Country Update ISSUE 049 O C T. 2016 “ The agricultural sector employs 60 percent of the nation’s workforce ” and is central to Afghanistan’s economy. page 30 page 4 page 6 page 26 page 28 world bank ongoing international afghanistan group support operations finance reconstruction corporation trust fund / The World Bank Group in Afghanistan/3 CONTENTS ongoing 8 results Multiple Sources of NEWS operations ‘Raising livestock’ Growth Needed for world bank page 6-23 Development group support page 4 -5 page 6 education and training The World Bank analysis shows that page 4 no single sector can meet all of page 7 World Bank projects and financial sector Afghanistan’s development needs. programs • Agriculture will provide a vital International Finance page 11 16 results source of employment and health growth. Corporation ‘Canal reconstruction ’ • Public investment in education Multilateral Investment page 12 infrastructure and health will support higher Guarantee Agency labor productivity and reduced page 20 world bank: agriculture and education fertility rates. page 5 rural development • Extractive industries must be Interim Strategy Note, 2012-2015 page 23 developed to provide government can drive afghanistan’s development social safety net revenues and foreign exchange The World Bank presented an overview and analysis of Afghanistan’s economy at Afghanistan earnings. the Brussels Conference on Afghanistan on October 5, 2016. A total of 70 countries Reconstruction Trust Fund page 23 24 results • Regional integration should and 20 international organizations and agencies were represented at the conference, urban development ‘Capacity building’ Japan Social be pursued, supporting energy co-hosted by the European Union and the Government of Afghanistan. Discussion Development Fund transit trade and expanding focused on the need for sustained international support, Afghanistan’s recent reform export opportunities in efforts, and the importance of regional cooperation. The World Bank highlighted four key messages in its presentation ‘Navigating Risk agriculture and extractives. and Uncertainty in Afghanistan’: international finance • A scheme for managed labor • Afghanistan will remain heavily resource-constrained and aid-dependent corporation migration could expand access until beyond 2030. page 26-27 • Agricultural development and increased investment in human capital can to employment opportunities, increase remittances and drive economic growth and job creation. • As aid declines over time, extractive industries need to be developed to pro- strengthen incentives to invest in vide an alternative source of revenues and foreign exchange receipts. education. • Interventions are needed to help firms and households deal with insecurity, results 42 afghanistan The World Bank team highlighted including a targeted social transfer system to protect vulnerable households, ‘Horticulture’ reconstruction trust and new financial instruments to encourage private investment despite high the importance of institutions in fund enabling growth and managing risks risks. page 28 -46 The analysis highlighted substantial improvements in development outcomes in these sectors. Given resource and since 2001 but also showed that some gains are now being eroded through in- page 30 capacity constraints facing the gover- creasing insecurity and weakening private sector activity. Afghanistan’s future pros- ongoing projects nment, the analysis recommended pects will depend heavily on policy reforms undertaken over coming years. Without institutional strengthening efforts reforms and increased investment, slow economic growth will provide only margi- focus on sectors and functions that nal improvements in living standards and social outcomes, leading to continued aid dependence and increasing fragility risks. matter most for growth and conflict With increased aid, an expenditure program focusing on infrastructure and service mitigation, including extractive delivery expansion, and reforms that encourage private sector investment, agricul- sector regulation, the justice sector, ture and extractives could drive growth of 6.5 percent per year, supporting higher policing, and core social services. incomes, creating jobs, and reducing reliance on aid. 4/  Country Update/ / The World Bank Group in Afghanistan/5 WORLD BANK GROUP SUPPORT The World Bank Interim Strategy World Bank projects government to ensure investments are alig- ned with national priorities. To this end, the markets, and infrastructure sectors. IFC Advi- sory Services is also very active in Afghanistan Note for Afghanistan Japan Social and programs World Bank works closely with other multi- with six active projects during the reporting Afghanistan, Reconstruction Development Fund Since April 2002, the World Bank’s Internatio- lateral and bilateral agencies across a num- ber of sectors where aid coordination and period. c For more information: see page 26. 2012-2015 Trust Fund The Japan Social Development Fund (JSDF) nal Development Association (IDA) has com- government ownership are most critical. was established by the Government of Japan The Afghanistan Reconstruction Trust Fund c For information about completed projects: The World Bank’s approach is to mitted over $3.34 billion for development and emergency reconstruction projects, and www.worldbank.org.af – Projects & Multilateral (ARTF) is a partnership between the inter- in 2000 as a means of supporting activities that directly respond to the needs of poor support GoA in implementing five budget support operations in Afghanis- Programs. Investment elements of the most important national community and GoA to improve effectiveness of the reconstruction effort. As and vulnerable groups, enhance their capaci- tan. This support comprises over $2.9 billion Guarantee Agency National Priority Programs (NPPs) of August 2016, 34 donors have contributed ties, and strengthen their empowerment and in grants and $436.4 million in no-interest loans known as ‘credits’. The Bank has 16 International in a way that will build legitimacy over $9.2 billion, making ARTF the largest participation in the development process. The fund is administered by the World Bank. active IDA projects in Afghanistan with Finance Corporation The Multilateral Investment Guarantee Agency (MIGA) has $154 million of gross and capacity of the institutions. contributor to the Afghan budget—for both operating costs and development programs. The Government of Japan and the World net commitment value of over $1.3 billion. Bank agreed to set up a special window wit- exposure for three projects in Afghanistan. One of GoA’s greatest priorities ARTF’s support for National Priority Pro- The World Bank has provided advice to The International Finance Corporation (IFC), hin JSDF to support activities in Afghanistan MTN is a joint effort with IFC in the country’s will be to build domestic sources grams (NPPs), operating costs of government help the Government of Afghanistan (GoA) the World Bank Group’s private sector deve- under a multi-year program of assistance for critical telecommunication sector. The other operations, and the policy reform agenda manage donor funds effectively and trans- lopment arm, continues to work with its of growth and jobs to replace the country’s reconstruction and transition to- two projects support dairy and cashmere is contributing to the achievement of the parently. The Bank also supports the govern- investment and advisory service partners in donor/military assistance and ward political, economic, and social stability. production. Afghanistan National Development Strategy ment by providing analytical work on the Afghanistan. IFC’s portfolio stands at about As of August 2016, JSDF’s total commit- economy, public administration, gender, $80 million and includes two investments In 2013, MIGA launched its ‘Conflict Affec- to sequence NPPs to concentrate goals. More than $4 billion has been disbur- ment had reached $85 million. A number of ted and Fragile Economies Facility’ that uses on foundational investments for sed to GoA to help cover recurrent costs, such poverty, opium economy, and public finance in the telecommunication sector (MTN—a JSDF-financed projects have been completed donor partner contributions and guarantees as civil servants’ salaries, and over $4.4 billion management. joint project with the Multilateral Investment growth. c For more information: as well as MIGA guarantees to provide an ini- had been made available, both for closed and The Bank has actively supported key re- Guarantee Agency—and Roshan), one invest- Under the Interim Strategy http://go.worldbank.org/U5OQZVF200 n tial loss layer to insure investment projects in active investment projects. As of August 21, forms, particularly in the fiscal and public ment in the hotel sector (TPS), and two opera- administration spheres, and through its tions in financial markets (First Microfinance difficult contexts. This facility could be used to Note period, the Bank’s program 2016, 20 projects are active under ARTF with boost the agencies’ exposure in Afghanistan. is built around three interlocking net commitment value of $3.1 billion. budget support operations. It has advocated Bank, Afghanistan International Bank—trade building capacity and legitimacy of the state, facility). IFC is exploring investment oppor- c For more information: see page 28. themes: and channeling donor resources through the tunities across the manufacturing, financial • Building the legitimacy and capacity of institutions. • Equitable service delivery. • Inclusive growth and jobs. 6/  Country Update/ / The World Bank Group in Afghanistan/7 ONGOING OPERATIONS / education and training Afghanistan Second Skills Development Project (ASDP II) cIDA grant $55 million The objective of ASDP II is to increase the potential for employment and higher earn- ings of graduates from Technical, Vocational Education and Training (TVET) schools and institutes through improvements in the skills delivery system. The project focuses on providing incentives to schools and in- The National Institute of Management and stitutes offering formal TVET programs to Administration, supported improve quality of learning, while strength- by the Afghanistan Second ening the institutional system for the TVET Skills Development Project, has become sector as a whole. one of Afghanistan’s Component 1: The project has made sig- premier higher education nificant progress in strengthening the TVET institutions, attracting students from across the institutional framework. In addition to devel- country. The institute oping an overarching TVET strategy, 100 na- provides students tional occupational skills standards (NOSS) with resources and opportunities not found have been benchmarked to an international elsewhere. Students have level with the support of an international access to a well-equipped certification agency, and corresponding cur- library and computers with Internet access. ricula developed for 15 trades. ASDP has laid the groundwork for an assessment and cer- tification system for TVET graduates, and, in partnership with the International Labour Organization, about 30 ‘master’ assessors Component 3: The project supports a in-service Technical Teacher Training Institute / financial sector have been trained and seven assessment ‘challenge fund’ scheme to identify and was established in 2013, from which two co- centers identified. Component 2: ASDP supports the improved scale up good practices in TVET schools and institutes. To date, over 35 institutes have horts have graduated. An additional 972 in- service technical teachers were assessed and Access to Finance performance of selected TVET schools and in- benefited from two rounds of a Recognition trained in 2016, in close collaboration with Project stitutes. One such institute is the National Grant, while an additional eight institutes GIZ. cIDA grant $50 million Institute of Management and Administration have been selected for a Development Grant, Component 4: The fourth component fi- (NIMA), where students pursue a two-year which supports reforms to improve academ- nances technical assistance for the skills The Access to Finance Project aims to build business program equivalent to a Bachelor’s ic management, school administration, link- team, as well as costs of third party monitor- institutional capacity to improve access degree. Enrollment has risen from 300 stu- ages with local industries, and curriculum ing and evaluation, and a public awareness to credit of micro, small, and medium en- dents to over 1,000 students in two years, revision. In addition, over 522 TVET gradu- campaign. The project has also established terprises. The project has the following with female enrollment improving signifi- ates have been supported with scholarships a Project Management Information System, components: cantly. With the support of an implementing through a voucher program, which facilitates which provides real time updates on all Component 1: Improving access to finan- partner (Ball State University), seven rounds further professional studies for meritorious aspects of project implementation (pro- cial services for micro and small enterprises. of a credible and transparent entrance exam students who have graduated from TVET curement, financial management, human This component aims to provide continuing has been conducted at NIMA, and is a consid- institutes. resources, civil work, student enrollment and support to the microfinance sector through ered a best practice across the sector. To support technical teacher training an graduation). the Microfinance Investment Support Facility Country Update/ ongoing operations 8/  results raising livestock gives rural poor a chance at brighter future • Ultra-poor rural families are being given an opportunity to earn a livelihood and become entrepreneurs by raising livestock through a program aimed at helping them generate income. • The Targeting the Ultra Poor program, part of the Afghanistan Access to Finance Project implemented through the Microfinance Investment Support Facility for Afghanistan, aims to move participants from safety nets programs to income-earning activities and link them with microfinance programs. • The Access to Finance Project is supported by the International Development Association, the World Bank Group’s fund for the poorest countries. B ibi Gul, 40, holds her cow’s halter and smiles at the congratulatory clapping from a group of women. She quietly takes slow, labored steps, leading her new cow to stand by a wall next to several other women waiting for their cows. “I am very happy because I just received a cow today,” says Bibi Gul. “I want to take good care of her so that I can sell the milk and raise calves to improve my living conditions.” She lives in a house with nine family mem- bers in Qezelabad village in Nahr-e-Shahi district in Balkh Province. Her life had taken a downturn when she lost her hus- band. “When a woman, particularly a widow, wants to work outside her house, people stigmatize her,” says Bibi Gul. “For this reason, I cannot work outside my house.” The only thought that consumes her is feeding her six small children. “ Bibi Gul received the cow through the Targeting the Ultra Poor (TUP) program. Today is a bright day for her. She calls it the light after the darkness. She hopes to Create opportunities for better lives From now on, I can have a better life work and put food on the table for her children. “If I get the opportunity, I will also establish a small enterprise,” The TUP program operates in four districts—Dehdadi, Dowlatabad, Kholm and Nahr-e-Shahi— in Balkh Pro- ” through managing my livestock, and I will at least she adds. vince, where a nongovernmental organization, Coor- The TUP program is part of the Afghanistan Access to dination of Humanitarian Assistance (CHA), has been Finance Project implemented through the Microfinance contracted by MISFA to implement it. be able to send my children to school . Investment Support Facility for Afghanistan (MISFA). Nationally, the TUP program, which began in 2015, “By distributing livestock to poor women, we create opportunities for them to improve their living condi- has provided assistance to 6,725 families. It aims at tions by working from home,” says Mohammad Rashed –Zainab, Targeting the Ultra Poor beneficiary, Qezelabad village ‘graduating’ participants from safety nets programs to income-earning activities, linking them with microfi- Sekandari, the Balkh CHA provincial coordinator. Women, such as Zainab, 45, who have no other means nance programs. The program provides beneficiaries a to earn an income have everything to gain from the TUP three-year package of inputs, including the transfer of program. A widow with three children, she hopes that productive assets (such as livestock); training (class- the four goats she has received will lead to a brighter room and practical work); subsistence support (month- future. “From now on, I can have a better life through ly stipend as short-term income support); and basic managing my livestock, and I will at least be able to send healthcare through community-based health workers. my children to school,” she says. Country Update/ ongoing operations 10/  / The World Bank Group in Afghanistan/11 Health Outcomes on Positive Trend for Afghanistan (MISFA), as well as, support- accurately assess the financial situation of 10 under-five mortality rate ing MISFA to take on a broader role as a cata- commercial banks through audits conducted and infant mortality rate lyst for innovations to increase access and in accordance with international standards. usage of financial services from the lower The audits will lead to the development of dropped to 97 and 77 per 1,000 end of the market according to its new stra- action plans to address weaknesses that are live births from 257 and 165, tegic plan. It should, however, be underlined identified, with oversight from DAB. respectively. that the role of MISFA is primarily that of The project also aims to modernize the market facilitator, rather than direct techni- national payment system with the goal of re- Maternal mortality ratio cal assistance provider. ducing the use of cash transactions, the main Component 2: Improving access to fi- means of making payments in Afghanistan, fell to 327 per 100,000 live nancial services for small and medium and transitioning to electronic, card or mo- births, compared to 1,600 in 2002. enterprises (SMEs). The aim is to increase bile payments. The project will also provide commercial bank and microfinance institu- further support to the Afghanistan Institute Number of functioning tion (MFI) lending to SMEs and thus facilitate of Banking and Finance (AIBF) to allow it to health facilities increased their access to financial services. It will sup- scale up its activities, in order to increase the port the expansion of the Afghanistan Credit availability of banking sector skills. to more than 2,000 in 2012 from Guarantee Facility, and provide technical as- The project was restructured and addi- 496 in 2002, while at the same sistance to commercial banks to strengthen tional financing to the project ($6.7 million) time the proportion of facilities their SME lending capacity. This component supported selected technical assistance ac- with female staff increased. will include support to the Credit Guarantee tivities originally financed under the Financial Facility to provide coverage to MFI lending to Sector Strengthening Project, which closed in the lower end of the SME market. June 2014. The additional financing targeted Births attended by skilled Component 1 is under implementation activities to strengthen DAB’s capacity and health personnel among and MISFA has initiated a series of activities the establishment of a Public Credit Registry. the lowest income quintile (in particular the scaling up of the Targeting The audits of the 10 commercial banks increased to 35 percent from the Ultra Poor Program). Component 2 has were completed in June 2012. A Movable 15.6 percent. not yet started, as discussions are ongoing Collateral Registry and a Public Credit Registry, between the Ministry of Finance and the set up in 2013, are now fully operational. Afghanistan Credit Guarantee Foundation Establishment of the switch to cashless PENTA3 immunization This clinic in Kandahar Province, serving a for an agreement to be signed. payment is underway at the Afghanistan coverage more than population of 15,000, doubled (a combination of five / health While the project implementation is still in Payment System, while the procurement provides free daily health care services. It is one of 46 poor, and to enhance the Ministry of Public its early days, the procurement process relat- process for development of the Automated vaccines in one covering polio, clinics in the province in Health’s (MoPH) stewardship functions. The ed to the scale up of the Targeting the Ultra Transfer System (ATS) is complete and the which the health services Poor Program has been completed and the contract is expected to be awarded soon. diphtheria, Pertussis, tetanus and are provided by an NGO System Enhancement project supports the provision of basic health and essential hospital services in both rural hepatitis B), from 29 percent to 60 contracted by the Ministry contract awarded on July 26, 2015. Having these two systems in place will boost percent among children aged 12 to of Public Health under the for Health Action in and urban areas. It also strengthens the na- financial intermediation and ease flow of System Enhancement for 23 months in the lowest income Transition (SEHAT) tional health system and MoPH’s capacity at Afghanistan Financial liquidity within the banking system, con- Health Action in Transition Program. central and provincial levels. tributing to a more efficient and well-func- quintile. Program The project includes the following three Sector Rapid tioning banking system. components: IDA Grant $100 million c Response Project Contraceptive prevalence ARTF Grant $516 million c Component 1: Sustaining and improving the basic package of health services and es- IDA Grant $25.7 million rate increased (using any Government of Afghanistan $30 c sential package of hospital services; and modern method) to 30 percent million The project is assisting the Da Afghanistan supporting the implementation of these from 19.5 percent. c Multi Donor fund for health results Bank (DAB) to develop a set of action plans services through performance-based part- innovation $7 million to improve banking supervision and imple- nership agreements between MoPH and ment a modern payment system for effi- The program aims to expand the scope, nongovernmental organizations, which will cient and transparent payment transactions. quality, and coverage of health services pro- deliver health services as defined in these Specifically, the project aims to allow DAB to vided to the population, particularly for the packages. Country Update/ ongoing operations 12/  / The World Bank Group in Afghanistan/13 Component 2: Building the stewardship / infrastructure capacity of MoPH and system development by supporting the following thematic areas: strengthening subnational government; Afghanistan strengthening the healthcare financing Information and directorate; developing regulatory systems and capacities for ensuring quality phar- Communication maceuticals; working with the private Technologies (ICT) sector; enhancing capacity for improved hospital performance; strengthening human Sector Development resources for health; governance and social Project accountability; strengthening the Health IDA Grant $50 million c Information System and use of information technology; strengthening health promotion The project builds on the success of earlier and behavioral change; developing capacity projects and catalyzes the next phase of ICT for procurement delivery; and improving fi- development in the country. It supports poli- duciary systems. cy and regulatory reforms and strategic infra- Component 3: Strengthening program structure investment to expand connectivity management by supporting and financing and enable more users to access high qual- costs associated with system development ity mobile and Internet services. It also helps and stewardship functions of MoPH, includ- mainstream the use of mobile applications ing incremental operating costs at central to improve public service delivery and pro- and provincial levels and technical assistance. gram management in strategic government The Afghan health system has made con- sectors. The project helps develop the local IT siderable progress during the past decade industry by expanding the pool of skilled and Under the Afghanistan ICT Sector Development thanks to strong government leadership, qualified IT professionals, and supporting the Project, 2,300 Afghans, sound public health policies, innovative ser- incubation of ICT companies in Afghanistan. including over 400 women, vice delivery, careful program monitoring Major milestones under the project in- have been trained under an IT skills development and evaluation, and development assistance. clude progress in construction of optical fiber program. The project Data from household surveys (between 2003 cable with completion of about 910 km of ca- is helping to develop and 2011) show significant declines in ma- ble. Five communication nodes on the north- the local IT industry by expanding the pool of ternal and child mortality. east segment have become operational. On skilled and qualified IT Despite significant improvements in the the central route, Bamiyan to Yakawlang is professionals. coverage and quality of health services, as almost completed. In addition, new contracts well as a drop in maternal, infant and under- for Kunar, Kapisa, and Bamiyan–Mazar-e- five mortality, Afghanistan health indicators Sharif routes have been signed and work is are still worse than the average for low in- progressing. come countries, indicating a need to further A total of 2,300 Afghans (over 400 women) decrease barriers for women in accessing have been trained under the IT skills develop- for all firms. The Common Services Delivery their ideas on how mobile technologies could services. Afghanistan also has one of the ment program and another round of special- Platform (mobile governance hardware and help address challenges in various sectors, in- highest levels of child malnutrition in the ly designed job-oriented training programs software) has been commissioned and 30 cluding agriculture, education, and health. world. About 41 percent of children under will run in 2016. Job fairs for 1,500 successful mobile applications have been developed The ICT business incubator complex has five suffer from chronic malnutrition, and trainees have been held. and hosted on the platform; line ministries been constructed in the ICT Institute area of both women and children suffer from high The Ministry of Communications and are in the process of developing the contents. MoCIT and 20 start-up business entities have levels of vitamin and mineral deficiencies. Information Technology (MoCIT) is preparing The platform allows any citizen with a mo- undergone training programs in the complex an open access policy for the national back- bile phone to access a set of public services. to date. Under the Capacity Building Program bone network, ensuring non-discriminatory Two rounds of the Innovation Support of MoCIT, 443 ministry staff members have access to wholesale Internet bandwidth Program awarded 15 local innovators for been trained so far. Country Update/ ongoing operations 14/  / The World Bank Group in Afghanistan/15 The rehabilitation of and the Ministry of Energy and Water will im- irrigation canals is turning plement Afghanistan’s portion of this project, previously uncultivable areas into productive, including a Security Management Plan for arable farmlands in many both the construction and operation phase. areas of the country. The rehabilitation of irrigation systems is undertaken by the Irrigation Restoration Irrigation Restoration and Development Project and has benefited over and Development 63,000 farmers and their families across the country. Project (IRDP) IDA Grant $97.8 million c ARTF Grant $48.4 million c Government Funds $2.5 million c The project builds upon and scales up ac- tivities supported under the completed World Bank-financed Emergency Irrigation Rehabilitation Project, closed in December 2012. It supports the rehabilitation of irriga- tion systems serving some 300,000 hectares of land, and design and construction of a lim- ited number of small multi-purpose dams and related works, while establishing hydro- meteorological facilities and services. Progress had been made in all areas. In the irrigation component, a total of 98 irrigation schemes have been rehabilitated, benefit- ing 100,000 hectares of irrigation command area (compared to the end project target of 300,000 hectares) and 63,000 farmers. Central Asia South The total project cost is estimated at traded over CASA-1000, including Toktogul in In the small dam component, a prefeasi- $1.17 billion and several other development Kyrgyz Republic and Nurek in Tajikistan, are bility review of 22 small dams resulted in a Asia Electricity partners will provide financing for CASA- already in place. feasibility study being conducted on the six Transmission and 1000, including the Islamic Development Of the total project financing, Afghanistan best ranked dams in the northern river basin Bank and United States Agency for will receive $316.5 million in the form of an (which is not on international rivers). A de- Trade Project International Development (USAID). IDA grant. The grant will support construc- tailed social and environmental study will be (CASA-1000) CASA-1000 will build more than 1,200 tion of about 560 km of overhead transmis- carried out. kilometers (km) of electricity transmission sion line to connect the electricity network In the hydro-met component, installation IDA Grant $526.5 million c lines for associated sub-stations to trans- via the northern and eastern provinces of of 127 hydrological stations and 56 snow The Central Asia South Asia Electricity mit excess summer hydropower energy Afghanistan. It will also finance the engineer- and meteorological stations located in vari- Transmission and Trade Project (CASA-1000), from existing power generation stations in ing design, construction, and commissioning ous locations on the five river basins in the covering Afghanistan, Kyrgyz Republic, Tajikistan and the Kyrgyz Republic to Pakistan of a 300-MW converter station in Kabul. country is ongoing. In addition, 40 cableway Pakistan, and Tajikistan, will put in place the and Afghanistan. The project finances the Afghanistan is expected to connect more stations for flow measurement at selected commercial and institutional arrangements engineering design, construction, and com- households and businesses to the power grid hydrology stations have been installed. The as well as the infrastructure required for missioning of transmission lines and three by importing 300 MW of electricity through project is currently under restructuring and a 1,300 megawatts (MW) of sustainable elec- new converter stations. The power genera- CASA-1000. Da Afghanistan Breshna Sherkat proposed additional financing of $70 million tricity trade. tion stations that provide the energy to be (DABS), Afghanistan’s electricity company, from ARTF is under process. Country Update/ ongoing operations 16/  results canal reconstruction improves rural living in Bamyan Province • The reconstruction of canal systems in Bamyan Province is enabling farmers to increase productivity of their lands through better irrigation and improve living standards through hydro-powered electricity. • Canals and irrigation systems across Afghanistan are being improved under the Irrigation Restoration and Development Project, implemented by the Ministry of Energy and Water. • The project is supported by the World Bank Group’s International Development Association (IDA) and Afghanistan Reconstruction Trust Fund (ARTF). B aaz Mohammad Mehr, 42, is working on his land on a quiet, warm summer afternoon. With his sickle, he cuts the green stems and lea- ves of potato plants. He has planted potatoes on most of his land this year—a crop of Bamyan Province that is famous across Afghanistan for its unique taste. Mehr has been encouraged to plant more potatoes after seeing bumper harvests in the last two years. “In the past, I harvested about 1,400-1,750 kg of potatoes from my land. However, in the last two years, the same piece of land has yielded up to 3,500-3,850 kg of pota- toes. I am very happy about the increase in my crop out- put.” says Mehr, a resident of Tajik village in Bamyan city who earns his living from farming. The increase in land productivity is the result of a sufficient and reliable supply of water to village farms, facilitated by the construction of the Asiab Canal In- take Gate in Tajik village. The one-kilometer long canal includes an intake gate and a floodgate. It has solved “ the challenge of outflow of river water, the only source being kept safe from destruction, through the regula- of irrigation of the village farms. Previously, most of the tion of the water flow at the Asiab Canal Intake Gate. water would go to waste because of the lack of a system A bridge used for transportation has also been fortified to channel water to the farms. and made safe. Floods destroyed the farmlands Existing canal systems, like the one in Tajik village, are being improved to modern standards under the Irrigation Restoration and Development Project (IRDP), In addition to its positive impact on irrigation and agriculture, the canal reconstruction has brought mul- tiple benefits. The water mill located by the canal has ” before the reconstruction of the canal, implemented by the Ministry of Energy and Water. increased its productivity because of the greater supply of water. As a result, many villagers from nearby villages Villagers enjoy multiple benefits bring their wheat grains to the mill to grind into flour. but those problems are now solved. Aziz Ahmad, 45, head of the Tajik Community Development Council, explains the improvement: “The Also, as a result of the increased water supply, Tajik village residents have been able to activate the micro- water level of the river that passes through the village hydropower dam and generate sufficient electric power –Aziz Ahmad, head, Tajik Community Development Council rises each year in the first two months of spring. Floods destroyed the farmlands before the reconstruction of for lighting. “Our micro-hydropower generator is more active than it used to be and our children can now study the canal. But those problems are now solved by the under the light of electric lamps,” says resident Abdul construction of the concrete canal intake gate.” Basir, 49, who is pleased that the construction of the The farmlands are now adequately irrigated, while Asiab Canal Intake Gate has revived the village. Country Update/ ongoing operations 18/  / The World Bank Group in Afghanistan/19 Second Customs and procedure, and Customs Strategic Plan. A Customs-to-Customs Cooperation Agree- Reform and Trade ment between Tajikistan and Afghanistan Facilitation Project was signed on March 26, 2014, and real time data exchange commenced from July (SCRTFP) 2015. A Customs-to-Customs Cooperation Agreement between Afghanistan and Iran IDA Grant $50.5 million c is expected to be signed soon. ACD has SCRTFP builds on the overall success also started negotiations with United Arab of the completed Emergency Customs Emirates and Turkey for signing similar coop- Modernization and Trade Facilitation Project eration agreements. and continues with the ongoing reforms. The project is assisting the Afghanistan Customs Department (ACD) to consolidate Sustainable the customs modernization process, improve Development of governance, and improve the release of le- gitimate goods in a fair and efficient manner. Natural Resources The project aims to achieve this through Project (i) countrywide computerization of customs IDA Grant $43 million c clearance operations; (ii) installation of ex- ecutive information systems for customs, The project aims to assist the Ministry allowing real-time monitoring of operations; of Mines and Petroleum (MoMP) and the (iii) development of possible options for National Environmental Protection Agency cross-border customs-to-customs coopera- (NEPA) in further improving their capacities tion; (iv) provision of selected customs infra- effectively to regulate Afghanistan‘s mineral structure to enable modernized operations; resource development in a transparent and and (v) technical assistance to support the efficient manner, and foster private sector development of a regulatory, administrative, development. and institutional framework for customs. Steady progress has continued under this The Automated System for Customs Data project, including transaction support for the (ASYCUDA) full declaration processing (DPS) tender and negotiations of the main Hajigak Extractive industries have is now fully operational in 13 computerized contract. An International Advisory Panel has to be developed to provide customs offices, covering more than 95 per- been established to ensure the transparency government revenues cent of declared trade. Migration from the of the negotiations process. and foreign exchange earnings to help meet the spectorate services functions and regulatory to MoMP and Ministry of Information and authorities. The third round included work- ASYCUDA++ version to the newer web-based Other areas of progress include collection country’s development ASYCUDA World platform has been complet- of new geodata and the digital capture of ex- needs. The Sustainable monitoring is in progress. Culture (MoIC) on the intersection between shops in the southern and western provinces ed in 12 sites, with both international and isting historical geodata for the development Development of Natural Other ongoing activities under this project the extractive industries and cultural her- in March and April 2016. Resources Project has include the preparation of the Resettlement itage; addressing the economic and social The excavation of nearly 80 percent of national transit covered. of a modern computerized geo-database in made steady progress to Infrastructure development was complet- order to attract the exploration interest nec- improve the capacities Policy Framework and the associated subsector of artisanal and small-scale min- the archeological red zone at Mes Aynak is ed successfully, with 10 large and 21 smaller essary to sustain discovery of new deposits of relevant authorities to Environmental and Social Management ing; and implementation of the Ex tractive underway. The employment of seven inter- regulate mineral resource Framework; the preparation of a Strategic Industries Transparency Initiative (EITI). national archeologists, 18 Afghan arche- civil works related contracts completed, in- and for sector growth; and the preparation development transparently cluding a new Customs House at Khost, and and publication of 18 sub-sector develop- and efficiently, and Environmental and Social Assessment for the The Afghanistan EITI communication team ologists, management and 18 field support improvements to Kabul, Jalalabad, Kandahar, ment policies by commodity to guide sus- foster private sector sector; development of a computerized min- is carrying out public awareness campaigns staff, and some 550 laborers from surround- development. ing cadastre system (AMCS+) for MoMP; 3D through workshops and trainings. After ing communities is also in progress. Over the and Nimroz Customs Houses. tainable development. Substantial progress has been made in An independent external inspection and laser scanning and imaging at Mes Aynak; completing the first round of the workshops past year, the MoMP and MoIC have signifi- preparation of a Customs Modernization contract compliance monitoring system has development of corporatization and com- in the northern and eastern provinces, the cantly increased their level of coordination (a Action Plan, Post Clearance Audit (PCA) im- been established. At the same time, capacity mercialization options for state-owned en- communication team carried out awareness bottleneck to progress in the past) and own- plementation plan, Risk Management policy building of NEPA and MoMP officers on in- ter-prises; provision of technical assistance workshops for eight relevant ministries and ership over the project. Country Update/ ongoing operations 20/  / The World Bank Group in Afghanistan/21 / rural development a financial discipline through savings and internal lending practices, and technical sup- Afghanistan Rural port to enterprises. To date, the program has established 5,561 Access Project (ARAP) Savings Groups with a membership of some 68,000 rural poor (52 percent women) in 747 c IDA Grant $125 million villages. The SGs have saved over $3.37 mil- c ARTF Grant $207 million lion and members have accessed more than ARAP aims to enable rural communities 27,000 internal loans for productive and across Afghanistan to benefit from improved emergency purposes with a repayment rate access to basic services and facilities through of 95 percent. all-weather roads. The project is expected to To generate economies of scale, 415 Village increase the number of people living within Savings & Loan Associations have also been 2 kilometers (km) of all-season roads, reduce established as federations of the SGs, and are travel time to essential services, and enable maintaining accurate and up-to-date records rural communities to access essential servic- of accounts with good governance structure es more frequently. in place. On average each VSLA has $6,500 as As of September 2016, construction of loan-able capital, which is further boosted 410 km of secondary gravel roads, 105 km of with a seed grant injection. This improves secondary asphalt roads, and 900 km of ter- access to finance for group members who tiary roads have been completed. In addition, would like to increase productivity or engage 1,100 linear meters of secondary bridges and in entrepreneurial activities but cannot ac- 1,484 linear meters of tertiary bridges have cess such funds from commercial banks or been built. In the meantime, routine main- microfinance institutions. tenance of 1,032 secondary roads and period AREDP also works towards strengthening maintenance of 132 km of secondary roads market linkages and value chains for rural were undertaken. Routine maintenance of enterprises by providing technical support to 3,250 km of tertiary road and period main- 1,238 Enterprise Groups (65 percent female) tenance of 500 km of tertiary road were also and 563 (13 percent female) Small Medium completed. Rollout of the first nationwide Enterprises that have been selected for their inventory and condition survey of rural roads potential as key drivers of rural employment Afghan beekeepers are getting recognition has been completed. and income generation. within Afghanistan for Six Provincial Situation Analysis (PSA) have the high quality honey Afghanistan Rural been completed and 10 PSAs are underway. they produce. Supported by the Afghanistan Rural Third Emergency Since 2003, NSP has successfully estab- lished Community Development Councils Enterprise Support was given to 113 Kochies (nomads) and 143 disabled people to enhance their Enterprise Development Project, honey producers National Solidarity (CDCs) in more than 35,000 communities. Development Project enterprise development skills and produc- have learnt to produce, process, and properly Project (NSP) More than 490,000 CDC members have been tivity. AREDP uses Community Development elected, registered, and trained in a variety of c IDA Grant $40 million (AREDP) Councils as an entry point into communities package honey as well as to run a business c ARTF Grant $1.05 billion areas, including in their roles and responsi- and is currently working in 20 districts of effectively. The program bilities, basic accounting, basic procurement, c IDA Grant $28.4 million has also helped producers c JSDF Grant $9.59 million five provinces: Parwan, Bamyan, Nangarhar, basic project management, and linkages c ARTF Grant $6.2 million showcase their products in Balkh, and Herat. rural industry exhibitions. GoA’s flagship program is in its third phase with other government and development ac- AREDP aims to enhance economic mo- and aims at generating a strong sense of tors. Over 950,000 community members also bilization and activities by organizing the ownership and social stability while enhanc- have been trained to support the CDCs with rural poor into Savings Groups (SGs), Village ing service delivery and security through em- project management and/or operations and Savings & Loan Associations (VSLA) and powerment and development activities that maintenance. In a sign of ownership, com- Enterprise Groups. The project provides tech- communities identify, plan, manage, and munities have contributed over $161.3 mil- nical support to these groups so as to build monitor on their own. lion in cash, kind, and voluntary labor toward Country Update/ ongoing operations 22/  / The World Bank Group in Afghanistan/23 over the mountain range, with the Salang / urban development highway carrying most of the cross-Hin- dukush traffic, and an unpaved secondary crossing between Baghlan and Bamiyan. Afghanistan New The project will carry out civil works for the Market Development upgrading of the Baghlan to Bamiyan (B2B) road (152 km) into a paved road as well as the Project rehabilitation of the Salang road and tunnel c IDA Grant $22 million (87 km). According to the project plan, the The project aims to pilot a business devel- construction work for the first segment of opment program in the four urban cent- B2B is scheduled to begin soon. ers of Kabul, Mazar-e-Sharif, Jalalabad, and Herat, which are the major hubs of economic activity. It helps enterprises gain market / social safety net knowledge, improve product quality, boost productive capacity, acquire new technolo- Afghanistan Safety gies, and develop and implement business Nets and Pensions plans to increase their presence in both do- mestic and export markets. Support Project The project specifically aims to support some 750 enterprises and 10 business as- c IDA Grant $20 million sociations through a cost-sharing facility to The objectives of the project are to: (i) im- access business development services. The prove the administration of the public pen- project is expected to create around 1,500 sion schemes; and (ii) develop administrative jobs in the short term with much higher job systems for safety nets interventions, with growth over the longer term. focus on targeting and benefit payment de- The project is implemented by the Ministry livery, to deliver cash benefits to the poorest of Commerce and Industry. The General families in targeted pilot districts. Director of the Private Sector Development Key elements of a reformed and mod- Department acts as the Project Director. ernized Public Sector Pension System are The Facility for New Market Development in place, including a revised institutional (FNMD), created under the project, was of- The building of community and human resources structure of the ficially launched on March 12, 2013. It has centers across the country Pension Department, a comprehensive new received 1,051 applications from small and under the National Solidarity Project has been Management Information System (MIS), a medium enterprises, and signed cost-sharing a success. The centers set of business processes, fiscal forecasting grant contracts worth $10 million with 434 the sub-projects implemented through NSP. Cumulatively, over all the NSP phases to Trans-Hindukush help bring community members together for models for revenues and expenditures, and a firms and associations. Moreover, FNMD has date, CDCs have received over $2.19 billion, Specifically under the current phase, some 14,500 new CDCs have been established of which some $1.6 billion have gone to com- Road Connectivity various activities and provide a space for the new chart of accounts of the pension system. Around 55,000 pensioners are registered in processed 67 additional grant agreements with the SMEs that successfully completed and over 11,500 councils been re-elected. munities through block grants to finance Project Community Development Councils to hold their the new pension MIS and are paid through their first cycle of agreements. Through Together, over 25,700 community develop- over 87,900 sub-projects. Some 71,800 bank accounts. FNMD, over 1,500 jobs have been created c IDA Grant $250 million meetings to discuss ment plans have been prepared, and more sub-projects have closed, while the rest is development sub-projects. A multi-phased safety net cash transfer across the country, including more than 30 than 42,700 sub-project proposals designed. ongoing. The project aims to support GoA’s efforts pilot has been designed, implemented, and percent for women, with 155 new or im- About 40,800 of these proposals have been Over 15 million people have benefited to improve road transport links across the evaluated. A targeting and benefit delivery proved products introduced in either domes- financed with block grants totaling $922 from financed sub-projects. NSP has created Hindukush mountain range, including the re- mechanism has been tested and is being fur- tic or export markets. million, and of these, some 24,600 have temporary rural employment by generating habilitation of the Salang road and tunnel. It ther improved, together with computerized closed while the others are ongoing. The fi- over 27 million labor days. will develop existing mountain crossings into registration. nanced sub-projects include transportation c For more information: dependable, all-season roads that will allow The pilot program over the past three (30 percent), water supply and sanitation www.nspafghanistan.org the vital transport of passengers and goods years has provided support in cash transfers (25 percent), irrigation (26 percent) power (5 to cross the Hindukush mountain range to over 16,000 poor and vulnerable families percent) and other small-scale infrastructure throughout the year. (around 80,000 individuals) in eight selected schemes (14 percent). There are currently only two road crossings districts in five provinces. Country Update/ ongoing operations 24/  results capacity building pays off with first kidney transplant in Afghanistan • Doctors at a hospital in Herat city carried out the country’s first successful kidney transplant after a series of training in the diagnosis and treatment of renal disease. • The capacity building opportunities were made possible by the Afghanistan New Market Development Project (ANMDP) implemented by the Ministry of Commerce and Industries. • ANMPD supports small and medium enterprises with access to business development services to enhance their productive capacity and encourage innovation. A little girl rests on a hospital bed with seve- ral tubes attached to her body, one of which is connected to a dialysis machine. On the other side of the room, an old man is also undergoing hemodialysis and connected to a second dialysis machine. Mohammad Reza, 50, is waiting for his daughter’s hemodialysis to finish so she could transfer to another ward of Loqman Hakim Hospital. His daughter was dia- gnosed with kidney disease three years ago. “I took her to Iran and Pakistan several times, but the treatment was expensive and not successful,” says Reza. “I don’t need to travel outside the country anymore because this hospital provides very good services at a reasonable price. I hope my daughter continues to be treated here.” Reza has reason to be hopeful that his daughter will be treated successfully as she is at the hospital that per- formed the first successful kidney transplant in Afgha- machines at the hospital. Farid Ahmad, 24, a trained nistan. “For the first time in Afghanistan, we successfully “ nurse, has worked at the hospital for three years. “We conducted a kidney transplant in Loqman Hakim Hospi- conduct hemodialysis for eight to 10 patients in the hos- tal in April 2016,” says the director, Dr. Farid Ahmad Ejaz, pital every day,” he says. “The dialysis ward of the hospi- referring to the operation in which a 38-year-old mother assistance I can say if it wasn’t for the tal has improved significantly.” donated one of her kidneys to her 13-year-old son. The capacity building opportunities for the hospi- ” Loqman Hakim Hospital is a private hospital, which be- tal staff have been made possible through support by we received from ANMDP, gan its services in 2009 with 10 beds and 35 employees. the Afghanistan New Market Development Project Located in Baagh-e-Azadi in Herat city, the hospital has (ANMDP) implemented by the Ministry of Commerce since expanded to 100 beds and 200 employees. It offers we wouldn’t be where we are. and Industries. “I can say if it wasn’t for the assistance round-the-clock services in several areas, such as general we received from ANMDP, we wouldn’t be where we are,” surgery, internal medicine, obstetrics, gynecology, and says Dr. Ejaz. para-clinical service. ANMDP, launched in May 2011, is supported by the –Dr. Farid Ahmad Ejaz, director, Loqman Hakim Hospital International Development Association (IDA), the World Support for training Bank Group’s fund for the poorest countries. The kidney transplant was performed by Afghan doctors Since starting operations in Herat Province in 2013, under the supervision of Iranian colleagues. It is the suc- ANMDP projects have helped five companies find in- cessful outcome of a series of medical tours and trainings ternational markets for their products and 18 compa- in Iran for over 50 doctors from Loqman Hakim Hospital nies expand their markets to a national level, while 12 in the diagnosis and treatment of kidney disease, renal enterprises, including the Loqman Hakim Hospital, have operations, and transplants. expanded the scope and scale of their services within Nurses too have been trained to operate the dialysis the province. 26/  Country Update/ / The World Bank Group in Afghanistan/27 INTERNATIONAL FINANCE CORPORATION The International Finance Corporation’s key development of Afghanistan’s private sector, partnered with 10 local training providers to prong of engagement has been through particularly in the areas of infrastructure, fi- strengthen their capacity, aiming to enhance advisory support focused on improving the nance and microfinance, manufacturing, ag- the sustainability of the provision of manage- investment climate and building capacity, ribusiness, and services. ment training services. while supporting selective investments in IFC also has been providing support to sectors with high development impact Advisory Services SMEs in the agribusiness sector by helping and job creation. IFC’s current strategy is in A strong Advisory Services program has been farmers improve productivity and supporting line with the ongoing World Bank Group’s supporting the Investment program in the ar- the expansion of market opportunities, both Interim Strategy Note for Afghanistan (ISN- eas of access to finance, small and medium nationally and internationally. FY2012-2015). The IFC team is working enterprise capacity development, horticul- IFC has two primary interventions aimed closely with the World Bank on the prepara- ture/agribusiness and investment climate. at reforming the business regulatory environ- tion of the Country Partnership Framework In Access to Finance, IFC provided assis- ment. The first is an ongoing engagement with expected delivery by third quarter of tance to DAB, the central bank, in collabora- with the Kabul Municipality reforming the 2016. tion with the World Bank’s Financial Sector construction permit process. The second is Strengthening Program to support the es- the newly funded Afghanistan Investment Investment portfolio tablishment of the first electronic move- Climate Reform Program (funded by USAID), IFC’s committed Investment portfolio in able collateral registry and the Public Credit implemented by IFC teams as part of the Afghanistan has more than doubled between Registry. IFC also helped establish regulatory World Bank Group Trade and Competitiveness FY08 and FY14—from around $58 million to frameworks for leasing. It will now focus on Global Practice. The program has three com- about $135 million. Currently, IFC’s portfolio building the strengths of commercial banks ponents, which were launched in the fiscal stands at about $80 million and includes two and other financial institutions to offer asset- year: Licensing Reform Phase 2, Subnational investments in the telecommunication sec- based lending products and to increase utili- Doing Business Survey, and a new Doing tor (MTN—a joint project with MIGA— and zation of the registries, with a view of further Business Reform project. Roshan), one investment in the hotel sector expanding outreach of financial services to (TPS), and two operations in financial mar- more SMEs in the country. kets (First Microfinance Bank, Afghanistan With respect to Enterprise Development, International Bank—trade facility). the Business Edge initiative has been facilitat- The investment pipeline looks promising ing business skills training to individuals and and includes investments in financial mar- SMEs. The program has trained more than kets, mobile infrastructure, the power sector, 9,000 individuals (3,935 women), along with and agribusiness. IFC will continue to seek employees from 801 micro, small and me- new investment opportunities and engage dium enterprises (MSMEs), plus government with local players in order to support the and development organizations. IFC has 28/  Country Update/ / The World Bank Group in Afghanistan/29 AFGHANISTAN RECONSTRUCTION TRUST FUND The Afghanistan Reconstruction Trust The Afghanistan Reconstruction Trust Fund Window reimburses the government for a Fund (ARTF) was established in 2002 to pro- certain portion of eligible and non-security vide a coordinated financing mechanism related operating expenditure every year. The The objectives of ARTF are: for the GoA’s budget and national invest- Investment Window provides grant financing ment projects. Since its inception, 34 do- for national development programs in the de- • Position the national budget nors have contributed over $9.2 billion to velopment budget. as the key vehicle to align ARTF, making it the largest single source the reconstruction program of on-budget financing for Afghanistan’s Donor contributions development. Donor contributions have increased year af- with national development ter year, with both old and new donors con- objectives. Management tributing to ARTF. Over the last few years the • Promote transparency and The ARTF has a three-tier governance frame- ‘preferenced’ portion of donor contributions work (Steering Committee, Management has been the main factor driving growth. The accountability of reconstruction Committee and Administrator), and three agreed ARTF rule is that donors may not ‘pref- assistance. working groups. This sound framework has erence’ more than half of their annual contri- • Reduce the burden on limited enabled ARTF to adapt to changing circum- butions. This rule is to ensure that ARTF has stances and development priorities with sufficient funding to finance the Recurrent government capacity while consistency and consensus. The World Bank Cost Window and that it retains some flex- promoting capacity building is the administrator of the trust fund. The ibility in the approval of projects in support over time. Management Committee consists of the of government priorities. World Bank, Islamic Development Bank, • Enhance donor coordination for Asian Development Bank, United Nations The Recurrent Cost Window (RCW) financing and policy dialogue. Development Programme, Ministry of mean the RCW accounts for a declining share Grant $4 billion The ARTF’s support of the of the overall budget. Nevertheless, the RCW Finance (MoF), and United Nations Assistance Mission in Afghanistan as an observer. The To date, ARTF has disbursed $4 billion government’s priority still finances around 16 to 20 percent of the Management Committee meets regularly in through the government’s non-security op- programs, policy reform agenda, government’s non-security operating budget. Kabul to review ARTF finances and approve erating budget. Domestic revenues continue and the non-security operating funding proposals. The ARTF Strategy Group, to be insufficient to cover the costs of govern- The Investment Window consisting of donors and MoF, meets month- ment. The ARTF RCW has therefore ensured costs of government operations The Investment Window has increased sig- ly to review the implementation of the ARTF the basic functioning of government includ- contributes to the achievement nificantly in volume and scope. Since SY1389 program and to discuss strategic issues. ing the delivery of services such as healthcare (year 2010), investment commitments have of Afghanistan’s national exceeded recurrent cost commitments. De- and education. Given that around 60 percent How ARTF works of the non-uniformed Afghan civil service is strategic goals. centralized and national rural development Donors contribute funds into a single ac- accounted for by teachers, the Ministry of programs, such as NSP, rural roads, and edu- count, held by the World Bank in the USA. The Education has in general received about 40 cation have been strongly supported by ARTF. ARTF Management Committee makes deci- percent of total ARTF resources. Ministries As of August 21, 2016, there are 20 pro- sions on proposed allocations at its regular of Public Health, Foreign Affairs, Labor, Social jects active under ARTF with a total com- meetings, and those decisions are translated Affairs, and Higher Education have also been mitment value of $3.1 billion, of which $2.1 into funds through Grant Agreements signed major recipients. billion have been disbursed and the net un- between the World Bank as administrator It should also be highlighted that the RCW disbursed amount is $956 million. of the trust fund and the Government of resources are national in scope, ensuring the c Full details of investment activities are Afghanistan. payment of salaries of around 62 percent of provided in the ARTF Annual Scorecard: ARTF allocations are made through two non-uniformed civil servants in all 34 prov- www.artf.af ‘windows’: the Recurrent Cost Window and inces of the country. Steady year-on-year in- the Investment Window. The Recurrent Cost creases in operating costs across government Country Update/ artf 30/  / The World Bank Group in Afghanistan/31 / ongoing projects A farm employee working at one of the most important research farms Afghanistan in northern Afghanistan. The farm produces breeder Agricultural Inputs seeds that will result in disease-resistant crops Project (AAIP) with higher yields that are suitable for local growing conditions. Supported Grant $74.8 million by the Afghanistan Agricultural Inputs Project, AAIP aims to increase adoption of improved the work of this and crop production technologies. The agri- other research farms will see the improvement of culture sector is central to Afghanistan’s quality seed production economy, employing 60 percent of the na- and release of new wheat tion’s workforce. As such, strengthening varieties. institutional capacity of the Ministry of Agriculture, Irrigation and Livestock (MAIL), 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- ket-based input delivery systems for seeds production practices. It is also supporting To ensure MAIL’s sustainable development, Enterprises (PSEs) throughout the country and agro-chemicals. The sustainability of MAIL’s research activities at central and re- the project also provided in-country train- to track their strengths and weaknesses in these interventions will be supported by ca- gional level. ing for 313 staff members of the Agriculture improved seed production. AAIP will also es- pacity building programs involving civil serv- Under the project, a survey and designs for Research Institute of Afghanistan (ARIA), tablish a pesticide positioning management ants, farmers, and traders. the establishment of 13 laboratory complex- Improved Seeds Enterprise Plant Protection, center at the Ministry of Public Health, for During its second semester of implemen- es for the Plant Protection and Quarantine and Quarantine Directorate. The interna- which a Memorandum of Understanding tation, AAIP completed the expansion of its Directorate and designs for 10 border quar- tional training, including master’s and PhD has been signed. technical teams at central and regional lev- antine stations have been completed. programs, for the Ministry’s target staff are To strengthen the legal framework on the els, thus finalizing necessary arrangements Another major achievement is the comple- in progress. agricultural input delivery system AAIP legal to provide increased assistance for improved tion of a survey and designs of nine Regional AAIP has also procured hardware and department has developed a pesticide law, quality and delivery of production inputs to Research Stations and four Regional Seed equipment such as motor vehicles, motor which has been approved, while the quaran- the agricultural sector. Production Farms. Contracts for four region- cycles, office and IT equipment as well as tine law is awaiting presidential approval af- AAIP is providing technical and financial al research farms and two improved seed agricultural machinery for relevant MAIL de- ter being passed by the Afghan parliament, support to MAIL and its relevant directorates production farms have been signed, while partments at central and regional level. and the fertilizer bill is under consideration in the production of breeder, foundation, and procurement of contracts for the rest of the The AAIP team together with MAIL staff at the Ministry of Justice certified wheat seeds, based on improved farms is in the pipeline. carried out an assessment of Private Seed Country Update/ artf 32/  / The World Bank Group in Afghanistan/33 Agro-meteorological tracted. Civil service reform in the Attorney have taken up the responsibilities for opera- stations across General’s Office for administrative and sup- tion and maintenance. Afghanistan are providing farmers vital information port has advanced according to plan. In 2015, the ARTF Management Committee on climatic and soil Training programs for prosecutors focusing at the request of GoA approved an additional conditions, enabling on white collar and corruption-related crimes $45 million to scale up achievements of the them to grow their crops more effectively. have taken place. Moreover, 105 judges have project by increasing its scope and adjusting Recently installed stations, undergone training in the Egypt Training the project components. The project closing supported by the On-Farm Institute for Judges in fields such as criminal date has been extended for another three Water Management Project, use an automated law, civil law, commercial law, and family years (now closing in December 2019). system to provide law. The construction of the Information and Afghanistan Power more reliable, timely Administrative Center of the Supreme Court information. “The weather and two other provincial offices has been System Development updates are really helpful to us throughout the year completed. Project for sowing, fertilizing, The new Criminal Procedural Code and irrigation, and harvesting of crops,” says a farmer. a number of other laws have been printed and distributed to relevant stakeholders. Grant $75 million Five legal libraries have been opened by the The project supports GoA in increasing ac- Supreme Court and Attorney General’s Office. cess to grid power and the quantity of power available to consumers in the target urban Afghanistan On-Farm centers of Pul-e-Khumri, Charikar, Gulbahar, Water Management and Jabul-es-Seraj, and to improve the availa- bility of electricity from Naghlu and Mahipar Project switchyards. It consists of three components: distribution system rehabilitation; reha- Grant $70 million bilitation of transmission switchyard associ- This pilot project is designed to support on- ated with Naghlu and Mahipur Hydropower farm water management investments in Stations; and institutional capacity building five regions (Central, Eastern, Southwest, and project management support to the Northeast, Northern) covering a total of Ministry of Energy and Water (MEW). 10,000 hectares. The project improves agri- Under the project, 495 kilometers of dis- Afghanistan Justice services; (b) increasing scope and quality of cultural productivity in project areas by en- tribution lines have been constructed or re- legal aid; (c) improving access of the public hancing the efficiency of water use. habilitated. A total of 24,667 kilovolt-amps Service Delivery to legal information and civil legal education; Land productivity of wheat and other crops (KVA) were installed in Charikar, Gulbahar, Project (d) improving management and provision has increased by 15 percent. Water produc- and Jabul-es-Seraj, while 17,209 KVA were of legal services by central justice institu- tivity of wheat and other corps increased 10 installed in Pul-e-Khumri. The project sup- Grant $85.5 million tions; and (e) building project management percent, and the irrigated area increased by ported the energy efficiency activities of The objective of the Justice Service Delivery capacity. The implementing agencies are 10 percent. Physical rehabilitation of irriga- MEW through the setting up of an Energy Project is to increase access to and use of le- the Supreme Court, Ministry of Justice, and tion schemes exceeded its target with good Efficiency Unit. A national awareness pro- gal services. The project seeks to implement Attorney General’s Office (AGO). quality and within the project budget allo- gram for energy efficiency was completed the government’s NPPs; mitigate the impact There has been progress in several of the cation and timeline: 100 irrigation schemes in July 2014. Three energy efficiency dem- of the transition; put the system on a sustain- components and sub-components: capital (mostly informal) have been rehabilitated, onstration programs have been completed able path for long-term results; and improve investment plans are under development; covering a total of 19,000 hectares of irriga- as well. The project was restructured in June service delivery. the development of the Legal Aid Road Map tion command area. 2015, extending it to May 31, 2017, and an The project will finance the costs asso- and Legal Aid Regulatory Framework is un- The establishment of 175 Irrigation asso- additional financing of $15 million to allow ciated with: (a) building capacity of front derway; and Training and Human Resource ciations (IAs) has been completed. The IAs are completion of project activities. line legal service providers to deliver key legal Management strategies will soon be con- based on the traditional Mirab system and Country Update/ artf 34/  / The World Bank Group in Afghanistan/35 Capacity Building for more in various stages of recruitment. CBR is also encouraging salary harmonization for Results Facility Project donor-funded consultants led by the Bank. for Afghanistan Grant $100 million Central Asia South Capacity Building for Results (CBR) is a ca- Asia-1000 pacity building, institutional development, Community Support and public administration reform project to strengthen capacity of selected line minis- Program (CASA-CSP) tries to better plan and execute their devel- Grant $40 million opment budget, simplify business processes, The project aims to provide access to electric- and provide faster and quality services to ity or other social and economic infrastruc- Afghan citizens. CBR promotes accountabil- ture services to communities in the project ity in line ministries by introducing results- area in order to strengthen community sup- based reform and services improvement port for the CASA-1000 transmission line. programs. CBR is also one of the key tools The project consists of four components. for the government to reduce reliance on The first component, community grants external technical assistance and parallel for sub-projects will provide grants directly structures. to communities to fund economic infrastruc- The grant helps finance the costs associ- ture sub-projects. Preference will be given to ated with (i) technical assistance for prepa- power sector sub-projects. The second com- ration and implementation of capacity ponent, community mobilization aims to building programs; (ii) recruitment of some engage communities to increase the shared 2,400 managerial, common function, and prosperity associated with the CASA-1000 professional staff for key positions in select- transmission line, which will pass through ed line ministries; (iii) a management intern- villages, by facilitating community participa- ship program; (iv) training of civil servants; tion in sub-project planning, implementa- and (v) project management, monitoring, tion, and operations and maintenance. and evaluation. The third component is project imple- The Ministry of Agriculture, Irrigation and The Citizens’ Charter mentation support. It comprises a sub-com- Afghanistan Project, Livestock and Ministry of Communications ponent, third party monitoring (TPM). The launched on 25 and IT were approved as the first top tier min- fourth component, communications and out- September, 2016, saw the signing of a Financing istries, enabling them to recruit a substantial reach will finance a strong communications either side of the CASA-1000 transmission Agreement for an ARTF number of skilled civil servants to imple- campaign and information-sharing activities grant between the line. It is expected that there will be approxi- ment its CBR reform program. The Ministry directed to relevant stakeholders within the Ministry of Finance mately 700 communities spread over 23 and the World Bank, of Mines and Ministry of Social Affairs also provinces with a special emphasis on out- districts in six provinces, with a total of over as ARTF administrator. have been approved, and several others are reach to communities in the project areas. President of the Islamic 152,000 families along the corridor of influ- at various stages of proposal development. Work under CASA-CSP will begin once Republic of Afghanistan, ence. Given the terrain along the COI, as well Mohammad Ashraf Ghani Recruitment of senior level civil servants the CASA-1000 project is operational. Once as the unique nature of community mobili- (standing right), and funded through CBR is progressing; a total implementation begins, CSP is expected to Chief Executive, Abdullah zation in high-risk areas, there will be some of 99 active senior management group po- benefit communities that live along a two- Abdullah, witnessed the flexibility to work with more communities signing between Minister sitions are currently funded, with over 100 kilometer ‘Corridor of Influence’ (COI) on outside of the COI. of Finance, Eklil Ahmad Hakimi, and World Bank Country Director, Robert Saum. Country Update/ artf 36/  / The World Bank Group in Afghanistan/37 KEY Results expected under the first Citizens’ Charter phase of the CCAP Afghanistan Project (CCAP) ARTF Grant $400 million IDA Grant $100 million 1st Government of Afghanistan $128 million The Citizens’ Charter Afghanistan Project is 8.5 million people expected to be implemented over a period of four years. The project will support the first reached through the Citizens’ phase of the Government of Afghanistan’s Charter first phase. 10-year Citizens’ Charter National Program, and will target one third of the country. The objective of the CCAP is to improve the delivery of core infrastructure and social ser- vices to participating communities through strengthened Community Development 3.4 million people Councils. These services are part of a mini- gain access to clean mum service standards package that the drinking water. government is committed to delivering to the citizens of Afghanistan. The CCAP aims to contribute to the gov- ernment’s long-term goals of reducing pov- erty and deepening the relationship between Improvements to quality of citizens and the state. The $100 million IDA service delivery in grant is expected to be presented for World Bank Board approval on October 27, 2016. health, education, rural roads, and electrificatioN. DABS Planning and Capacity Support Women will benefit under Grant $6 million the Higher Education Development Project, The Da Afghanistan Breshna Sherkat (DABS) which aims to increase Planning and Capacity Support Project aims and the project took effect in March 2016. access to higher education Under component one, project funds will to improve DABS capacity in distribution in- in Afghanistan, as well as Increase in Due to advance procurement, the project is improve its quality and be disbursed against selected line items in vestment planning, implementation, and op- citizen satisfaction and well on track in its implementation. relevance. Under the first the annual budget of the Ministry of Higher eration and maintenance. year of implementation, Education (MoHE) up to capped amounts, and trust in government. Higher Education This project has two components: one-third of the on condition that the agreed set of disburse- scholarships awarded Component 1: Staff capacity building, which ment-linked indicators (DLIs) are achieved. Development Project went to female academics. aims to support DABS capacity to plan and The DLIs reflect priorities for development. implement new investments in distribution These include intermediate outcomes that Grant $50 million systems and to operate and maintain the in- build cumulatively over the lifespan of HEDP vestments properly. The Higher Education Development Project to improve access to the higher education 35 percent Component 2: Development of a training (HEDP) aims to increase access to higher system and raise its quality and relevance. return on investment center in Kabul. Currently DABS does not education in Afghanistan, as well as im- This component will support the reforms ini- have any training facility for its staff, and prove its quality and relevance. HEDP uses tiated through the National Higher Education for infrastructure projects. this has been identified as a critical gap in its an Investment Project Financing instru- Strategic Plan II, and will focus on outcomes overall capacity building efforts. ment based on the Results-based Financing and results rather than inputs. The grant was approved in February 2016 modality. The project started in July 2015 and MoHE Country Update/ artf 38/  / The World Bank Group in Afghanistan/39 is on course to complete the three disburse- ahead. Importantly, KMDP has established ment-linked indicators that are required for a strong foundation exists for gender inclu- the project to disburse the full tranche under sive community participation in decision the program component for 2016. The three making over public expenditures in Guzars DLIs for the first year have been met, which (neighborhoods). include awarding 100 scholarships, of which one third were awarded to female academ- ics; training of 75 faculty members in out- Kabul Urban come-based education and student-centered learning; and awarding 30 individual and Transport Efficiency group research projects of faculty members Improvement Project from public universities. (KUTEI) Grant $90.5 million Kabul Municipal Development Program The project aims to improve road conditions and traffic flows on selected corridors of (KMDP) Kabul city. The project will focus on improve- Grant $110 million ment of road infrastructure and provision of technical assistance to Kabul Municipality in Kabul Municipality is responsible for imple- specific areas. menting the project. The project objectives Investments in key road infrastructure are to: (i) increase access to basic munici- will improve connectivity and make Kabul pal services in selected residential areas of more inclusive, while technical and knowl- Kabul city; (ii) redesign Kabul Municipality’s edge support will gradually transform Kabul Financial Management System to support Municipality into a modern planning and better service delivery; and (iii) enable early re- implementing agency by adopting best in- sponse in the event of an eligible emergency. ternational practice. Kabul Municipality will The project is expected to deliver welfare be responsible for implementation of the and human development benefits to over project, including procurement and financial 700,000 people through services provided management. in some 1,800 hectares of private land. Progress toward the achievement of the Equipment for the roads and sanitation de- project development objectives will be meas- partments of Kabul Municipality will combat For years, residents of a ured through the following indicators: (a) Kabul city neighborhood pollution and improve service delivery as well traffic capacity improvements will be meas- lived in unpaved, muddy, as the city environment. There will be project ured by average vehicle speed during off- dusty, and narrow streets. support to develop a plan for improving the Their lives have been been completed and the contracts are ready Project will give a much needed boost to the peak hours; (b) people (within a 500-meter municipality’s financial management and greatly transformed as a for award. The design review for Lot-8 is energy sector in Afghanistan, which has suf- range under the project) in urban areas pro- result of improved street planning capacity to deliver improved servic- completed and the procurement process fered serious neglect as a result of decades vided with access to all season roads; and (c) conditions, including es. The plan will enhance Kabul Municipality’s a proper drainage has started, while the design review for Lot- of civil war and insurgency. Challenges in the percentage of Kabul city’s trunk road network legitimacy when implemented. system, brought about 7 and the Wazir Abad canal is in progress. sector mainly relate to the physical condition in at least ‘fair’ condition. by the Kabul Municipal To date, $28.29 million have been disbur- The terms of reference for the soft studies of equipment, resulting from delays in opera- Initial activities, including survey, design Development Program. “No sed. Over 445,000 people (about 73 percent one was attracted to our under Component B have been prepared tion and maintenance, and inadequate insti- review, and procurement of civil works, women and children) have benefited from neighborhood because of and sent to the World Bank for review. tutional capacity. In June 2015, Afghanistan’s started during the preparation of the project. the roads,” says a resident, the construction of 160 kilometers of neigh- Implementation of two out of four National “now all our friends envy access to electricity rate was estimated at borhood roads, 224 kilometers of community Competitive Bidding civil works contracts our clean, paved streets.” about 25-30 percent. Electricity is available drains, and 13.17 kilometers trunk roads. (Lot-1 and Lot-2) is completed and the roads Naghlu Hydropower mainly in the urban areas and along a few 43,727 person months of temporary em- transmission corridors. ployment has been generated through the are opened to traffic. The progress of the re- maining two contracts stands at 65 percent Rehabilitation Project Hydropower provides 94.6 percent of do- execution of labor intensive works con- for Lot-3 and 10 percent for Lot-4. (NHRP) mestically generated electricity with an in- tracts at an investment of $514/person The procurement process for two out of stalled capacity of 254 MW. In 2015, there month. Durable infrastructure will gener- Grant $83 million were 12 hydropower plants in Afghanistan, the four International Competitive Bidding ate secondary employment in the years civil works contracts (Lot-5 and Lot-6) has The Naghlu Hydropower Rehabilitation not counting the over 5,000 off-grid micro- Country Update/ artf 40/  / The World Bank Group in Afghanistan/41 hydropower plants constructed under the animal production and health. The technical National Solidarity Program. The two largest strategy for achieving this objective is based among the 12 are the Naghlu Hydropower on the delivery of extension and investment Plant at 94 megawatt installed capacity and support through strengthened systems. Mahipar Hydropower Plant at 66 megawatt The project has three components: (i) hor- installed capacity. The project will focus on ticultural production; (ii) animal production the Naghlu Hydropower Plant, which is of and health; and (iii) implementation man- strategic importance to Afghanistan’s power agement and technical assistance support. generation portfolio as it provides more than These activities were initially implemented half of Kabul’s electricity. in 120 focus districts in 23 target provinces. NHRP aims to improve dam safety and Based on the high demand for NHLP services, to increase the supply of electricity at the the project has expanded its activities since Naghlu Hydropower Plant. The rehabilita- the beginning of 2016 to another four prov- tion and improvement of the energy sector inces in southern Afghanistan (Kandahar, is a high priority for GoA and a critical part Helmand, Ghazni, and Wardak), thus cover- of its national development program. Better ing 27 out of the 34 provinces in the country. energy services will help meet the govern- The project aims to promote adoption ment’s development goals by stimulating of improved production practices by target job growth and production, and improving farmers, with gradual rollout of farmer-cen- the quality of life of the Afghan population. tric agricultural services systems and invest- The project will also have important climate ment support. Service delivery centered on change impacts by reducing dependence on farmers will promote increased participation fossil fuel. of beneficiaries in defining the type of ser- The project became effective on January vices required and in the delivery itself. The 24, 2016, after the signing of the Grant project will also promote improved ratio of Agreement. The main contractor for the re- overall costs reaching beneficiaries as direct habilitation of the plant undertook the first investments. The aim is, thus, to promote site visit in August 2016 and is expected to sustainability, effectiveness, and efficiency. commence work soon. Key specialists from As of September 2016, the project has fi- the Environment and Social Advisory Panel nanced the establishment of 7,886 hectares (ESAP) and the Project Technical Advisory (ha) of new orchards, almost on project tar- Panel (PTAP) are on board. They are contribut- get, with 34 percent in new provinces. In ing to enhance the quality of the work and addition, over 70,000 ha of orchards have Children walking down a road under construction services under the project. been rehabilitated, more than quadrupling in Kabul city carried out by Furthermore, bidding for contracts that are the target of 6,000. Moreover, demand from horticulture sector by establishing 52.7 ha the Kabul Urban Transport Services delivery through private Veterinary to provide electricity access for communities target beneficiaries for kitchen gardening of demonstration high and medium density Efficiency Improvement Field Units (VFUs), and through establish- Project. The completed close to the hydropower plant is underway, support has been very high, and the en- orchards. ment of an Animal Health Sanitary Mandate road will help improve and the establishment of a training center to tire annual program was amply exceeded Further, 5,000 producers applied integrat- traffic flow in a city of Contracting Scheme (AHSCS). NHLP conduct- enhance local employment opportunities is (58,116 schemes against a target of 20,000). ed nutrient practices, while the spot irriga- nearly 700,000 vehicles. ed SM training for 168 VFUs and 76 Provincial also envisaged. Further, NHLP continues to introduce inno- tion method was implemented in 823 ha of Veterinary Officers. On the production side, vative lines of investment support. It has suc- land, and a total of 358 drying houses to im- the delivery so far of extension messages National Horticulture cessfully introduced production techniques prove production and quality of raisins was has been carried out along with distribution to, inter alia, extend the production period of constructed. The survey for construction of of improved technology packages to 58,800 and Livestock Project vegetables by establishing some 1,840 pro- 620 raisin drying houses and 500 water har- beneficiaries in 138 districts in 19 provinces. (NHLP) duction schemes based on the use of micro vesting structures has just been completed. The establishment of AHSCS initially fo- greenhouses. It has created a culture of high The construction work is expected to be com- cused on a brucellosis control program in 360 Grant $100 million productivity dry land cultivation by having al- pleted by end of 2016. districts of 34 provinces. Through this pro- The National Horticulture and Livestock ready supported the establishment of 1,990 Regarding improved livestock production, gram, 1.2 million young cattle and 4 million Project contributes to the overarching goal ha—a cumulative target of 300 ha—of pista- NHLP is supporting MAIL compliance with its young sheep and goats have already been of increased productivity and overall produc- chio groves with high yielding varieties. The Sanitary Mandate (SM). It is doing so by sup- vaccinated. tion of horticultural products, and improved project has promoted modernization of the porting improved Extension and Veterinary Country Update/ artf 42/  results horticulture provides alternative livelihood to farmers • Horticulture is providing a better source of income for farmers in Bamyan Province and helping them to improve their livelihood. • The National Horticulture and Livestock Project (NHLP), under the Ministry of Agriculture, Irrigation and Livestock, is assisting farmers establish new orchards and manage existing ones with improved technologies and practices in 23 target provinces. • The project, supported by the Afghanistan Reconstruction Trust Fund (ARTF), aims to increase productivity and overall production of horticultural products. Z amin Ali, 24, is irrigating his brother’s orchard under the strong sunshine, moving from one sapling to another with a hose in his hand. The orchard, in Dasht-e-Brosna village on the outskirts of Bamyan city, is full of apple, peach, plum, and apricot saplings. The only water source near the orchard is a well from which Zamin draws water three times a week to irrigate the trees. Until recently, Zamin used a small generator to draw water from the well, but he now does it with the help of a solar water pump. The only source of energy needed is sunshine. Prior to receiving the solar water pump, irrigation was frequently accompanied by problems, including the ge- nerator’s technical defects and failures. “Having a reliable source of irrigation has helped us significantly increase our harvest and improve our livelihood,” says Zamin. The costs associated with both fueling and repairing “ the generator were a significant obstacle to Zamin’s vision to have a sustainable source of income from horticulture. He and his brother, Jawad Ali, have been are particularly important in Bamyan, a poverty-ridden In a few years, the horticultural harvest growing fruits for the past four years. Zamin’s goal to earn a living from horticulture came province where other sources of income are minimal because of its geographic position and landscape. will form a big portion of people’s produce in this province. a step closer to fruition when they were able to replace NHLP has been operating in four districts —Markaz, the generator with the solar water pump with the as- Yakawolang, Saighan, and Waras—in Bamyan Province ” sistance of the National Horticulture and Livestock Pro- since 2013. Mahdi Seerat, NHLP provincial coordinator in It will make significant contribution to ject (NHLP). The brothers contributed 25 percent of the pump’s cost. Each solar water pump set includes 10 solar Bamyan Province, explains that the project assists far- mers to improve their livelihood by encouraging horti- people’s economic empowerment. panels, a solar pole, an electric inverter, and a bore pump. culture. “In addition to other agricultural crops, we try to The brothers also had received fruit saplings from NHLP create an alternative, horticulture, for Bamyan farmers that helped enhance their productivity. so as to increase their incomes and introduce them to NHLP, implemented by the Ministry of Agriculture, new fruit varieties,” he says. –Mahdi Seerat, NHLP provincial coordinator, Bamyan Province Irrigation and Livestock (MAIL), has established or sup- NHLP provides farmers with the varieties of fruit ported orchards and vineyards across the country, using saplings that are compatible to the climate of the pro- modern horticultural methods vince—a crucial factor in enhancing productivity. “In a few years, the horticultural harvest will form a big por- Introduce new fruit varieties tion of people’s produce in this province. It will make Agriculture and horticulture are the main sources of in- significant contribution to the people’s economic em- come for many in Afghanistan. These means of livelihood powerment,” says Mahdi Seerat. Country Update/ artf 44/  / The World Bank Group in Afghanistan/45 in improving and developing the quality of derway after an intensive awareness cam- training material and standardizing occupa- paign that was carried out by Employment tions to international skill standards, which Service Center staff to reach the target popu- would subsequently facilitate quality train- lation of illiterate Afghans in three selected ing programs and enhanced employment op- provinces (Balkh, Nangarhar, Kabul). This has portunities for trainees. resulted in about 8,500 applicants (3,000 Component 2: NATEJA will provide capac- from Balkh, 4,000 from Nangarhar, 1,500 ity development assistance including in- from Kabul) registered with a business plan. creased staffing, staff training, and a range An initial list of 2,600 potential beneficiaries of Technical Assistance (TA) to support: (i) will be released, from which the first batch of financial management; (ii) procurement; (iii) 1,260 beneficiaries will be chosen by lottery. entrepreneurship development; (iv) employ- The information provided by the benefi- ment services; and (v) labor market informa- ciaries will be thoroughly verified to ensure tion collection, analysis and utilization. The that the right applicants are enrolled into the monitoring and evaluation (M&E) capacity program to start a new small scale enterprise of the National Skills Development Program or expand their existing micro-enterprise will be enhanced so that reliable and suitably with the $500 grant. The grant applications disaggregated project performance data can (41 percent female participation) are being be collected and analyzed. vetted by a broad range of people to ensure The integration of NATEJA within the transparency. Directorate General of Skills is underway and will be completed by May 2016. Under Second Education this component, NATEJA has partnered with the Italian Development Cooperation Quality Improvement Office (IDCO) to conduct an impact evalua- Program (EQUIP II) tion of the business grant program that has been implemented in six provinces (Herat, Grant $408 million Some 8.5 million children Bamyan, Farah, Balkh, Kabul, and Nangarhar) EQUIP’s objective is to increase equitable are enrolled in schools to establish the causal impacts of project access to quality basic education, especially throughout Afghanistan, Non-formal Approach Component 1: The objective is to train of whom 3.3 million (39 interventions and how to scale up success- for girls. Program interventions are primarily percent) are girls. The ful interventions. The baseline survey data targeted toward general education, teacher to Training 40,000 Afghans by providing incentives to training providers and creating an opportu- Second Education Quality collection is underway and will be followed training, and education management. The Improvement Program Education and Jobs nity for competition and improved quality of aims to increase equitable by midline and endline surveys to measure program is fully aligned with the Afghanistan access to quality basic the respective impacts of the business grant National Education Strategic Plan and sup- in Afghanistan training. Currently, 192 non-formal private and non-governmental training providers education, especially for program on job creation, earnings, and skills ports the institutional development of the girls. Under the program, Project (NATEJA) have been identified and will compete for many schools across acquired. Significant progress has been made Ministry of Education’s program staff. EQUIP incentives based on the number of certified the country have been in the development of a comprehensive MIS, was originally supported by the International Grant $15 million awarded grants to improve where several web-based applications have graduates and the number of students em- their infrastructure and Development Association, the World Bank The objective of NATEJA is to increase the ployed after completing the training. facilities. been established for data collection and Group’s fund for the poorest countries. potential for employment and higher earn- The rationale for this intervention is that monitoring progress in the implementation As of September 2016, EQUIP II has sup- ings of targeted young Afghan women and incentives directly linked to labor market of Components 1 and 3. ported the construction of 1,033 schools and men in rural and semi-urban areas through outcomes are likely to encourage training Component 3: The focus is on building teacher training colleges (TTCs). According non-formal skills training. The project focuses providers to actively prepare students for the the skills of illiterate and unskilled young to the Education Management Information on improving labor market outcomes (e.g., certification exam and help graduates seek Afghans from villages engaged with the System, there are 8.5 million children en- earnings and employment) for unskilled and employment. It is also based on the premise Afghanistan Rural Enterprise Development rolled in schools throughout Afghanistan, of semi-skilled youth through enhancing the that labor market outcomes cannot improve Project (AREDP), and offering business grants whom 3.3 million (39 percent) are girls. quality of training delivery, and providing en- unless the quality of non-formal training im- to new and existing entrepreneurs. Under both phases of EQUIP, social mobili- trepreneurship/apprenticeship support. proves. Significant progress has been made Activities around the business grant is un- zation activities have been conducted in Country Update/artf 46/  14,432 communities, resulting in the es- Financial Management Reform: To pro- ation manual; improve the operations of the tablishment of an equal number of school vide technical assistance to the Treasury Human Resource Management Department shuras (community-based consultative bod- Department to ensure high quality finan- (HRMD) to enable it to carry out its functions ies). Under EQUIP II, 16,588 schools have cial management, focusing on integrating efficiently; assist in the overall project imple- received Quality Enhancement Grants for its operation system with government sys- mentation and provide for future requests purchase of school supplies, laboratory tems and the application of the Afghanistan for assistance on the design and delivery of equipment, and other purposes. Financial Management Information System public financial management technical as- In addition, 154,699 teachers have been (AFMIS); introduce improved management sistance across government; and provide trained under the In-Service Teacher Training reporting and expand access of AFMIS budg- broad-based training for staff of MoF and line (INSET) courses 1-5, of whom 35 percent are etary units in the provincial offices of the ministries. women. At the same time, 17,184 school Ministry of Finance (MoF); assist staff in the Revenue Mobilization: To support the principals and administrators have been preparation, monitoring and implementation Afghanistan Revenue Department to carry trained in School Management Training of individual training plans, as well as annual out its mandate, including support for the (SMTs 1-6), about 20 percent of whom are performance appraisals; prepare training maintenance of the computerized tax sys- women. Moreover, 11,436 women have re- modules on MoF processes under the certi- tem (Standard Integrated Government Tax ceived scholarships and graduated from fied accounting technician courses provided Administration System, SIGTAS), implemen- TTCs, and 5,166 female teachers received a by the Association of Chartered Certified tation of tax-related initiatives such as risk- scholarship in 2013-2014. Accountants (UK); establish a national steer- based compliance, implementation of the ing committee for developing and regulating new value added tax (VAT), and the design Second Public the accounting and auditing profession and and implementation of its new organization- the training of professional accountants; and al structure. Financial Management conduct a public financial management as- Outcomes of the progress made include: Reform Project sessment of seven line ministries. (i) disbursed approximately $69 million from Audit Reform and Performance: Internal the total commitment (60 percent); (ii) 350 Grant $114.1 million Audit—to finance the services of consultants staff have been trained at headquarters and The project objectives are to strengthen pub- to lead key internal audits and to provide on- 315 in the provinces on different treasury-re- lic financial management through effective the-job training; support basic training to lated and general training programs; (iii) Audit procurement, treasury and audit structures, all internal audit staff; and provide more ad- Training Program-II training, in which 326 in- and systems in line with sound financial vanced training to staff who have completed ternal auditors from 20 line ministries and 10 management standards of monitoring, re- the basic training. independent directorates in the last six batch- porting, and control. External Audit—to provide assistance es were trained; (iv) under the reform man- Project components include: to the Supreme Audit Office to develop its agement component, 23 training programs Procurement Reform: To provide techni- knowledge, expertise, and practices in using on different topics and more than 415 staff cal assistance to the National Procurement the services and results of other auditors and have been trained; (v) all budget executions Authority (NPA) to assess the legal and in- experts in line with International Auditing from AFMIS are now managed at the Central stitutional frameworks, handle procurement Standards, in particular for project audits; Treasury in Kabul and by the Mustofiats in under the recipient’s budget, develop an support consultant services to train staff and the provinces; (vi) continuous support to the action plan for procurement, prepare an e- lead high quality independent review of all Verified Payroll Program, which involves em- procurement assessment and build human operations under the budget of nine line min- ployee verifications, computerized payroll capacity of procurement staff, improve the istries over the project period; and finance records and establishment of payment mech- quality of trainings of procurement officers, training of members of the Public Accounts anisms with commercial bank; and (vii) HRMD and build capacity in line ministries. Committee. newsletters in Dari, Pashto, and English, MoF The project will strengthen the institution- Reform Management: To support MoF Questions Bank Book, and press releases avail- al development of NPA by providing support by establishing a structure and job descrip- able on the MoF website in its establishment, structures, systems, pro- tions, providing training for staff in the Note: All dollar figures are in US dollar equivalents. cesses and procedures, and implementation monitoring and evaluation department, and IDA, the International Development Association, is the strategy. revising MoF’s existing monitoring and evalu- World Bank’s concessionary lending arm. The World Bank Group in Afghanistan www.worldbank.org.af Abdul Raouf Zia phone +93 701 133 328 photos and photo cover © Rumi Consultancy/World Bank/2016. infoafghanistan@worldbank.org photo p.19 © Graham Crouch/World Bank/2016. House 19, Street 15, Wazir Akbar Khan, Kabul, afghanistan ©World Bank, October 2016.