Afghanistan: Supporting Private Sector and Financial Market Reforms

Sovereign Project | 37393-042

Summary

The grant will assist the Government implement the Program. Specifically, it will help the Government (i) strengthen the legal framework, (ii) remove market distortions, (iii) disengage the Government from commercial activities, (iv) strengthen financial intermediation, and (v) implement accounting and auditing standards. The grant will also develop and establish training programs in these areas to help sustain private sector and financial market development over the long term.

Latest Project Documents


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Project Name Supporting Private Sector and Financial Market Reforms
Project Number 37393-042
Country Afghanistan
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0068-AFG: Supporting Private Sector and Financial Market Reforms
Asian Development Fund US$ 4.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Finance sector development
Gender Equity and Mainstreaming
Description The grant will assist the Government implement the Program. Specifically, it will help the Government (i) strengthen the legal framework, (ii) remove market distortions, (iii) disengage the Government from commercial activities, (iv) strengthen financial intermediation, and (v) implement accounting and auditing standards. The grant will also develop and establish training programs in these areas to help sustain private sector and financial market development over the long term.
Project Rationale and Linkage to Country/Regional Strategy The initial country strategy and program (CSP, 2002) emphasizes that Afghanistan s long-term economic development hinges on the growth of a dynamic private sector. The initial CSP identifies the weaknesses in the policy and regulatory framework and underdevelopment of the financial sector as key constraints on private sector development. The Program is included in ADB s Country Strategy and Program Update (2006 2008): Afghanistan.
Impact Sustainable economic growth and employment generation
Project Outcome
Description of Outcome Dynamic private sector and Improved financial intermediation
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Legal framework for

private sector development

established

2. Key market distortions

addressed

3. State-owned

enterprises (SOEs)

liquidated

4. Improved financial

supervision

5. Accounting and auditing

standards adopted and the

profession's capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Islamic Republic of Afghanistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The grant will support the engagement of consultants including legal experts, business economists, SOE liquidation experts, bank regulatory and policy experts, commercial banking experts, and accounting and auditing specialists. This represents 64 person-months of international and 132 person-months of national consulting services. All international and national consultants will be selected and engaged by ADB in consultation with the grant coordination committee. The team of consultants will be recruited by ADB through a firm by quality-based selection (QBS) since capacity constraints pose significant risks to program implementation. All international and national consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants.
Procurement Procurement of goods and services under the grant will be in accordance with ADB's Guidelines for Procurement.
Responsible ADB Officer Joao Pedro Farinha Fernandes
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of FinanceMr. Wahidullah ShahraniPashtunistan Watt,Kabul,Islamic Republic
of Afghanistan
Timetable
Concept Clearance 17 Jun 2005
Fact Finding 09 Aug 2006 to 29 Aug 2006
MRM 02 Oct 2006
Approval 14 Dec 2006
Last Review Mission -
PDS Creation Date 26 Jul 2007
Last PDS Update 29 Oct 2010

Grant 0068-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2006 14 Mar 2007 18 Jun 2007 30 Jun 2010 - 28 Jan 2011
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 4.00 14 Dec 2006 2.31 0.00 58%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2006 2.31 0.00 58%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Afghanistan: Private Sector and Financial Market Development Program Validations of Project Completion Reports May 2014

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