Afghanistan government and the World Bank have signed a new package of grant agreements worth $350 million to support reforms in the business environment, the energy sector, and land administration to promote economic growth and employment and reduce poverty for all Afghans.
$300 million for the Incentive Program Development Policy Grant (IP-DPG), including $90 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $210 million from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors.
$50 million 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.
Acting Finance Minister and Chief Adviser for President of Afghanistan, H.E. Humayon Qayoumi said, “This new World Bank support is fully aligned with the Afghanistan National Peace and Development Framework, which will strengthen the policy framework to support state effectiveness, private sector investment, growth, poverty reduction, and improve public financial management . He also thanked the World Bank and donors of the Afghanistan Reconstruction Trust Fund (ARTF) and wished to maintain their contribution in areas that are vital for Afghanistan’s economic growth.
The project will be financed by a $20 million grant from IDA and $30 million co-financing from ARTF.