Regions and Countries

	Table of Contents
p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Afghanistan: Country Strategy and Program Updates 2004-2006

---

III. Portfolio Management Issues

A. Portfolio Performance

24. ADB resumed operations in Afghanistan in May 2002 with the approval of the Initial Country Strategy and Program (ICSP) 2002-2004, which committed $500 million in loans and grants to build capacity, establish appropriate policy and institutional frameworks, and rehabilitate essential infrastructure. At the January 2002 Tokyo Conference, ADB had pledged to deliver loan and grant assistance of some $500 million over 2.5 years. On 3 June 2003, ADB's Board of Directors endorsed a 2003-2005 CSP Update (CSPU) for Afghanistan, paving the way for delivery of $610 million over 3 years, including $580 million in ADF and $30 million in TA grants.

25. In December 2002, ADB approved the first loan by an international financial institution to Afghanistan since 1979. The $150 million⁹ PMPL supported policy reforms, public infrastructure investment, and capacity building to promote economic growth. Since June 2003, the $150 million EIRRP is rebuilding important road and power infrastructure and irrigation systems in northern Afghanistan. The $55 million ASPL, approved in May 2004, promotes agricultural growth and poverty reduction by developing a sound policy framework and efficient sector institutions. As of June 2004, ADB had also approved $26.35 million in capacity-building TA grants, and was administering $65.6 million in cofinanced activities. To date, $197.3 million has been disbursed out of total loan assistance of $372.18 million, a disbursement ratio of 53%.

B. Performance Monitoring and Evaluation

26. Afghanistan has made good use of aid. The PMPL leveraged policy and institutional reforms to ensure that reconstruction efforts in the transport, energy, and financial sectors are soundly based. The ASPL aims at a similar objective in agriculture and natural resource management. The Government's timely and effective compliance with tranche conditions underscores its ownership of these programs. Civil works under the EIRRP are under way. TA projects are progressing smoothly though with minor delays due to security concerns. In particular, the Poverty Assessment and Socioeconomic and Macroeconomic Statistical Capacity Building TA is helping the Central Statistics Office to improve the collection and analysis of national statistics needed by a wide variety of users for effective monitoring, planning, and research.¹⁰ The TA was designed within the framework of a statistical master plan and will facilitate the development of quantitative performance indicators and targets to monitor and evaluate the impacts of development assistance on targeted beneficiaries. The project will also improve national accounts estimates; collect trade, balance-of-payments, and fiscal data; and update the consumer price index. It will also conduct the first comprehensive poverty assessment for Afghanistan. Portfolio indicators are presented in Tables A1.6-1.9 (Appendix 1).

Back II. Implementation of the Country Strategy and Program	Next IV. Country Performance and Assistance Levels