show some links that show a bit of what is going on there
http://www.aopnews.com/http://www.export.gov/afghanistan/http://www.us-arc.org/http://www.worldbank.org/artfone story line:
Afghanistan Uses Reconstruction Trust Fund to Address Priorities
Latest Developments
• Afghanistan Uses Reconstruction Trust Fund to Address Priorities
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• World Bank Helps Reform Public Administration
In the Media
• U.S. Said to Plan Bigger Afghan Role, Stepping Up Aid
• U.S. Expected to Announce New Plan for Reconstruction
• Afghanistan, Small Biz Top OPIC's Agenda
•Germany May Join Reconstruction Teams
• U.S. to Revamp Afghan Efforts
August 6, 2003
At the request of the Government of Afghanistan, the World Bank, as the administrator of the Afghanistan Reconstruction Trust Fund, signed agreements this week for three new projects designed to help improve the country's telecommunications system; repair its roads and drainage systems and provide credit and other financial services to low-income people.
Rehabilitation of Telecommunications systems
A grant of US$ 3 million has been provided from ARTF to establish international connectivity between Afghanistan and the rest of the world, particularly with its neighboring countries. The funds will also begin investment in Afghan Telecom in preparation for its shift from a state-owned department to a corporation as a key step for future partnerships with the private sector.
"Today Afghanistan has one of the weakest telecommunications systems in the world. Only one out of every 625 Afghan citizens has access to telephone service," said Philippe Dongier, ARTF Manager. "The ARTF Management Committee approved Government's proposal for an investment in this project as it will generate funds from telecom services to strengthen Government's revenue base for contribution to the recurrent and development budget of the country."
The Ministry of Telecommunications will implement the project.
Repair of Major Kabul City Roads and Water Drainage Systems
A grant of US$ 3 million has been approved from ARTF to improve transport services on important roads within Kabul city through the rehabilitation of high priority road sections, as well as the repair of drainage systems along these roads. The overall objective is to achieve effective and visible contribution to the economic recovery of Kabul. This project is the continuation of the ongoing German-funded project being implemented by KfW, Kreditanstalt für Wiederaufbau, in Kabul.
"As the capital of Afghanistan, Kabul has a population of about 3 million people including returnees, internally displaced people, female-headed households, disabled people and other vulnerable groups. One of the Government's priorities is to improve the situation here and the ARTF Management Committee felt it was critical to help the government finance activities to enable it to achieve its development goals for the city," said Mohammad Qahir Haidari, World Bank Operations Officer in Kabul.
As a result of this project, approximately 40,000 tons of asphalt will be produced and about 155 km of roads in Kabul will be repaired. The water drainage systems along these roads will also be repaired. This project will be implemented by KfW in cooperation with Kabul Municipality.
Micro-finance Support for Poverty Reduction
A grant of US$ 4 million has been provided from the ARTF to support access to credit and other financial services for poor and low-income people. These households can use the micro-finance to invest in business opportunities, meet emergency needs, reduce vulnerability and build assets. This project will specifically focus supporting the entrepreneurial spirit of the Afghan people to help them improve their livelihoods and make the transition from dependence on humanitarian assistance to economic independence. It will help the government establish the foundations of a strong, sustainable micro-finance sector and set up a national Micro-finance Investment and Support Fund for Afghanistan as an autonomous wholesale institution for long term development and the sustainability of the sector.
"War has devastated almost all basic services in the country, and has resulted in a significant increase in the level of poverty," said Mudassir Khan, a World Bank Senior Financial Specialist. "Micro and small business opportunities will generate livelihoods for the people of Afghanistan where lack of capital is the key constraint."
The Ministry of Rural Rehabilitation and Development will implement the project
over an 18 month period.
About the Afghanistan Reconstruction Trust Fund
The multilateral Afghanistan Reconstruction Trust Fund (ARTF) was set up in May
2002 to provide support to Afghanistan for three main areas of expenditure: recurrent costs of the government, such as the salaries of teachers, health workers, and police; investments, including capacity building, feasibility studies, and technical assistance; and financing the return of expatriate Afghans.
Twenty-two donors including Bahrain, Canada, Denmark, European Commission, Finland, Germany, India, Ireland, Italy, Japan, Kuwait, Luxembourg, Netherlands,
Norway, Portugal, Saudi Arabia, South Korea, Sweden, Switzerland, Turkey, United
Kingdom, United States have pledged US$430 million to the Trust Fund, and
US$276 million has been received. To date, US$188 million has been disbursed to the Government of Afghanistan. The fund has emerged as one of the main instruments for financing the country's recurrent budget deficit and is set to evolve into a major source of technical assistance and investment support for Afghanistan.
In addition, channeling support through the ARTF has helped the government to avoid addressing the distinct funding specifications of 22 different donors, allowing the assistance to be used more efficiently and effectively without the risk of duplication of work.
The ARTF is jointly managed by the Asian Development Bank, Islamic Development
Bank, United Nations Development Program, and the World Bank, which also administers the fund.
Ongoing ARTF-supported Micro-finance Project
The first phase of this US$1 million grant was signed in June 2003. The government requested this grant in order to hire a Project Manager to coordinate among donors interested in micro-finance investment and to analyze financing applications from micro-finance NGOs. Out of 14 applications, 10 NGOs which met the eligibility requirements were short listed. To date, an initial agreement has been signed with BRAC and financing arrangements with others are currently under discussions.