KABUL (World Bank press centre) — Mohammad Humayon Qayoumi, Afghanistan’s acting Minister of Finance, and Shubham Chaudhuri, World Bank Country Director for Afghanistan, signed last Tuesday a new package of grant agreements in support of reforms valued at $350 mln.

(Credit: Ministry of Finance, Islamic Republic of Afghanistan)

The reforms are designed to improve efficiency and effectiveness in government operations for better revenue mobilization and service delivery. The new financing package supports reforms in the business environment, the energy sector, and land administration to promote economic growth and employment and reduce poverty for all Afghans.

Signing package includes:

• $300 mln for the Incentive Program Development Policy Grant (IP-DPG), including $90 mln from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $210 mln from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors. The IP-DPG aims to help the Government of Afghanistan continue maintaining a stable macroeconomic environment and pursue an ambitious program of policy reforms to support economic growth, private sector investment, poverty reduction, and improved public financial management.
• $50 mln for the Public-Private Partnerships and Public Investment Advisory Project, which aims to develop a pipeline of feasible private and publicly funded projects to further develop Afghanistan’s infrastructure. The project will be financed by a $20 mln grant from IDA and $30 mln co-financing from ARTF.

The agreements were signed in the presence of Hartwig Schafer, a newly appointed World Bank Vice President for South Asia, who is currently visiting Afghanistan to discuss reforms and development progress in the country with the Afghan government and its international partners.

Speaking about the Public-Private Partnerships and Public Investment Advisory Project, Hartwig Schafer said:

This is a step towards maximizing the financing available for Afghanistan’s development. By mobilizing private capital for large investments, this project can boost progress towards some of Afghanistan’s key development priorities. It is a way to create partnerships that can benefit not only the Government and private sector businesses, but most importantly the people of Afghanistan.