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p. 78 of 95 BACK | NEXT Message from the Chairman of the Board of Directors Members, Capital Stock and Voting Power The Record Abbreviations 2004 in Review: Board of Directors' Report Special Theme: The Changing Face of the Microfinance Industry: Building Financial Systems for the Poor Part 1: Institutional Effectiveness Part 2: Poverty Reduction Strategic Priorities Thematic Priorities Regional Perspectives East and Central Asia Mekong The Pacific South Asia Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka Southeast Asia Part 3: Financial Statements: Management's Discussion and Analysis

Annual Report 2004 : Part 2: Poverty Reduction : South Asia

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Afghanistan

At the January 2002 Tokyo conference, ADB pledged to deliver loan and grant assistance of some $500 million over 2.5 years. At the April 2004 International Conference on Afghanistan and the International Community (Berlin Conference), ADB pledged to consider additional assistance of some $800 million in ADF loans and grants during 2005–2008. ADB also identified loan and equity investments of up to $100 million in partnership with local and foreign investors and guarantees of about $100 million to catalyze private investments. With these pledges, ADB will provide Afghanistan with more than $1 billion in assistance in 2005–2008 and more than $1.5 billion in 2002–2008.

Strategy and Policy Dialogue. In 2004 ADB continued to support Afghanistan's reconstruction and development by helping to build national capacity, by assisting in the establishment of appropriate policy and institutional frameworks, and by rehabilitating essential infrastructure. At the request of the government, ADB's assistance continued to focus on transport (roads and civil aviation), energy (power and gas), natural resource management (agriculture, irrigation, and environment), and on governance and the financial sector. ADB's private sector interventions focused on banking and telecommunications.

In 2004, ADB assistance was directed to rebuilding a key portion of the national road network and rehabilitation of regional airports. ADB also helped to establish a sound agriculture policy framework and efficient sector institutions including systems for managing sustainable use of the country's natural resources. Capacity development was featured through an ambitious program of technical assistance.

Policy dialogue focused on the development of a framework for agricultural investment, improved efficiency of agricultural support services, the restructuring of state-owned enterprises, and improved fiscal management. Support also was given to promote private sector activity and to attract foreign direct investment through cofinancing an investment guarantee facility to provide political risk guarantees.

Loans and Technical Assistance. In 2004, ADB approved five loans totaling $205.0 million for five projects to further support the reconstruction of Afghanistan's primary road network, to rehabilitate seven regional airports, to support market-based agriculture sector policy reforms and organizational capacity building, to help finance the Afghanistan Investment Guarantee Facility (AIGF) and a newly established mobile communications telephone network. ADB also approved a $10 million political risk guarantee for the AIG and a $2.6 million equity investment representing a 25% stake in the Afghanistan International Bank. Also approved in 2004 was a $10 million project grant financed through the JFPR to rehabilitate and upgrade traditional irrigation structures and to improve water management in Afghanistan's Balkh River basin. Fourteen technical assistance grants totaling $13.6 million were also approved.

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