Project Name Private Sector and Financial Market Development Program
Project Number 37393-032
Country Afghanistan
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0067-AFG: Private Sector and Financial Market Development Program
concessional ordinary capital resources lending / Asian Development Fund US$ 56.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Finance sector development

Gender Equity and Mainstreaming No gender elements
Description

The Program aims to promote private sector-led growth by: (i) strengthening the enabling environment for private sector development; (ii) eliminating price controls and streamlining business registration; (iii) disengaging the Government from business activity through the liquidation of state owned enterprises (SOEs); and (iii) improving the private sector's access to financial services.

The impact will be a dynamic private sector and sound financial system supporting sustainable economic growth and job creation. The program outcomes will be a larger contribution of the private sector to economic activity and improved financial intermediation. The program design builds on the Government's ongoing reform initiatives and complements other development partner's assistance.

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

1. Dynamic private sector

2. 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
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 Not required
Procurement The grant proceeds will be used to finance the foreign exchange cost of items produced and procured in ADB member countries (other than the items specified in the negative list of ineligible items and imports financed by other bilateral and multilateral sources).
Responsible ADB Officer Farinha Fernandes, Joao Pedro
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Anwar-ul Haq Ahady
Ministry of Finance, Kabul, Afghanistan
Ministry of Finance
Dr. Mohammad Mustafa Mastoor, Deputy Finance Minister
[email protected]
Pashtunistan 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 19 Jul 2007
Last PDS Update 16 Jul 2009

Grant 0067-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2006 14 Mar 2007 18 Jun 2007 30 Jun 2010 - 13 Apr 2009
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 56.00 Cumulative Contract Awards
ADB 56.00 14 Dec 2006 56.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2006 56.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory Satisfactory -

 
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