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ADB President Unveils Package of Assistance for Afghanistan

MANILA, PHILIPPINES (4 April 2002) - The President of the Asian Development Bank (ADB), Mr. Tadao Chino, on a visit to Kabul, unveiled a proposed US$200 million assistance package of reforms for Afghanistan's rehabilitation and reconstruction in 2002.

The proposed US$200 million assistance package includes a special assistance loan for rapid-impact projects in key areas such as: agriculture and institution building; pilot projects for high-priority regions, including earthquake-prone areas, to support the construction of rural access roads, to rehabilitate selected primary schools and to provide educational materials for school children; the rehabilitation of small and medium-scale irrigation systems; and capacity building within the government.

"We will be proposing this package of assistance to our Board shortly and, with their support, hope to put it into effect as soon as possible," said Mr. Chino. ADB is keen to see its assistance flow to the people of Afghanistan as quickly as possible and understands the concerns of the Afghan leaders for international assistance in support of reconstruction and rehabilitation efforts to begin rapidly, Mr. Chino said.

Mr. Chino met with leaders of the Afghanistan Interim Administration (AIA) including Chairman Hamid Karzai on ADB's role in assisting Afghanistan in rebuilding the country. "I held very fruitful and useful meetings with Chairman Karzai and other leaders, and indicated our commitment to play a key role in the international community's efforts to provide assistance for the massive reconstruction effort in Afghanistan," Mr. Chino said.

Mr. Chino also stressed that the rehabilitation, reconstruction and development efforts be placed within a coherent strategic framework. "This means we must define clearly the key strategic thrusts and the policy and institutional frameworks to support investments in Afghanistan's recovery and development."

He said that ADB was finalizing its three-year strategy for Afghanistan and that ADB assistance would focus on three key areas: basic education and social development; reconstruction of transport infrastructure; and irrigation rehabilitation in agriculture - all of which are crucial for Afghanistan's reconstruction and poverty reduction.

ADB's proposed US$200 million assistance package for 2002 includes a special assistance loan which would cover quick-impact projects in agriculture, social sector, roads, and other physical infrastructure, institution building and credit delivery. The program also includes three pilot projects in grants for high-priority regions, including earthquake-prone areas. These projects will include the construction of rural access roads, rehabilitation of selected primary schools, and rehabilitation of small and medium scale irrigation systems. In addition, a US$15 million technical assistance grant would be provided for capacity building to support the government, under which expert support will be given to line ministries and the Afghanistan Assistance Coordination Authority.

The flow of ADB's assistance will be facilitated by ADB's Special Liaison Office in Kabul. "As resources start flowing from ADB and other donors, we need to take steps to improve external assistance coordination, and ADB is willing to provide the necessary support." Mr. Chino said.

Mr. Chino is the first head of a multilateral development bank to visit Kabul since the international community unveiled its assistance plans for Afghanistan's reconstruction.

Read the Afghanistan and ADB and related News Release.

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