Afghanistan: Private Sector and Financial Market Development Program

Sovereign Project | 37393-032 Status: Closed

Summary

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.

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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
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 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 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 Staff

Responsible ADB Officer Joao Pedro Farinha Fernandes
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

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 -

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

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

Related Publications

None currently available.


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