37393-042: Supporting Private Sector and Financial Market Reforms | Asian Development Bank

Afghanistan: Supporting Private Sector and Financial Market Reforms

Sovereign (Public) Project | 37393-042 Status: Archived

The Asian Development Bank is working with Afghanistan develop training programs in these areas to help sustain private sector and financial market development over the long term. The project is strengthening the legal framework, removing market distortions, disengaging the government from commercial activities, strengthening financial intermediation, and implementing accounting and auditing standards.

Project Details

Project Officer
Farinha Fernandes, Joao Pedro Central and West Asia Department Request for information
  • Afghanistan
  • Grant
  • Finance
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
concessional ordinary capital resources lending / Asian Development Fund US$ 4.00 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 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


2. Key market distortions


3. State-owned

enterprises (SOEs)


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
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 Farinha Fernandes, Joao Pedro
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Finance
Mr. Wahidullah Shahrani
Pashtunistan Watt,
Islamic Republic of 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 26 Jul 2007
Last PDS Update 29 Oct 2010

Grant 0068-AFG

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

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.

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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.

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.

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No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.