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ADB Fulfils Pledge to Afghanistan, Plans $200 Million Annually in Aid
Moreover, ADB plans annual assistance of $200 million for
In response to the Government of Afghanistan's plan, "Securing Afghanistan's Future: Accomplishments and the Strategic Path Forward," ADB pledged in April 2004 to consider assistance of about $800 million in concessional Asian Development Fund (ADF) loans and grants during 2005-2008. The plan was prepared with support from ADB, IMF, UNDP, and World Bank.
With these pledges, ADB expects assistance to
"The completion of ADB's initial pledge of $500 million for the rebuilding of
ADB resumed operations in
In December that year, ADB approved the first loan by an international financial institution to
A second $150 million loan, the Emergency Infrastructure Rehabilitation and Reconstruction Project, is rebuilding important road and power infrastructure.
Other major assistance includes:
- A third loan of $55 million for an Agriculture Sector Program to promote agricultural growth and poverty reduction by developing a policy framework and establishing efficient sector institutions.
- A $5 million Afghanistan Investment Guarantee Project to promote private sector activity and foreign direct investment.
- A $40 million loan, Regional Aiports Rehabilitation Phase 1, to rehabilitate seven regional airports.
- An $80 million loan, Andkhoy-Qaisar Road Project, as a further contribution to rehabilitate the primary road network.
- The approval of $30.49 million in technical assistance grants to support capacity building and institutional reform, prepare sectoral master plans and investment projects for further reconstruction and development.
In addition, ADB is administering $60 million in projects funded through the Japan Fund for Poverty Reduction, plus a $15 million project from the Kuwait Fund. These projects support the education and health sectors, road rehabilitation, a community-based irrigation rehabilitation project, and a river basin integrated water resource management project.
ADB has also provided
ADB's private sector interventions are expected to total $53 million in 2004 and $100 million in 2005. Depending on progress in policy dialogue with the Government to establish an environment conducive to investment as well as further discussions with cofinanciers, ADB is likely to support investments in the energy and transport sectors as well as in bank and non-bank financial institutions, thus contributing to the development of the financial sector.
ADB also plans to remain active in supporting the development of