The Asian Development Bank is working with Afghanistan to develop the private sector. The program is eliminating price controls and streamlining business registration, liquidating state owned enterprises, and improving access to financial services.
|Project Name||Private Sector and Financial Market Development Program|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|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|
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|
|Description of Outcome||
1. Dynamic private sector
2. Improved financial
|Progress Toward Outcome|
|Description of Project Outputs||
1. Legal framework for
private sector development
2. Key market distortions
4. Improved financial
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
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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|
Ministry of Finance
Anwar-ul Haq Ahady
Ministry of Finance, Kabul, Afghanistan
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||14 Dec 2006||56.00||0.00||100%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Private Sector and Financial Market Development Program||Project/Program Completion Reports||Dec 2011|
|Private Sector and Financial Market Development Program||Progress Reports on Tranche Releases||Mar 2009|
|Grant Agreement for Private Sector and Financial Market Development Program between Islamic Republic of Afghanistan and Asian Development Bank dated 14 March 2007||Grant Agreement||Mar 2007|
|Private Sector and Financial Market Development Program||Reports and Recommendations of the President||Nov 2006|
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|
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.