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Afghani., Is Rep. of
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LOAN: AFG 36231-01
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Postconflict Multisector Program Loan
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Location
Afghanistan
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Sector
Multisector /Multisector
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Initial Listing
26 July 2002
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Most Recent Update
19 February 2007
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Executing Agency(ies)
Ministry of Finance
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
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26 Aug-5 Sep 2002 |
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Loan Approval Date
4 December 2002
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Estimated Completion Date
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
150.00 |
0.00 |
150.00 |
| Cofinancing |
0.00 |
0.00 |
0.00 |
| Borrower |
0.00 |
0.00 |
0.00 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
150.00 |
0.00 |
150.00 |
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OCR |
ADF |
Total |
| Loan Amount |
0.00 |
150.00 |
150.00 |
- Description
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The program will have four components: (i) support for establishing a clear and well defined policy and legal framework for agriculture, social sectors, transport and energy sectors; (ii) improving management efficiency of these secotrs by restructuring key institutions; (iii) establishing regulatory and market-based pricing policy framework for the sectors, and (iv) support for agriculture sector rehabilitation, national road building, and rehabilitation of primary schools and other facilities. Specific outputs will include government policy statements and new legal instruments for agriculture, social secotrs, transport and energy sectors, regulatory framework for water use in agriculture, chemical and pesticide use, natural resource management, health service delivery, gas, electricity and petroleum and petroleum products.
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- Thematic Classification
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- Poverty Classification
- Core Poverty Intervention
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- Rationale
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- Objectives and Scope
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The objective of the program loan would be to promote economic recovery and growth by addressing policy and institutional constraints to the functioning of the agriculture, social sectors, transport and energy sectors through support for market-based policies, institutional reforms, and sustainable financing. Substantial amount of the loan could be earmarked to meet the specific costs of adjustments and to support agriculture sector rehabilitation, national road building, and rehabilitation of primary schools and other facilities. Improvements in the efficiency of these sectors will bring major benefits to industry, agriculture, and to poor isolated communities. The Program is in consonance with the initiatives of the International Monetary Fund (IMF) and the World Bank Group which are aimed at facilitating Afghanistan's transition to a market economy.
- Policy Dialogue
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- Environment Category:
C
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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The program will improve efficiency of production and service delivery which in turn will contribute to increased production and employment generation thereby reducing poverty, under nutrition, malnutrition and improving other social and economic indicators for Afghanistan. The severe deterioration of the road network has impeded the input supply and the marketing of outputs for rural areas, reduced public access to education and health care, and hindered the delivery of humanitarian relief in terms of food and medicine to vulnerable groups. Unreliable power and heating have also adversely impacted on the population through the closure of schools and clinics during winter. While the Programs is expected to yield substantial benefits, there will also be medium-term social adjustment costs. Negative Program impacts are likely to be short-term loss of jobs through restructuring, and rising prices for essential goods and services due to the progressive introduction of full cost receovery for power and gas prices, as increases in user charges may constitute a significant cost to some consumers. Costs to the public sector of providing health and education services may also increase with short-term impacts on operational budgets. The process of restructuring and commercializing may lead to a loss of jobs and social services currently provided by some State-owned enterprises. Mitigation measures will be put in place to deal with these consequences. Private sector will be stimulated and generate income and employment.
- Benefits and Beneficiaries
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The program will help to increase capacity utilization and improve production in Afghanistan's economy by removing key constraints to the functioning agriculture, social sectors, transport and energy sectors through support for market-based policies, institutional reforms, sustainable financing and rehabilitation of essential infrstructures. The program will assist in meeting some of the adjustment costs of the reform process to ensure improved functioning of these sectors. Reform of agriculture sector would help improve the livelihood of the 80% of the population and contribute to conservation of natural resources. Social sector reform would be critical in ensuring delivery of cost-effective and efficient services to the population especially in rural areas which are currently under served. The program will help to reduce disruptions to production in those sectors of the economy for which transport and energy are essential inputs, encourage the use of these services in those activities in which returns are greatest, and reduce waste associated with low prices. Given the important contribution of energy and transport to economic activity, the benefits of the program will be felt throughout the economy. In addition, the Program will build broad-based understanding and consensus on the need for reform through the development of transparent participative framework.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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Acitve involvement of stakeholders will be achieved through direct consultation and national and regional workshops at the design inception, implementation, monitoring and evaluation stages. In order to gain from broad-based consultation, National Workshops will coincide with semiannual meetings. A hgih degree of ownership will require measures to strengthen the skills of stakeholders.
- Beneficiary Participation in Implementation
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The particpatory process as well as the progress of implementation will be closely monitored by AACA for all components. Resources are provided to support monitoring and evaluation at the level of AACA. An external independent body will cary out evaluation. Views and direct participation of the civil society will be sought for all relevant activities at different stages of design and implementation.
- Consulting Services
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No consulting services will be provided under the program. Considering the program will address basic policy and institutional reforms in budgetary management and in the transport, energy, and financial sectors, however, provisions have been made for investment and capacity building in these sectors by linking program monitoring and implementation with the activities of ADB-funded advisors working in concerned ministries and departments under TA 3874-AFG: Capacity Building for Reconstruction and Development, approved for $14.5 million by ADB’s Board of Directors on 30 May 2002.
- Procurement
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TBD
- Contacts
- Bank
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Anjum Ibrahim
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Country Specialist
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CWOC
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Tel. No.:
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(632) 632-6949
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E-mail:
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aibrahim@adb.org
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- Executing Agency
- Ministry of Finance
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Contact Person
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:
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Ashraf Ghani. Minister
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