to support the medium enterprises (MSMEs), plus govern- ving the investment climate and building development of Afghanistan’s private sector, ment and development organizations. IFC capacity, while supporting selective invest- particularly in the areas of infrastructure, fi- has partnered with 10 local training provid- ments in sectors with high development nance and microfinance, manufacturing, ag- ers to strengthen their capacity, aiming to impact and job creation. IFC’s current stra- ribusiness, and services. enhance the sustainability of the provision tegy is in line with the ongoing World Bank of management training services. Group’s Interim Strategy Note for Afgha- Advisory Services IFC also has been providing support to nistan (ISN-FY2012-2015). The IFC team A strong Advisory Services program has been SMEs in the agribusiness sector by helping is working closely with the World Bank on supporting the Investment program in the farmers improve productivity and supporting the preparation of the Country Partnership areas of access to finance, Small and Medium the expansion of market opportunities, both Framework with expected delivery by third Enterprises (SMEs) capacity development, nationally and internationally. quarter of 2016. horticulture/agribusiness and investment The current focus of IFC’s advisory work climate. is on improving the investment climate Investment portfolio In Access to Finance, IFC provided assis- through reforms in licensing and construc- IFC’s committed Investment portfolio in tance to DAB, the central bank, in collabora- tion permit, and indicator-based reform ac- Afghanistan has more than doubled be- tion with the World Bank’s Financial Sector tivities as well as ‘doing business’ work on tween FY08 and FY14—from around $58 Strengthening Program to support the es- both national and subnational level. IFC has million to about $135 million. IFC’s portfo- tablishment of the first electronic move- launched the pre-implementation phase of lio stands at about $54 million and includes able collateral registry and the Public Credit the Lighting Afghanistan Program, which one investment in telecommunication Registry. IFC also helped establish regulatory aims to expand the off-grid market and fa- (Roshan), one investment in the hotel sector frameworks for leasing. It will now focus on cilitate access of 180,000 households to af- (TPS), and two operations in financial mar- building the strengths of commercial banks fordable and safe solar lighting solutions. kets (First Microfinance Bank, Afghanistan and other financial institutions to offer as- Further, IFC is increasing the supply of International Bank—trade facility). IFC’s set-based lending products and to increase fresh and processed fruits through improved investments have had a transformational utilization of the registries, with a view of compliance with market standards and in- impact in terms of access to finance and out- further expanding outreach of financial ser- tegration of farmers into the value chain of reach, particularly in the microfinance and vices to more SMEs in the country. leading agribusinesses, giving them access to telecommunication sectors. With respect to Enterprise Development, wider market opportunities. The investment pipeline looks promising the Business Edge initiative has been facili- and includes investments in financial mar- tating business skills training to individuals kets, mobile infrastructure, the power sector, and SMEs. The program has trained more 26/  Country Update/ / The World Bank Group in Afghanistan/27 AFGHANISTAN RECONSTRUCTION TRUST FUND The Afghanistan Reconstruction The Afghanistan Reconstruction Trust Fund Window reimburses the government for a Trust Fund (ARTF) was established in 2002 to provide certain portion of eligible and non-security a coordinated financing mechanism for related operating expenditure every year. The The ARTF’s support of the the Government of Afghanistan’s budget Investment Window provides grant financ- government’s priority programs, and national investment projects. Since its ing for national development programs in inception, 34 donors have contributed over the development budget . policy reform agenda, and the $8.9 billion to ARTF, making it the largest non-security operating costs of single source of on-budget financing for Donor contributions government operations Afghanistan’s development Donor contributions have increased year af- contributes to the achievement ter year, with both old and new donors con- Management tributing to ARTF. Over the last few years the of Afghanistan’s national strategic The ARTF has a three-tier governance frame- ‘preferenced’ portion of donor contributions goals. The objectives of ARTF are: work (Steering Committee, Management has been the main factor driving growth. The • Position the national budget Committee and Administrator), and three agreed ARTF rule is that donors may not ‘pref- as the key vehicle to align working groups. This sound framework has erence’ more than half of their annual contri- enabled ARTF to adapt to changing circum- butions. This rule is to ensure that ARTF has the reconstruction program stances and development priorities with sufficient funding to finance the Recurrent with national development consistency and consensus. The World Bank Cost Window and that it retains some flex- objectives. is the administrator of the trust fund. The ibility in the approval of projects in support • Promote transparency and Management Committee consists of the of government priorities. World Bank, Islamic Development Bank, accountability of reconstruction Asian Development Bank, United Nations The Recurrent Cost Window (RCW) assistance. Development Programme, Ministry of mean the RCW accounts for a declining Grant $3.9 billion • Reduce the burden on limited Finance (MoF), and United Nations Assistance share of the overall budget. Nevertheless, the government capacity while RCW still finances around 16 to 20 percent Mission in Afghanistan as an observer. The To date, the ARTF has disbursed $3.8 billion Management Committee meets regularly in through the government’s non-security oper- promoting capacity building of the government’s non-security operating Kabul to review ARTF finances and approve ating budget. Domestic revenues continue to over time. budget. funding proposals. The ARTF Strategy Group, be insufficient to cover the costs of govern- • Enhance donor coordination for consisting of donors and MoF, meets month- ment. The ARTF RCW has therefore ensured The Investment Window financing and policy dialogue. The Investment Window has increased sig- ly to review the implementation of the ARTF the basic functioning of government includ- program and to discuss strategic issues. ing the delivery of services such as healthcare nificantly in volume and scope. Since SY1389 and education. Given that around 60 percent (year 2010), investment commitments have How ARTF works of the non-uniformed Afghan civil service is exceeded recurrent cost commitments. ARTF Donors contribute funds into a single ac- accounted for by teachers, the Ministry of is strongly supporting decentralized and na- count, held by the World Bank in the USA. Education has in general received about 40 tional rural development programs, such as The ARTF Management Committee makes percent of total ARTF resources. Ministries NSP, rural roads, and education. decisions on proposed allocations at its regu- of Public Health, Foreign Affairs, Labor, Social As of February 19, 2016, there are 20 pro- lar meetings, and those decisions are trans- Affairs, and Higher Education have also been jects active under ARTF with a total commit- lated into funds through Grant Agreements major recipients. ment value of $2.81 billion, of which $1.95 signed between the World Bank as adminis- It should also be highlighted that the RCW billion have been disbursed and the net un- trator of the trust fund and the Government resources are national in scope, ensuring the disbursed amount is $860 million. of Afghanistan. payment of salaries of around 62 percent of c Full details of investment activities are ARTF allocations are made through two non-uniformed civil servants in all 34 prov- provided in the ARTF Annual Scorecard: ‘windows’: the Recurrent Cost Window and inces of the country. Steady year-on-year in- www.artf.af the Investment Window. The Recurrent Cost creases in operating costs across government Country Update/ artf 28/  / The World Bank Group in Afghanistan/29 / ongoing projects Afghanistan Afghanistan Justice Agricultural Inputs Service Delivery Project (AAIP) Project Grant $74.8 million Grant $85.5 million AAIP aims to increase adoption of improved The objective of the Justice Service Delivery crop production technologies. The agri- Project is to increase access to and use of le- culture sector is central to Afghanistan’s gal services. The project seeks to implement economy, employing 60 percent of the na- the government’s NPPs; mitigate the impact tion’s workforce. As such, strengthening of the transition; put the system on a sus- institutional capacity of the Ministry of tainable path for long-term results; and im- Agriculture, Irrigation and Livestock (MAIL), prove service delivery. The project will finance and increasing investments for safety and re- the costs associated with: (a) building capac- liability of agricultural inputs are invaluable ity of front line legal service providers to de- to support continued increase of agriculture liver key legal services; (b) increasing scope productivity. and quality of legal aid; (c) improving access Firstly, the project will improve the techni- of the public to legal information and civil cal and economic efficiency of the value chain legal education; (d) improving management of certified wheat seed. Secondly, building on and provision of legal services by central the legal and regulatory framework that the justice institutions; and (e) building project project helped build during the preparation management capacity. The implementing phase, the project will develop the necessary agencies are the Supreme Court, Ministry of accredited facilities for plant quarantine net- Justice, and Attorney General’s Office (AGO). works and quality control of agro-chemicals. Improving the quality There has been progress in several areas: of varieties of wheat Thirdly, guided by the results of field surveys seeds is among the wide capital investment plans are under develop- carried out during the preparation phase, the Under the project, foundation work for AAIP has also procured hardware and range of actions carried ment; the development of the Legal Aid Road project will design and pilot test a demand- building 13 laboratory complexes for the equipment such as motor vehicles, motor out by the Afghanistan Map and Legal Aid Regulatory Framework Agriculture Inputs Project led action plan to improve and develop mar- Plant Protection and Quarantine Directorate cycles, office and IT equipment as well as (AAIP) to help farmers is underway; and Training and Human ket-based input delivery systems for seeds has been completed, while the design work agricultural machinery for relevant MAIL de- increase adoption of Resource Management strategies will soon and agro-chemicals. The sustainability of for quarantine stations has been carried out partments at central and regional level. improved crop production be contracted. Civil service reform in the technologies. This farm these interventions will be supported by ca- and contracts for construction awarded. The AAIP team together with MAIL staff in northern Afghanistan, Attorney General’s Office for administration pacity building programs involving civil serv- Another major achievement is the comple- carried out an assessment of Private Seed set up by AAIP, grows and support has advanced according to plan. ants, farmers, and traders. tion of a survey and designs of nine Regional Enterprises (PSEs) throughout the country foundation seeds of wheat Training programs for prosecutors focusing varieties that will result During its second semester of implemen- Research Stations and four Regional Seed to track their strengths and weaknesses in in improved seeds, which on white collar and corruption-related crimes tation, AAIP completed the expansion of its Production Farms. Contracts for four region- improved seed production. AAIP will also es- will be distributed to local have taken place. Moreover, 105 judges have technical teams at central and regional lev- al research farms and two improved seed tablish a pesticide positioning management farmers. undergone training in the Egypt Training els, thus finalizing necessary arrangements production farms have been signed, while center at the Ministry of Public Health, for Institute for Judges in fields such as crimi- to provide increased assistance for improved procurement of contracts for the rest of the which a Memorandum of Understanding has nal law, civil law, commercial law, and family quality and delivery of production inputs to farms is in the pipeline. been signed. law. The construction of the Information and the agricultural sector. To ensure MAIL’s sustainable development, To strengthen the legal framework of the Administrative Center of the Supreme Court AAIP is providing technical and financial AAIP has trained 339 ministry employees in agricultural input delivery system, the AAIP and two other provincial offices has been support to MAIL and its relevant directorates their technical field through its in-country legal department has developed a pesti- completed. in the production of breeder, foundation, and training program. In addition, 19 employees cide law, which has been approved, while The new Criminal Procedural Code and a certified wheat seeds, based on improved have been sent for training abroad, and 48 the quarantine law is awaiting presidential number of other laws have been distributed production practices. It is also support- employees are enrolled in a Master’s pro- approval after being passed by the Afghan to stakeholders. Five legal libraries have been ing MAIL’s research activities at central and gram in India and two employees are in a parliament, and the fertilizer bill is under opened by the Supreme Court and Attorney regional level. PhD program. consideration at the Ministry of Justice. General’s Office. Country Update/ artf 30/  / The World Bank Group in Afghanistan/31 Afghanistan Power tries to better plan and execute their devel- opment budget, simplify business processes, System Development and provide faster and quality services to Project Afghan citizens. CBR promotes accountabil- ity in line ministries by introducing results- Grant $75 million based reform and services improvement The project supports GoA in increasing ac- programs. CBR is also one of the key tools cess to grid power and the quantity of power for the government to reduce reliance on available to consumers in the target urban external technical assistance and parallel centers of Pul-e-Khumri, Charikar, Gulbahar, structures. and Jabul-es-Seraj, and to improve the availa- The grant helps finance the costs associ- bility of electricity from Naghlu and Mahipar ated with (i) technical assistance for prepa- switchyards. It consists of three components: ration and implementation of capacity distribution system rehabilitation; reha- building programs; (ii) recruitment of some bilitation of transmission switchyard associ- 2,400 managerial, common function, and ated with Naghlu and Mahipur Hydropower professional staff for key positions in select- Residents in Nangarhar Province are seeing Stations; and institutional capacity building ed line ministries; (iii) a management intern- the tangible benefits and project management support to the ship program; (iv) training of civil servants; of efficient water use and (v) project management, monitoring, after the reconstruction Ministry of Energy and Water (MEW). of this irrigation canal Under the project, 495 kilometers of dis- and evaluation. in their village. The tribution lines have been constructed or re- The Ministry of Agriculture, Irrigation and reconstruction project, Livestock and Ministry of Communications funded by the On-Farm habilitated. A total of 24,667 kilovolt-amps Water Management and IT were approved as the first top tier min- (KVA) were installed in Charikar, Gulbahar, Project, has led to a istries, enabling them to recruit a substantial significant increase in and Jabul-es-Seraj, while 17,209 KVA were in- number of skilled civil servants to imple- crop yield and arable stalled in Pul-e-Khumri. The project support- land. ment its CBR reform program. The Ministry ed the energy efficiency activities of MEW of Mines and Ministry of Social Affairs also through the setting up of an Energy Efficiency have been approved, and several others are Unit. A national awareness program for en- at various stages of proposal development. ergy efficiency was completed in July 2014. Recruitment of senior level civil servants Afghanistan On-Farm tion schemes exceeded its target with good Three energy efficiency demonstration pro- grams have been completed as well. The pro- funded through CBR is progressing; a total Water Management quality and within the project budget allo- cation and timeline: 100 irrigation schemes ject was restructured in June 2015, covering of 99 active senior management group po- sitions are currently funded, with over 100 Project (mostly informal) have been rehabilitated, the time extension of the project to May 31, 2017, and an additional financing of $15 mil- more in various stages of recruitment. CBR covering a total of 19,000 hectares of irriga- is also encouraging salary harmonization for Grant $70 million lion to allow completion of project activities. tion command area. donor-funded consultants led by the Bank. This pilot project is designed to support on- The establishment of 175 Irrigation asso- farm water management investments in ciations (IAs) has been completed. The IAs are five regions (Central, Eastern, Southwest, based on the traditional Mirab system and Capacity Building for Central Asia South Northeast, Northern) covering a total of have taken up the responsibilities for opera- 10,000 hectares. The project improves agri- tion and maintenance. Results Facility Project Asia-1000 cultural productivity in project areas by en- The ARTF Management Committee at the for Afghanistan Community Support hancing the efficiency of water use. request of GoA has recently approved an ad- Grant $100 million Land productivity of wheat and other crops ditional $45 million to scale up achievements Program (CASA-CSP) has increased by 15 percent. Water produc- of the project by increasing its scope and ad- Capacity Building for Results (CBR) is a ca- tivity of wheat and other corps increased 10 justing the project components. The project Grant $40 million pacity building, institutional development, percent, and the irrigated area increased by closing date has been extended for another and public administration reform project to The project aims to provide access to electric- 10 percent. Physical rehabilitation of irriga- three years (now closing in December 2019). strengthen capacity of selected line minis- ity or other social and economic infrastruc- Country Update/ artf 32/  / The World Bank Group in Afghanistan/33 ture services to communities in the project improve its quality and relevance. HEDP area in order to strengthen community sup- uses an Investment Project Financing instru- port for the CASA-1000 transmission line. ment based on the Results-based Financing The project consists of four components. modality. The first component, community grants Under Component one, project funds will for sub-projects will provide grants directly be disbursed against selected line items in to communities to fund economic infrastruc- the annual budget of the Ministry of Higher ture sub-projects. Preference will be given to Education (MoHE) up to capped amounts, and power sector sub-projects. The second com- on condition that the agreed set of disburse- ponent, community mobilization aims to ment-linked indicators (DLIs) are achieved. engage communities to increase the shared The DLIs reflect priorities for development. prosperity associated with the CASA-1000 These include intermediate outcomes that transmission line, which will pass through build cumulatively over the lifespan of HEDP villages, by facilitating community participa- to improve access to the higher education tion in sub-project planning, implementa- system and raise its quality and relevance. tion, and operations and maintenance. This component will support the reforms ini- The third component is project imple- tiated through the National Higher Education mentation support. It comprises a sub-com- Strategic Plan ii, and will focus on outcomes ponent, third party monitoring (TPM). The and results rather than inputs. fourth component, communications and out- The project started in July 2015 and MoHE reach will finance a strong communications is on course to complete the three disburse- campaign and information-sharing activities ment-linked indicators that are required for directed to relevant stakeholders within the the project to disburse the full tranche under provinces with a special emphasis on out- the program component for 2016. The three reach to communities in the project areas. DLIs for the first year have been met, which Work under CASA-CSP will begin once include awarding 100 scholarships, of which the CASA-1000 project is operational. Once one third were awarded to female academ- implementation begins, CSP is expected to ics; training of 75 faculty members in out- The uneven, dusty benefit communities that live along a two- come-based education and student-centered street of a Kabul city kilometer ‘Corridor of Influence’ (COI) on ei- learning; and awarding 30 individual and neighbourhood has been ther side of the CASA-1000 transmission line. group research projects of faculty members recently transformed into a modern, paved It is expected that there will be approximate- from public universities. road with a drainage The project is expected to deliver welfare 235,352 from new trunk roads) and 139,472 ly 700 communities spread over 23 districts system. Neighborhood and human development benefits to over indirect beneficiaries, including students, in six provinces, with a total of over 152,000 residents attribute their better lives to the Kabul 700,000 people through services provided teachers, and staff of several schools and in- families along the COI. Given the terrain, as well as the unique nature of community Kabul Municipal Municipal Development Program, which undertook in some 1,800 hectares of private land. stitutions of higher education located within mobilization in high-risk areas, there will be Development Program the infrastructural improvements. Equipment for the roads and sanitation de- partments of Kabul Municipality will combat the upgraded areas. About three quarters (73 percent) of the beneficiaries are women and some flexibility to work with more communi- ties outside of the COI. (KMDP) pollution and improve service delivery as well children. as the city environment. There will be project Some 12,200 tree saplings have been Grant $110 million support to develop a plan for improving the planted in 19 Guzars (neighborhoods) with Kabul Municipality is responsible for imple- municipality’s financial management and community contributions; and community Higher Education menting the project. The project objectives planning capacity to deliver improved servic- solid waste collection mechanisms are func- Development Project are to: (i) increase access to basic munici- pal services in selected residential areas of es. The plan will enhance Kabul Municipality’s tioning in most of the Guzars. The executed legitimacy when implemented. works have generated more than 1 million Grant $50 million Kabul city; (ii) redesign Kabul Municipality’s To date, $22.3 million have been disbursed. man-days of temporary employment. The Higher Education Development Project Financial Management System to support There are 438,876 direct beneficiaries (40 (HEDP) aims to increase access to high- better service delivery; and (iii) enable early re- percent of the target number; 203,524 er education in Afghanistan, as well as sponse in the event of an eligible emergency. from upgrading in their neighborhoods, and Country Update/ artf 34/  / The World Bank Group in Afghanistan/35 Naghlu Hydropower National Horticulture Rehabilitation Project and Livestock Project (NHRP) (NHLP) Grant $83 million Grant $100 million The Naghlu Hydropower Rehabilitation The National Horticulture and Livestock Project will give a much needed boost to the Project contributes to the overarching goal energy sector in Afghanistan, which has suf- of increased productivity and overall produc- fered serious neglect as a result of decades tion of horticultural products, and improved of civil war and insurgency. Challenges in the animal production and health. The technical sector mainly relate to the physical condition strategy for achieving this objective is based of equipment, resulting from delays in opera- on the delivery of extension and investment tion and maintenance, and inadequate insti- support through strengthened systems. tutional capacity. In June 2015, Afghanistan’s The project has three components: (i) hor- access to electricity rate was estimated at ticultural production; (ii) animal production about 25-30 percent. Electricity is available and health; and (iii) implementation man- mainly in the urban areas and along a few agement and technical assistance support. transmission corridors. These activities were initially implemented Hydropower provides 94.6 percent of do- in 120 focus districts in 23 target provinces. mestically generated electricity with an in- Based on the high demand for NHLP services, stalled capacity of 254 MW. In 2015, there the project has expanded its activities since were 12 hydropower plants in Afghanistan, the beginning of 2016 to another four prov- not counting the over 5,000 off-grid micro- inces in southern Afghanistan (Kandahar, hydropower plants constructed under the Helmand, Ghazni, and Wardak), thus cover- National Solidarity Program. The two largest ing 27 out of the 34 provinces in the country. among the 12 are the Naghlu Hydropower The project aims to promote adoption The Kabul Urban Transport Plant at 94 megawatt installed capacity and of improved production practices by target Efficiency Improvement Project is improving road Mahipar Hydropower Plant at 66 megawatt farmers, with gradual rollout of farmer-cen- conditions in several areas installed capacity. The project will focus on tric agricultural services systems and invest- of Kabul city, resulting Kabul Urban and implementing agency by adopting best ject. Implementation of two out of four the Naghlu Hydropower Plant, which is of ment support. Service delivery centered on in a safer and cleaner international practice. Kabul Municipality National Competitive Bidding civil works environment. Well-lit, wide strategic importance to Afghanistan’s power farmers will promote increased participation Transport Efficiency will be responsible for implementation of the contracts (Lot 1 and Lot 2) is completed and roads lined with sidewalks and covered drains are generation portfolio as it provides more than of beneficiaries in defining the type of ser- half of Kabul’s electricity. Improvement Project project, including procurement and financial the roads are opened to traffic. The progress vices required and in the delivery itself. The some of the deliverables management. of the remaining two contracts stands at of the urban transport NHRP aims to improve dam safety and project will also promote improved ratio of (KUTEI) Progress towards the achievement of the 65 percent for Lot 3 and 10 percent for Lot project implemented by Kabul Municipality. to increase the supply of electricity at the overall costs reaching beneficiaries as direct project development objectives will be meas- 4. The procurement process for two out Naghlu Hydropower Plant. The rehabilita- investments. The aim is, thus, to promote Grant $90.5 million ured through the following indicators: (a) of four International Competitive Bidding tion and improvement of the energy sector sustainability, effectiveness, and efficiency. The project aims to improve road conditions traffic capacity improvements will be meas- civil works contracts (Lot 5 and Lot 6) has is a high priority for GoA and a critical part As of March 2016, the project has financed and traffic flows on selected corridors of ured by average vehicle speed during off peak been completed and the contract is ready of its national development program. Better the establishment of 12,035 hectares (ha) of Kabul city. The project will focus on improve- hours; (b) people (within a 500-meter range to be awarded. The design review for Lot 8 energy services will help meet the govern- new orchards (against a cumulative target of ment of road infrastructure and provision of under the project) in urban areas provided is completed and the procurement process ment’s development goals by stimulating 6,000 ha), about a third of which are in the technical assistance to Kabul Municipality in with access to all season roads; and (c) per- has started, while the design review for Lot job growth and production, and improving new provinces. Similar substantial achieve- specific areas. Investments in key road infra- centage of Kabul city’s trunk road network in 7 and the Wazir Abad canal is in progress. the quality of life of the Afghan population. ment has been recorded for rehabilitation of structure will improve connectivity and make at least ‘fair’ condition. The project will also have important climate orchards (76,442 ha actual against a target Kabul more inclusive, while technical and Initial activities, including survey, design change impacts by reducing dependence on of 6,000 ha). In addition, demand from target knowledge support will gradually transform review, and procurement of civil works, fossil fuel. beneficiaries for kitchen gardening support Kabul Municipality into a modern planning started during the preparation of the pro- has been very high, and the entire annual pro- Country Update/ artf 36/  / The World Bank Group in Afghanistan/37 gram was amply exceeded (58,116 schemes Non-formal Approach against a target of 20,000). Further, NHLP continues to introduce inno- to Training vative lines of investment support. It has suc- Education and Jobs cessfully introduced production techniques to, inter alia, extend the production period of in Afghanistan vegetables by establishing some 1,840 pro- Project (NATEJA) duction schemes based on the use of micro Grant $15 million greenhouses. It has created a culture of high productivity dry land cultivation by having al- The objective of NATEJA is to increase the po- ready supported the establishment of 1,990 tential for employment and higher earnings ha—a cumulative target of 300 ha—of pista- of targeted young Afghan women and men chio groves with high yielding varieties. The in rural and semi-urban areas through non- project has promoted modernization of the formal skills training. The project focuses horticulture sector by establishing 52.7 ha on improving labor market outcomes (e.g., of demonstration high and medium density earnings and employment) for unskilled and orchards. semi-skilled youth through enhancing the Further, 5,000 producers applied integrat- quality of training delivery, and providing en- ed nutrient practices, while the spot irriga- trepreneurship/apprenticeship support. tion method was implemented in 823 ha of Component 1: The objective is to train land, and a total of 358 drying houses to im- 40,000 Afghans by providing incentives to prove production and quality of raisins was training providers and creating an opportu- constructed. The survey for construction of nity for competition and improved quality of 620 raisin drying houses and 500 water har- training. Currently, 192 non-formal private vesting structures has just been completed. and non-governmental training providers The construction work is expected to be com- have been identified and will compete for Innovative farming pleted by end of 2016. incentives based on the number of certified techniques, such as high Regarding improved livestock production, graduates and the number of students em- density planting, are NHLP is supporting MAIL compliance with its ployed after completing the training. helping horticulturalists of Technical Assistance (TA) to support: establish the causal impacts of project in- improve their crop yield Sanitary Mandate (SM). It is doing so by sup- The rationale for this intervention is that as well as extend the (i) financial management; (ii) procurement; terventions and how to scale up successful porting improved Extension and Veterinary incentives directly linked to labor market growing season. Model (iii) entrepreneurship development; (iv) em- interventions. The baseline survey data col- Services delivery through private Veterinary outcomes are likely to encourage training farms, such as this one in ployment services; and (v) labor market lection is underway and will be followed by Kabul Province, are being Field Units (VFUs), and through establish- providers to actively prepare students for the created to show the way information collection, analysis and utiliza- midline and endline surveys to measure the ment of an Animal Health Sanitary Mandate certification exam and help graduates seek in an initiative under the tion. The monitoring and evaluation (M&E) respective impacts of the business grant Contracting Scheme (AHSCS). NHLP conduct- employment. It is also based on the premise National Horticulture and capacity of the National Skills Development program on job creation, earnings, and skills Livestock Project. ed SM training for 168 VFUs and 76 Provincial that labor market outcomes cannot improve Program will be enhanced so that reliable acquired. Significant progress has been made Veterinary Officers. On the production side, unless the quality of non-formal training im- and suitably disaggregated project perfor- in the development of a comprehensive MIS, the delivery so far of extension messages proves. Significant progress has been made mance data can be collected and analyzed. where several web-based applications have has been carried out along with distribution in improving and developing the quality of The integration of NATEJA within the been established for data collection and of improved technology packages to 58,800 training material and standardizing occupa- Directorate General of Skills is underway monitoring progress in the implementation beneficiaries in 138 districts in 19 provinces. tions to international skill standards, which and will be completed by May 2016. Under of Components 1 and 3. The establishment of AHSCS initially fo- would subsequently facilitate quality train- this component, NATEJA has partnered Component 3: The focus is on building cused on a brucellosis control program in ing programs and enhanced employment with the Italian Development Cooperation the skills of illiterate and unskilled young 360 districts of 34 provinces. Through this opportunities for trainees. Office (IDCO) to conduct an impact evalua- Afghans from villages engaged with the program, 1.2 million young cattle and 6.2 Component 2: NATEJA will provide capac- tion of the business grant program that has Afghanistan Rural Enterprise Development million young sheep and goats have already ity development assistance including in- been implemented in six provinces (Herat, Project (AREDP), and offering business grants been vaccinated. creased staffing, staff training, and a range Bamyan, Farah, Balkh, Kabul, Nangarhar) to to new and existing entrepreneurs. Country Update/ artf 38/  results new school facilities enhance quality of education in Kandahar Province • Modern laboratory facilities and a library are providing students at a boys’ high school in Kandahar Province with the tools to enhance their learning. • The new school facilities are a result of a Quality Enhancement Grant from the Education Quality Improvement Program, implemented by the Ministry of Education. • The second phase of the program aims to increase equitable access to quality basic education. T welfth-grade student Rahimullah, 17, is weighing pebbles on a digital scale and put- ting them into little plastic bags. He is wor- king a little apart from the other students, who are following instructions from their teacher and working with chemical substances and test tubes in one corner of the laboratory. Rahimullah, a student of Sufi Sahib Boys High School, is in the laboratory to revise his chemistry lessons. “With access to the laboratory facility, we can now practice our chemistry experiments,” he says. The laboratory is filled with students who are enthusiastically working on their laboratory experiments. Sufi Sahib Boys High School is located in Chuni neigh- borhood in Kandahar city, the capital of Kandahar Pro- vince. There are over 4,300 students enrolled at the scho- ol with 85 teachers and 25 administrative staff. The high school, established in 1972, received a Quali- “ ty Enhancement Grant (QEG) of $5,500 from the second phase of the Education Quality Improvement Program Management Shuras and the rest through contracts with private companies. (EQUIP II) in 2013. EQUIP II seeks to increase equitable A good laboratory and library The QEG to Sufi Sahib Boys High School follows earlier access to quality basic education. It is implemented by the Ministry of Education with funding support from the EQUIP support of an Infrastructure Development Grant of $32,000 to construct a six-classroom building in 2010. have enhanced the ranking of the school Afghanistan Reconstruction Trust Fund (ARTF). Teacher Abdul Ghafar, 52, notes the positive changes The QEG was spent on equipping the school’s laborato- in learning outcomes after the construction of the buil- ry and library, which were in bad condition. The support ” in the entire province. It has attracted more students ding. “Before the new building was constructed, students to equip the school with modern facilities has helped im- prove the school’s standing says Mohibullah Qaderi, the were affected by the hot and cold weather and were not able to concentrate on their studies,” he says. “We are principal. “A good laboratory and library have enhanced able to use fans in the summer and heaters in the winter to join the school. the ranking of the school in the entire province,” he says. now. Students concentrate better on their studies and “It has attracted more students to join the school. Some the quality of teaching and learning has improved.” of the lessons are taught through presentations using –Mohibullah Qaderi, principal, Sufi Sahib Boys High School projectors—that is rare in the schools of Afghanistan.” Hafizullah, 18, a tenth-grade student, is also pleased with the changes. He is sitting in his classroom together with 30 classmates and reading a textbook. “Before the Conducive environment to learning six-classroom building was built, classrooms were over- In Kandahar, where it has created 360 School Mana- crowded, which made it hard for students to understand gement Shuras (councils) EQUIP works in 12 districts. their lessons. Many other students were sitting and stu- EQUIP has built 91 school buildings in Kandahar dying under tents,” he says. “The classrooms are quiet Province, two-thirds of which were built by the School and conducive to effective learning now.” Country Update/artf 40/  / The World Bank Group in Afghanistan/41 Second Education on the number of female students enrolled to encourage them to enroll more women. Quality Improvement Gender grants are used for providing more Program (EQUIP II) facilities and a better learning environment for female students. Grant $408 million EQUIP’s objective is to increase equitable access to quality basic education, especially Second Public for girls. Program interventions are primarily targeted toward general education, teacher Financial Management training, and education management. The Reform Project program is fully aligned with the Afghanistan National Education Strategic Plan and sup- Grant $114.1 million ports the institutional development of the The project objectives are to strengthen pub- Ministry of Education’s program staff. EQUIP lic financial management through effective was originally supported by the International procurement, treasury and audit structures, Development Association, the World Bank and systems in line with sound financial Group’s fund for the poorest countries. management standards of monitoring, re- As of February 2016, EQUIP II has supported porting, and control. the construction of 1,033 schools and teach- Project components include: er training colleges (TTCs) and. According to 1. Procurement Reform: To provide techni- EMIS, there are 8.5 million children enrolled cal assistance to the National Procurement in schools throughout Afghanistan, of whom Authority (NPA) to assess the legal and in- 3.3 million (39 percent) are girls. stitutional frameworks, handle procurement Under both phases of EQUIP, social mo- under the recipient’s budget, develop an bilization activities have been conducted in action plan for procurement, prepare an e- 14,432 communities, resulting in the estab- procurement assessment and build human lishment of an equal number of school shuras capacity of procurement staff, improve the (community-based consultative bodies). quality of trainings of procurement officers, This high school is Under EQUIP II, 11,543 schools (against the and build capacity in line ministries. one of 400 schools in Balkh Province that has target of 5,000) benefited from quality en- The project will strengthen the institution- benefited from a Quality hancement grants amounting to $25 million. al development of NPA by providing support Enhancement Grant from To date, 154,811 teachers have been in its establishment, structures, systems, pro- the Second Education Activities around the business grant is un- that the right applicants are enrolled into the Quality Improvement trained under In-Service Teacher Training cesses and procedures, and implementation derway after an intensive awareness cam- program to start a new small scale enterprise Program. The grant has packages, 35 percent of whom are women. strategy. paign that was carried out by Employment or expand their existing micro-enterprise allowed the school to At the same time, 21,277 principals and 2. Financial Management Reform: To pro- purchase laboratory Service Center staff to reach the target popu- with the $500 grant. The grant applications equipment, library supplies, administrators have undergone School vide technical assistance to the Treasury lation of illiterate Afghans in three selected (41 percent female participation) are being and other materials that Management Training, some 20 percent of Department to ensure high quality financial provinces (Balkh, Nangarhar, Kabul). This has vetted by a broad range of people to ensure help strengthen the whom are women. management, focusing on integrating its op- learning environment. “I resulted in about 8,500 applicants (3,000 transparency. think the science lab is very In addition, 11,436 women have received eration system with government systems and from Balkh, 4,000 from Nangarhar, 1,500 useful to all of us; we have scholarships and graduated from TTCs across the application of the Afghanistan Financial from Kabul) registered with a business plan. started to make sense of provinces, with the exception of Paktika, Management Information System (AFMIS); our knowledge through An initial list of 2,600 potential beneficiaries practical application,” says Uruzgan, and Zabul. Some 5,000 teachers introduce improved management report- will be released, from which the first batch of an 11th grade student. received a scholarship in 2013-2014. Further, ing and expand access of AFMIS budgetary 1,260 beneficiaries will be chosen by lottery. 542 quality grants and 300 gender grants units in the provincial offices of the Ministry The information provided by the benefi- have been awarded to TTCs since 2010. of Finance (MoF); assist staff in the prepara- ciaries will be thoroughly verified to ensure Gender grants are awarded to TTCs based tion, monitoring, and implementation of Country Update/ artf 42/  individual training plans, as well as annual out its mandate, including support for the performance appraisals; prepare training maintenance of the computerized tax sys- modules on MoF processes under the certi- tem (Standard Integrated Government Tax fied accounting technician courses provided Administration System, SIGTAS), implemen- by the Association of Chartered Certified tation of tax-related initiatives such as risk- Accountants (UK); establish a national steer- based compliance, implementation of the ing committee for developing and regulating new value added tax (VAT), and the design the accounting and auditing profession and and implementation of its new organization- the training of professional accountants; and al structure. conduct a public financial management as- Outcomes of the progress made include: sessment of seven line ministries. (i) disbursed approximately $69 million from Audit Reform and Performance: Internal the total commitment (60 percent); (ii) 350 Audit—to finance the services of consultants staff have been trained at headquarters and to lead key internal audits and to provide on- 315 in the provinces on different treasury- the-job training; support basic training to related and general training programs; (iii) all internal audit staff; and provide more ad- Audit Training Program-II training, in which vanced training to staff who have completed 326 internal auditors from 20 line ministries the basic training. and 10 independent directorates in the last External Audit—to provide assistance six batches were trained; (iv) under the re- to the Supreme Audit Office to develop its form management component, 23 training knowledge, expertise, and practices in using programs on different topics and more than the services and results of other auditors and 415 staff have been trained; (v) all budget experts in line with International Auditing executions from AFMIS are now managed Standards, in particular for project audits; at the Central Treasury in Kabul and by the support consultant services to train staff and Mustofiats in the provinces; (vi) continu- lead high quality independent review of all ous support to the Verified Payroll Program, operations under the budget of nine line min- which involves employee verifications, com- istries over the project period; and finance puterized payroll records and establishment training of members of the Public Accounts of payment mechanisms with commercial Committee. bank; and (vii) HRMD newsletters in Dari, 3. Reform Management: To support MoF Pashto, and English, MoF Questions Bank by establishing a structure and job descrip- Book, and press releases available on the MoF tions, providing training for staff in the website. monitoring and evaluation department, and revising MoF’s existing monitoring and evalu- ation manual; improve the operations of the Human Resource Management Department (HRMD) to enable it to carry out its functions efficiently; assist in the overall project imple- mentation and provide for future requests for assistance on the design and delivery of public financial management technical as- sistance across government; and provide broad-based training for staff of MoF and line ministries. Note: All dollar figures are in US dollar equivalents. 4. Revenue Mobilization: To support the IDA, the International Development Association, is the Afghanistan Revenue Department to carry World Bank’s concessionary lending arm The World Bank Group in Afghanistan www.worldbank.org.af Abdul Raouf Zia phone +93 701 133 328 photos © Rumi Consultancy/World Bank/2016. infoafghanistan@worldbank.org photo cover © Graham Crouch/World Bank. House 19, Street 15, Wazir Akbar Khan, Kabul, afghanistan ©World Bank, April 2016