Media Center

News Release

Email this   printer friendly format

ADB Takes Steps to Rehabilitate Afghanistan Roads

MANILA, PHILIPPINES (9 August 2002) -- The Asian Development Bank (ADB) and the Islamic Transitional Government of Afghanistan are preparing several priority road projects -- including the rehabilitation of the critically important Kabul-Kandahar-Spin Boldak road -- as part of ADB's assistance program for Afghanistan.

"ADB is committed to rehabilitating the Kabul-Kandahar-Spin Boldak road and other priority roads and to mobilizing as much grant financing as possible to ensure that costs are kept to a minimum," says Yoshihiro Iwasaki, Director General of ADB's South Asia Department.

ADB has commenced the mobilization of consultants in Kabul to design road sector projects. Besides roads, ADB's assistance to Afghanistan includes support for other key areas including the agriculture, education, energy, and financial sectors, all of which are critical for Afghanistan's reconstruction and development.

ADB has committed $500 million in concessional assistance to Afghanistan over the next two years, of which $200 million is earmarked for 2002. Up to $50 million is proposed as grants this year - ADB's largest grant assistance ever to a member country. ADB's package of assistance includes concessional loans through the Asian Development Fund. ADB will endeavor to mobilize additional grant financing from its development partners to reduce the loan element. In order for these projects to get underway soon, a large portion of the financing should be in soft loans. Such loans have a grant element of at least 65 percent.

ADB has a responsibility to ensure that the public funds with which it is entrusted by member countries - whether as grants or concessional loans - are carefully and rigorously applied. ADB approved a $15 million grant for Afghanistan in May 2002, to strengthen the capacity of key government and civil society institutions who figure prominently in ADB's planned operations in Afghanistan, and to lay the groundwork for a transparent, well-functioning public administration.

Contacts