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Enduring Mission
ADB Review [ November 2004 ]

ADB has boosted its lead role in rebuilding Afghanistan with the opening of its new resident mission in Kabul

By Omana Nair (onair@adb.org)
External Relations Specialist

OPENING ADB Vice-President Jin speaking at the inauguration

The Asian Development Bank (ADB) has renewed its support for Afghanistan with the recent opening of its new resident mission in Kabul.

Ashraf Ghani Ahmadzai, Minister of Finance of the Transitional Islamic Government of Afghanistan; and Liqun Jin, ADB Vice-President (Operations 1), inaugurated the new office building.

“ADB is committed to working with the Government and people of Afghanistan to promote peace and stability in this ancient and beautiful country,” said Mr. Jin in his opening remarks at the inauguration ceremony that was attended by Afghan cabinet ministers, development partners, donors, nongovernment organization (NGO) representatives, and three members of ADB’s Board of Directors.

Mr. Jin added that ADB is playing a key role in rebuilding Afghanistan, and the opening of its new office enhances ADB’s ability to develop a better understanding of the country’s needs and circumstances. It also further strengthens ADB’s relations with the Government, NGOs, and other development partners.

ADB’s assistance to Afghanistan has increased from $15 million in early 2002 to $325 million as of early 2004. During this time, ADB was also able to secure grant cofinancing of $66 million, and will continue to provide long-term assistance to Afghanistan through its 2003–2005 country strategy and program totaling $610 million, said Mr. Jin.

The loans would enable the Government to repair roads and power supply and distribution facilities, develop petroleum and gas sources, rehabilitate irrigation systems, help build capacity at all levels of government, and support community development activities.

Mr. Jin also underscored the importance of stabilizing Afghanistan’s security situation to ensure that rebuilding efforts are not hampered. “Tackling the challenges of development in a postconflict country like Afghanistan involves confronting some major challenges. In particular, we need better security to continue our reconstruction and development efforts,” he said.

The revival of Afghanistan’s economy and prospects for continued growth depend on rebuilding key infrastructure that creates jobs, boosts incomes, accelerates the rehabilitation of displaced people, and promotes greater stability and unity, he added.

Speaking to journalists, Mr. Jin said, “Afghanistan had made good progress and so long as it can fully implement reform programs, and carry out to the letter its commitment, it will have no problems getting a steady supply of resources.”

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Better Security is Essential

He added that it was vital for Afghanistan to revive its private sector as private investors could help with its economic development, the country’s needs being too vast for the funding or development community to manage alone. And for that, better security was needed.

AFGHANISTAN ON THE RISE ADB Vice-President Jin (right) with Afghanistan Finance Minister Ashraf Ghani Ahmadzai (above) The Afghanistan Resident Mission building (below)

Mr. Jin had earlier inspected the progress on the 103.5-kilometer (km) Kandahar-Spin Boldak road project with government officials and project financiers. He said repair work was proceeding apace and good progress had been made on this vital trade and transport corridor between Afghanistan and its neighbors, reducing travel time between the two points from 3 hours to 1.5 hours.

He said much work remained to be done. To foster ownership among local communities and enhance security along the road, the project is rehabilitating schools and clinics, and providing microcredit facilities to foster small businesses and train school and health workers.

“For the past 23 years or so, it is unfortunate that economic considerations have played a secondary role to political and military upheavals,” said V.N. Gnanathurai, Country Director, Afghanistan Resident Mission. “During that conflict, one third of the population fled the country, many of them educated and talented.”

The rebuilding and reconstruction efforts will promote trade, growth, and poverty reduction, directly benefiting about 9 million people in seven provinces, including the capital, Kabul. Some 45% of people in these areas subsist on less than $0.25 per day.

In 2004, ADB is processing a $50 million program loan to help reform the agriculture sector and natural resource management to promote policy and institutional reforms. Other projects in the pipeline include support for road network improvement, irrigated agriculture, and the national power transmission grid and gas pipeline development projects.

Afghanistan is one of ADB’s founding members, and ADB resumed lending to the country in 2002, after 23 years. ADB established a liaison office in Kabul in January 2002 that was upgraded to a resident mission a year later. The mission is headed by a Country Director and has 20 staff, including 16 Afghan nationals.

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