Afghanistan: Support for Infrastructure Investments and Policy

Sovereign Project | 47263-001 Status: Approved

Summary

The TA aims to improve the Government's capacity in: (i) sectoral donors' coordination and policy dialogue; (ii) proper planning and prioritization of infrastructure projects for AITF financial assistance; (iii) timely preparation of implementable project design; (iv) efficient project implementation focusing on procurement and contract administration; and (v) project/contract monitoring and reporting.

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Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents

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Project Name Support for Infrastructure Investments and Policy
Project Number 47263-001
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8470-AFG: Support for Infrastucture Investments and Policy
Technical Assistance Special Fund US$ 1.20 million
TA 8470-AFG: Support for Infrastructure Investments and Policy (Supplementary)
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Energy - Electricity transmission and distribution

Public sector management - Public expenditure and fiscal management

Transport - Rail transport (non-urban) - Road transport (non-urban) - Transport policies and institutional development

Gender Equity and Mainstreaming
Description

The TA aims to improve the Government's capacity in: (i) sectoral donors' coordination and policy dialogue; (ii) proper planning and prioritization of infrastructure projects for AITF financial assistance; (iii) timely preparation of implementable project design; (iv) efficient project implementation focusing on procurement and contract administration; and (v) project/contract monitoring and reporting.

As the line ministries and agencies such as MPW and DABS have limited planning and project implementation capacities as well for policy dialogue, consultants recruited under the TA will provide required expertise to enhance their capacity in AITF-related project preparation and management, and provision of advisory services to the AITF on infrastructure sector issues for policy dialogue. The consultants will also help in the investment and policy coordination with relevant donors, promote the AITF with the international community, produce publications and prepare presentations and reports, and undertake coordination and logistics for the regular donor meetings and technical working groups, among other activities. The TA will also support various sector ministries/agencies in for a coherent strategy and implementation of investment plans, as well as to provide capacity and analytical support to strengthen sustainability of the infrastructure sector in Afghanistan. The TA will support the Government to efficiently use the AITF's Technical Working Groups for better sectoral coordination with donors.

The TA will finance the engagement of three international consultants: two engineers for road and power transmission and distribution, and a financial management specialist on a fixed-term basis for an initial period of 18 months. The consultants will be recruited following ADB's Consulting Guidelines (2013, as amended from time to time).

Project Rationale and Linkage to Country/Regional Strategy

Development of the infrastructure sector comprising energy, transport, and water resources management is one of the top priorities of the Afghan Government as it is a key element for economic growth and poverty reduction, and is reflected in the Afghanistan National Development Strategy and the National Priority Programs. To promote inclusive growth, the Government is focusing in particular on energy (including power supply chain and regional trade), transport (including ring and national roads and railway to improve connectivity), and water resources management infrastructure (mainly for irrigation purposes). One of the most important financing mechanism for that purpose is the Afghanistan Infrastructure Trust Fund (AITF). The AITF is a financing modality for bilateral agencies, multilateral banks, corporations and individual interested in cofinancing infrastructure projects with the Asian Development Bank (ADB). The AITF is also an important platform for investment and policy coordination with donors. ADB acts as the Fund Manager for the AITF. The AITF focuses on core infrastructure projects cofinanced and screened by ADB. To date, the AITF has received contributions from Japan, United Kingdom's Department for International Development (DFID), and the United States Agency for International Development (USAID) totaling $212 million. Additionally, strong interest to become a contributor has been expressed by Australian Agency for International Development (AusAID) and the European Union (EU), together with possible new contributions from the United Kingdom and Japan.

While the AITF is fully operational, it is clear that the success of AITF-financed projects depends not only on ADB -by monitoring the implementation- but mainly on the capacity of the executing agencies. With the expected rapid growth of the portfolio cofinanced by the AITF, additional technical and advisory expertise from the Government and line ministries will be required in planning, identifying, supporting designing, and implementing investment projects that could be financed under the AITF. The current capacity of Government's staff and project implementation consultants working in the infrastructure sector projects is insufficient to shoulder additional work related to potential future AITF-financed projects.

Recognizing the current capacity constraint faced by key agencies in charge of the development of the infrastructure sector, especially the Ministry of Finance (MOF), Da Afghanistan Breshna Sheerkat (DABS), and the Ministry for Public Works (MPW), there is a need to strengthen their capacity to (i) ensure efficient coordination among donors in the infrastructure sector through the AITF; (ii) to work with the AITF by supporting the plan, identification, support for design, and implementation of projects to be financed under the AITF; and (iii) facilitate additional investment from financing partners during 2014-2016.

Impact Effective Government's coordination with development partners in financing infrastructure projects in Afghanistan.

Project Outcome

Description of Outcome Improved government capacity for project planning, identification, design preparation, and implementation; and improved oversight functions of government agencies on infrastructure development activities.
Progress Toward Outcome Government staff is given on job training; as a result the procurement of two civil work packages for about 85 km of road processed one package for goods and equipment to improve operation and maintenance was processed. Bid document for two civil work package for about 280 km raod tendered and one of these package is in final procurement stage. Three contracts for supervision consultant processed and approved. Advisory role played on project implementation and improved project performance.
Implementation Progress
Description of Project Outputs

1. Advisory service provided to ministries/agencies.

2. Technical working groups established and operating.

3. AITF resources efficiently allocated to finance priority projects agreed upon in country operations business plan and country partnership strategy.

Status of Implementation Progress (Outputs, Activities, and Issues)

Contracts of three international consultants (Energy Specialist, Financial Management Specialist and Monitoring and Evaluation Specialist) and one national Social/Safeguards Specialist have been completed.

Contracts of Transport Specialist and Energy specialist were extended to 31 July 2016.

Recruitment of national monitoring and evaluation specialist has been completed, the contract expires on 31 July 2016.

The TA current closing date for the TA is 31 July 2016; AFRM is working on extension of the support to AITF beyond the current closing date.

The operation and maintenance strategy paper was finalized in coordination with donor and government counterpart.

AITF annual and quarterly reports were finalized and circulated to the AITF contributors and government counterpart.

Technical working groups were established and regular meetings held.

The Government submitted requests for the AITF financing.

Geographical Location Nationwide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design AFRM consulted with the Government through the Ministry of Finance on the nature and scope of the TA.
During Project Implementation Coordination with government and development partners in financing infrastructure projects in Afghanistan will be conducted during project implementation.

Business Opportunities

Consulting Services The TA will finance the engagement of the three consultants (2 international and 1 national) on a fixed-term basis for an initial period of 18 months. On 25 March 2014 VP1 approved a minor change in TA implementation scope and increase in the TA amout, for engagement of 3 additional consultants (2 international and 1 national) for an initial period of 12 months.

Responsible Staff

Responsible ADB Officer Marko Davila
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Finance
Eklil Ahmad Hakimi, Minister
info@mov.gov.af
Pashtunistan Watt, Kabul, Islamic Republic of Afghanistan

Timetable

Concept Clearance 04 Sep 2013
Fact Finding -
MRM -
Approval 01 Oct 2013
Last Review Mission -
Last PDS Update 06 Apr 2016

TA 8470-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Oct 2013 07 Oct 2013 07 Oct 2013 31 Mar 2015 31 Jul 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,950,000.00 0.00 100,000.00 0.00 0.00 0.00 2,050,000.00 01 Oct 2013 1,489,380.54
Title Document Type Document Date
Support for Infrastructure Investments and Policy Technical Assistance Reports Oct 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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