ISSUE 056 APR. 2020 Country Up date Public Disclosure Authorized Public Disclosure Authorized WEE-RDP works Public Disclosure Authorized “to increase social and economic empowerment of poor rural women in all 34 provinces. page 29” Public Disclosure Authorized page 4 page 6 page 38 page 40 world bank ongoing international afghanistan group support operations finance reconstruction corporation trust fund / The World Bank Group in Afghanistan/3 NEW SUPPORT TO CONTENTS ongoing 10 results NEWS operations ‘Destitute families seize PRIVATE SECTOR world bank page 6-33 opportunity to make a living’ INVESTMENTS IN group support page 4 -5 AFGHANISTAN’S page 6 education and training ENERGY SECTOR page 4 World Bank projects and page 9 $52.5 MILLION IDA GRANT FOR THE programs financial sector AFGHANISTAN GAS PROJECT that will provide sustainable supply of natural International Finance page 16 gas to independent power producers Corporation health 28 results in northern Afghanistan. The project ‘Quality health services aims to support construction, opera- Multilateral Investment tion, and maintenance of a gas pipe- Guarantee Agency page 20 move closer to residents’ infrastructure line from Sheberghan to Mazar-e- Sharif and a new natural gas desul- furization amine plant. It also aims page 5 page 24 to establish a strong institutional, Country Partnership rural development regulatory, and contract management afghan peace: Framework, 2017-2020 framework based on the principles page 33 hopes and economic challenges ahead Afghanistan of good governance in the gas sector. service delivery A recent World Bank Afghanistan report, lasting peace in the country. Reconstruction Trust Fund $12.8 MILLION IDA GUARANTEE TO "Navigating a Sea of Uncertainty", finds However, recently improved reve- Japan Social page 36 30 results SUPPORT SHEBERGHAN-GAS-TO- that agricultural productivity increased nues reaching $2.5 billion per year and Development Fund urban development ‘Empowering rural women POWER PROJECT, which will support after Afghanistan began to recover from increased private sector activities, which to root out poverty’ the construction and operation of drought, helping the Afghan economy will improve employment and add new a greenfield 40 MW gas-to-power grow by nearly 2.9 percent in 2019. But revenues, will not be able to offset Af- plant utilizing indigenous gas from the report warns if uncertainty conti- ghanistan's dependence on foreign aid. Sheberghan gas fields in northwes- nues, it would discourage private sector It will continue to need international international finance tern Afghanistan. The new plant is confidence and investment. grants to finance its public expenditure corporation expected to contribute considerably page 38-39 to increasing overall domestic energy As the Taliban enters intra-Afghan of nearly $11 billion per year. generation. peace talks after signing a peace agree- Another recently released World page 38 ment with the United States, it will help Bank report, "Financing Peace", notes ongoing advisory projects $86 MILLION GUARANTEE TO remove most of the uncertainties and that Afghanistan will require $6 bil- SUPPORT MAZAR-E-SHARIF GAS-TO- push the country toward prosperity lion to $8 billion a year in international POWER PROJECT, which comprises if Afghans are able to cement a com- grants between 2020 and 2024 to fund results 52 a $12 million guarantee from IDA to prehensive peace agreement. basic services, support faster economic ‘High-density farming diversifies afghanistan backstop the ongoing payment obliga- The report notes that with the impacts growth, and consolidate and sustain any crops and boosts incomes’ reconstruction trust tion of Afghanistan’s power utility, Da of drought diminishing and private potential reduction in violence following fund Afghanistan Breshna Sherkat, $23.8 sector confidence improving, growth is a settlement with the Taliban. million senior loan and $1.5 million page 40-54 expected to accelerate to 3.3 percent in “The international community needs in client risk-management swap from 2020. Over the medium term, growth to maintain its support to Afghanistan page 42 the International Finance Corporation, is projected to hover around 4 percent, over the medium-term to sustain the ongoing projects and $48.7 million from the Multilate- ral Investment Guarantee Agency as providing that international aid support country’s recent development progress political risk insurance. continues and the security situation and help realize its long-term growth does not worsen. This indicates that the and self-reliance prospects,” said Henry Afghan economy would flourish if intra- Kerali, World Bank Country Director for Afghan peace talks pave the way for Afghanistan. 4/ Country Update/ / The World Bank Group in Afghanistan/5 WORLD BANK GROUP SUPPORT COUNTRY PARTNERSHIP World Bank projects administration spheres, and through its reforms, for both public and private sectors, FRAMEWORK, donor partner contributions and guarantees while 15 projects are financed jointly with budget support operations. It has advo- to strengthen the environment for private as well as MIGA guarantees to provide an ini- IDA ($1.95 billion), with net commitment and programs cated building capacity and legitimacy of sector investment and promote private sec- 2017–2020 tial loss layer to insure investment projects in value of $2.44 billion. the state, and channeling donor resources tor–led growth. difficult contexts. This facility could be used to c For more information: see page 40. Since April 2002, the World Bank's Interna- through the government to ensure invest- IFC’s current cumulative committed invest- The World Bank Group’s current boost the agencies’ exposure in Afghanistan. tional Development Association (IDA) has ments are aligned with national priorities. ment portfolio stands at over $238 million engagement with Afghanistan committed over $4.70 billion for develop- To this end, the World Bank works closely and its advisory services portfolio stands Japan Social ment and emergency reconstruction pro- with other multilateral and bilateral agen- currently at $11.5 million. IFC’s investment over 2017–2020 is determined Afghanistan jects, and six budget support operations in cies across a number of sectors where aid portfolio includes investments in the tele- by the Country Partnership Fra- Reconstruction Development Fund Afghanistan. This support comprises over coordination and government ownership communication sector, agribusiness, and mework strategy, which is closely The Japan Social Development Fund (JSDF) $4.26 billion in grants and $436.4 million are most critical. financial markets. The investment pipeline Trust Fund aligned with the government’s was established by the Government of Japan in no-interest loans known as “credits”. The c For information about completed projects: looks promising and includes investments in The Afghanistan Reconstruction Trust Fund in 2000 as a means of supporting activities Bank has 11 active IDA-only projects ($879 www.worldbank.org.af – Projects & Programs. the power and education sectors. Afghanistan National Peace and (ARTF) is a partnership between the inter- that directly respond to the needs of poor million) and 15 projects jointly funded with c For more information: see page 38. Development Framework. the Afghanistan Reconstruction Trust Fund, national community and the Government and vulnerable groups, enhance their capaci- with net commitment value of over $1.6 bil- International of the Islamic Republic of Afghanistan (GoI- ties, and strengthen their empowerment and lion from IDA. Finance Corporation Multilateral The World Bank Group strategy RA) to improve effectiveness of the recons- participation in the development process. Since the adoption of the Afghanistan aims to help Afghanistan: truction effort. As of February 28, 2020, 34 The fund is administered by the World Bank. Investment donors have contributed over $12.27 billion, The Government of Japan and the World National Peace and Development Fra- The International Finance Corporation (IFC), • Build strong and accountable making the ARTF the largest contributor to Bank agreed to set up a special window wit- mework (ANPDF), the World Bank’s enga- the World Bank Group’s private sector arm, Guarantee Agency institutions to support the go- the Afghan budget—for both operating costs hin JSDF to support activities in Afghanistan gement has become increasingly program- is supporting economic development in and development programs. matic. Underpinned by advisory work, both Afghanistan by providing a broad suite of The Multilateral Investment Guarantee Agen- vernment’s state-building ob- under a multi-year program of assistance for The ARTF’s support for National Priority policy and investment lending focus on investment services to the private sector, par- cy (MIGA) has $116.5 million of gross expo- jectives and enable the state to the country’s reconstruction and transition to- Programs, operating costs of government the main engagement clusters: macro- ticularly in the infrastructure, finance, agribu- sure for two projects in dairy and cashmere ward political, economic, and social stability. fulfil its core mandate to deli- operations, and the policy reform agenda fiscal management and institution buil- siness, and services sectors. production. As of January 2019, JSDF’s total commit- ver basic services to its citizens, ding, stimulating private investments and The investment program is supported by Among MIGA’s global priorities