International Conference on "Afghanistan and the International Community - A Partnership for the Future"
Statement by
Tadao Chino
President
Asian Development Bank
Berlin, Germany
31 March 2004
Excellencies, Distinguished Co-Chairs and Delegates;
In the face of many difficult challenges, Afghanistan has made remarkable progress. The Government and the people of Afghanistan have established a solid momentum for change and development that requires and deserves the strong support of the international community. The Asian Development Bank remains firmly committed to continuing its work in Afghanistan in cooperation with the Government and our partners in the international community.
Mr. Chairman,
ADB pledged at the Tokyo Conference to consider assistance to Afghanistan in the order of $500 million in the form of highly concessional loans from the Asian Development Fund, or ADF, and grants. I am pleased to report that we have fully translated our pledge into a comprehensive assistance portfolio of programs and projects addressing priority reconstruction needs, including those to be approved in 2004. ADB has followed three basic principles in its support for Afghanistan's reconstruction: build capacity, establish appropriate policy and institutional framework, and rehabilitate essential infrastructure. At the Government's request, ADB has focused its operations on the transport, energy, natural resource management, governance and financial sectors. Afghanistan has made good use of aid provided. For instance, Government compliance with the terms and conditions of the ADB-financed $150 million Postconflict Multisector Program approved in 2002 was exemplary.
Between November 2003 and February 2004, the Government and donors-including ADB-collaborated on a reassessment of the needs to secure Afghanistan's future. This reassessment identified the priority areas and levels of investment required for lasting reconstruction and development. The revised estimate, which is based on much better data than was available at the time of the Preliminary Needs Assessment in early 2002 as well as extensive on-site assessments and consultations with the Government, development partners and civil society, came to about $28 billion over 7 years.
Mr. Chairman,
The challenges facing Afghanistan today are large and complex. Clearly, the country requires longer-term commitments and significant amounts of technical and financial support for its new policies and development programs from the international community. I am pleased to announce that the Asian Development Bank will consider assistance to Afghanistan in the order of $800 million in the form of highly concessional ADF loans and grants during 2005-2008, subject, of course, to the outcome of ongoing ADF negotiations and the future availability of ADF.
In addition, ADB will do its utmost to catalyze private sector investments. In this regard, I was pleased to learn of the strong interest shown by investors at yesterday's successful meeting on trade and investment in Afghanistan. For its part, ADB has identified loan and equity investments of up to $100 million in partnership with local and foreign investors, as well as guarantees of about $100 million to catalyze private sector investments in Afghanistan. With these initiatives, it is expected that total assistance provided by ADB to Afghanistan will exceed $1 billion during 2005 - 2008.
ADB will also seek cofinancing in support of our programs and projects.
Finally, Afghanistan's strategic location as the link between Central Asia and South Asia should be fully explored. The development of transport corridors from Central Asia to the warm water ports in the south will enhance trade and development and benefit the economies of Afghanistan and its neighbors. ADB will continue to provide technical assistance to the Central and South Asia Trade and Transport Forum, where issues including subregional trade and transport will be discussed.
In fact, since ancient times, for more than two millennia, Afghanistan has been an important corridor in Eurasia, linking the different peoples and cultures of Europe, Central Asia, East Asia and South Asia. This historical role of Afghanistan should be revived for the interest of the world as a whole. To realize this we need a peaceful and prosperous Afghanistan.
Allow me to conclude by emphasizing ADB's unwavering commitment to support Afghanistan's reconstruction and development, and to work in partnership with the Government and the international community in securing Afghanistan's future.
Thank you.
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