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The Embassy of Afghanistan Signs Grant and Credit Agreements
Embassy of Afghanistan

08/04/2004

Washington, D.C. - H. E. Said Tayeb Jawad, Ambassador of Afghanistan, signed four grant and credit agreements totaling US$200 million with the World Bank today, August 4, 2004. The funded projects aim at strengthening institutional capacity building, urban development, and promoting investment and enhancing the private sector in Afghanistan. Ambassador Jawad welcomed the projects’ funding by the World Bank and noted, “These major credits and grants—which consists of 50% of the World Bank’s entire grants and credits to the needy countries—signify the confidence of the international community in the Afghan government and the future of our country.” Mr. Alastair McKechnie, the World Bank Afghanistan Country Director, signed the agreements with Ambassador Jawad.

The grant and credits are funding the following four projects:

• The Education Quality Improvement Program: Supported by a US$35 million grant, the program will provide grants to schools for quality enhancement activities, including the rehabilitation of the school buildings. The grant will fund increased training opportunities for teachers, school principals and educational administrators at district, province and central levels. The grant will also be used to develop capacity at the Ministry of Education for policy formulation, monitoring and evaluation. Each activity will respond to the strong demands from girls and boys. The program will be implemented by the Ministry of Education which is consistent with Afghanistan’s strategy of promoting an increased role and capacity for the communities and schools with policy guidance from the government.

• Afghanistan Investment Guarantee Facility (AIGF): Funded by a US$60 million credit, the Afghanistan Investment Guarantee Facility (AIGF) will encourage foreign investment in Afghanistan by providing political risk insurance of up to US$60 million. The World Bank’s Multilateral Investment Guarantee Agency (MIGA) will administer the facility.

• Programmatic Support for Institution Building (PSIB): Funded by a US$80 million credit to Afghanistan’s Ministry of Finance, PSIB aims at supporting the implementation of the Government of Afghanistan’s medium-term development strategy within the context of a secure environment and a satisfactory macroeconomic framework. Initially formulated in the National Development Framework (NDF) of April 2002, Afghanistan’s development strategy was reaffirmed through the 2003/04 and 2004/05 National Development Budgets (NDB) and the document Securing Afghanistan’s Future presented by the Transitional Islamic State of Afghanistan to the international community at the donors’ conference held in Berlin in March 2004. The overall objective of the credit is to deepen, broaden and sustain the reforms underway in the areas of public administration and fiscal management.

• Kabul Urban Reconstruction Project (KURP): Funded by a US$25 million credit, KURP aims at helping the Afghan government improve urban management and the delivery of urban services in the Kabul Municipality. This will be achieved by supporting the integration of selected neighborhoods into the urban fabric of the capital city through carrying out reconstruction and rehabilitation of urban infrastructure and enhancing the managerial capacity of the Ministry of Urban Development and Housing and the Kabul Municipality.

Contact:
M. Ashraf Haidari
(202) 483-6410, (Ex-811)
Haidari@embassyofafghanistan.org

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