100231 Country date ISSUE 047 O C T. 2015 “ Improved wheat seed is a vital input for proper crop production. ” page 38 page 4 page 6 page 26 page 28 world bank ongoing international afghanistan group support operations finance reconstruction corporation trust fund /  /3 CONTENTS ongoing Measures NEWS operations to Support Growth world bank page 6-23 10 results group support ‘Access to Credit’ The World Bank presentation page 4 -5 page 6 education and training proposes a number of measures to page 4 support Afghanistan’s growth and page 9 development process during the World Bank projects and financial sector programs recovery phase: page 12 • Closer dialogue on key reforms International Finance health with the private sector to Corporation restore confidence and Multilateral Investment page 14 infrastructure 20 results investment. slow economic recovery marks Guarantee Agency page 19 ‘Rural Development Program’ • Devise social safety post-transition period interventions to reduce page 5 rural development The World Bank made a presentation at the Senior Officials Meeting on September vulnerability of the poor and 4-5, 2015, highlighting that challenges to development in the post-transition period Interim Strategy Note, page 25 enhance their productivity, remain substantial, ranging from stubbornly high poverty and persistent conflict 2012-2015 social safety net and re-articulate the needs for and violence to increasing labor market pressures and low human capital. The New Afghanistan security and development Unity Government has initiated a number of bold reforms to address the challenges Reconstruction Trust Fund page 25 but it will take time for these reforms to translate into impact. assistance. urban development Transition has affected Afghanistan’s economy and governance much more deeply Japan Social • Achieve results on reforms than anticipated. Economic recovery is slow: high levels of conflict incidences and Development Fund through forceful and pragmatic uncertainty over reform continue to affect investor confidence. Growth is expected implementation. to be sluggish at 1.9 percent in 2015, slightly up from 1.3 percent in 2014. Fiscal vulne- rabilities will remain high and will require a large revenue effort, consolidated ex- International Finance penditure and sustained levels of aid from the international community. Corporation page 26-27 systematic country diagnostics to identify constraints and priorities In September 2015, the World Bank Group country to accelerate progress toward remained stagnant at about 36 percent afghanistan (WBG) Afghanistan Country Office held reducing poverty and promoting shared between 2007 and 2012. Furthermore, an reconstruction trust a number of consultative meetings with prosperity in a sustainable way. The SCD unprecedented transition since 2012 has results 34 38 results fund various stakeholders including repre- is not intended to be limited to expected led to a marked decline in economic per- ‘Urban Transport’ ‘Afghan Farmers Reap’ sentatives from the Government of areas of World Bank Group engagement, formance. page 28 -42 Afghanistan, donors, private sector, and but rather to inform the policy discussion The SCD recognizes that sustained de- page 28-29 civil society organizations. The aim of with a broad community of stakeholders velopment progress will require a reduc- what is the artf these consultations was to engage with in Afghanistan’s development. tion in levels of conflict and violence. At how the artf works various stakeholders on the Bank’s Sys- The SCD under preparation notes that the same time, Afghanistan will need to page 30 tematic Country Diagnostics (SCD). The Afghanistan faces three fundamen- make progress in addressing three im- ongoing projects SCD precedes preparation of a new WBG tal constraints in its efforts to reduce portant priorities: ( ) strong and inclusive Country Partnership Framework (CPF). poverty: fragility and conflict; demogra- growth and job creation; ( ) expansion of The SCD is intended to be an evidence- phy and geography; and declining aid. prioritized service delivery; and ( ) main- based, diagnostic report to identify Despite significant economic and social taining fiscal stability.   key constraints and priorities for each progress since 2003, poverty nationwide 4/  Country date / /  /5 WORLD BANK GROUP SUPPORT The World Bank Interim Strategy World Bank projects cated building capacity and legitimacy of the manufacturing, financial markets, and Note for Afghanistan Japan Social the state, and channeling donor resources infrastructure sectors. IFC Advisory Services is and programs through the government to ensure invest- also very active in Afghanistan with six active Afghanistan, Reconstruction Development Fund ments are aligned with national priorities. projects during the reporting period. 2012-2015 Trust Fund Since April 2002, the World Bank’s Interna- To this end, the World Bank works closely c For more information: see page 26. The Japan Social Development Fund (JSDF) tional Development Association (IDA) has with other multilateral and bilateral agen- was established by the Government of Japan The Afghanistan Reconstruction Trust Fund committed over $3.09 billion for develop- cies across a number of sectors where aid The World Bank’s approach is to in 2000 as a means of supporting activities ment and emergency reconstruction pro- coordination and government ownership Multilateral support GoA in implementing (ARTF) is a partnership between the inter- which directly respond to the needs of poor national community and GoA to improve jects, and five budget support operations in are most critical. Investment elements of the most important effectiveness of the reconstruction effort. As and vulnerable groups, enhance their capaci- Afghanistan. This support comprises over c For information about completed projects: ties, and strengthen their empowerment and $2.68 billion in grants and $436.4 million www.worldbank.org.af – Projects & Guarantee Agency National Priority Programs in a of June 21, 2015, 34 donors have contributed over $8.15 billion, making ARTF the largest participation in the development process. in no-interest loans known as ‘credits’. The Programs. way that will build legitimacy The fund is administered by the World Bank. contributor to the Afghan budget—for both Bank has 15 active IDA projects in Afgha- The Multilateral Investment Guarantee and capacity of the institutions. The Government of Japan and the World operating costs and development programs. Agency (MIGA) has $154 million of gross Bank agreed to set up a special window with- nistan with net commitment value of over $1 billion. International exposure in Afghanistan, supporting tele- One of GoA’s greatest ARTF’s support for National Priority Pro- in the JSDF to support activities in Afghanis- priorities will be to build grams (NPPs), operating costs of government The World Bank has provided advice to Finance Corporation communication and agribusiness projects. operations, and the policy reform agenda tan under a multi-year program of assistance help the Government of Afghanistan (GoA) The telecommunication project (MTN) is also domestic sources of growth and for the country’s reconstruction and transi- is contributing to the achievement of the manage donor funds effectively and trans- The International Finance Corporation (IFC), receiving financing from IFC. The two agri- jobs to replace donor/military tion toward political, economic, and social Afghanistan National Development Strategy parently. The Bank also supports the govern- the World Bank Group’s private sector deve- business projects are in dairy and cashmere stability. assistance and to sequence NPPs goals. More than $3.7 billion have been dis- ment by providing analytical work on the lopment arm, continues to work with its production. As of September 2015, JSDF’s total com- to concentrate on foundational bursed to GoA to help cover recurrent costs, economy, public administration, gender, investment and advisory service partners in In 2013, MIGA launched its ‘Conflict Affec- mitment had reached $85 million. A number such as civil servants’ salaries, and over poverty, opium economy, and public finance Afghanistan. IFC Investment Services now has ted and Fragile Economies Facility’ that uses investments for growth. of JSDF-financed projects have been comple- $3.8 billion had been made available, both management. a committed investment portfolio totaling donor partner contributions and guarantees Under the Interim Strategy ted so far. for closed and active investment projects. The Bank has actively supported key re- some $80 million in five companies, which as well as MIGA guarantees to provide an ini- Note period, the Bank’s program c For more information: As of June 21, 2015, 21 projects are active forms, particularly in the fiscal and public include commitments in the financial, tele- tial loss layer to insure investment projects in http://go.worldbank.org/U5OQZVF200 is built around three interlocking under ARTF with net commitment value of administration spheres, and through its communication, and hospitality sectors. IFC difficult contexts. This facility could be used to $2.5 billion. budget support operations. It has advo- is exploring investment opportunities across boost the agencies’ exposure in Afghanistan. themes: c For more information: see page 28. • Building the legitimacy and capacity of institutions. • Equitable service delivery. • Inclusive growth and jobs. 6/  Country date / /  /7 ONGOING OPERATIONS / education and training Second Education Quality Improvement Program (EQUIP II) c IDA Grant $65 million c ARTF Grant $408 million EQUIP’s objective is to increase equitable ac- cess to quality basic education, especially for girls, through school grants, teacher training, and strengthened institutional capacity with Hundreds of children at this school in Balkh support from communities and private pro- Province have transferred viders. Program interventions are primarily from tents to a properly targeted toward general education, teacher equipped learning environment in newly built training, and education management. The classrooms. “Studying in program is fully aligned with the Afghanistan a proper classroom has National Education Strategic Plan and sup- brought me peace of mind, something every ports the institutional development of the student deserves to enjoy,” Ministry of Education’s program staff. says one of the students. As of September 2015, EQUIP II has sup- The new school building and facilities were made ported the construction of 863 schools possible through grants and 137 more schools are currently under from the Second Education construction. Overall, there are 8.5 million Quality Improvement Program as well as children enrolled in schools throughout contributions from parents Afghanistan, of whom 3.3 million (39 per- and the local community. cent) are girls. Under both phases of EQUIP, social mo- bilization activities have been conducted the exception of Paktika, Uruzgan, and Zabul. of graduates from Technical and Vocational ing a labor market information system and in 14,432 communities, resulting in the es- Some 5,000 teachers received a scholarship Education and Training (TVET) schools and an overall Management Information System tablishment of an equal number of school in 2013-2014. Further, 542 quality grants institutes through improvements in the skills (MIS) for the TVET system; (d) capacity build- shuras (community-based consultative bod- and 300 gender grants have been awarded to delivery system. The project focuses on pro- ing of monitors and inspectors of schools and ies). So far, 16,588 schools have received TTCs since 2010. Gender grants are awarded viding incentives to schools and institutes institutes accredited by the Deputy Ministry Quality Enhancement Grants for purchase to TTCs based on the number of female stu- offering formal TVET programs through a of TVET (DMTVET); and (e) conducting certifi- of school supplies, laboratory equipment, dents enrolled to encourage them to enroll challenge fund scheme, while simultane- cation examinations for TVET graduates and and other materials to enhance the learning more women. Gender grants are used for ously strengthening the institutional system related activities. environment. providing more facilities and a better learn- for TVET as a whole. The project has four Component 2: This component includes a To date, nearly 154,700 teachers have been ing environment for female students. components: program for the recognition of schools and trained under In-Service Teacher Training Component 1: This component essentially institutes that have already implemented (INSETs 1-5) packages, 35 percent of whom focuses on (a) the formulation of a detailed some good practices to improve academic are women. At the same time, 17,200 school principals and administrators have under- Afghanistan Skills TVET strategy and plan, which would also be in line with the National Priority Program 1, management, reform school administration, attempts to find placements for students or gone School Management Training (SMTs Development Project National Education Strategy Plan-II, and the to establish linkages with local industries, 1-6), some 20 percent of whom are women. Interim Strategy Document published by the curricular reform at the local level, and prac- c IDA Grant $55 million In addition, 11,436 women have received government, and an implementation pro- tical steps to deal with student welfare. Such scholarships and graduated from Teacher The project’s objective is to increase the po- gram; (b) developing quality standards for schools and institutes will be given a recogni- Training Centers (TTCs) across provinces, with tential for employment and higher earnings skills delivery; (c) designing and implement- tion award of $30,000 in kind. 8/  Country date / /  /9 plans for their institutes. The second round / financial sector of the recognition grant awarded to 22 more TVET schools/institutes is underway. In partnership with the International Labor Access to Finance Organization and an international certifica- Project tion agency, graduates from these institutes c IDA Grant $50 million and schools will receive internationally rec- ognized certification of their skills. So far, The Access to Finance Project aims to build 1,545 graduates from the National Institute institutional capacity to improve access to of Management and Administration (NIMA) credit of micro, small, and medium enterpris- have received an International Certificate es. The project has the following components: from the University of Jyvyskala, Finland, and Component 1: Improving access to finan- Ball State University, USA. cial services for micro and small enterprises. Enrollment at NIMA rose from 300 stu- This component aims to provide continuing dents to over 1,000 students in two years and support to the microfinance sector through the number of women enrolling improved the Microfinance Investment Support Facility significantly. Complete transparency in the for Afghanistan (MISFA), as well as, support- entrance exam has become the standard ing MISFA to take on a broader role as a cata- of the school. Over the last 18 months, the lyst for innovations to increase access and Implementing Partner for NIMA (Ball State usage of financial services from the lower University) has organized seven rounds of end of the market according to its new stra- entrance examinations of international tegic plan. It should, however, be underlined standard, and over 700 students are now cur- that the role of MISFA is primarily that of rently enrolled at NIMA to pursue a two-year market facilitator, rather than direct techni- business program equivalent to a Bachelor’s cal assistance provider. degree. Component 2: Improving access to finan- To date, 522 TVET graduates have received cial services for small and medium enterpris- scholarships under the Award of Voucher es (SMEs). The aim is to increase commercial More than 170 students Program to upgrade and strengthen their are enrolled in the bank and microfinance institution (MFI) lend- competencies by pursuing an International Vocational High School ing to SMEs and thus facilitate their access to for the Blind in Kabul, Certification program in various fields. The second step will consist of selecting Component 4: This component finances financial services. It will support the expan- where they are working An In-service Technical Teacher Training a number of schools and institutes (ap- the technical assistance cost for a skills team, to fulfill their ambition sion of the Afghanistan Credit Guarantee Institute was established in 2013 and proximately 15 over the life of the project), as well as costs of third party monitoring to have a vocation and Facility, and provide technical assistance to contribute to society. The two cohorts have already graduated. A which, through a detailed business plan, and evaluation, and a public awareness cam- commercial banks to strengthen their SME school is supported by Project Management Information System demonstrate a willingness to sustain these paign. The public awareness campaign will the Afghanistan Second lending capacity. This component will include (PMIS) has been established and is provid- good practices and/or to introduce new ones. sensitize high school graduates on the type Skills Development Project, support to the Credit Guarantee Facility to which provides incentives ing regular update on all aspects of project The selected schools and institutions will of training provided by various institutions as provide coverage to MFI lending to the lower to schools and institutes implementation (procurement, financial be provided development grants of up to well as the quality of the training. offering formal Technical end of the SME market. management, human resources, civil work, $400,000 each. To date, 15 TVET schools and institutes and Vocational Education Component 1 is under implementation and and Training programs. student enrollment and graduation, etc.). Component 3: This component is specifi- selected nationwide have received the rec- MISFA has initiated a series of activities (in The PMIS now links all four aided institutes cally directed towards developing an infra- ognition grant of $30,000 to scale up and/ particular the scaling up of the Targeting the (NIMA, Afghanistan National Institute of structure for in-service training for technical or replicate good practices in delivering Ultra Poor Program). The procurement pro- Music, Blind School and Afghan Institute of teachers and to build a pool of master train- skills. These beneficiaries also have received cess related to the scale up of the Targeting Technology) to the Project Unit. ers. It is proposed to train 750 technical supplementary technical assistance for the the Ultra Poor Program was completed and teachers and at least 60 master trainers by preparation and implementation of Business the contract awarded in July 2015. Compo- the end of the project. Development Plans and five-year business nent 2 has not yet started, as discussions are access to credit transforms the lives of many Afghans • Loans obtained through microfinance institutions are helping small entrepreneurs across Afghanistan increase revenues and improve living standards. • The microfinance institutions are supported by the Microfinance Investment Support Facility for Afghanistan (MISFA), which receives funding from the World Bank and Afghanistan Reconstruction Trust Fund (ARTF). • MISFA has provided, cumulatively, more than $1 billion in loans to over 2 million clients, more than a third of whom are women. S leeping next to a hot heater in a small room, the baby breathes comfortably. Only three months old, she is probably the luckiest member among the family of seven living here. A few years ago, the family of the baby girl did not have the means to keep their rooms warm during the cold seasons, but everything has changed with the wise decision of Fatima, the baby’s grandmother. Fatima, 48, who has been doing beadwork and tailoring for nearly 30 years, decided to secure a loan to invest in her busi- ness four years ago. “First, I got a loan of 10,000 afghanis (about $155). When I repaid my initial loan, I borrowed 40,000 afghanis the second time. After that, I secured two different loans of 50,000 afghanis each,” says Fatima. “My business thri- ved with each passing day, and now we have everything.” Fatima works from home, together with her daughter- MISFA’s Managing Director, Bahram Barzin says: “An in-law and sister-in-law. She and her husband, a 52-year- average of 1.85 jobs are created with the issuance of “ old driver, live with their family in an informal settlement each microfinance loan. This program is also contribu- where poor people live in the center of Kabul City. ting to the economic development of the country. Our clients are people whose living standards are very low, When I repaid my initial loan, and these microfinance loans have made tremendous Significant impact on livelihoods contributions in improving their living standards.” Fatima was able to secure the loans through a micro- The impact of the microfinance loans is far greater I borrowed a second time. After that, finance institution supported by the Microfinance than Fatima and her family anticipated four years ago. Investment Support Facility for Afghanistan (MISFA), Fatima used to produce five to six shirts a day, but now I secured two additional loans. My business thrived which has provided a great opportunity for her and production has spiked to 30 shirts per day, and her in- thousands of others across Afghanistan to improve their come has increased from 200 afghanis ($3.00) per day ” livelihood. The program has received support from the to 1,000 afghanis ($15.50). The shirts are sold to a local with each passing day, Afghanistan Reconstruction Trust Fund (ARTF) since clothing company, which supplies to handicraft markets. and now we have everything. 2003 and World Bank’s International Development Saleh Asil, 18, runs a shop selling these beaded shirts Association (IDA) since 2007. in the Qala-e-Fatullah neighborhood of Kabul City. He says the market for shirts with beadwork is thriving, par- In 2013, IDA provided $50 million to the Access to Finance Project, which gives further support to MISFA to ticularly in spring and summer. The result is that even –Fatima, tailor increase access to financial services of micro, small, and employees like Saleh reap a good income. “I have been medium enterprises. To date MISFA has provided, cumu- working in this business for one and a half years. The latively, more than $1 billion in loans to more than 2.1 owner of the store pays me a salary of $200 a month,” million clients, 37 percent of whom are women. says Sahel, who is the sole provider of his family. 12/  Country date / /  /13 Health Outcomes on Positive Trend ongoing between the Ministry of Finance Systems, is completed and the contract is ex- under-five mortality rate and the Afghanistan Credit Guarantee pected to be awarded soon. The implementa- and infant mortality rate Foundation for an agreement to be signed. tion of the Real Time Gross Settlement (RTGS) Automated Clearing House (ACH) and Central dropped to 97 and 77 per 1,000 Securities Depository (CSD) is pending the live births from 257 and 165, respectively. Afghanistan Financial signing of the contract with the selected ven- dor and will take 18 months. Sector Rapid Maternal mortality ratio Response Project / health fell to 327 per 100,000 live c IDA Grant $25.7 million births, compared to 1,600 in 2002. The project is assisting the Da Afghanistan System Enhancement Number of functioning Bank (DAB) to develop a set of action plans to improve banking supervision and imple- for Health Action in health facilities increased ment a modern payment system for effi- Transition (SEHAT) to more than 2,000 in 2012 from cient and transparent payment transactions. Specifically, the project aims to allow DAB to Program 496 in 2002, while at the same time the proportion of facilities accurately assess the financial situation of 10 c IDA Grant $100 million commercial banks through audits conducted c ARTF Grant $300 million with female staff increased. in accordance with international standards. c Government of Afghanistan The audits will lead to the development of $30 million Births attended by skilled action plans to address weaknesses that are health personnel among c Multi Donor trust fund for health identified, with oversight from DAB. results innovation $7 million the lowest income quintile The project also aims to modernize the national payment system with the goal of re- The program aims to expand the scope, qual- increased to 35 percent from This district hospital in ducing the use of cash transactions, the main ity, and coverage of health services provided 15.6 percent. Balkh Province is providing better access to health means of making payments in Afghanistan, to the population, particularly for the poor, services to local residents, and transitioning to electronic, card, or mobile in 22 provinces, and to enhance the Ministry strengthening the healthcare financing di- thanks to strong government leadership, PENTA3 immunization which is resulting in lower payments. The project will also provide fur- of Public Health’s (MoPH) stewardship func- maternal mortality rates rectorate; developing regulatory systems sound public health policies, innovative ser- tions. The project supports the provision of coverage more than and improved public and capacities for ensuring quality phar- vice delivery, careful program monitoring ther support to the Afghanistan Institute of Banking and Finance (AIBF) to allow it to scale basic health and essential hospital services in doubled (a combination of five health. The hospital, one of five provincial tertiary maceuticals; working with the private and evaluation, and development assistance. up its activities, in order to increase the avail- both rural and urban areas. It also strength- vaccines in one covering polio, referral centers, has sector; enhancing capacity for improved Data from household surveys (between 2003 been able to strengthen ability of banking sector skills. ens the national health system and MoPH’s diphtheria, Pertussis, tetanus and its services through hospital performance; strengthening human and 2011) show significant declines in ma- The project was restructured and addition- capacity at central and provincial levels. hepatitis B), from 29 percent to 60 support from the System resources for health; governance and social ternal and child mortality. al financing to the project ($6.7 million) sup- The project includes the following three Enhancement for Health accountability; strengthening the Health Despite significant improvements in the percent among children aged 12 to Action in Transition ported selected technical assistance activities components: Information System and use of information coverage and quality of health services, as 23 months in the lowest income Program. technology; strengthening health promotion well as a drop in maternal, infant and under- originally financed under the Financial Sector Component 1: Sustaining and improving Strengthening Project, which closed in June the basic package of health services and es- quintile. and behavioral change; and improving fidu- five mortality, Afghanistan health indicators 2014. The additional financing targeted ac- sential package of hospital services: sup- ciary systems. are still worse than the average for low in- tivities to strengthen DAB’s capacity and the ports the implementation of these services Contraceptive prevalence Component 3: Strengthening program come countries, indicating a need to further establishment of a Public Credit Registry. through performance-based partnership rate increased to 30 percent management: supporting and financing decrease barriers for women in accessing The audits of the 10 commercial banks were agreements between MoPH and non-gov- costs associated with system development services. Afghanistan also has one of the from 19.5 percent. completed in June 2012. A Movable Collateral ernmental organizations, which will deliver and stewardship functions of the MoPH highest levels of child malnutrition in the Registry and a Public Credit Registry, set up in health services as defined in these packages. including incremental operating costs at world. About 41 percent of children under 2013, are now fully operational. The process Component 2: Building the stewardship central and provincial levels and technical five suffer from chronic malnutrition, and for modernization of the payment system is capacity of MoPH and system development assistance. both women and children suffer from high in progress. The mobile/card national pay- by supporting the following thematic areas: The Afghan health system has made con- levels of vitamin and mineral deficiencies. ment switch, operated by Afghan Payment strengthening subnational government; siderable progress during the past decade 14/  Country date / /  /15 / infrastructure The Ministry of Communications and Information Technology, Afghanistan with support from the Information and Information and Communication Technologies (ICT) Sector Communication Development Project, is developing the local IT Technologies (ICT) industry by expanding the pool of skilled and Sector Development qualified IT professionals, and supporting the Project incubation of ICT companies in Afghanistan. c IDA Grant $50 million The project builds on the success of earlier projects and catalyzes the next phase of ICT development in the country. It supports poli- cy and regulatory reforms and strategic infra- structure investment to expand connectivity and enable more users to access high qual- ity mobile and Internet services. It also helps mainstream the use of mobile applications to improve public service delivery and pro- gram management in strategic government sectors. The project helps develop the local IT industry by expanding the pool of skilled and qualified IT professionals, and supporting the incubation of ICT companies in Afghanistan. As of September 2015, major milestones under the project include progress in con- struction of optical fiber cable, completion of about 440 kilometers of ducting, and opera- tionalization of the four nodes on the north- east segment. A total of 1,500 Afghans have The platform allows any citizen with a mo- Central Asia South electricity trade. The total project cost is es- bile phone to access a set of public services. timated at $1.17 billion and several other been trained under the IT skills development Two rounds of the Innovation Support Asia Electricity development partners will provide financ- program and another round of specially de- signed job-oriented training programs will Program awarded 15 local innovators for Transmission ing for CASA-1000, including the Islamic their ideas on how mobile technologies could Development Bank and United States Agency run in 2016. help address challenges in various sectors in- and Trade Project for International Development (USAID). The Ministry of Communications and Information Technology (MCIT) is preparing cluding agriculture, education, and health. (CASA-1000) CASA-1000 will build more than 1,200 The ICT business incubator complex has kilometers (km) of electricity transmission an open access policy for the national back- c IDA Grant $526.5 million been constructed in the ICT Institute area lines for associated sub-stations to transmit bone network, ensuring non-discriminatory of MCIT and eight start-up business entities The Central Asia South Asia Electricity excess summer hydropower energy from ex- access to wholesale Internet bandwidth have undergone training programs in the Transmission and Trade Project (CASA-1000), isting power generation stations in Tajikistan for all firms. The Common Services Delivery complex to date. Under the Capacity Building and the Kyrgyz Republic to Pakistan and Platform (mobile governance hardware and covering Afghanistan, Kyrgyz Republic, Program of MCIT, 443 ministry staff mem- software) has been commissioned and 30 Pakistan, and Tajikistan, will put in place Afghanistan. The project finances the engi- bers have been trained so far. mobile applications have been developed the commercial and institutional arrange- neering design, construction, and commis- and hosted on the platform; line ministries ments as well as the infrastructure required sioning of transmission lines and three new are in the process of developing the contents. for 1,300 megawatts (MW) of sustainable converter stations. The power generation 16/  Country date / /  /17 stations that provide the energy to be traded tares of irrigation command area (compared A community monitor over CASA-1000, including Toktogul in Kyrgyz to the end project target of 300,000 hec- in Nangarhar Province, appointed under the Republic and Nurek in Tajikistan, are already tares) and benefiting 63,000 farmers. Irrigation Restoration and in place. In the small dam component, the com- Development Project, walks Of the total project financing, Afghanistan pleted pre-feasibility study had selected alongside an irrigation canal to check the quality will receive $316.5 million in the form of an seven dam sites in the northern provinces. A of its construction. IDA grant. The grant will support construc- feasibility study of the six best-ranked small Community monitors tion of about 560 km of overhead transmis- dams in the northern river basin (which are are instructed on proper construction practices sion line to connect the electricity network not on international rivers), selected from a for canal and irrigation via the northern and eastern provinces of pre-feasibility study of 22 small dams, has projects, and taught to Afghanistan. It will also finance the engineer- been completed. Furthermore, dam develop- use smart phones to photograph potential ing design, construction, and commission- ment studies for a Social and Environmental problems, collect data, and ing of a 300-MW converter station in Kabul. Impact Assessment (SEIA) are planned for send their information to Afghanistan is expected to connect more the 3-4 first ranked dams. the head office in Kabul for prompt review. households and businesses to the power grid In the hydro-met component, installation by importing 300 MW of electricity through of 127 hydrological stations and 56 snow CASA-1000. Da Afghanistan Breshna Sherkat and meteorological stations located in vari- (DABS), Afghanistan’s electricity company, ous locations on the five river basins in the and the Ministry of Energy and Water will im- country is ongoing. In addition, 40 cableway plement Afghanistan’s portion of this project, stations for flow measurement at selected including a Security Management Plan for hydrology stations have been installed. both the construction and operation phase. Second Customs Irrigation Reform and Trade Restoration and Facilitation Project Development Project (SCRTFP) (IRDP) c IDA Grant $50.5 million structure to enable modernized operations; cluding a new Customs House at Khost, and and (v) technical assistance to support the improvements to Kabul, Jalalabad, Kandahar, c IDA Grant $97.8 million SCRTFP builds on the overall success development of a regulatory, administrative, and Nimroz Customs Houses. c ARTF Grant $48.4 million of the completed Emergency Customs and institutional framework for customs. Substantial progress has been made in c Government Funds $2.5 million Modernization and Trade Facilitation Project The World Bank Board of Executive preparation of a Customs Modernization The project builds upon and scales up ac- and continues with the ongoing reforms. Directors recently approved an additional Action Plan, Post Clearance Audit (PCA) im- tivities supported under the completed The project is assisting the Afghanistan $21.5 million grant. The Automated System plementation plan, Risk Management policy World Bank-financed Emergency Irrigation Customs Department (ACD) to consolidate for Customs Data (ASYCUDA) full declaration and procedure, and Customs Strategic Plan. Rehabilitation Project closed in December the customs modernization process, improve processing (DPS) is now fully operational in A Customs-to-Customs Cooperation Agree- 2012. It supports the rehabilitation of irri- governance, and improve the release of le- 13 computerized customs offices, cover- ment between Tajikistan and Afghanistan gation systems serving some 300,000 hec- gitimate goods in a fair and efficient manner. ing more than 95 percent of declared trade. was signed on March 26, 2014, and real tares of land, and design and construction The project aims to achieve this through Migration from the ASYCUDA++ version time data exchange commenced from July of a limited number of small multi-purpose (i) countrywide computerization of customs to the newer web-based ASYCUDA World 2015. A Customs-to-Customs Cooperation dams and related works, while establishing clearance operations; (ii) installation of ex- platform has been completed in 12 sites, Agreement between Afghanistan and Iran hydro-meteorological facilities and services. ecutive information systems for customs, with both international and national transit is expected to be signed soon. ACD has As of September 2015, progress had been allowing real-time monitoring of operations; covered. also started negotiations with United Arab made in all areas. In the irrigation compo- (iii) development of possible options for Infrastructure development was complet- Emirates and Turkey for signing similar coop- nent, a total of 98 irrigation schemes have cross-border customs-to-customs coopera- ed successfully, with 10 large and 21 smaller eration agreements. been rehabilitated, covering 100,000 hec- tion; (iv) provision of selected customs infra- civil works related contracts completed, in- 18/  Country date / /  /19 The work and lives of and small-scale mining of Afghanistan; and residents in a cluster of villages in Balkh implementation of the Extractive Industries Province have improved Transparency Initiative (EITI). significantly after the The excavation of nearly 80 percent of the construction of this gravel road, giving them access archeological red zone at Mes Aynak is un- to markets and health derway. The employment of seven interna- services. The construction tional archeologists, 18 Afghan archeologists, of the all-weather road was carried out under management and 18 field support staff, and the Afghanistan Rural some 550 laborers from surrounding com- Access Project. “Ever munities is also in progress. Over the past since the road was built, the transport costs of year, the MoMP and MoIC have significantly commodities have fallen. increased their level of coordination (a bot- Residents can easily tleneck to progress in the past) and owner- take their agricultural products to the market,” ship over the project. says the head of the local Community Development Council. / rural development Afghanistan Rural Access Project (ARAP) c IDA Grant $125 million c ARTF Grant $207 million ARAP aims to enable rural communities across Afghanistan to benefit from improved access to basic services and facilities through all-weather roads. The project is expected to increase the number of people living within 2 kilometers (km) of all-season roads, reduce travel time to essential services, and enable rural communities to access essential servic- es more frequently. Sustainable the tender and negotiations of the main Hajigak contract. An International Advisory spectorate services functions and regulatory monitoring is in progress. As of September 2015, construction of 410 km of secondary gravel roads, 105 km of sec- Development of Panel (IAP) has been established to ensure Other ongoing activities under this pro- ondary asphalt roads, and 880 linear meters the transparency of the negotiations process. ject include the preparation of the Reset- Natural Resources Other areas of progress include collection of tlement Policy Framework (RPF) and the of secondary bridges has been completed. Construction of 900 km of tertiary roads Project new geodata and the digital capture of exist- associated Environmental and Social Man- and 1,050 linear meters of tertiary bridges ing historical geodata for the development of agement Framework (ESMF); the prepara- c IDA Grant $43 million also has been completed. In the meantime, a modern computerized geo-database in or- tion of a Strategic Environmental and Social routine maintenance of 1,032 secondary The project aims to assist the Ministry der to attract the exploration interest neces- Assessment (SESA) for the sector; develop- roads and period maintenance of 132 km of of Mines and Petroleum (MoMP) and the sary to sustain discovery of new deposits and ment of a computerized mining cadastre secondary roads were undertaken. Routine National Environmental Protection Agency for sector growth; and the preparation and system (AMCS+) for MoMP; development of maintenance of 3,250 km of tertiary road (NEPA) in further improving their capacities publication of 18 sub-sector development corporatization and commercialization op- and period maintenance of 500 km of tertiary to effectively regulate Afghanistan‘s mineral policies by commodity to guide sustainable tions for state-owned enterprises; provision road were also completed. The first nation- resource development in a transparent and development. of technical assistance to the MoMP and wide inventory and condition survey of rural efficient manner, and foster private sector An independent external inspection and Ministry of Information and Culture (MoIC) roads was initiated. development. contract compliance monitoring system has on the intersection between the extractive in- Steady progress has continued under this been established. At the same time, capacity dustries and cultural heritage; addressing the project including transaction support for building of NEPA and MoMP officers on in- economic and social subsector of artisanal rural development program modernizes animal husbandry • Rural enterprises in Nangarhar Province are expanding capacity and increasing revenue with the help of a rural development program that provides training and technical support. • The Afghanistan Rural Enterprise Development Program, implemented by the Ministry of Rural Development and Rehabilitation, provides support to small and medium enterprises that have been selected for their potential as key drivers of rural employment and income generation. • The program receives funding support from the World Bank and Afghanistan Reconstruction Trust Fund (ARTF). A bdul Hamidullah, 42, has learnt more in 12 months than he has ever had in over a decade of working in animal husbandry. Hamidullah, who was forced to close his own poultry business, now runs his uncle’s farm, increasing its income by a third. Hamidullah says he has learned a significant amount about farming as a result of the training he has under- gone over the past year provided through the Afgha- nistan Rural Enterprise Development Program (AREDP), implemented by the Ministry of Rural Development and Rehabilitation. “AREDP training programs have been very useful to me,” he affirms. “Over the past year, I have learned more than in a decade of working and experiencing these issues. Now, in addition to managing my uncle’s farm, I am a trainer in programs in Kabul and Nangarhar Pro- vinces.” “ The AREDP receives funding support from the World Bank and Afghanistan Reconstruction Trust Fund (ARTF). But now, on my uncle’s farm, I have started the business Started in 2010, AREDP works towards strengthening more forcefully,” he says. The AREDP training programs have market linkages and value chains for rural enterprises by providing technical support to enterprise groups and Safe environment for livestock small and medium enterprises that have been selected The result of putting his experience in India into practice been very useful to me. Over the past year, I have for their potential as key drivers of rural employment at Hashimi Farm is an expansion of livestock, leading to and income generation. an increase in the farm’s annual income to $18,000, a In January 2014, Hamidullah visited farms and recei- rise of 30 percent. The three-hectare farm in Qala-e-Pir learned more than in a decade ved training in India through AREDP. “In India, I saw mo- Sahib village in the Behsoud district of Nangarhar Pro- ” dern farms and realized that in Afghanistan, we lag 20 years behind in poultry and cattle farming,” says Hami- vince rears more than 25,000 fish, 7,000 chickens, and over 30 cattle annually. of working and experiencing these issues. dullah. “In the past, we kept nine enclosures of fish, but now It was this previous lack of knowledge in modern we have 14,” Hamidullah explains. “Our farm previously husbandry practices that led Hamidullah to close his could accommodate only 20 cows, but it can now ac- own poultry business. “Because of financial losses, my commodate up to 100. We have also created seven new –Abdul Hamidullah, farm manager, Behsoud district poultry business was shut down prior to my trip to India jobs. We have greatly benefited from this training pro- and I lost more than 900,000 afghanis (almost $14,000). gram, and it has allowed us to expand significantly.” 22/  Country date / /  /23 Afghanistan Rural The rebuilding of this irrigation canal has Enterprise brought life back to a rural neighborhood in Balkh Development Project Province, reviving arable land as well as allowing (AREDP) residents to supplement their income by growing their own vegetables. c IDA Grant $30 million The reconstruction sub- c ARTF Grant $6.2 million project was made possible through contributions AREDP aims to enhance economic mobili- from local residents and a grant from the National zation and activities by organizing the ru- Solidarity Project, the ral poor into Savings Groups (SGs), Village government’s flagship Savings & Loan Associations (VSLA) and program for rural development. Enterprise Groups. The project provides tech- nical support to these groups so as to build a financial discipline through savings and internal lending practices, and technical sup- port to enterprises. To date, the program has established 5,561 Savings Groups with a membership of some 68,000 rural poor (52 percent women) in 747 villages. The SGs have saved over $3.37 mil- lion and members have accessed more than 27,000 internal loans for productive and emergency purposes with a repayment rate of 95 percent. To generate economies of scale, 415 Village Savings & Loan Associations have also been established as federations of the SGs, and are maintaining accurate and up-to-date records of accounts with good governance structure in place. On average each VSLA has $6,500 as and income generation. Six Provincial Situa- Third Emergency Since 2003, NSP has successfully estab- loan-able capital, which is further boosted with a seed grant injection. This improves tion Analysis (PSA) have been completed and 10 PSAs are underway. Support was given National Solidarity lished Community Development Councils (CDCs) in over 34,600 communities, and access to finance for group members who to 113 Kochies (nomads) and 143 disabled Project (NSP) supported subsequent rounds of CDC elec- would like to increase productivity or engage tions in over 11,400 of these communities. people to enhance their enterprise develop- c IDA Grant $40 million in entrepreneurial activities but cannot ac- More than 485,000 CDC members have been ment skills and productivity. AREDP uses c ARTF Grant $1.05 billion cess such funds from commercial banks or elected, registered, and trained in a variety of Community Development Councils as an microfinance institutions. c JSDF Grant $9.59 million entry point into communities and is current- areas including in their roles and responsi- AREDP also works towards strengthening GoA’s flagship program is in its third phase bilities, basic accounting, basic procurement, ly working in 20 districts of five provinces: market linkages and value chains for rural and aims at generating a strong sense of basic project management, and linkages Parwan, Bamyan, Nangarhar, Balkh, and enterprises by providing technical support to ownership and social stability while enhanc- with other government and development Herat. 1,238 Enterprise Groups (65 percent female) ing service delivery and security through em- actors. Over 950,000 community members and 563 (13 percent female) Small Medium powerment and development activities that also have been trained to support the CDCs Enterprises that have been selected for their communities identify, plan, manage, and with project management and/or operations potential as key drivers of rural employment monitor on their own. and maintenance. In a sign of ownership, 24/  Country date / /  /25 / social safety net / urban development Afghanistan Safety Afghanistan New Nets and Pensions Market Development Support Project Project c IDA Grant $20 million c IDA Grant $22 million The objectives of the project are to: (i) im- The project aims to pilot a business develop- prove the administration of the public pen- ment program in the four urban centers of sion schemes; and (ii) develop administrative Kabul, Mazar-e-Sharif, Jalalabad, and Herat, systems for safety nets interventions, with which are the major hubs of economic activity. focus on targeting and benefit payment de- It helps enterprises gain market knowledge, livery, to deliver cash benefits to the poorest improve product quality, boost productive ca- families in targeted pilot districts. pacity, acquire new technologies, and devel- Key elements of a reformed and mod- op and implement business plans to increase ernized Public Sector Pension System are their presence in both domestic and export in place, including a revised institutional markets. The project specifically aims to sup- and human resources structure of the port some 750 enterprises and 10 business Pension Department, a comprehensive new associations through a cost-sharing facility Management Information System (MIS), a to access business development services. The set of business processes, fiscal forecasting project is expected to create around 1,500 models for revenues and expenditures, and a jobs in the short term with much higher job new chart of accounts of the pension system. growth over the longer term. Around 55,000 pensioners are registered in The project is implemented by the Ministry the new pension MIS and are paid through of Commerce and Industry. The General bank accounts. Director of the Private Sector Development A multi-phased safety net cash transfer Department acts as the Project Director. This hospital in Kabul pilot has been designed, implemented, and The Facility for New Market Development is one of hundreds of enterprises benefiting evaluated. A targeting and benefit delivery (FNMD), created under the project, was of- from the Afghanistan mechanism has been tested and is now be- ficially launched on March 12, 2013. Since communities have contributed over $150 scale infrastructure schemes (14 percent). New Market Development ing further improved, together with comput- then it has received 1,051 applications from million in cash, kind, and voluntary labor Cumulatively, over all the NSP phases to Project, a pilot business development program erized registration. The pilot program over small and medium enterprises (SMEs), and towards the sub-projects implemented date, CDCs have received over $2.19 billion, implemented in four the past three years has provided support in signed cost-sharing grant contracts worth through NSP. of which some $1.57 billion have gone to urban centers in cash transfers to over 16,000 poor and vul- $10 million with 434 firms and associations. Specifically under the current phase, some communities through block grants to finance Afghanistan. As a result of the project, the nerable families (around 80,000 individuals) Moreover, FNMD has processed 67 addi- 14,530 new CDCs have been established over 87,900 sub-projects. More than 71,800 hospital has been able to in eight selected districts in five provinces. tional grant agreements with the SMEs that and over 11,300 been re-elected. Together, sub-projects have closed, while the rest is improve its presence in successfully completed their first cycle of over 25,700 community development plans ongoing. the domestic market by acquiring new technology agreements. Also through FNMD, 1,385 jobs have been prepared, and more than 41,200 Over 6.1 million families have benefited and being the first in the have been created across the country, includ- sub-project proposals designed. Over 40,800 from NSP-financed sub-projects. NSP has cre- country to offer it. ing more than 30 percent for women, with of these proposals have been financed with ated temporary rural employment by gener- 155 new or improved products introduced in block grants totaling $922 million, and of ating over 52 million labor days over the past either domestic or export markets. these, some 24,600 have closed while others 12 years. are ongoing. The financed sub-projects in- c For more information: clude transportation (30 percent), water sup- www.nspafghanistan.org ply and sanitation (25 percent), irrigation (26 percent), power (5 percent), and other small- 26/  Country date / /  /27 INTERNATIONAL FINANCE CORPORATION / current strategy and medium enterprises capacity development, Access to finance overview and Public Private Partnerships (PPPs). At pre- IFC, as part of the Finance & Markets (F&M) sent, there are seven active mandates across Global Practice, provided assistance to the In recent years, the International Finance the two integrated global practices, and four central bank, Da Afghanistan Bank (DAB), in Corporation (IFC) has been following an in- IFC industry groups and cross-cutting areas. collaboration with the World Bank’s Financial tegrated advisory and investment strategy focused on improving investment climate, Sector Strengthening Program in support building capacity, and supporting selective of the establishment of the first electronic / advisory services projects Movable Collateral Registry and Public Credit investments in sectors with high develop- ment impact and job creation possibilities. Registry. IFC’s current strategy is in line with the on- Business enabling IFC also helped establish regulatory frame- going World Bank Group’s Interim Strategy works for leasing and will now focus on Note for Afghanistan (ISN-FY12-15) and has environment building the strengths of commercial banks jointly contributed to the Systemic Country IFC is currently working with the Kabul and other financial institutions to offer as- Diagnostics currently under preparation. Municipality to develop a simplified yet ef- set-based lending products and to achieve fective construction permit system and a greater utilization of the registries, with a Investment portfolio regulatory framework that would improve view of further expanding outreach of finan- IFC’s committed portfolio in Afghanistan has the government’s capacity and efficiency in cial services to more small and medium en- more than doubled since FY08, from some issuing construction permits. The intended terprise in the country. $58 million to about $135 million in FY14. results would include an increasingly trans- IFC, through the F&M Global Practice, has IFC also has been providing support to SMEs Currently, IFC’s portfolio stands at about $80 parent process as well as a reduction of pa- also been working closely with DAB on the in the agribusiness sector by helping farm- million and includes two investments in the perwork, processing time, and the number of development of the legal and regulatory en- ers and processors improve productivity and telecommunication sector (MTN – a joint pro- signatures required to obtain a permit. This vironment governing the establishment of supporting the expansion of market oppor- ject with MIGA, and Roshan), one investment ongoing intervention includes technical sup- a leasing sector in Afghanistan. The project, tunities both nationally and internationally. in the hotel sector (TPS), and two operations port to streamline procedures, improve both in addition to creating enabling legislation, In the near future, the project expects to have in financial markets (First Microfinance Bank, manual and automated systems, and provide will aim to build awareness and capacity a signed agreement with a leading Afghan Afghanistan International Bank). legal expertise to draft a revised legal frame- of various stakeholders, public and private, agribusiness firm and will work with that Through the project with the First Micro- work and guide clients on building consen- to enable financial institutions to diversify firm to improve its operations through the finance Bank, the first licensed private sector sus around the reforms. and expand their portfolios and increase ac- integration of farmers who are able to im- microfinance bank in Afghanistan, IFC helped IFC launched a four-year $13 million cess to financial services and products in the plement best practices in their supply chains to reach over 64,000 borrowers – 16 percent USAID-funded Investment Climate program country. The leasing law was passed in the (through previous phases of the project). of whom were women. Similarly, IFC has had in July 2015. Initial components of this pro- spring of 2014. Development of regulations significant impact in the telecommunication gram include the second phase of the trade is currently underway. sector by improving mobile phone access licensing project in which support aimed at and services to the poor through the invest- creating a more transparent, efficient, and conducive licensing regime will be stabi- Enterprise ment in MTN and Roshan Telecom. IFC will continue to seek new investment lized and rolled out to provincial areas; the development opportunities and engage with local play- preparation of a new Doing Business Reform The Business Edge initiative has been facili- ers in order to support the development Memo; identification of subsequent indi- tating business skills training to individuals of Afghanistan’s private sector. The invest- cator-based reform advisory work; and the and SMEs. To date, the program has trained ment pipeline for FY16 looks promising and launch of a Sub National Doing Business as- 9,056 individuals (3,935 women) along with includes investments in financial markets, sessment and report. 801 micro, small and medium enterprises, mobile infrastructure, the power sector, and Furthermore, IFC Advisory teams continue plus government and development organiza- agribusiness. to collaborate closely with the World Bank tions. IFC has partnered with 10 local train- The investment program has been sup- in relation to the financial sector and invest- ing providers to strengthen their capacity, ported by a strong advisory services program ment climate in support of key reforms af- aiming to enhance the sustainability of the in the areas of access to finance, investment fecting the private sector. provision of management training services. climate, horticulture/agribusiness, small and 28/  Country date / /  /29 AFGHANISTAN RECONSTRUCTION TRUST FUND The Afghanistan Reconstruction / what is the artf? rule is to ensure that ARTF retains some flex- Trust Fund scope. Since SY1389 (year 2010) investment ibility in the approval of projects in support commitments have exceeded recurrent cost The Afghanistan Reconstruction Trust Fund of the NPPs and that it has sufficient funding commitments. Disbursement rate on ARTF (ARTF) is a partnership between the inter- to finance the Recurrent Cost Window . The Afghanistan Reconstruction investment as of June 21, 2015, is 60 percent. national community and GoA for the im- Trust Fund (ARTF) was established Decentralized and national rural develop- proved effectiveness of the reconstruction The Recurrent Cost (RC) Window in April 2002 as a temporary ment programs, such as the NSP, rural roads, effort. Since 2002, 34 donors have contri- and education, have been strongly support- Grant $3.76 billion means to finance the buted over $8.15 billion, making ARTF the ed by ARTF. largest contributor to the Afghan budget To date, ARTF has disbursed $3.5 billion government’s wage bill. ARTF As of June 21, 2015, there are 21 projects for both operating costs and development through the government’s operating budget. has now developed into the main active under ARTF with a total commitment programs. ARTF’s support for National Prio- Domestic revenues continue to be insuffi- multi-donor funding mechanism value of $2.5 billion, of which $1.56 billion rity Programs, operating costs of govern- cient to cover the costs of government. The have been disbursed and the net undis- in the country, financing both ment operations and the policy reform ARTF Recurrent Cost Window has therefore bursed amount is $900.07 million. agenda is contributing to the achievement ensured the basic functioning of govern- the essential running costs of c Full details of investment activities are of the Afghanistan National Development ment including the delivery of services such government as well as key Afghan provided in the ARTF Quarterly Reports: Strategy goals. as healthcare and education. Given that National Development Strategy www.worldbank.org/artf. around 60 percent of the non-uniformed programs across the country. Management Afghan civil service is accounted for by teach- The World Bank is administrator of the fund. ers, the Ministry of Education has in general The objectives of ARTF are to: / how the artf works The Management Committee consists of the received about 40 percent of total ARTF re- • Position the national budget World Bank, Islamic Development Bank, Asian sources. Ministries of Public Health, Foreign as the key vehicle to align the Donors contribute funds into a single ac- Development Bank, UNDP, and Ministry of Affairs, Labor, and Social Affairs and Higher count, held by the World Bank in the USA. reconstruction program with Finance. The Management Committee meets Education have also been major recipients. The ARTF Management Committee makes regularly in Kabul to review ARTF finances It should also be highlighted that the RC national development decisions on proposed allocations at its and approve funding proposals. Donors meet Window resources are national in scope, objectives. monthly meetings, and those decisions every quarter to discuss broader strategy ensuring the payment of salaries of around • Promote transparency and are translated into funds through Grant with the government and ARTF management 62 percent non-uniformed civil servants in Agreements signed between the World Bank accountability of reconstruction in the steering committee. all 34 provinces of the country. Steady year- and the Government of Afghanistan. on-year increases in operating costs across assistance. ARTF allocations are made through two Donor contributions government mean the RC Window accounts • Reduce the burden on limited ‘windows’: the Recurrent Cost Window and Donor contributions have increased year af- for a declining share of the overall budget. government capacity while the Investment Window. The Recurrent Cost ter year, with new donors joining and older Nevertheless, the RC Window still finances Window reimburses the government for a promoting capacity building donors increasing their levels of contribu- around half of the non-security costs of certain portion of eligible and non-security tion. Over the last few years the ‘preferenced’ government. over time. related operating expenditure every year. portion of donor contributions has been the • Enhance donor coordination for The Investment Window provides grant fi- main factor driving growth. The agreed ARTF The Investment Window financing and policy dialogue. nancing for national development programs rule is that donors may not ‘preference’ more The Investment Window has in the last in the development budget. than half of their annual contributions. This years increased significantly in volume and 30/  Country date / /  /31 / ongoing projects A farm worker on an Improved Seeds Enterprise production farm in Balkh Afghanistan Province supported by the Afghanistan Agricultural Agricultural Inputs Inputs Project. The farm is one of six that Project (AAIP) produces foundation crop seeds from breeder seeds, produced by the Grant $74.8 million Agricultural Research Institute of Afghanistan. AAIP aims to increase adoption of improved The project aims to crop production technologies. The agri- strengthen ongoing research and seed culture sector is central to Afghanistan’s production activities, economy, employing 60 percent of the na- which are resulting in the tion’s workforce. As such, strengthening improvement of quality seed production and institutional capacity of the Ministry of release of new wheat Agriculture, Irrigation and Livestock (MAIL), varieties. and increasing investments for safety and re- liability of agricultural inputs are invaluable to support continued increase of agriculture productivity. Firstly, the project will improve the techni- cal and economic efficiency of the value chain of certified wheat seed. Secondly, building on the legal and regulatory framework that the project helped build during the preparation phase, the project will develop the necessary accredited facilities for plant quarantine net- works and quality control of agro-chemicals. Thirdly, guided by the results of field surveys carried out during the preparation phase, the project will design and pilot test a demand- led action plan to improve and develop mar- Plant Protection and Quarantine Directorate, Afghanistan Justice services by central justice institutions; and ket based input delivery systems for seeds and agro-chemicals. The sustainability of as well as designs for 10 Border Quarantine Stations. Service Delivery (e) building project management capacity. The implementing agencies are the Supreme these interventions will be supported by ca- Another major achievement is the com- Project Court, Ministry of Justice, and Attorney pacity building programs involving civil serv- pletion of a survey and designs of nine General’s Office (AGO). ants, farmers, and traders. Grant $85.5 million There has been progress in several of the Regional Research Stations and four Regional During its second semester of implemen- Seed Production Farms. The work so far in The objective of the Justice Service Delivery components and sub-components: capital tation, AAIP completed the expansion of its these areas will inform future investments Project for Afghanistan is to increase ac- investment plans are under development; technical teams at central and regional lev- by the project as well as the ministry. The cess to and use of legal services. The project the development of the Legal Aid Road Map els, thus finalizing necessary arrangements project also provided in-country training seeks to implement the government’s NPPs; and Legal Aid Regulatory Framework is un- to provide increased assistance for improved for 313 staff members of the Agriculture mitigate the impact of the transition; put derway; and Training and Human Resource quality and delivery of production inputs to Research Institute of Afghanistan (ARIA), and the system on a sustainable path for long- Management strategies will soon be con- the agricultural sector. Improved Seeds Enterprise Plant Protection term results; and improve service delivery. tracted. Civil service reform in the Attorney To date, AAIP has technically and financially and Quarantine Directorate. The interna- The project will finance the costs associated General’s Office for administration and sup- supported MAIL and its relevant directorates tional training, including masters and PhD with: (a) building capacity of front line legal port has advanced according to plan. in the production of breeder, foundation, and programs, for the Ministry’s target staff is in service providers to deliver key legal services; Training programs for prosecutors focusing certified wheat seeds based on improved progress. (b) increasing scope and quality of legal aid; on white collar and corruption related crimes production practices. The project has also (c) improving access of the people to legal have taken place. Moreover, 105 judges have completed a survey and designs for estab- information and civil legal education; (d) im- undergone training in the Egypt Training lishment of 13 laboratory complexes for the proving management and provision of legal Institute for Judges in fields such as criminal 32/  Country date / /  /33 The reconstruction of an irrigation canal in Kabul Afghanistan Power to better plan and execute their development budget, simplify business processes, and pro- Province is allowing farmers to regulate the System Development vide faster and quality services to Afghan flow of water into the catchment area. The Project citizens. CBR promotes accountability in line ministries by introducing results-based re- reconstruction project, supported by the On-Farm Grant $75 million form and services improvement programs. Water Management CBR is also one of the key tools for the gov- Project, has solved the The project supports GoA in increasing ac- ernment to reduce reliance on external tech- issue of water shortage cess to grid power and the quantity of power and allowed farmers to nical assistance and parallel structures. available to consumers in the target urban increase their area of The grant helps finance the costs associ- arable land. centers of Pul-e-Khumri, Charikar, Gulbahar, ated with (i) technical assistance for prepa- and Jabul-es-Seraj, and to improve the availa- ration and implementation of capacity bility of electricity from Naghlu and Mahipar building programs; (ii) recruitment of some switchyards. It consists of three components: 2,400 managerial, common function, and distribution system rehabilitation; reha- professional staff for key positions in select- bilitation of transmission switchyard associ- ed line ministries; (iii) a management intern- ated with Naghlu and Mahipur Hydropower ship program; (iv) training of civil servants; Stations; and institutional capacity building and (v) project management, monitoring, and project management support to the and evaluation. Ministry of Energy and Water (MEW). The Ministry of Agriculture, Irrigation and Under the project, 495 kilometers of dis- Livestock and Ministry of Communications tribution lines have been constructed or re- and IT were approved as the first top tier min- habilitated. A total of 24,667 kilovolt-amps istries, enabling them to recruit a substantial (KVA) were installed in Charikar, Gulbahar, number of skilled civil servants to imple- and Jabul-es-Seraj, while 17,209 KVA were in- ment its CBR reform program. The Ministry stalled in Pul-e-Khumri. The project support- of Mines and Ministry of Social Affairs also ed the energy efficiency activities of MEW have been approved, and several others are through the setting up of an Energy Efficiency at various stages of proposal development. law, civil law, commercial law, and family five regions (Central, Eastern, Southwest, Unit. A national awareness program for en- Recruitment of senior level civil servants law. The construction of the Information and Northeast, Northern) covering a total of ergy efficiency was completed in July 2014. funded through CBR is progressing; a total Administrative Center of the Supreme Court 10,000 hectares. The project improves agri- Three energy efficiency demonstration pro- of 99 active senior management group po- and two other provincial offices has been cultural productivity in project areas by en- grams have been completed as well. The pro- sitions are currently funded, with over 100 completed. hancing the efficiency of water use. ject was restructured in June 2015, covering more in various stages of recruitment. CBR The new Criminal Procedural Code and Land productivity of wheat and other crops the time extension of the project to May 31, is also encouraging salary harmonization for a number of other laws have been printed has increased by 15 percent. Water produc- 2017, and an additional financing of $15 mil- donor-funded consultants led by the Bank. and distributed to relevant stakeholders. tivity of wheat and other corps increased 10 lion to allow completion of project activities. Five legal libraries have been opened by the percent, and the irrigated area increased by Supreme Court and Attorney General’s Office. 10 percent. Physical rehabilitation of irriga- tion schemes exceeded its target with good quality and within the project budget allo- Capacity Building for Afghanistan On-Farm cation and timeline: to date, 100 irrigation schemes (mostly informal) have been reha- Results Facility Project Water Management bilitated, covering a total of 19,000 hectares for Afghanistan of irrigation command area. Grant $100 million Project The establishment of 175 Irrigation asso- ciations (IAs) has been completed. The IAs are Capacity Building for Results (CBR) is a ca- Grant $25 million based on the traditional Mirab system and pacity building, institutional development, This pilot project is designed to support on- have taken up the responsibilities for opera- and public administration reform project to farm water management investments in tion and maintenance. strengthen selected line ministries’ capacity urban transport project creates scores of jobs in Kabul • Some 200 jobs have been created by a road reconstruction project that will connect Deh Bori to Darulaman road in Kabul and will see wide, well-lit roads, sidewalks, and covered sewers on completion. • The Kabul Urban Transport Efficiency Improvement Project (KUTEI), implemented by Kabul Municipality, is undertaking this project to build roads to international standards and improve traffic circulation. • The Afghanistan Reconstruction Trust Fund’s support to KUTEI targets improvement of transport services through a package of interrelated interventions to build Kabul Municipality’s capacity. S ameer Waziri, 43, is pleased to be among the some 200 people recruited for a road recons- truction project in western Kabul. In spite of hav- ing worked in road construction for more than a decade in eastern Paktia Province, he was jobless upon returning to Kabul until being recruited for this project. “I have a wife and 11 children. We were spending from our savings when I did not have a job. I had to go through economic hardship for a period of time,” says Sameer. “However, now I am paid $350 per month in this pro- ject.” According to Sameer, his subordinates are paid 350 afghanis (about $5.50) a day plus two meals. Sameer underscores the role of such projects in crea- ting employment opportunities: “In the absence of such projects, lots of people will remain jobless, which would “ take its toll on the overall unemployment rate.” The project in which Sameer works as a supervisor is part of the Kabul Urban Transport Efficiency Improve- ment (KUTEI) Project. KUTEI is implemented by Kabul Many institutions are located along this road, and Municipality and supported by the Afghanistan Recons- On completion of the project, the capital city will have when the roads are wide truction Trust Fund (ARTF). The ARTF’s $90.5 million three more roads built to international standards, brin- grant to KUTEI targets improvement of transport ser- vices through a package of interrelated interventions to ging the total number of standard roads to five. “These roads have a mid-road lighting system, lighting poles, and standards are met, build Kabul Municipality’s capacity. traffic lines and signs, covered sewers capable of bea- ” ring vehicle weight, and, most importantly, the width is people will make it to their destinations on time Roads meet international standards determined by the current traffic demand in mind,” says The road reconstruction project began in April 2014 and Ahmad Samim, a traffic police officer stationed at Pol-e- will be completed this year, according Muhammad Zake- Sorkh intersection. without being stuck in traffic for hours. ria, 45, a KUTEI staff member assigned to the project. A total of 3.3 kilometers of road that connects Deh Bori to “Upon completion of this project, the traffic rela- ted issues of this part of the city will be resolved. Look Darulaman road will be asphalted within the timeframe. at the heavy traffic today despite being a Friday. Many –Ahmad Samim, traffic police officer, Pol-e-Sorkh intersection “The length of the first, second, and third roads are 1,400 public offices, hospitals, ministries, the parliament, and meters, 906 meters, and 1,000 meters, respectively. Ad- a lot more institutions are located along this road, but ditionally, the width of the first road is 15 meters, the when the roads are wide and standards are met, people second road 21meters, and the third road 14 meters,” will make it to their destinations on time without being explains Muhammad Zakeria. stuck in traffic for hours,” he adds. 36/  Country date / /  /37 plementation begins, the CSP is expected to indirect beneficiaries, including students, benefit communities that live along a two- teachers, and staff of several schools and in- kilometer ‘Corridor of Influence’ (COI) each stitutions of higher education located within side of the CASA-1000 transmission line. It the upgraded areas. About three quarters is expected that there will be approximately (73 percent) of the beneficiaries are women 700 communities spread over 23 districts in and children. Some 11,300 tree saplings have six provinces, with a total of over 152,000 been planted in 13 Guzars (neighbourhoods) families along the corridor of influence. with community contributions; and commu- Given the terrain along the COI, as well as nity solid waste collection mechanisms are the unique nature of community mobiliza- functioning in most of the Guzars. The ex- tion in high-risk areas, there will be some ecuted works have generated 670,456 man- flexibility to work with more communities days of temporary employment. outside of the COI. Kabul Urban Kabul Municipal Transport Efficiency Development Program Improvement Project (KMDP) (KUTEI) Grant $110 million Grant $90.5 million Kabul Municipality is responsible for imple- menting the program. The program objec- The project aims to improve road conditions tives are to: (i) increase access to basic munic- and traffic flows on selected corridors of ipal services in selected residential areas of Kabul city. The project will focus on improve- Kabul city; (ii) redesign Kabul Municipality’s ment of road infrastructure and provision of Financial Management System to support technical assistance to Kabul Municipality in better service delivery; and (iii) enable early re- specific areas. Investments in key road infra- Nearly 700,000 vehicles operate within Kabul City sponse in the event of an eligible emergency. structure will improve connectivity and make Central Asia South second component, community mobiliza- tion aims to engage communities to in- but traffic congestions will soon be an issue of the The program is expected to deliver wel- Kabul more inclusive, while technical and knowledge support will gradually transform fare and human development benefits to Asia-1000 crease the shared prosperity associated with past as Kabul Municipality tackles this pressing daily over 700,000 people through services pro- Kabul Municipality into a modern planning Community Support the CASA-1000 transmission line, which will pass through villages. It will facilitate com- problem through a series of actions. Examples of vided in some 1,800 hectares of private land. and implementing agency by adopting best international practice. Kabul Municipality Equipment for the roads and sanitation de- Program (CASA-CSP) munity participation in sub-project plan- action for better traffic flow include improved partments of Kabul Municipality will combat will be responsible for implementation of the ning, implementation, and operations and wider roads and parking pollution and improve service delivery as well project, including procurement and financial Grant $40 million lots, built under the Kabul maintenance. as the city environment. There will be project management. Urban Transport Efficiency The project aims to provide access to electrici- The third component is project imple- Improvement Project. support to develop a plan for improving the Progress towards the achievement of the ty or other social and economic infrastructure mentation support. It comprises a sub-com- municipality’s financial management and project development objectives will be meas- services to communities in the project area in ponent, third party monitoring (TPM). The planning capacity to deliver improved servic- ured through the following indicators: (a) order to strengthen community support for fourth component, communications and out- es. The plan will enhance Kabul Municipality’s traffic capacity improvements will be meas- the CASA-1000 transmission line. The project reach, will finance a strong communications legitimacy when implemented. ured by average vehicle speed during off peak consists of four components. campaign and information-sharing activities Since approval of the KMDP on April 11, hours; (b) people (within a 500-meter range In the first component, community grants directed at relevant stakeholders within the 2014, $15.21 million have been disbursed. under the project) in urban areas provided for sub-projects will provide grants directly provinces with a special emphasis on out- There are 313,885 direct beneficiaries (40 with access to all-season roads; and (c) per- to communities to fund economic infra- reach to communities in the project areas. percent of the target number; 102,995 centage of Kabul city’s trunk road network in structure sub-projects. Preference will be Work under CASA-CSP will begin once the from upgrading in their neighborhoods, and at least ‘fair’ condition. given to power sector sub-projects. In the CASA-1000 project is operational. Once im- 210,890 from new trunk roads) and 76,985 Initial activities, including survey, design afghan farmers reap benefits of improved crop seeds • Adopting improved wheat seeds and production practices are paying off for farmers through bountiful harvests and efficient farming practices in Balkh Province. • Access to improved wheat seeds is one of the outcomes of the wide range of actions carried out by the Afghanistan Agricultural Inputs Project to increase wheat production and productivity in the country. • The project is implemented by the Ministry of Agriculture, Irrigation and Livestock and supported by a grant from the Afghanistan Reconstruction Trust Fund (ARTF). T he cool wind and cloudy skies make it an ideal day for farmers to work on their farms. Farmer Mohammad Ghani, 42, is working alongside other farmers, under the gui- dance of their supervisor, and weeding in the wheat farm where ‘Darulaman-07’ is planted. ‘Darulaman-07’ is one of six varieties of wheat seeds grown in Khasa-Paz farm this year. It is an improved wheat variety that is resistant to yellow rust and has a yield potential of 4 tons per hectare. The wheat from this type of seed seldom grows very high, Ghani says, as he works in the field. “We work hard here, day and night. Luckily now, far- mers’ conditions are better because of the improved seeds,” says Ghani, who has been working on Khasa-Paz farm in Dehdadi district, Balkh Province, for eight years. Khasa-Paz farm, owned by the Ministry of Agriculture, Irrigation and Livestock (MAIL), produces foundation seeds that are subsequently multiplied to registered “ seeds. The farm is one of six Improved Seeds Enterprise dation seeds. “Improved seed is a vital input for proper (ISE) production farms that produces foundation seeds crop production,” says Hesamuddin Rahimi, 28, AAIP from breeder seeds produced by the Agricultural Re- Agronomy Manager in Balkh Province. “Khasa-Paz farm Now that I see and understand search Institute of Afghanistan (ARIA). ISE farms, such as Khasa-Paz farm, sell the registered has managed to help farmers to some extent as it is one of the farms where tons of registered seeds are being seeds to 102 Private Seed Enterprises (PSEs) across the the difference between good and poor quality seeds, produced and sent to PSEs to produce improved seeds country, which in their turn use these seeds to produce for distribution to the market.” Both summer and winter ” certified seeds, known as ‘improved’ seeds, for sale or dis- annual plants are grown on the farm. tribution to local farmers. I try to share the knowledge that I have gained Khasa-Paz farm occupies a huge area of land of about 190 hectares, west of Mazar-e-Sharif city. It is one of the In Afghanistan, however, many farmers still use low quality seeds that result in poor harvests—a crucial fac- tor in perpetuating poverty among farmers. Those who with other farmers I know. farms in northern Afghanistan that is being supported have used the improved seeds now see the difference in by the Afghanistan Agricultural Inputs Project (AAIP), output. implemented by MAIL with funding support from the Farmer Lal Mohammad, 35, who has undergone trai- Afghanistan Reconstruction Trust Fund (ARTF). –Lal Mohammad, farmer, Khasa-Paz farm ning supported by AAIP, says, “Now that I see and un- derstand the difference between good and poor quality Good harvest from improved seeds seeds, I try to share the knowledge that I have gained Last year Khasa-Paz farm produced 87.5 tons of foun- with other farmers I know.” 40/  Country date / /  /41 review, and procurement of civil works, start- of overall costs reaching beneficiaries as di- ed during the preparation of the project. As of rect investments. The aim is thus to promote July 15, 2015, implementation of two out of sustainability, effectiveness, and efficiency. four National Competitive Bidding (NCB) civil As of August 2015, the project has fi- works contracts (Lot 1 - 1.92 km and Lot 2 - nanced the establishment of 7,886 hectares 2.52 km) is completed and the road is opened (ha) of new orchards (against a cumulative to traffic. The progress of the remaining two target of 2,000 hectares), about 34 percent contracts stands at 65 percent for Lot 3 and of which are in new provinces. Similar sub- 10 percent for Lot 4. The procurement process stantial achievement has been recorded for for two out of four International Competitive rehabilitation of orchards (70,000 hectares Bidding (ICB) civil works contracts (Lot 5 and actual against a target of 6,000 hectares). In Lot 6) has been completed and the contract addition, demand from target beneficiaries is ready to be awarded. The design review for for kitchen gardening support has been very Lot 8 is completed and the procurement pro- high, and the entire annual program was am- cess has started, while the design review for ply exceeded (58,116 schemes against a tar- Lot 7 and the Wazir Abad canal is in progress. get of 20,000 schemes). Further, NHLP continues to introduce inno- vative lines of investment support. It has suc- National Horticulture cessfully introduced production techniques to, inter alia, extend the production period of and Livestock Project vegetables through establishment of some (NHLP) 900 production schemes based on the use of micro greenhouses; create a culture of high New horticultural methods Grant $100 million productivity dry land cultivation, by having introduced by the National already supported establishment of 1,240 of improved technology packages to 31,540 Horticulture and Livestock The National Horticulture and Livestock ed young Afghan women and men in rural Project in Kabul Province Project contributes to the overarching goal ha—a cumulative target of 200 ha—of pis- beneficiaries – against a cumulative target of are resulting in higher and semi-urban areas through non-formal of increased productivity and overall produc- tachio orchards with high yielding varieties; 30,000 – in 138 districts of 19 provinces. productivity and healthier skills training. The project consists of three and promote modernization of horticulture The establishment of AHSCS initially fo- crops. The positive results tion of horticultural products, and improved components. are encouraging farmers to animal production and health. The technical sector, through establishment of 26 ha of cused on a brucellosis control program in adopt the new methods. Component 1: Improving Access to Non- strategy for achieving this objective is based demonstration plots of high and medium 360 districts of 34 provinces. Through this “For the first time, our formal TVET Training. The premise of this program, 782,000 young cattle (20 percent grapevines have grown so on the delivery of extension and investment density orchards. Furthermore, 5,000 pro- component is that a significant share of well because of the new support through strengthened systems. ducers applied integrated nutrient practices, of the whole population) and 4 million trellis system. It makes young women and men aged 18 to 35 in The project has three components: (i) hor- while the spot irrigation method was im- young sheep and goats (20 percent of sheep me very happy to see that Afghanistan is unskilled and illiterate. They and goat population) have already been our hard work is paying ticultural production; (ii) animal production plemented in 823 ha and 50 drying houses enter the labor force totally unprepared to off,” says a farmer with and health; and (iii) implementation man- to improve production and quality of raisins vaccinated. 20 years of experience compete in the labor market, and are unable agement and technical assistance support. were constructed. in horticulture and to find jobs and earn a decent living. As a re- agriculture. These activities will be implemented in 120 Regarding improved livestock production, sult, many of them are easily susceptible to focus districts spread over time as conditions NHLP is supporting MAIL compliance with its Non-formal Approach engaging in anti-social activities, which may Sanitary Mandate (SM). It is doing so by sup- breed insecurity and instability in the country. warrant in up to 23 target provinces. The project aims to promote adoption porting improved Extension and Veterinary to Training Component 2: Improving the Quality of of improved production practices by target Services delivery through private Veterinary Education and Jobs Non-formal Training and the Labor Market. Field Units (VFUs), and through establish- Incentives will be given to non-formal train- farmers, with gradual rollout of farmer- centric agricultural services systems and in- ment of an Animal Health Sanitary Mandate in Afghanistan ing providers if the employment rate of their vestment support. Service delivery centered Contracting Scheme (AHSCS). NHLP conduct- Project (NATEJA) graduates meets a stipulated benchmark. on farmers will promote increased participa- ed SM training for 168 VFUs and 76 Provincial The rationale for this intervention is that Grant $15 million tion of beneficiaries in defining the type of Veterinary Officers. On the production side, incentives directly linked to labor market services required and in the delivery itself. the delivery so far of extension messages The project aims to increase the potential for outcomes are likely to encourage service The project will also promote improved ratio has been carried out along with distribution employment and higher earnings of target- providers to actively seek employment 42/  Country date / for their graduates. It is also based on the though with some deployment of staff to the Management Roadmap. Support also pro- premise that labor market outcomes (e.g., line ministries. Under the Procurement Policy vided for human management reform in the earnings and employment) cannot improve Unit in the Ministry of Finance, advisors are ministry. unless the quality of non-formal training it- completing the development and imple- Progress to date include the establishment self improves. Therefore, non-formal training mentation of a procurement management of the legal framework underpinning pub- providers are incentivized to ameliorate the system and continue to roll-out training in lic financial management in Afghanistan. quality of their training so that they can bet- procurement, both centrally and in provinces The government can now prepare and pass ter respond to the demand from employers for all line ministries. a comprehensive budget in an orderly and seeking qualified semi-skilled labor who are 2. Financial Management Reform transparent manner. A government-wide in- productive enough to help them raise their Operations: to support policy assistance tegrated financial management information profitability. to the Treasury Department to assure high system is in place. Component 3: Strengthen the Institutional quality performance; the focus will be to Outcomes of the progress made include: Capacity of Ministry of Labor, Social Affairs, mainstream these functions in the civil ser- (a) all transactions under the budget are now Martyred and Disabled in key areas such as (i) vice staff. The consolidation of the roll-out effected online through AFMIS with the cor- procurement, (ii) financial management, and of Afghanistan Financial Management and responding benefits of automated controls; (iii) labor market information systems and Information System (AFMIS) to the prov- (b) monthly financial statements covering monitoring. inces is also financed as well as support for central government have been published and Progress so far include ongoing integra- the development of administrative systems operating units can produce on their own tion of NATEJA into the Directorate General for the line ministries. Capacity develop- customized statements of updated budget of Skills, which is expected to be completed ment in financial management functions, execution reports from AFMIS at any time; by May 2016. The environmental and social throughout the public sector, is also fi- (c) audited annual appropriation statements assessment study of aspects of the project nanced. Additionally, support is also given of government expenditures (Qatia) are is complete. A consultative discussion with for establishing the legal framework for and submitted to parliament within six months stakeholders for identification and develop- contributing to the training of professional of the end of the fiscal year in accordance ment of 10 priority occupations for certi- accountants in Afghanistan. with public financial management law; and fication and curriculum development was 3. Audit Reform and Performance: Internal (d) 450,000 government employees have recently completed. Templates and guide- Audit – to finance the services of consultants been registered under the verified payroll lines for an entrepreneurship grant have to lead key internal audits and to provide on- program, of whom 290,000 are receiving been revised. the-job training. Basic training to all inter- salary through direct transfer to their bank nal audit staff is supported; more advanced accounts. training is also provided to staff who have Project support to Afghanistan’s cen- Second Public completed the basic training. External Audit tralized procurement oversight has been mobilized and the National Procurement – to provide assistance to the Supreme Audit Financial Management Office (SAO) to develop its knowledge, exper- Authority, as successor to the Procurement Reform Project tise and practices in using the services and Policy Unit, continues to assist with the reor- ganization, development, and assessment of results of other auditors and experts in line Grant $73 million with International Auditing Standards, in par- procurement units in the line ministries. The project objectives are to strengthen pub- ticular for project audits. Support also given lic financial management through effective for consultant services to train staff and lead procurement, treasury and audit structures, high quality independent review of all opera- and systems in line with sound financial tions under the budget of nine line ministries management standards of monitoring, re- over the project period. Support also given porting, and control. to finance training of members of the Public Project components include: Accounts Committee. 1. Procurement Reform Services of a 4. Reform Management: to provide sup- Note: All dollar figures are in US dollar equivalents. Procurement Facilitation Consultant: to port to monitor technical assistance and re- IDA, the International Development Association, is the provide support for centralized oversight al- port on benchmarks of the Public Financial World Bank’s concessionary lending arm. Abdul Raouf Zia photos © Rumi Consultancy/World Bank/2015. phone +93 700 280 800 photos : pages 17 & 27 © Graham Crouch/World Bank. infoafghanistan@worldbank.org © world bank , october 2015. House 19, Street 15, Wazir Akbar Khan, Kabul, afghanistan