English | دری

World Bank Signs a $325mn Financial Package Deal with Afghanistan

in Afghan Business

World Bank Signs a $325mn Financial Package Deal with Afghanistan

The World Bank and Ministry of Finance of Afghanistan signed a new financial package of USD 325mn in grants on Wednesday.

The grants will help strengthen economic and job opportunities in cities with a high influx of displaced people, support selected provincial capital cities to enhance service delivery, and strengthen the capacity of selected line ministries.

“The new financial package includes USD 200 million grant to the Eshteghal Zaiee – Karmondena (EZ-Kar) Project, USD 50 million grant to the Cities Investment Program (CIP) and USD 75 million grant to finance the Tackling Afghanistan’s Government HRM (Human Resource Management) and Institutional Reforms (TAGHIR). I acknowledge the valuable contribution made by the World Bank to fund these major projects,” said acting Finance Minister Humayon Qayoumi.

The new financial package includes:

  • $200 million grant to the Eshteghal Zaiee – Karmondena (EZ-Kar) Project, which aims to strengthen the enabling environment for economic opportunities in Afghan cities where there is a high influx of displaced people. The grant includes $150 million from the International Development Association (IDA), the World Bank Group’s fund for poorest countries; and $50 million from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors.
  • $50 million grant to the Cities Investment Program (CIP) to improve the sustainability and livability of nine provincial capital cities by strengthening municipal capacity, management, and infrastructure. The grant comprises $25 million from IDA and $25 million from the ARTF.
  • $75 million grant to finance the Tackling Afghanistan’s Government HRM (Human Resource Management) and Institutional Reforms (TAGHIR) project, which will strengthen the capacity of selected line ministries. The grant includes $25 million from IDA and $50 million from ARTF.

“Access to job opportunities and better services is the most crucial need of Afghan people specially the returnees and internally displaced Afghans at this particular time. These new grants are significant step forward in the path to help the Government of Afghanistan strengthen its service delivery capacities and meet its key policy objectives through boosting institutional reforms.” said Shubham Chaudhuri, World Bank Country Director for Afghanistan.

The EZ-Kar Project applies a whole of community approach and aims to increase economic and job opportunities in the cities with a high influx of returnees and internally displaced people. This will be pursued by increasing the returnees’ access to civil documents, providing short-term employment opportunities, improving market enabling infrastructure, and supporting investor friendly regulatory reforms.

The project will be implemented by the Ministry of Economy, Ministry of Foreign Affairs (MoFA), Independent Directorate of Local Governance (IDLG), and Kabul Municipality. The Ministry of Refugees and Repatriation (MoRR) will also play a key role. Among other initiatives, the project will support the increase in capacity of MoFA to provide consular services as well as help Afghan refugees in Pakistan access information that will facilitate their economic and social integration in Afghanistan.

The CIP will provide technical assistance to the Government in its implementation of the “Municipal Incentive Fund” under the new Municipal Law for Afghanistan and will instill a culture of “Evidence-Based” municipal investment planning in nine major provincial capital cities in the country. In parallel, the CIP will expand municipal service delivery and rehabilitate basic municipal infrastructure in the selected provincial capital cities. The project complements the ARTF-financed Kabul Municipal Development Program and the IDA-supported Urban Development Support Project.

The TAGHIR project replaces the Capacity Building for Results (CBR) Facility and will assist the Government of Afghanistan to deliver its key policy priorities through merit-based recruitment and administrative reforms in 16-line ministries. The project will support up to a total of 1,500 new civil service positions to enable the ministries to meet objectives and deliver on their priorities. The Independent Administrative and Civil Service Reform Commission will lead the project implementation.



Related Articles

Germany to continue its assistance to Afghanistan post 2014

Germany’s Special Representative for Afghanistan assured President Hamid Karzai n Kabul that his country would continue to help Afghanistan beyond

DP World to explore opportunities in Afghanistan’s dry ports

DP world aims to develop ports in countries such as Afghanistan and Myanmar where the underdeveloped markets are showing potential

Foundation stone of railways station in Nangarhar laid

The foundation stone of railway station and customs house were laid in Hesar Shahi industrial zone, Nangarhar province. The railway

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.