ARTF. Afghanistan Reconstruction Trust Fund. mid-year report: december 22, 2013 to june 21, 2014

mid-year report: december 22, 2013 to june 21, 2014 Afghanistan Reconstruction Trust Fund ARTF ARTF Donors Australia Bahrain Belgium Prepared b...
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mid-year report: december 22, 2013 to june 21, 2014

Afghanistan Reconstruction Trust Fund

ARTF

ARTF Donors Australia

Bahrain

Belgium

Prepared by the ARTF Administrator ARTF Management Committee

Brazil

Finland

The Ministry of Finance of the Islamic Republic of Afghanistan Asian Development Bank Islamic Development Bank United Nations Development Program The World Bank

France

Photos by Graham Crouch

Canada

Denmark

EC/EU

Germany

India

Iran

Ireland

Italy

Japan

A C K NO W L ED G EMENTS

South Korea

Kuwait

Luxembourg

Netherlands

New Zealand

Norway

The Afghanistan Reconstruction Trust Fund (ARTF) Annual Report is published annually by the ARTF Administrator on behalf of the World Bank as the Administrator of the Trust Fund. This report is prepared by a core team comprising of: Dolly Aziz (Operations Officer), Anantha K. Karur (Financial Management Analyst), Ditte Fallesen (ARTF Administrator). A special thanks to Moira Ratchford (Consultant) for the editing and publishing, and Marcia Whiskey (Sr. Program Assistant), Pakiza Sabri (Team Assistant), and Sheilah KingWatson (Consultant) for the administrative support.

Poland

We recognize the contributions from the World Bank Task Teams from all sectors working Portugal

on projects financed through ARTF for their input and support.

Russia

Finally, a special note of recognition/gratitude is attributed to all government counterparts Saudi Arabia

Spain

Sweden

and our donors and development partners for their cooperation, contributions, and advice in Afghanistan during the past years of working together side by side for the development of Afghanistan. The commitment, dedication and cooperation of all stakeholders to the ARTF have ensured the success and impact of the ARTF program on the economic and social development of Afghanistan.

Switzerland

Turkey

United Kingdom

UNDP

United States

CONTENTS 4

FY1393 Mid-Year—Summary Donor Pledges and Contributions ARTF Cash Balance Commitments under the Recurrent Cost and Investment Windows New Initiatives in FY1393 Looking Ahead

14 16 22 30 32 35 37 38 standard annexes

Project Highlight

ARTF Recurrent Cost Financing

Country Portfolio Performance Review

Binding Constraints to Service Delivery

Multi-Sector Approach to Addressing Malnutrition in Afghanistan

Afghanistan Agriculture Sector Review 2014

Donor Consultations in Oslo and Brussels

Economic Update

46 48

ANNEX I: Status of ARTF Investment Portfolio ANNEX II: ARTF Financial Tables

Table 1 Table 2 Table 3 Table 4

Actual and Expected Donor Contributions Expressed Donor Preferences by Projects ARTF Commitments and Disbursements ARTF Consolidated Sources of and Uses of Funds

SY1381 SY1382 SY1383

S OLAR YEAR

SY1384 SY1385 SY1386 SY1387 SY1388 SY1389 SY1390 SY1391 FY1392 FY1393

2002 - march 20, 2003 march 21, 2003 - march 19, 2004 march 20, 2004 - march 20, 2005 march 21, 2005 - march 20, 2006 march 21, 2006 - march 20, 2007 march 21, 2007 - march 20, 2008 march 20, 2008 - march 20, 2009 march 21, 2009 - march 20, 2010 march 21, 2010 - march 20, 2011 march 21, 2011 - march 20, 2012 march 21, 2012 - december 20, 2012 december 21, 2012 - december 21, 2013 december 22, 2013 - december 21, 2014 march 21,

P ERIO D

c o n ta c t i n f o World Bank Kabul Office Street 15, House 19 Wazir Akbar Khan Kabul, Islamic Republic of Afghanistan Telephone: 0700-27-60-02 Bob Saum Country Director [email protected] Illango Patchamuthu Operations Manager [email protected] Ditte Fallesen ARTF Coordinator [email protected] Paul Sisk Task Team Leader, Recurrent Cost Financing [email protected] Anantha Krishna Karur Financial Management Analyst [email protected]

currency equivalent Cur rency Unit = A f ghani ( AFN )

US$ 1 = 57.87 AFN GOVERN MENT ’S FISCAL YEAR ( f Y 13 9 3 )

Effective JUNE 21, 2014

All documents are available on http://www.worldbank.org/artf

ABBREVIATIONS AND ACRYONYMS AAI P A f g h a n i s t a n A g r i c u l t u r a l I n p u t s P r o j e c t AF M I S A f g h a n i s t a n F i n a n c i a l M a n a g e m e n t I n f o r m a t i o n S y s t e m AFN A f g h a n i s — L o c a l C u r r e n c y o f A f g h a n i s t a n ARA P A f g h a n i s t a n R u r a l A c c e ss P r o j e c t ARC P A f g h a n i s t a n R e s o u r c e C o r r i d o r P r o j e c t AR D S A f g h a n i s t a n R e c o n s t r u c t i o n a n d D e v e l o pm e n t S e r v i c e s ARE D P A f g h a n i s t a n R u r a l E n t e r p r i s e D e v e l o pm e n t P r o j e c t ARTF A f g h a n i s t a n R e c o n s t r u c t i o n T r u s t F u n d ASDP S k i l l s D e v e l o pm e n t P r o j e c t C B R C a p a c i t y B u i l d i n g f o r R e s u l t s F a c i l i t y C D C C o mm u n i t y D e v e l o pm e n t C o u n c i l DAB D a A f g h a n i s ta n B a n k EQUI P Ed u c a t i o n a l Q u a l i t y Imp r o v e m e n t P r o g r a m G o A G o v e r n m e n t o f A f g h a n i s t a n HE S I P H i g h e r Ed u c a t i o n S y s t e m Imp r o v e m e n t P r o j e c t I D A I n t e r n a t i o n a l D e v e l o pm e n t Ass o c i a t i o n I M F I n t e r n a t i o n a l M o n e t a r y F u n d IR D P I r r i g a t i o n R e s t o r a t i o n a n d D e v e l o pm e n t P r o j e c t J S D P A f g h a n i s t a n J u s t i c e S e r v i c e D e l i v e r y P r o j e c t K M K a b u l M u n i c i p a l i t y K M D P K a b u l M u n i c i p a l i t y D e v e l o pm e n t P r o j e c t M A Monitoring Agent M C M a n a g e m e n t C o mm i t t e e M D G M i l l e n n i u m D e v e l o pm e n t G o a l MEW M i n i s t r y o f E n e r g y a n d W at e r M I S FA M i c r o f i n a n c e I n v e s t m e n t a n d S u pp o r t F a c i l i t y f o r A f g h a n i s t a n M o E M i n i s t r y o f Ed u c a t i o n M o F Ministry of Finance M o FA Ministry of Foreign Affairs MoPW Ministry of Public Works M RR D M i n i s t r y o f R u r a l R e h a b i l i t a t i o n a n d D e v e l o pm e n t NGO N o n - G o v e r n m e n t a l O r g a n i z a t i o n NHL P N a t i o n a l H o r t i c u l t u r e a n d L i v e s t o c k P r o g r a m NHR P N a g h l u H y d r o p o w e r R e h a b i l i t a t i o n P r o j e c t N P P N a t i o n a l P r i o r i t y P r o g r a m NRA P N a t i o n a l R u r a l A c c e ss P r o g r a m N S P III T h i r d Em e r g e n c y N a t i o n a l S o l i d a r i t y P r o j e c t O & M Op e r a t i o n s a n d M a i n t e n a n c e OF W M O n - F a r m W a t e r M a n a g e m e n t p r o j e c t P F M R II Second Public Financial Management Reform Project P P U Procurement Policy Unit PSDP P o w e r S y s t e m D e v e l o pm e n t P r o j e c t RA P R e s e a r c h a n d A n a l y s i s P r o g r a m S A Supervisory Agent S EHAT S y s t e m E n h a n c e m e n t H e a lt h A c t i o n i n T r a n s i t i o n S HE P S t r e n g t h e n i n g H i g h e r Ed u c a t i o n P r o j e c t T S A T r e a s u r y S i n g l e A c c o u n t UNA M A U n i t e d N a t i o n s Ass i s t a n c e M i ss i o n i n A f g h a n i s t a n UN D P U n i t e d N a t i o n s D e v e l o pm e n t P r o g r a m WB World Bank

A R T F MAIR DT- Y ECE Mar B Ec R h2 2 01 3 -M j un F EAANRN R Ue ApL oRrt e p |o D rt | M 2 ,0 –2D ECE B E Re 22 01,, 2 20 0 14 12

3 3

F Y 13 9 3 SU MM A R Y

FY1393 MID-YEAR SUMMARY In the first section of this report we provide an update on the ARTF’s financial activities for the first six months of FY1393 (December 22, 2013 to June 21, 2014). This section also includes an update on new initiatives implemented, financial developments, and new additions to the portfolio during this period.

Donor Pledges and ContributionS As of June 21, 2014, 33 Donors have pledged a total amount of US$7.9 billion to the ARTF, of which US$7.2 billion has been paid since its inception in 2002. Donors continue their support to development in Afghanistan and in FY1393 alone has pledged US$953.2 million. This represents an increase over FY1392 when US$846.9 million

was pledged for the same period. The total paid in contributions of US$334.5 million for the first six months of FY1393 is slightly higher than at mid-year last year (US$183.9 million), but consistent with previous years where donors contributed similar amounts. Given the trend from previous years where the peak season for donor contributions is

normally from October to January, the first half of the year has been unusually active in terms of new contributions. As we move into the second half of the fiscal year, expectations are that donors will contribute as pledged in accordance with patterns from previous years, i.e. between October and December.

Figure 1: ARTF Contributions with Preference % (US$M) $933

45% 38%

27% $380

$404

30%

$635

$627

$657

$942 43%

37%

$185

$453 24%

15%

Paid

Preference %

1392

1391

1390

1389

1388

1387

1386

1385

1384

1383

8% 1382

0%

$791

$610

$285

Unpaid

4

47%

*Multi-year signed/unsigned pledge amount

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50% 45% 40% 27% 35% 30% 25% 20% 15% 10% $304 5% 0% *1393

43%

1381

$1000.00 $900.00 $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0

F Y 13 9 3 SU MM A R Y

FIGURE 2: ARTF top contributors (US$M) Paid-in Percent $2500

28%

30% 25%

$2000 $2039.05

15%

$1260.95

Among the 33 donors that have so far contributed to the ARTF, 15 donors contribute on a regular basis. The largest 10 donors account for more than 90% of the total paid-in contributions to the ARTF since 2002. With

5%

4%

4% $110.09 2%

the ARTF allowing for donors to preference up to a maximum of 50% of their contributions, a total of 37% or US$2.69 billion of the total contributions received to date has been preferenced. The majority of the pref-

Italy

Sweden

Australia

$492.12 $444.32 $429.10 $343.00 $115.41 $259.09

6% $418.31 Others

6%

Japan

$516.09

6%

Norway

United Kingdom

United States

$612.72

7%

Netherlands

$500

7%

EC/EU

8%

Germany

$1000

$0

20%

17%

Canada

$1500

10% 5% 0%

erences went towards Rural Development (64%) followed by Education, Private Sector Development, and Governance.

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CASH BALANCE ARTF entered into FY1393 with an unallocated cash balance of US$723 million carried over from FY1392 and an allocated cash balance of US$948 million. At mid-year FY1393, the fund had an unallocated cash balance of just US$441 million and an allocated/committed cash balance of US$1.12 billion. By June 21, 2014, the total cash balance stood at US$1.56 billion comprising: (a) US$16.8 million in the Recurrent Cost Trust Fund (excluding US$50 million in the Designated Account); (b) combined undisbursed balance of the ARTF active investment portfolio of US$1.04 billion; and (c) US$10.8 million reserved for the Monitoring and Supervisory Agent, leaving a net unallocated

cash balance of US$441.4 million. However, FY1392 unallocated IP balance of US$84.70 million (US$150 minus US$65.30 million) has been ring-fenced, FY1393 unallocated baseline balance of US$65 million, US$175 million towards IP and 2nd tranche of TMAF payment have been ring-fenced. Hence the actual cash balance available for new investments is only US$101.70 million. The allocated cash balance consists of funds committed, but not yet disbursed, to projects and grants under the Recurrent Cost Window (RCW), the Investment Window, and the Monitoring and Supervisory Agents contracts. It is at a fairly high level when compared to previous years. This is mostly a

result of the growing size of the Investment Window. Funds allocated through the RCW disburse very quickly and therefore RCW funds do not usually result in a long-lasting increase in the allocated cash balance. The Investment Window, however, funds investment programs that often have a 3-5 year time horizon, meaning that the funds allocated to these activities will take some time to disburse. Given that disbursements lag commitments due to the multi-year nature of investment projects, the increase in the Investment Window drives up the allocated cash balance.

Figure 3: ARTF Active Portfolio Commitments and Disbursements Recurrent Cost and Investment Windows (US$ M) $450.00

$450.00

$424.39

$400.00

$400.00

$350.00

$300.21

$300.00 $250.00

$213.25

$234.55

$100.00 $50.00 $0.00

6

$336.68

$310.06

$253.25

$321.35

$246.17 $166.14

$256.14

$226.11

$221.42

$32.39

$58.87

$83.97

$4.84

$350.00 $300.00

$256.10

$250.00 $200.00

$225.00

$219.42 $176.64

$110.71

$307.95

$251.13

$200.00 $150.00

$290.55

$129.10

$150.00 $100.00 $50.00

$0.00 1381 1382 1383 1384 1385 1386 1387 1388 1389 1390 1391 1392 1393** as of Recurrent Cost Investment Window Investment Recurrent Cost June, 2014 (Disbursements) (Disbursements) Window (Commitments) (Commitments)

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F Y 13 9 3 SU MM A R Y

The unallocated cash balance allows funding of new investments and recurrent cost expenditures. A healthy pipeline of activities awaits financing and with more de-

mand anticipated from the new government for support from donors, ARTF will be dependent on receiving new donor contributions to be able to fund forthcoming requests. The

ARTF Administrator will monitor this closely to ensure funds are readily available to meet the requirements of the ARTF Financing Strategy.

Table 1: Cash Balance 1392 – 1393 (US$M) as of June 21, 2014 1392 (Actuals-in million)

FY1393 (Actual as of June 30, 2014)

End of FY1393 (Projected in million)

Carry-over from previous year

$656.00

$666.94

$666.94

Donor Contributions

$790.99

$334.54

$929.16

$1,446.99

$1,001.48

$1,596.10

Recurrent Cost Window

$359.50

$114.10

$400.00

Investment Window Allocations

$416.55

$580.50

$1,151.00

$4.00

$12.00

$12.00

TOTAL ALLOCATIONS OUT OF PARENT ACCOUNT

$780.05

$706.60

$1,563.00

SURPLUS/(DEFICIT) BALANCE

$666.94

$294.88

(33.10)

Sources of Funds

TOTAL SOURCES OF FUNDS USES OF FUNDS (Commitments)

Monitoring Agent

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New Commitments under the Recurrent Cost and Investment Windows A total of US$709.5 million was approved by the Management Committee during the first half of FY1393, with US$129 million towards the Recurrent Cost Window and US$580.5 million as new allocations under the Investment Window.

Recurrent Cost Window As of June 21, 2014, a total of US$3.17 billion had been made available to the Government of which US$3.07 billion has been disbursed. The above total allocation

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includes a buffer amount of US$100 million to the GoIRA and US$30 million additional ceiling under the new arrangement of ARTF —Ad hoc Bilateral TMAF Payment (ATP), endorsed by the ARTF Steering Committee in December 2013. As per the update to the ARTF Financing Strategy SY1391-1393, a ceiling of US$400 million was set for the Recurrent Cost Window for FY1393. This ceiling is made up of US$125 million in baseline financing, US$175 million for the Incentive Program (IP) and US$100 million for the O&M Facility. The baseline financing will be disbursed

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in quarterly tranches along with any portion of the IP which is approved by the IP Working Group on the basis of the Technical Review. A total of US$144.1 million was disbursed in FY1393 and includes two payments of US$15 million each towards FY1392 and FY1393 ATP payments, two tranches of US$30 million each in baseline financing during the first half of the year, IP payment of US$41.2 million for FY1392, and FY1393 O&M payment of US$12.9 million.

F Y 13 9 3 SU MM A R Y

INVESTMENT WINDOW The ARTF Financing Strategy outlines a total of US$1.1 billion for new and ongo-

project Non Formal Approach to Training, Education and Jobs in Afghanistan (NATEJA) Project

approval date March 24, 2014

It is widely acknowledged that Afghanistan’s growth is constrained by the incidence of poverty, high illiteracy, and the lack of a skilled labor force. This project directly links literacy and skills development by designing interventions that improve access to skills for illiterate and unskilled young Afghan men and women. The National Priority Program I, under HRD Cluster of the Government of Afghanistan, focuses on inclusive project CASA 1000 – Community Support Project

approval date April 14, 2014

The Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) aims to facilitate electricity trade between hydropower surplus countries in Central Asia and electricity deficient countries in South Asia by putting in place the commercial and institutional arrangements, and the transmission infrastructure required for this trade. The four countries participating in the project—Afghanistan, Kyrgyz Republic, Pakistan and Tajikistan—are of consider-

ing projects under the Investment Window in FY1393. At mid-year, a total of US$580.5 million had already been approved for new

allocations under the Investment Window. Below is a short summary of the financing approved under this window:

CLOSING date

amount

objective

May 30, 2017

$15 million

The Project Development Objective is “to increase the potential for employment and higher earnings of targeted young Afghan women and men in rural and semi-urban areas through non-formal skills training”.

growth and decent work. This project contributes to that objective through focusing on illiterate and unskilled men and women, and building adequate skills that are demanded in the labor market to help this massive group of young unskilled Afghans find a job or start their own small scale business. They will obtain, through the project, a combination of hard and soft skills so that they are attractive to employers. The project

focuses on employment through incentivizing training providers. The project covers the following three components: (i) improving the quality of non-formal training and the labor market outcomes of trainees; (ii) project management, capacity building of the Ministry of Labor, Social Affairs, Martyrs and Disabled (MOLSAMD) and M&E; and (iii) piloting entrepreneurship among unskilled and illiterate young Afghans.

CLOSING date

amount

objective

May 30, 2017

$40 million

The proposed Project Development Objective is to provide access to electricity or other social and economic infrastructure services to communities in the project area in order to strengthen community support for CASA-1000 transmission line.

able geostrategic importance by virtue of their location at the crossroads of China, India, Russia and the Middle East. Sustained efforts to promote institutional development and socio-economic prosperity in the CASA1000 countries are therefore a very high priority, not only for the countries themselves, but also for the stability of the Central and South Asia regions more broadly. The CASA1000 countries vary significantly in terms of population numbers, economic size and

development trajectories, but also share several key characteristics and have complementary development needs and goals, especially in the energy sector. The Afghanistan portion of CASA-1000 is a 560 km DC transmission line that will extend from the Tajikistan border to the border with Pakistan near Peshawar. Afghanistan’s share of the electricity will be delivered at Kabul through a DC-AC Converter. The total cost of the CASA 1000 project is currently

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F Y 13 9 3 SU MM A R Y

estimated at US$ 953 million. The Afghanistan share that will be financed with a World Bank grant to Afghanistan is estimated to be US$ 309 million including the 562 km portion of the DC transmission line located

project Kabul Municipal Development Program (KMPD)

approval date March 26, 2014

The above project will: (i) build legitimacy of institutions—establish a road map for strengthening both Kabul Municipality’s (KM) financial management and planning capacity which will contribute to improved service delivery; (ii) provide equitable service delivery—delivery of basic municipal services in unserved residential settlements will positively reaffirm the legitimacy of residents by initiating a process for their inclusion through the integration of their settlements with the city’s main infrastructure; (iii) support inclusive growth and jobs— through labor intensive municipal infra-

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in Afghanistan and a DC-AC converter station in located in or near Kabul. The project consists of the following four components and an unallocated category, which if applied will be allocated across all four

components: (i) Community Grants for subprojects; (ii) Community mobilization; (iii) Project Implementation Support; and (iv) Communications & Outreach.

CLOSING date

amount

objective

December 31, 2019

$110 million

The Project Development Objectives are to: (i) Increase access to basic municipal services in selected residential areas of Kabul city; (ii) Redesign KM’s Financial Management system to support better service delivery; and (iii) Enable early response in the event of an eligible emergency.

structure works, the project will directly generate over 2 million man days of unskilled jobs in the construction sector, stimulate indirect economic benefits in the targeted areas and their vicinity, and strengthen the role of women in the targeted communities. The project will also support Local Governance, and the Urban Management Support Program that aims to strengthen urban governance and improve the quality of the built environment. Furthermore, given Kabul’s preeminence in and to Afghanistan’s economy, it is critical that Kabul has functioning management, systems and infrastructure

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to deliver services to its residents. Project support to develop a plan for improving KM’s financial management and planning capacity to deliver improved services to its people, will enhance KM’s legitimacy when implemented. This project consists of the following four components: (i) Infrastructure Upgrading Program; (ii) Redesign KM’s Financial Management System; (iii) Studies (household surveys and drainage studies); and (iv) Project Management, Works Design and Supervision.

F Y 13 9 3 SU MM A R Y

project Kabul Urban Transport Efficiency Improvement Project

approval date April 11, 2014

The project shown above will build KM’s legitimacy in the eyes of the residents by expanding and improving the road network and its efficiency which will in turn improve the city urban productivity. By bringing about network wide improvements that are important for mobility, the project will improve services for rich and poor alike as a reduction in travel time and cost will accrue to all citizens. The mobility improvements will enable improved access to jobs and social services and create a more inclusive city. Additionally, the project is initiating an approach that creates incentives for KM to

New Financing for Ongoing Projects In addition to the above projects approved in FY1393, new financing was transferred to enable two key programs to continue delivering critical services to the Afghan people in FY1393: (i) Education Quality Improvement Program (EQUIP) II—Additional financing for EQUIP II was approved by the ARTF Management Committee in June 2012 for a full value of US$250 million. Of the US$250 million only a first tranche of US$125 million was

CLOSING date

amount

objective

December 31, 2019

$90.5 million

The Project Development Objective (PDO) is to improve road conditions and traffic flows in selected corridors of Kabul City.

integrate the concerns of foot print expansion, growing congestion, increasing number of vehicles and pollution by developing an integrated and multi-pronged approach that cuts across roads, public transport services, and traffic management. Furthermore, given Kabul’s preeminence in and to Afghanistan’s economy, it is critical that Kabul has functioning management, systems and infrastructure to deliver services to its residents. This project will to continue to support the realization of this. The project has the following three components: (i) Road Infrastructure—improvements of se-

lect segments of roads in four priority corridors; (ii) Capacity Building—provide technical assistance for priority interventions for city center accessibility, public transport studies, O&M productivity increase; and (iii) Project Management Support.

allocated at the time. Following solid project implementation progress and disbursements, a second tranche of US$125 million was approved in February 2014 to continue to support the project activities and ensure continued education services through the transition period. (ii) National Solidarity Program (NSP) III—US$40 million grant from IDA was approved by the World Bank Board of Directors in June 2010 for NSP III. Subsequently a total amount of US$750 million was approved by the ARTF Management Committee (MC) in

October 2010, divided into annual installments. In February 2014, an additional US$200 was approved by the MC based on a solid implementation progress and very high disbursements, bringing the total amount allocated from the ARTF to NSP III to US$950 million. The remaining financing gap will be addressed in the ARTF Financing Strategy 1394–1396 which will be prepared and endorsed by the ARTF Steering Committee by December 2014.

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F Y 13 9 3 SU MM A R Y

New Initiatives IN FY 1393 The Afghanistan Country Management Unit (CMU) with the support from the sector and the operational teams were able to achieve several milestones during the first half of FY1393. As a follow up to the 2012/2013 Country Portfolio Performance Review (CPPR), the CMU carried out a CPPR

early this year to strengthen portfolio performance. In addition, the following reviews were carried out by the sector teams working in Afghanistan to analyze and better gauge the issues surrounding development in Afghanistan. A summary of the key findings and recommendations are provided in the

sections following: Country Portfolio Performance Review 2014 Binding Constraints to Service Delivery Multi-Sector Approach to Addressing Malnutrition in Afghanistan Agriculture Sector Review

Looking Ahead ARTF Scorecard With the new ARTF Scorecard launched in September 2013, the coming months will focus on finalizing the second edition of the Scorecard to be published in September 2014.

ARTF Results Workshop The first ARTF Results Workshop was held in September 2013 to discuss the key findings of the ARTF Scorecard. The next ARTF Results Workshop is planned for mid-September, following the launch of the ARTF Scorecard 2014. The Results Workshop will focus on the Scorecard findings and set the stage for the discussions on the next ARTF Financing Strategy.

ARTF Financing Strategy FY1394-1396 With a new government expected to be in place by August 2014, the Strategy Group will during the remainder of FY1393 focus its discussions preparations for the next three-year ARTF Financing Strategy to cover the period FY1394–1396. The new Financing Strategy should be finalized and endorsed by the ARTF Steering Committee by December 2014 in time for FY1394, which will commence on December 21, 2014.

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PROJECT HIGHL IGHT

PROJECT HIGHLIGHT National Horticulture and Livestock Project Bears Fruit in Nangarhar Province The National Horticulture and Livestock Productivity Project was approved on December 22, 2012 for US$50 million of which US$18.6 million has been disbursed. The project aims to increase productivity and overall production of horticultural products through rehabilitation of existing fruit orchards and establishment of new plots. Farmers with arable land in Nangarhar province are seeing a revitalization of their land and a prospect of better income when their orchards bear fruit. They are part of the National Horticulture and Livestock Project, a Ministry of Agriculture, Irrigation and Livestock initiative supported by the Afghanistan Reconstruction Trust Fund (ARTF).

MOMEN ABAD VILLAGE, Behssod District, Nangarhar Province— Fragile saplings which represent the future for farmer Hashim Sherzad are tucked between rows of pea plants ripe for the picking. For several hours each day, the 42-year-old farmer carefully waters, weeds and tends these tiny lemon trees in his small orchard near Momen Abad village. It’s an investment of time, labor and love from Sherzad, who expects his income to eventually triple once the trees mature in three years’ time and fruit can be harvested. “In this country, we all love the lemon. It is an important fruit for us especially during

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Ramadan, when we need it in our drinks because we have been fasting,” he explains. Still, Sherzad says he could not have managed this new enterprise alone. It was his community’s shura (council) that selected and encouraged him to take part in the National Horticulture and Livestock Project (NHLP), a Ministry of Agriculture, Irrigation and Livestock initiative supported by the Afghanistan Reconstruction Trust Fund (ARTF). Aimed at rehabilitating existing fruit orchards and establishing new plots, the project helps farmers like Sherzad who own arable land with a good water source. Akbar Hussein Mirza, the project’s coordinator for

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Nangarhar province, stated that about 40 lemon orchards have recently been established with NHLP assistance. Mirza says farmers pay 25 percent of the saplings’ cost, but are given free fertilizer, micronutrients, pesticides and “intercrops,” like peas and zucchini, to grow between the trees while they mature. It is only the limited amount of available saplings that has so far slowed the project’s progress, he says. The variety of lemon being used comes from certified South African root stock which is hardy and highly adaptable to Afghan growing conditions. While the project’s saplings cost 150 Afghani (approx-

PROJECT HIGHL IGHT

“This is a very good project, and I’m very happy here now. This is a good life for us.” —Hashim Sherzad, farmer, Momen Abad village

imately $2.65) each, and are more expensive than the readily available variety from Pakistan, the South African stock are proven producers of high quality fruit, says Mirza. “We are hoping to get maybe 25,000 more saplings for next year,” says Mirza. “Because when people are happy like this, there will always be more demand.”

A better life for families Farmers in this province have always appreciated orchards, says Mirza. They need less space and less work than vegetable crops, and they are perennial. Even better, there is more profit from fruit however the

initial investment has been out of reach for many. With NHLP’s help, Sherzad planted 133 new trees in mid-February of 2013 on his one jerib (0.2 hectare) of land. He isn’t worried about any temporary loss of income while the trees mature because the intercrops are already producing better than his previous vegetable crops, he says. “They are also of very good quality and they are getting good fertilizer, so my income has already doubled from this alone.” Sherzad supports seven children and plans to use the extra money to send them to good schools, buy medicine and reinvest in his

orchard. Sherzad says he moved his family to this region 10 years ago from another district where security was a problem. Now, just as his lemon trees mature, he also wants to put down firm family roots here. “This is a very good project, and I’m very happy here now. This is a good life for us,” he remarks. Sherzad’s 10-year-old son, Khalid, who helps tend the orchard, says he hopes his father can afford to put him in a private school someday, using the additional income from his lemon trees. “This work is nice but I hope that I can learn more and make life even better for my family.”

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ARTF RECURRENT COST FINANCING

ARTF RECURRENT COST FINANCING INTRODUCTION This section of the report provides a summary of the recurrent cost financing under the ARTF, as monitored by the Monitoring Agent, under World Bank supervision. The ARTF, through its recurrent cost window, finances a share of government salaries and wages of non-uniformed civil servants (approximately 71% of whom are working outside Kabul) and the Government’s operating and maintenance (O&M) expenditures outside of the security sector. At the end of May 31, 2014, a total of US$3.07 billion had been made available to the Government of which US$3.00 billion had been disbursed. Total allocation of US$3.07 billion includes a buffer amount of US$100 million made available to GOA and US$ 15 million additional ceiling of FY1392 under the new arrangement of ARTF: “Ad hoc Bilateral TMAF Payments (ATP)”, endorsed by the ARTF steering

1

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committee on December 01, 2013. The share of government non-security expenditure covered by the ARTF is declining every year, as the government’s operating budget increases in size For FY1393 a ceiling for the Recurrent Cost Window (RCW) of US$400 million was set out in the ARTF Financing Strategy SY13911393. The ceiling is made up of US$125 million in baseline financing, US$175 million for the Incentive Program (IP) and US$100 million for the O&M Facility. The baseline financing will be disbursed in quarterly tranches along with any portion of the IP which is approved by the IP Working Group on the basis of a Technical Review. The FY1393 opening balance in the RCW trust fund of US$115.9 million consists of a US$100 million buffer amount and a first tranche of disbursement of US$15 million

Please refer to the FY1393 Update to the ARTF Financing Strategy for further information on the ATP.

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under the new arrangement of the ARTF: “Ad hoc Bilateral TMAF Payments (ATP)”1, endorsed by the ARTF Steering Committee on December 1, 2013. One tranche of US$30 million in baseline financing was disbursed during the first quarter of the year and a second tranche of US$ 30 million in April 2014. Another tranche of US$15 million from ATP funding will be disbursed under the ATP. This report covers the monitoring activities for the three quarters of FY1392 monitoring results and the Monitoring Agent is yet to submit the final report. FY1393 monitoring just started and yet to share Q1 report. Below are the abstract of FY1393 MA Q1 report.

ARTF RECURRENT COST FINANCING

fY1392 and SY1391 Operating budget execution Table 2 presents total budget and actual expenditure for FY1392. The table details those ministries which are ineligible for ARTF Financing and total budget versus actual expenditures of FY1392. Table 2: TOTAL BUDGET AND ACTUAL EXPENDITURES FOR FY1392

FY1392 Particulars (Amount in Afn ‘000,000) total budget

Payroll

O&M

Total

SY1391

SY1390

SY1389

145,042

73,944

218,986

156,896

156,361

116,266

(96,012)

(42,062)

(132,132)

(98,700)

(88,007)

(63,133)

Budget of spending Entities qualified for financing (A)

49,030

31,882

77,327

58,074

68,178

53,133

Actual expenditures for year (ineligible entities included)

74,403

35,648

110,050

111,957

149,385

110,485

(27,503)

(11,069)

(38,572)

(63,860)

(84,340)

(66,226)

46,900

24,579

71,479

48,097

59,878

44,259

96%

77%

88%

83%

88%

83%

2,130

7,303

9,433

9,977

8,301

8,874

4%

23%

12%

17%

12%

17%

Add: Mid-year budget review Less: budget of Non-qualifying spending entities (budget for Defense, Interior, National Security, Presidential Protection Services)

LESS: budget of Non-qualifying spending entities (budget for Defense, Interior, National Security, Presidential Protection Services) Expenditures in Ministries qualified for financing (B) Actual expenditures in percentage of adjusted budgeted expenditures Remaining budget (A-B) Unexpended budget as a percentage of total budget

Source: Source: Monitoring Agent FY1393 Q1 report. Budget presented above is output from AFMIS.

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ARTF RECURRENT COST FINANCING

FY 1392 Expenditure Distribution among Cost Categories Figure 4 presents the total distribution of AFN 110,050 million recorded in AFMIS at the end of FY1392, of which AFN 71,479 qualified for financing comprising payroll and O&M expenditures. Payroll expenditures are divided into (i) Payroll-based salary expenditure (PBSE); and (ii) Non-payroll-based salary expenditure (NPBSE). The payroll expenditures include all payroll based salary expenditures, including gross salary, food allowance, education level allowance, Priority Reform and Restructuring (PRR) payment and bonus payrolls. Non-payroll-based salary expenditure (NPBSE) comprises all expenditures classified in the AFMIS as wages and payroll, but supported by documents other than payroll, such as assistance payments to employees and transportation expenses. O&M expenditures are broken into (iii) O&M expenditure, excluding pensions (OMP); and (iv) Pensions (P). OM-P comprises all recurrent expenditures recorded in AFMIS, not included in other categories, and Pensions includes pension payments by the Pension Department and Martyrs and Disabled Department of the Ministry of Labor and Social Affairs.

RECURRENT COSTS BY LINE MINISTRY The expenditures of the six largest ministries amount to 72% of the FY1392 total, as shown in Figure 5. The Ministry of Education accounted for 40% percent of non-security spending, mainly for teachers’ salaries. Teachers represent almost half of all Afghan non-uniformed civil servants.

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Figure 4: fY1392 Non-Security Expenditures by Main category (afn in Million)

AFN 2,365.00 AFN 15,556.00

AFN 44,535.00 AFN 9,023.00

Payroll-based salary Non-payroll-based salary O&M excluding pension Pension Source: Monitoring Agent FY1393 March 21, 2014 report

Figure 5: FY1392 Expenditures— Disbursements by Ministry

40.67%

14.40% 4.39% 4.25%

28.25%

4.44% 3.61%

Ministry of Education Ministry of Public Health Ministry of Higher Education Ministry of Finance Ministry of Martyrs, Disabled and Social Affairs Ministry of Foreign Affairs Other eligible spending entitires Source: Monitoring Agent FY1393 March 21, 2014 report

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ARTF RECURRENT COST FINANCING

Eligibility of Expenditures ARTF finances recurrent cost expenditures, which meet the criteria set by the Government, the ARTF Grant Agreement and the Fiduciary Standards (additional requirements agreed to by the Ministry of Finance and the Administrator). Criteria for eligibility are set out in the box on the right.

ARTF ELIGIBILITY CRITERIA GOVERNMENT REGULATIONS The Annual Budget Decree Since ARTF provides budget support to the Government, expenditures can be found eligible only if they are included in the yearly budget. ARTF’s share of financing for the yearly budget was approved by the ARTF Management Committee. Other All goods and services must be procured and accounted for in accordance with government law and regulations. If an expenditure does not comply with local regulations, it cannot be considered eligible for financing by the ARTF. It is important to note that the Afghan procurement law allows for procurement to conform to donor requirements (article 50 sub 1). ARTF Grant Agreement All military and security related expenditures are ineligible for financing. Procurement Capitalized goods and works need to be procured in accordance with the provisions of World Bank procurement in the Financial Agreement. Fiduciary Standards Fiduciary Standards (revised 20 December, 2004): In addition to the Afghan laws and regulations, an additional set of requirements on the timeliness of reporting and efficiency of cash management of eligible expenditures has been adopted.

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ARTF RECURRENT COST FINANCING

Table 3 below presents comparative data on submitted expenditures and actual approved expenditures over the life of the ARTF. Payments are deemed ineligible according to the criteria described in the box above. The expenditure and eligibility figures for the four years SY1384, SY1385, SY1386 and

SY1387 were restated taking into account the final deductions based on the auditors’ findings for these years. Desk review of all expenditure reimbursement for FY1392 was conducted before requests were submitted for both FY1392 and FY1393. However, eligibility is mostly influenced by site visits and

while monitoring of the samples in site visits for FY1392 is well advanced, inferences cannot be drawn for the total population until the sample is completed so no overall eligibility is reported. Site visits for FY1393 have not yet begun.

Table 3: SY1381-92 Summary of Statements of Expenditure: Submissions and Approvals (US$ thousands)

EXPENDITURES Submitted by MoF to Ma Approved by MA and WB SOLAR YEAR O&M Payroll Total O&M Payroll Total O&M Payroll Total % % % 1381 42,239 87,917 130,157 27,318 87,690 115,007 64.67% 99.74% 88.36% 1382 300,478 120,204 420,682 41,737 111,241 152,978 13.89% 92.54% 36.36% 1383 82,164 202,038 284,202 61,433 186,199 247,633 74.77% 92.16% 87.13% 1384 104,100 227,858 331,958 75,014 193,520 268,533 72.06% 84.93% 80.89% 1385 148,184 280,303 428,487 95,688 259,315 355,003 64.57% 92.51% 82.85% 1386 178,777 323,943 502,721 110,855 288,969 399,824 62.01% 89.20% 79.53% 1387 261,946 412,914 674,859 40,076 365,044 405,121 15.30% 88.41% 60.03% 1388 252,243 538,929 791,171 147,484 477,113 624,598 58.47% 88.53% 78.95% 1389 305,849 665,675 971,524 160,020 548,589 708,609 52.32% 82.41% 72.94% 1390 478,480 762,137 1,240,617 297,430 598,149 895,579 62.16% 78.48% 72.19% 1391 313,455 616,860 930,315 132,942 450,315 583,257 42.41% 73.00% 62.69% 1392 * 378,274 750,531 1,128,805 378,274 750,531 1,128,805 100.00% 100.00% 100.00% 1393** 10,278 70,735 81,013 10,278 70,735 81,013 100.00% 100.00% 100.00% Total 2,856,467 5,060,043 7,916,510 1,578,550 4,387,410 5,965,960 55.26% 86.71% 75.36% NOTE: (i) Table excluding deductions for reaching the yearly budget cap as agreed between donors and GIRA. *Comprises the expenditure for the FY1392 covering the period Jadi to Aqrab FY1392. Monitoring is ongoing and ineligibilities are yet to be adjusted. **Comprises the expenditure for the period of Jadi & Dalwa FY1393. (ii) SY1387 figures do not currently reflect eligibility ratios consistent with prior years, since all O&M and non-payroll based compensation were not qualified for reimbursement under ARTF due to amendments made to public procurement law. These provisions were restored for SY1388.

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ARTF RECURRENT COST FINANCING

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Country Portf ol io Perf orm ance Re vie w

Afghanistan Country Portfolio Performance Review 2014 – A Summary OBJECTIVES The overall objectives of the Afghanistan Country Portfolio Performance Review process, starting in 2012 are: (i) improve the quality and implementation performance of the portfolio; (ii) establish a systematic mechanism for engagement and follow up on portfolio issues both with the government and country teams; and (iii) improve outcomes/results. Considering the volatile present environment in Afghanistan, worsened by the 2014 political and security transitions, long term planning is currently constrained. The CPPR 2014 therefore focuses on short and medium term objectives, including ensuring continued strong portfolio performance and improved robust risk management of the portfolio. The CPPR 2014 is therefore expected to result in: A clear outline of operational and implementation risks to (a) inform the continued portfolio performance review process; and (b) identify key short and medium term actions, in a sequenced and prioritized action plan, feasible for completion within the coming 12 months to continue improving the quality of the portfolio and performance of projects. While the CPPR 2014 builds on strong collaboration with the Government, and does identify actions for Government, the transitional nature of 2014 allows the Bank to focus particularly on internal actions to

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clean up and strengthen its portfolio management. The CPPR 2014 will also serve to complement the Systematic Country Diagnostics by informing the upcoming work on a new Country Engagement Note (successor to ISN) from an operational perspective. Work on the CEN will be initiated following the Afghan Presidential Elections, and as soon as a new counterpart is in place. Building on the findings of the 2012/2013 PPR, the thorough thematic assessments and the focus of the CPPR 2014 on shortterm actions will create a solid foundation for a continued strong portfolio performance process in 2015 and beyond. This year’s CPPR is therefore not only identifying portfolio issues and listing actions but is also identifying a number of areas for which additional analysis will be required in order to be able to put forward recommendations. As a result the CPPR outlines several areas in need of further work to inform the continued portfolio performance process and further improve the quality of the portfolio, including but not limited to: (i) A comprehensive analysis of ICRs to identify lessons from both well performing and challenged projects to inform future projects; (ii) An examination of the projects at risk and the impact of project restructurings to identify causal effects and trends and mitigate risks; and (iii) An as-

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sessment of the various models for project implementation and use of PIUs to identify pros and cons of different approaches and their impact on institution building and service delivery. As such the CPPR 2014 should not be seen as a one-off activity but rather as one part of a dynamic process that will continue in the coming years. Several key actions were implemented as a follow-up to PPR 2013, which have helped solidify and improve portfolio performance, including: Increased use of project preparation funding under both IDA (as PPFs) or under ARTF (as preparation grants). This has allowed teams to ensure project readiness by the time of approval and as a result projects have performed better in the first 12 months of implementation than was previously often the case; Retroactive financing: An umbrella waiver was processed for the Afghanistan portfolio to increase the retroactive financing period under Paragraph 14(d) of BP10.00 from twelve to eighteen months. The waiver will facilitate a more flexible engagement to support Afghanistan during a challenging period, which over the next 24 months will see both a political and security

Country Portf ol io Perf orm ance Re vie w

transition. The waiver will be applied only to IDA and ARTF-financed projects approved between FY14 and FY16; Procurement packages: As part of improved project readiness by the time of approval, all projects were required to have advanced procurement packages, equivalent to 20% of the full project

or the first year’s procurement. This has resulted in some project approvals being delayed but with better performance when approved. In monitoring the Afghanistan portfolio, the CPPR (process) and the ARTF Scorecard2 are used as complimentary tools—the former focusing on the health and performance of

the portfolio, while the latter provides an overview of results at different levels. These two analysis and reporting tools are used by the Country Team to proactively manage portfolio results and risks in Afghanistan.

procedures, low capacity to carry out project monitoring and results reporting, low capacity in managing procurement and budget processes, and low capacity in working with the Bank’s safeguards policy framework are just some examples of capacity impacting portfolio performance and specific challenges from the CPPR 2014. While capacity issues can of course be caused and worsened by fragility, it is critical to understand how fragility aspects impacts the authorizing environment including constraints and opportunities, and can be a cause of low capacity, not all detailed operational discussions on issues such as financial management, salary harmonization and results management are necessarily framed or defined by fragility. Low capacity issues relate to fragile as well as non-fragile states. It is therefore critical to ensure that not all operational challenges in Afghanistan are necessarily framed in fragility terms and lessons can be learned from many countries in the Bank’s global portfolio to help tackle these issues. It is therefore both relevant and interesting

to bring out fragility aspects in our analysis of portfolio performance issues as it affects the environment in which the Bank operates in Afghanistan, but a number of the issues identified in the portfolio performance review process are fairly standard when compared to other Bank clients—fragile and non-fragile—and are mostly centered around a lack of capacity. While the CPPR issues in Afghanistan are therefore based on a core assumption and understanding of a fragile operating environment, the detailed operational discussions are not consistently framed within or making use of a fragility discourse. Here are some concrete examples from the CPPR 2014 of how fragility and in particular security aspects and lack of access to the field result in challenges at the operational level:

KEY FINDINGS Fragility as a Factor in Portfolio Performance Fragility, caused mainly by security challenges and a volatile political context, is a dominating factor in Afghanistan. As such fragility is accepted as a basic assumption and as defining for the context in which the Bank operates, and presents significant challenges to the WBG operations in Afghanistan both at the strategic and practical operational level. The CPPR 2014 does not set out to examine strategic level challenges. The question of how fragility at the strategic level impacts the WBG program in Afghanistan and how it is best approached and risks mitigated will be better dealt with in the upcoming SCD and followed by the CPF. The CPPR 2014 instead deals with the risks and challenges at the operational level. There are indeed multiple examples of how fragility impacts and poses a risk at the operational level, but most of the operational risks and challenges are rather the results of low capacity: Low capacity to manage HR

a) A lack of data is both impacted by low capacity in implementing line ministries but also to a large extent a challenging security situation which makes data collection a difficult exercise. Constrained access to data

The ARTF Scorecard is a comprehensive performance and results reporting tool. It uses an integrated results and performance framework, which is organized in a four pillar structure that groups indicators along the results chain. The four Pillars together provide an assessment of whether the ARTF as a multi-donor trust fund is functioning efficiently in the Afghan context and the portfolio is meeting its objectives and producing results. 2

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Country Portf ol io Perf orm ance Re vie w

negatively impacts project monitoring and reporting on the project results framework designed. This risk must be mitigated during the project design phase by ensuring that teams design simple results framework, limiting the number of indicators used, with a 75% output and 25% outcome level indicators, recognizing the challenges in collecting outcome and impact data. The team should also carry out a comprehensive assessment of available data sources that can be used across the portfolio to strengthen results monitoring and reporting ; and B) Supervision: Security also hampers access to the field which affects the Bank’s ability to properly supervise its projects: The security situation and the remoteness of many provinces in Afghanistan pose significant challenges for task teams to visit the field and undertake supervision of projects and meet beneficiaries. Following the 2013 PPR, a Supervision Strategy was developed to map various supervision approaches available to the teams, propose new areas for further exploration and develop a “supervision complexity matrix” that, based on individual project analysis, outlined a differentiated approach to allocating supervision budgets to projects in the portfolio. Considering the challenging situation in Afghanistan, there is, however, a continued need to ensure efficient use of available resources and creative approaches to supervision using ICT, remote monitoring etc. The following actions were agreed during this year’s CPPR: A new World Bank facility was opened in early March 2014 in Mazar-e-Sharif in northern Afghanistan to improve Bank staff’s access to the field in an area of the country where security is relatively better; Task Teams are required to include in

24

the concept note a “Supervision Complexity Matrix”, developed during last year’s PPR, and a detailed supervision plan; A Supervision Toolbox will be prepared outlining flexible approaches for improving project supervision; The ARTF Supervisory Agent is analyzing the security incidents over the last 12 months within a 200 KM distance from Mazar and Kabul to inform field visit planning; Staff will be trained on the use of the Supervisory Agent database to ensure it is used more efficiently in project supervision.

Risk and Quality Issues Low capacity is a common feature impacting portfolio performance in Afghanistan and often poses a significant risk to project preparation and implementation, fiduciary aspects and safeguards management. The 2012/2013 PPR introduced several actions to improve mitigation of risks caused by low capacity issues. One important initiative was the introduction of a more consistent use of PPAs (IDA financed) and project preparation grants (ARTF financed) to allow the Government the necessary time and resources to do solid project preparation, thereby ensuring project readiness at the time of approval. This initiative has already had an impact on the performance of new projects being approved with higher disbursement rates during the first 12 months as an outcome. However, more work was needed to better understand the risks facing the portfolio. Thus following up on the main risk themes identified during the 2012/2013 PPR, the CPPR 2014 carried out significant analysis to better understand the

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main risks and propose actions to mitigate these risks and address cross-cutting issues impacting the portfolio performance. The following lists some of the main findings and results coming out of the CPPR 2014: A) HR Practices, including Gender: In a low capacity environment like Afghanistan HR practices in implementing agencies are often weak and impacts the efficiency of project implementation, including recruitment processes, women in the work place, etc. As a follow-up to the 2012/2013 PPR an HR guidance note was prepared and shared with MoF and implementing ministries to ensure a comprehensive approach to benefits, rules and regulations were enforced across the Bank portfolio. While this initiative has started to address the issue, further action was needed, in particular to strengthen dissemination and communication to line ministries on the agreements outlined in the HR Guidance Note and ensure a clear delineation of responsibilities within Government when implementing the agreements made. In addition, translation of the guidance note into local languages is required and the note should be further strengthened to reflect several issues identified on gender during this CPPR. Also, since institutional capacity is critical to project implementation and HR practices are continuously identified as a weak area in need of attention, there is clearly a need in a low capacity setting like Afghanistan to more consistently do HR and institutional capacity assessments at the time of project design to address these weaknesses, alongside existing procurement and FM assessments. B) Sustainable Salary Scales in the Public Sector: A fragile state like Afghanistan is

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often marked by a distorted labor market affecting salary scales and undermining government’s ability to attract skilled employment on sustainable government salaries. In Afghanistan this situation has played out over the last decade with many donor agencies paying out salaries for national technical assistance well above a sustainable level. From the work in Afghanistan it is clear that the Bank can play a decisive role within this area, convening donors around a common agenda and take the lead on implementing a streamlined approach to start addressing this critical area. Following up on the findings and agreements made during last year’s PPR, the Bank made a strong push towards implementing a comprehensive salary scale, aligned with government salary scales across all IDA and ARTF financed projects, together with aligning HR guidelines across projects to ensure harmonization of HR practices and improved salary. A new salary scale was agreed with MoF for implementation under all World Bank financed projects and applied to all new contracts processed after March 31, 2013. Results are encouraging but further work is needed, including compliance with salary scales by other donors to avoid a (continued) distortion of the labor market. In continued support of the harmonization agenda a number of new recommendations and follow-up actions were agreed as part of the CPPR 2014. C) Financial Management: The Afghanistan portfolio continues to face challenges in disbursements, which is partly caused by issues in the allotment process. The allotment and budget processes are characterized low capacity and a lack of will for executing authority seen in long processing times and an extensive number of signatories (in

practice many more than required). The inefficiencies in the processes are partly due to capacity issues and partly due to attitude of staff who perform control functions. A Bank is working closely with MoF, who is taking a strong lead to address inefficiencies in the process. A Bank review identified a number of actions to further strengthen the allotment and budget processes, including: FM team to prepare a set of realistic recommendations on more efficient allotment/disbursement processes. FM to continue facilitation with line ministries and consider possible incentive structure based on performance indicators for specific control functions to speed up the processes. MoF’s Budget Department to prepare clear procedures and establish an electronic tracking system in Treasury and the Budget Department. FM Team in consultation with MoF, to develop a communication strategy to improve communications between MoF and the line ministries. MoF to clarify role of Controllers and ensure it is aligned with their mandates. D) Procurement: Though progress is being made in streamlining procurement processes, it continues to cause delays in implementation and disbursements. First, a major improvement over the past year was rationalizing the issuance of NOLs for staff and consultants numbering nearly 2000 hired by projects. This action enabled PIUs to hire people faster and Bank freed up time of its procurement staff time for more critical issues. Second, the recent increase in threshold values should also help in expediting procurement tasks in projects. Various factors were identified and based on

analysis and recommendations, the following actions were agreed: The PSM and Procurement Teams will work with the Attorney General’s Office to address/clarify their mandate, and agree on a common procurement protocol outlining the role of oversight agencies in procurement processes; Procurement Team to coordinate workshops/training for Bank and project staff on procurement processes and systems, including the use of SEPA. CMU to appoint specific ACS staff to enter contracts information (form 384) in the Bank’s system. Procurement Team with support from CMU to initiate migration of procurement functions from PMUs/PIUs to line ministry departments. Procurement Team to report on application of framework contracts in Afghanistan. E) Safeguards: The prevailing high security conditions, restricting Bank staff from travelling to project sites and interacting with people affected by projects and other stakeholders, present challenges for social and environmental safeguards, which at its core protects project affected communities and their environment from potentially adverse project impacts. In addition, low capacity in the line ministries challenges their ability to work efficiently with the Bank’s safeguards framework. The CPPR 2014 carried out a safeguards review and a number of actions have been proposed to mitigate the risks of low safeguard capacity, including: Develop sectoral standardized/harmonized ESMFs, thereby reducing the number of ESMF’s in the country, to be used by all development partners; Continued capacity building/training of

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Country Portf ol io Perf orm ance Re vie w

implementing agencies, and in situations where communities have responsibilities for the EA process, better and more focused approaches to increase ownership; Continued efforts of capacity building of government staff to manage land issues in projects, ranging from voluntary donations to full land acquisition and resettlement; Continued focus on developing adequate and project specific grievance redress mechanism across the portfolio.

Room for Efficiency Gains The CPPR 2014 identified a number of areas in the Bank’s project and portfolio management that could be further improved to ensure efficiency gains. Most of these findings were focused around internal processes. Actions were identified within a number of areas that will help ensure improved quality of the portfolio and strengthened project performance. These include: A) Challenges: A potential disconnect was identified between the high disbursement rates of the portfolio and the increase in problem projects (from 18% in December 2012 to 39% at the end of December 2013). While improved candor in reporting and entrance of new projects in challenging but critical sectors such as justice and civil service reform can help explain the increase, the apparent disconnect between high disbursement rates on the one hand and the increasing number of problems project on the other is puzzling. In addition to the increase in problem projects, a recent review carried out by SARDE on the Afghanistan portfolio effectiveness and performance indicates that there is a sharp decline in exit

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ratings of projects in the IEG evaluation of ICR outcome ratings. While the overall Afghanistan portfolio performance is good, it is of course important to understand the underlying cause of the potential disconnect between the ratings, especially given that this declining trend is at odds with other key indicators in the Afghanistan portfolio. Identifying the reasons why ICR ratings are declining could help better understand the increase in problem projects and improve portfolio performance going forward, and reverse the declining trend in this area. To better understand the underlying causes and to address them, the CMU will work with SARDE to carry out an in-depth analysis of all ICRs done in the last 5 fiscal years to help better manage results and improve development effectiveness in terms of achieving satisfactory outcome ratings. Also, to improve the portfolio risk tracking, the CMU is developing a new tracking tool for Afghanistan, “A-RISK” to pull together key indicators for each project in the portfolio and assign points in accordance with performance and risks. This will provide an overview of project risks and aggregated portfolio level risk for continuous tracking; B) Quality at Entry: Readiness filters -Teams prepare and agree upon Project Operations Manual and procurement plan, with realistic implementation periods and disbursement schedules; M&E Systems and capacity is in place (appropriate project staff identified, and if possible appointed) by Negotiations; C) Implementation Support: Management attention—CMU/SMs/TTLs monitor basic indicators to detect implementation problems early to address them early and plan MTRs early and QERs for MTRs to assess progress and ensure commitment from government;

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Improve quality standards of ISRs and AMs —with DO/IP ratings supported by evidence on actual progress on component’s implementation, disbursements, and results; D) Use of legal covenants: comparative analysis was carried out of the use of legal covenants across the active projects in the portfolio to identify discrepancies and agree on best practices for use of legal covenants going forward. Based on this analysis, the following actions were agreed: The use of Operations Manuals/Project Implementation Manual to be determined at concept stage; For implementation: (i) Finalize fiduciary arrangements as a condition for negotiation; and (ii) Legal covenants established to support critical actions, and are clearly defined with realistic deadlines, as applicable (as a dated covenant or condition of disbursement).

Involvement of the Country Team The Country Portfolio Performance Review process builds on an inclusive process that has drawn in the entire Afghanistan Country Team. The process has exemplified that this is necessary to come up with results and actions that will address risks and challenges at the project level, and in the end ensure improved project, and thereby portfolio performance. While the 2012/2013 PPR was structured around sector discussions between the CMU, the individual sector and the fiduciary and safeguards team, and provided important insights on individual project and sector performance, the thematic approach chosen for the CPPR 2014 brought the entire

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country team together, across sectors, which elevated the level of quality in discussions and agreements made. The involvement of the entire Country Team will continue during the implementation phase of the CPPR 2014 action plan. The biweekly Senior Operations Group (SOG) meetings will provide the main forum for continued discussions, oversight and follow-up on agreed actions. The SOG meetings have been increased to include all operational staff, in Kabul, Dubai and Delhi, to ensure broad-based and inclusive discussions.

Client Relationship On the Client side a close relationship with MoF is critical. While many actions in the CPPR 2014 action plan are internally fo-

cused on Bank processes and necessary efficiency gains, ownership and buy in from MoF is decisive to implement the actions focusing on government systems. The Bank relies on country systems to prepare, implement and monitor projects, and strong country ownership is therefore the basis for strong portfolio performance. A strong relationship to MoF also facilitates solid and candid discussions on government constraints, which in turn adds realism to the Bank’s assessments and action plans, and allows the Bank to better support Government. Within Government, MoF needs strong and proactive relationship with the various line ministries to enable clear communication and efficient processing. During the 2012/2013 PPR, MoF took the lead on the

discussions with select line ministries on the PPR findings and recommendations, and led the process of following-up on agreements made, in particular on problem projects. This model will be followed in the CPPR 2014.

Donor Communication Operating in a context like Afghanistan, where a large share of the Bank program is financed by a multi-donor trust fund, requires careful donor management and communication. The Bank has built a strong governance structure under the ARTF and applied increasing transparency on risks and challenges to the portfolio, both at the strategic and the operational level. This is mainly done through regular meetings in

ISSUE

QUESTION

PLANNED ANALYSIS

Potential disconnect between IEG and ICR ratings

A recent review carried out by SARDE on the Afghanistan portfolio effectiveness and performance indicates that there is a sharp decline in exit ratings of projects in the IEG evaluation of ICR outcome ratings. While the overall Afghanistan portfolio performance is good, it is important to understand the underlying cause of the potential disconnect between the ratings, especially given that this trend is at odds with the broader Bank-wide findings that portfolio performance in FCS tend to outperform the rest of the Bank countries. Identifying the reasons why ICR ratings might be declining could potentially also help better understand the increase in problem projects and thereby help improve portfolio performance going forward and reverse the declining trend in this area.

The CMU will work with SARDE to carry out an in-depth analysis of all ICRs done in the last 5 fiscal years to help better manage results and improve development effectiveness in terms of achieving satisfactory outcome ratings. The review will feed into the continued CPPR process.

Different implementation models and Bank instruments in the portfolio

Following up on the CPPR a review of the use of different implementation models in Afghanistan will be initiated to assess how different implementation models support institutional capacity building in a fragile state. Different aspects should be covered: • Focus on how the PforR instrument can support institutional impact as important input on how capacity is built in fragile states. • Different PIU models have different pros and cons, especially associated with sustainable institutional capacity building and efficient service delivery.

The first PforR is planned for delivery in FY15 (Rural Water and Sanitation). As part of project preparation and implementation the CMU will collect lessons learned and assess how the PforR instrument can support institutional capacity building. The assessment will also draw together broader lessons from the Afghanistan portfolio on the use of different implementation models and use of PIUs, focusing on the questions of sustainable institutional capacity building and service delivery.

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the ARTF Strategy Group, where various portfolio related issues are tabled for discussion throughout the year to ensure donors are properly informed to engage in the annual dialogue with MoF and the Bank on the ARTF Financing Strategy. Transparency and accountability has also been further strengthened through written reporting. Latest, to strengthen results tracking and reporting mechanisms under the ARTF, the new ARTF Scorecard was launched, the first of its kind to track and report results on trust fund implementation within the World Bank. The Scorecard is a comprehensive performance and results reporting tool conveying ARTF achievements in the context of Afghanistan along four different pillars: National level outcomes, ARTF portfolio output and outcomes, operational effectiveness and trust fund effectiveness in the Afghan context. Such open communication with donors on program risks and challenges is key to managing expectations and ensure continued support for the trust fund agenda. It does, however, require that donors are realistic and ready to accept a certain level of risk in a challenging operating environment like Afghanistan.

Continued Learning Continued learning is critical and especially in a fragile state like Afghanistan, where the operating context is highly volatile and the Bank needs to continually adapt to a changing environment to remain efficient and gain results. Following the guidelines for the new Country Results and Learning review, the CPPR 2014 report includes a number of boxes on “learning”, i.e. issues that might be of relevance to other country teams dealing with issues of low capacity

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and fragility, including use of PforRs, PIUs, results management, HR, fiduciary matters and safeguards. Looking forward, a number of issues have been identified for further analysis. While the CPPR 2014 focuses on achieving a more detailed understanding of the main risks facing the portfolio, the process recognized a number of issues that will need further investigation and analysis in order to identify actions for the longer term that will further strengthen the portfolio quality and impact. The following issues have been identified for this purpose:

Engagement with Government Following the three month long diagnostic internal meetings, a meeting was set up with Ministry of Finance (MoF) to brief them on the findings of the CPPR and agree on next steps and actions. Following the initial meeting MoF set up a 3-hour long meeting with line ministries to discuss and get their input. Due to intense discussions at the first meeting a second 3-hour meeting was set up to finalize the discussions. The meetings saw participation from the line ministries at the level of deputy ministers and program managers and key staff, as well as Ministry of Finance Director Generals and World Bank operations staff. The meetings were chaired by the Deputy Minister of Finance Mustafa Mastoor. At the meetings the World Bank delivered a presentation of the main findings and recommendations coming out of the CPPR. The agenda for discussion was centered on 5 key issues: Resolving implementation bottlenecks; Delays in the allotment process; The role of financial controllers;

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Procurement; HR guidelines and CBR salary scales; and Safeguards. The dialogue across partner ministries with the leadership of deputy ministers and inclusion of staff at all levels and from various technical departments resulted in substantive and extremely candid conversations. Problems and challenges were tabled, best practices discussed and recommendations and solutions were put forward. Several problems were solved during the meetings and subsequently an action plan was developed, outlining necessary actions, sequencing and focal points, to resolve bottlenecks. Since the high-level engagement proved to have such significant impact, it has been agreed to hold a follow-up meeting within two months, in late July 2014, to review progress against the agreed actions.

C OUNTR Y P ORT F OLIO P ER F ORMAN C E REVIE W

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BINDING CONSTR A INTS TO SERVICE DEL IVERY

Binding Constraints to Service Delivery

Improving Public Services in Afghanistan’s Transformational Decade This section identifies critical administrative constraints in three key sectors of public service delivery, education, health and agricultural extension. The analysis follows the service delivery chain from central to provincial, through district to community level, and is particularly concerned to examine service delivery in these three sectors through the prism of sub-national governance and its relations to the service delivery mandates of line ministries. The key findings are based on existing literature and reports as well as field visits to 5 provinces and 10 districts carried out in the second half of 2013.

MAIN FINDINGS A significant extension of basic services has taken place in Afghanistan since 2001. Services, in particular health and education, are being delivered to even remote communities across the country. The way in which public services are delivered, in terms of administrative arrangements vary, both within and between sectors. These include ‘off budget’ arrangements implemented directly by NGOs and donors with often little connection to government ministries and policies, as well as ‘on budget’ flagship national programs, such as EQUIP and BPHS in the education and health sectors respectively, that have been primarily responsible

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for the wide extension of basic services achieved over the last decade. These programs are being implemented both through contracting NGOs and directly by government. Different modalities for service delivery have strengths and weaknesses. For example, the majority of public health services are provided by contracted NGOs. Most recurrent costs (e.g. salaries) in the public health sector are covered by the development budget and are mostly funded by donors. As such, most public health service providers are not considered regular civil servants. This contrasts with the bulk of public education expenditures, which are covered by the operating budget and largely funded by government revenue, and where teachers are considered public servants. An obvious strength of the contracted out modality of health service provision is that NGOs can pay higher salaries to their staff, as they are not bound by government pay scales. At the same time, they are not directly subject to government administrative processes and bureaucracy. Relations tend to be directly with the central Ministry of Health by-passing the Provincial Health Departments. This contrasts with the provision of education services where Provincial Education departments have much greater responsibility for service provision. The implications of these different modalities are wide ranging. Evidence in this

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report suggest that the contracting out of services directly to service providers in the health sector allows for more effective service provision without necessitating capacity development of sub-national staff or intervention of sub-national entities. Yet, at the same time, accountability tends to be shifted outwards and upwards to the Grants Management Unit of the central Ministry rather than to local bodies and sub-national units. This contrasts with the education sector, where accountability rests largely within the community and to provincial departments of education. These contrasting modalities therefore have very different implication for sub-national governance. In the one, sub-national government is almost an irrelevance and in the other intrinsic to its success. This raises issues with respect to state building. If services can be delivered effectively, outside the sub-national framework, then what is the service delivery rationale of greater delegation of budget and planning to sub-national entities? This may be relevant where service delivery is “contracted in” by the state but becomes more attenuated when services are ‘contracted out’. These questions are important to pose, and arise directly out of the evidence in this report. To answer the question satisfactorily we need additional information about the relevance of other factors, e.g. the question of state le-

BINDING CONSTR A INTS TO SERVICE DEL IVERY

gitimacy, of cost, and access, and whether a “mixed modality” approach to service delivery interventions is sensible to spread risk. A BPHS approach is clearly vulnerable to withdrawal of NGOs and of donors’ resources in general as it assumes the availability of resources and contracting agencies. At the same time the Ministry of Education has the burden of having to pay an ever increasing number of teachers at the same time as domestic revenues are falling. In respect of agricultural extension there is no allencompassing vision but rather a patchwork of interventions, some “contracted in” and others “contracted out”. Given that Afghanistan’s public expenditure requirements far exceed its public revenue—against the backdrop of declining donor resources—the government will need to decide what is the most costeffective way of delivering services across different sectors that achieves the ends it is looking for, and, in particular, the tradeoff between building capacity within government to deliver services itself or contracting out services to NGOs and the private sector. Clearly, in the immediate aftermath of conflict when there is little capacity in government to deliver services, contracting out these services and using parallel systems may make eminent sense. But 12 years on the balance of argument may be different. This report offers only a partial set of answers to these questions, but the evidence certainly points to the strength of the contracting out modality (at least in the example of the health sector) in terms of achieving desirable outcomes.3 What is clear however is that by strengthening sub-national government we are not necessarily strengthening service delivery-how

sub-national governance interacts with service delivery depends largely on its mode of delivery. Public sector regulation has been significantly strengthened in recent years. Legislation has improved regarding sub-national roles and responsibilities e.g. the provincial council law, and public financial management e.g. the procurement law. However, considerable ambiguity in the de jure public service delivery framework remains. The functional responsibilities assigned to central ministries and provincial administrations are unclear. Provincial line departments exercise a critical role in the service delivery chain of some key sectors, particularly education. However it is unclear if these departments are primarily managed by and accountable to central ministries or provincial level authorities. Furthermore, it is unclear which of the former two has the authority to appoint, evaluate and remove the senior management of the provincial line departments. The gap between de jure regulations and de facto processes across administrative processes is sizeable. In practice, most provincial line departments do not exercise the authority and decision-making powers formally delegated to them. Minor HR and financial management processes cannot be finalized by line departments independently i.e. without the approval of the provincial governor. At the sub-national level, the informal power of the governor over line departments appears to come at the cost of the line ministries.

The report does not go into the relative costs of the different modalities which may be an important factor in determining the most appropriate approach in the future in a more constrained fiscal environment and should be the focus of any future investigation. 3

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M U LT I - S E C T O R A P P R O A C H T O A D D R E S S I N G M A L N U T R I T I O N

Multi-Sector Approach to Addressing MalNutrition in Afghanistan Afghanistan has made impressive progress in recent years in reducing infant mortality (from 165 in 2001 to 74 in 2007-08) and under five mortality (from 257 to 102 over the same period) with the expansion and improvement of health services. Maintaining these rates of reduction, however, will require significant improvements in the nutritional status of mothers and children, rates which have remained relatively static over this period. Stunting—low-height-for age and an indicator of chronic malnutritionlevels in Afghanistan are amongst the highest in the world. Of the children under five, 55% were stunted and 34% underweight, according to the 2004 National Nutrition Survey. This situation is of grave concern given that malnutrition between conception and 24 months of age can cause irreversible damage to health, growth and cognitive development, leading to higher child mortality, lower IQ, lower school achievement, reduced adult productivity and lower earnings.

Main Determinants of Malnutrition There is a consensus among the global nutrition community that the inadequacy of food intake and disease are the immediate determinants of childhood under nutrition, while food insecurity, inadequate care for mothers and children, and insufficient health services/unhealthy environment are the underlying determinants, with a large

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number of factors contributing to these, which vary by setting. A key analysis by the International Food Policy Research Institute (IFPRI) identified the following four determinants of nutritional status as being most critical in Afghanistan: (i) food security and the availability and accessibility of a diet of adequate nutritional quantity and quality; (ii) mother’s education level; (iii) women’s status relative to men, and; (iii) the health and water and sanitation environment. These determinants are similar to those postulated in the 1990s to explain the “South Asian Enigma”—a situation whereby despite impressive progress in many determinants of child nutritional status (and especially economic growth) South Asia’s burden of child malnutrition was much higher than that of Sub-Sahara Africa. The authors attributed this “enigma” to: (a) the incidence of low-birth-rates in SAR due to the poor health and nutritional status of women —in Afghanistan, the prevalence of iron deficiency and anemia amongst pregnant women has been reported to be 65% and 26%, respectively; (b)poor hygiene practices in addition to the poor quality of water and sanitation facilities—57% of the Afghan population use improved source of drinking water, only 29% improved sanitation and 46% practice safe disposal of child feces (Afghanistan Multiple Indicator Cluster Survey 2010; (c) sub-optimal infant and young child feeding practices—54% of Afghan children 0-6 months exclusively breastfed

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and 18% of children 6-23 months were receiving complementary food the minimum number of times (MICS 2010) and; (d) the low social status of women—22% of young women in Afghanistan are literate, 46% of girls are married by 18 years.

A Multi-Sectoral Approach to Addressing Malnutrition in Afghanistan The multi-dimensional nature of the causes of malnutrition in Afghanistan therefore underscores the diversity of actions that are needed across different sectors, ministries and actors in order to address the problem. There is also substantial global evidence which has shown that direct actions to address the immediate determinants of under-nutrition (nutrition-specific) can be further enhanced by actions addressing the more distal or underlying determinants (nutrition-sensitive), which are domains of ministries outside of the health sector, hence, a multi-sectoral approach. Multi-sectoral actions can strengthen nutritional outcomes in three main ways: (a) by accelerating action on determinants of under-nutrition; (b) by integrating nutrition considerations into programs in other sectors which may be substantially larger in scale; and (c) by increasing “policy coherence” through government-wide attention to policies or strategies and trade-offs, which

M U LT I - S E C T O R A P P R O A C H T O A D D R E S S I N G M A L N U T R I T I O N

may have positive or unintended negative consequences on nutrition.

Overall Objective The overall objective of this new approach to the World Bank’s nutrition engagement over the next 5 years in Afghanistan is to enable the Government of Afghanistan to implement a set of specific programmatic actions by key sectors to address maternal and child chronic malnutrition in a coordinated manner. This multi-sectoral approach builds on existing World Bank operations in key sectors as well as the extensive analytical work that has been undertaken (by the Bank and others) in the last four years.

Supporting the Implementation of Nutrition-Specific Interventions through the Health Sector The Bank’s nutrition engagement with the health sector (under the SEHAT Project) supports the implementation of a comprehensive package of evidence-based nutrition-specific interventions (interventions that directly address inadequate dietary intake or disease that is the immediate causes of malnutrition) through Basic Package of Health Services (BPHS) and EPHS. Specific areas of support include to: ensure that mothers are health before they become pregnant and throughout pregnancy; promote Appropriate Infant and Young Child Feeding Practice to ensure; ensure that Infants and young children receive adequate health care to prevent growth faltering resulting from illness and early treatment of acute malnutrition; promote appropriate hygiene practices; ensure young children,

pregnant and lactating women receive nutritious diets, and; strengthening the Ministry’s institutional and human resource capacity to address malnutrition.

Engaging the Food Industry to Fortify Staple Foods with Key Micronutrients Evidence to date indicates that the most cost effective nutrition-related activities in Afghanistan are likely to fall into the category of food fortification. The World Bank’s nutrition-sensitive engagement in this with the agriculture sector will be through the Afghanistan New Market Development Project (ANMDP). Specific areas of support will include: Technical Assistance to initiate substantive dialogue between the various development partners and MoCI and through Operations by making available to SMEs interested in developing new fortified food products, and through ANMDP, matching grants could be provided to SMEs to purchase business development services related to fortification.

Ensuring Access, Availability and Consumption of Balanced Diets through the Agriculture Sector Under the overall goal of the multisector Nutrition Action Framework to reduce malnutrition, the goal of the agricultural sector is to contribute to address chronic malnutrition by improving food access and availability, and dietary diversity with special attention to food insecure households. The World Bank’s nutrition-sensitive engagement in this with the agriculture sector will be through the National Horticulture

and Livestock Project (NHLP). Specific areas of support will include: promoting kitchen and Home Gardens to ensure a wellbalanced and constant supply of vegetables from the home garden will do much to improve household micronutrient supplies; livestock Production and Dairy Promotion to encourage the adoption of small scale livestock—including poultry, promotion of small-scale dairy production for milk, yogurt etc., and behavioral Change and Communication by supporting the development of nutrition training modules to be used during the capacity building sessions of producer groups participating in the project.

Improving Quality of Water and Sanitation to Prevent Childhood Illness and Maximize Utilization of Nutrients The broad goal of including nutrition considerations in this sector is to ensure that infants and young children are not exposed to feces, and that fecal bacteria does not contaminate their food and/or drinking water. Recent medical research has shown that exposure to fecal germs over a long period of time can result in biological changes in the small intestine of young children and which can cause malnutrition, stunting and cognitive deficits, even without necessarily manifesting as diarrhea. The World Bank’s nutrition-sensitive engagement in this sector will be through the Rural Water Supply and Sanitation Project (RWSSP). Additional specific areas of support through this project will include: promotion of hygiene practices; infrastructure (i.e. construction of sanitation facilities to be conditional to also include construction of hand-washing stations), and promotion of water purification

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techniques (such as sand filtration, solar purification and chlorination).

Ministry of Education’s Inputs to the Nutrition Framework The MOE with its large employee base and over 8 million students has the ability to reach into the communities and homes of a large proportion of Afghans. By extending its existing programs and incorporating nutrition, the MOE, working collaboratively with its partners, is likely to have a significant effect on literacy and on improved food intake, water use, sanitation and hygiene leading, in turn, to sustainable nutrition improvement in the country. Hence the World Bank’s major engagement in education will be through the Second Education Quality Improvement Project (EQUIP II). Specific areas of support will include: incorporation of nutrition into curriculum development; development of teaching aids and materials for nutrition teaching; Expansion of teacher training curriculum to include nutrition; installation of basic facilities in schools such as water points, sanitation facilities and hand washing stations; behavioral change communications whereby Students and teachers will be utilized as community change agents.

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T H TE DAoF n Go H rANISTAN AGRI TOR C o n s u l ta t i oCnULTURE s i n O sSE l oC a n d REVIE B r u s sWe l2 s0 1 4

The Afghanistan Agriculture Sector Review 2014 Introduction Economic growth, job creation and development are central to the decade of transformation (2015 – 2025) and longterm security for the people of Afghanistan. According to the World Bank report Transition in Afghanistan: Looking Beyond 2014 (presented at the Tokyo Conference, July 2012), agriculture and mining sector will be the key drivers of growth and poverty reduction during the transformation decade. A large scale Agriculture Sector Review (ASR) was initiated by the World Bank in 2013 with the objective of supporting Government’s efforts to identify policy options and strategies for increasing the agricultural sector’s contribution to inclusive economic growth, job creation and food security. Sustainable agricultural growth can only be achieved by increasing productivity, profitability and competitiveness of key value chains. The ASR, therefore, provides an excellent opportunity for analyzing the critical constraints to sector growth and identifying value chains in which Afghanistan has (existing or potential) comparative advantage. The World Bank is in the process of finalizing the ASR. This brief outlines the key parameters and recommendations of the review.

Context The key challenges facing Afghanistan’s agricultural sector can broadly be categorized as twofold: (i) strategic, and (ii) operational (implementation). The main strategic chal-

lenges in the sector include the following: low food security, volatile agricultural growth due to weather shocks, low non-farm jobs creation, due to poor rural infrastructure and lack of value addition, poor institutional performance, and high food import vulnerability. On the other hand, critical operational/implementation challenges include: limited adsorption capacity in the agricultural sector; lack of alternative project delivery models; poor agricultural sector’s portfolio performance; and low impact of the Bank and other donor funded agricultural projects. The ASR aims to develop a first mover strategy, focusing on an initial thrust on import substitution for priority commodities, with the expectation that the rest of the sector will follow. It is envisaged that this could serve as an initial phase in the national agricultural strategy, providing an early boost to productivity growth, employment and poverty reduction. The study draws heavily on a number of specially commissioned background papers that synthesized the available evidence.

Methodology The ASR adopted a two-phase approach. Phase I consisted of: (a) technical studies on key sub-sectors (irrigated wheat, intensive livestock and horticulture) to understand their structure, performance, constraints and potential for future development, jobs creation potential and food security; and (b)

review of cross-cutting issues facing the agricultural sector. The task team used primarily agricultural data available in public domain from related government ministries and agencies, FAO, the Bank, donor agencies, academic and research institutions, NGOs/CBOs, and other stakeholders in its analyses. Open dialogue with key informants from the public and private sectors, civil society, and the donor community helped to generate data and information required to determine the existing structure, performance, constraints and potential for the future development of the Afghanistan’s agricultural sector.

Recommendations There are two important characteristics of Afghan agriculture that need to be taken into account in developing an agricultural strategy. Afghan agriculture is spatially diverse in terms of crop and livestock systems, access to agriculture infrastructure and services, as well as level of security and conflict and the extent of competition from illicit opium poppy cultivation. A second important source of diversity arises at the farm household level in that a relatively small number of medium and larger sized farms control most of the land and water resources and provide most of the marketed surpluses which feed the urban population, while a much larger number of small farm households are primarily subsistence oriented and operate small plots of mostly rain-fed land

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and/or keep traditional livestock in order to meet their own food needs. Given such farm level differences, the first mover strategy proposed based on the review has two pillars. The first pillar is the commercial development of selected value chains, targeting commercially oriented farms that can be linked to these chains on a business basis. The second pillar of the strategy needs to cater to the food security and livelihood needs of the remaining farm population. Such interventions need to be coordinated with other forms of household and community assistance, such as drought management, community development programs (e.g. the National Solidarity Program), social protection programs (e.g. the Safety Nets Program), settlement programs for nomadic people, alternative livelihood programs in opium poppy areas, and support for non-farm sources of income (e.g. the Afghanistan Rural Enterprise Development Project) and migration, which may be much more effective than agricultural investments on their own. The study finds that the most promising opportunities for “first movers” lie with irrigated wheat, horticulture (defined here as fruits, nuts and vegetables), and intensive livestock production (milk, eggs and poultry meat). Estimates developed for this sector review suggest that with the right mix of policies and investments, these three subsectors could more than double agricultural GDP over the next 10 years. The study provides more detailed recommendations and policy priorities in the following areas:

Countering opium poppy production; Expanding agro industrial capacity; Expanding irrigated area; Agricultural research; Extension services; Regulating agricultural inputs; Land policy; Rural finance; Women in agriculture, and; Addressing the needs of the poor. The full review and its recommendations will be shared with Government and donors and will serve to inform future discussions on priorities for ARTF financing in the agriculture sector.

Increasing irrigated wheat production; Increasing intensive livestock production; Increasing horticulture production;

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D ONOR C ONSULTATIONS IN OSLO AN D BRUSSELS

Donor Consultations in Oslo and Brussels In February 2014, at the request of donors, a team of Bank staff traveled to Oslo and Brussels to meet with donor representatives from the capital headquarters in an effort to better inform the capitals on the workings and accomplishments of the ARTF. The meetings proved both informative and constructive for donors as well as the Bank team. The discussions provided the capitals an opportunity to better understand the ARTF and engage with the Bank on critical questions regarding programming, key aspects of the ARTF, and Afghanistan’s broader economic issues. From the Bank perspective, it was an invaluable opportunity to get better acquainted with the key issues of importance to donors and assess how the Bank can more effectively communicate with capitals to ensure continued support for the ARTF. At the first stop, Oslo hosted representatives from Norway, Sweden, Denmark, Finland and Holland, tabling numerous issues. Particular attention was awarded to the topic of gender. Representatives were appreciative of the strides made on strengthening the gender focus in the portfolio but were eager to see more clarity on the ARTF’s gender approach. Consequently, the ARTF team agreed that a gender briefing note would be developed, outlining key aspects of the ARTF approach to gender. Further items for discussion included general development prospects, demographic and labor market pressures as well as future financing needs. A second round of Oslo meetings were conducted with representatives from the Nor-

wegian Ministry of Foreign Affairs (MoFA) with participants from both the multilateral development and gender department as well as a representative from the Somalia Team. The discussions were centered around critical lessons learned from the ARTF and the applicability to other Trust Funds. The MoFA Somalia team was interested in ensuring that knowledge from the Afghanistan experience would be used to inform the new Somalia trust fund as well as other Bank administered trust funds. After wrapping up the fruitful and collaborative meetings in Oslo, the Bank team continued the European tour, heading on to Brussels for another round of presentations and consultations. Participants included members of the Directorate General for Development and Cooperation – Europe Aid (DEVCO) and External Action Service (EAS) Afghanistan teams as well as representatives from member states and the Afghanistan team in the European Parliament’s permanent secretariat. The meetings were very well timed as the EU was in the process of preparing its next 7-year strategy for Afghanistan. The agricultural sector was strongly emphasized as a pivotal intervention for economic growth in Afghanistan as well as a viable alternative livelihood to counteracting the illicit opium economy. The ARTF team explained that a World Bank agricultural sector review was ongoing and based on the findings and recommendations, due in May 2014, deliberations regarding the ARTF portfolio will be initiated to assess how to better support this critical sector. Furthermore, the

review will also provide a more comprehensive view of the many actors involved and will serve as a platform for broader donor discussion on priorities and improved coordination. The ARTF team was very satisfied with the outcome of the meetings as a means to ensure improved continuity in dialogue with donors and an improved understanding of issues of importance to donor capitals. As a follow-up to the visits in Oslo and Brussels, the Bank is preparing a number of short briefs explaining several key aspects of the ARTF, including its approach to gender, M&E framework, the Incentive Program and fiduciary framework. The briefing notes will be made available to donors in print as well as through the ARTF website. The ARTF team is keen to continue strengthening its dialogue with donors and is interested in visiting other donor capitals to ensure headquarters are engaged in discussions and feel sufficiently informed on ARTFrelated issues.

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

37

A F G H A N I S TA N E C O N O M I C U P D A T E

AFGHANISTAN ECONOMIC UPDATE Economic growth slowed considerably in 2013 despite robust agricultural production as heightened uncertainty surrounding the political and security transition led to a slump in investor and consumer confidence. Agricultural output reached record levels for a second consecutive year in 2013 due to favorable weather conditions, with cereals production increasing 2.7 percent over the bumper crop of 2012. On the other hand, uncertainty surrounding the political and security transition led to a slump in investor and consumer confidence, thus resulting in a sharp slowdown in private investment and growth in the non-agricultural sectors. Economic growth in 2013 is estimated at 3.6 percent, down sharply from strong growth of 14.4 percent in 2012. Uncertainty remains over the security outlook after most international forces withdraw in 2014 and over whether a cohesive and broadly accepted government will take hold within a reasonable period of time following the April 2014 elections. Growth is projected to remain weak in 2014. A smooth political and security transition would help restore confidence in the economy and enable a pickup in growth in 2015. Revenue collection weakened in 2013, while Afghanistan’s large security expenditure obligations and high aid dependence pose the risk of crowding out important civilian operating and development spending. After a decade of strong revenue growth, domestic revenues declined to 9.5 percent of GDP in 2013 from 10.3 percent in 2012 and the peak of 11.6 percent in 2011. In nominal terms, revenues amounted to Afs 109 billion in 2013, almost level with the

38

pro-rated figure for 2012. The decline in revenue collections is a result of the economic slowdown as well as weaknesses in enforcement in both tax and customs administration. In order to preserve fiscal sustainability, a concerted effort will be required going forward to improve revenue mobilization by strengthening tax and customs enforcement and by expediting introduction and implementation of the planned value-added tax. At the same time, given Afghanistan’s extraordinary security expenditure obligations, safeguarding important civilian operating and development expenditures is a priority. As security expenditures have continued to grow, austerity measures in 2013 disproportionately affected civilian expenditures and the 2014 budget projects a considerable further increase in recurrent security expenditures. In spite of the transition-related uncertainty and underperformance, Afghanistan will need to stay focused on its medium term structural reform goals. These include: (i) Ensuring fiscal sustainability by mobilizing revenue, securing grant assistance, and safeguarding non-security expenditures; (ii) supporting inclusive and job-creating private-sector led growth by unlocking the potential of the agriculture, services, and natural resource sectors and by tapping the potential of regional integration; (iii) improving upon the still low levels of human capital and skills; and (iv) continuing to strengthen institutions and governance. Reforms in these areas will be critical to reducing poverty and promoting shared prosperity through sustainable development while helping Afghanistan be-

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

come more self-reliant in the long term.

Recent Economic Developments Economic growth slowed considerably in 2013 due to increased uncertainty, despite robust agricultural output. After rapid growth in 2012, economic growth slowed considerably in 2013 with heightened uncertainty leading to a sharp slowdown in the non-agriculture sectors. Real (non-opium) GDP growth is estimated to have slowed sharply from 14.4 percent in 2012 to 3.6 percent in 2013. Growth in 2012 benefited from an exceptional agricultural harvest and rapid growth in the services sector. While agricultural output in 2013 exceeded even the bumper harvest of 2012, increased uncertainty surrounding the political and security transition has led to a slump in investor and consumer confidence and resulted in a sharp slowdown in the nonagricultural sectors. Agriculture accounts for about a quarter of GDP (excluding opium) and also has strong links to the rest of the economy, so that the robust agricultural output in 2013 would normally have buoyed overall GDP growth. However, with the services and construction sectors particularly hard hit by the slump in confidence, 2013 would mark the first year that a bumper agricultural output has been accompanied by overall GDP growth under 5 percent. Agricultural output in 2013 reached record levels for a second consecutive year as a result of favorable weather conditions. Cereals production in 2013 is estimated at 6.5 million metric tons, an increase by 2.7 per-

A F G H A N I S TA N E C O N O M I C U P D A T E

cent over the previous year and the highest level achieved over the past decade. Wheat production increased by 2.4 percent to 5.2 million metric tons, with both irrigated and rain-fed production increasing further from the surge in 2012 (see Table 4 on the next page). Other cereals such as rice, maize and barley also had higher yield compared to previous year. Given favorable precipitation particularly for the second harvest season in

the year, the Ministry of Agriculture, Irrigation and Livestock (MAIL) also estimates very favorable horticulture—particularly fruits— and livestock output in 2013. While the record agriculture output in 2013 helped to counterbalance the overall confidence shock to the economy, it was up only modestly over the bumper harvest of 2012 and was thus not sufficient to fully circumvent the overall slowdown in GDP growth (see Figure 7).

Private investment and growth in construction, manufacturing, and services slowed considerably in 2013 due to increased uncertainty. Heightened uncertainty about the political and security transition affected investor decisions to commit resources in Afghanistan in 2013. The number of new firm registrations fell sharply in 2013 to its lowest level in five years, with a reduction in both local and foreign new fixed

FIGURE 6: growth of real gdp and sectors (in percent) 45

Real GDP growth Agriculture Growth Services growth Industries

Percent

30 15 0 -15

Source: Central Statistics Organization (CSO)

2013p

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

-30

FIGURE 7: Sector Contributions to GDP Growth, 2005-13 (in percent) 25.0

Agriculture Industries Services

20.0

10.0 5.0

Source: CSO and Bank staff estimates

0.0 -5.0

2013p

2012

2011

2010

2009

2008

2007

2006

-10.0 2005

Percent

15.0

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

39

A F G H A N I S TA N E C O N O M I C U P D A T E

Table 4: Cereals production in the past 5 years (thousand metric tons) 2009 WHEAT

2010

5,115

2011

4,532

3,388

2013

2012 5,050

5,169

Irrigated

3,433

3,082

3,067

3,460

3,518

Rainfed

1,682

1,450

321

1,590

1,651

OTHER CEREALS

1,218

1,056

1,056

1,286

1,338

TOTAL CEREALS

6,333

5,588

4,444

6,336

6,507

Source: Agriculture Prospects Report, MAIL

7,000 6,000 5,000 4,000 3,000 2,000 1,000

Foreign investments

Source: Afghanistan Investment Support Agency (AISA)

FIGURE 9: NUMBER OF NEW FIRMS REGISTERED IN 2012 AND 2013 BY SECTORS 6,000

Services Construction Industries Agriculture

5,000 4,000

2,715

3,000 2,000 1,000

1,857 1,759 899 536

725 95

76 2013

2012 A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

Source: AISA

2013

2012

2011

2010

2009

2008

Domestic investments

-

40

2007

2006

2005

2004

investments (Figure 8). The Afghanistan Investment Support Agency (AISA) registered approximately 3,100 enterprises in 2013, down 38 percent from around 5,000 in 2012. The reduction in new firm registrations in 2013 has taken place across all sectors, with construction and services particularly hard hit (Figure 9). Although no high-frequency data are available on firm inventories and gross fixed capital formation, new firm registrations should be a relatively good proxy for business confidence and investment activity in the private sector. Decisions to establish new fixed investments in Afghanistan or to expand existing investments, horizontally (expanding existing products) or vertically (investing in the supply chain), are highly sensitive to confidence in market conditions and the political environment. The number of new firm registrations would particularly reflect new fixed investments and vertical investments in the economy. Though this is a not a perfect proxy for level of economic activity, it can fairly reflect the level of confidence of both local and foreign investors.

FIGURE 8: NEW FIRM REGISTRATIONS SINCE 2003, BY SOURCE OF INVESTMENT

A F G H A N I S TA N E C O N O M I C U P D A T E

Food price increases exceeded non-food increases in the second half of 2013, in contrast to the first half of the year. The increase in food prices (year-on-year) was 9.8 percent in December 2013, up from 4.4 percent in December 2012. On the other hand, the increase in non-food prices moderated to

4.8 percent from 7.4 percent over the same period (see Figure 11). Looking at the food basket, prices of cereals rose by around 13 percent, while prices of fresh and dried fruits declined due to favorable horticulture output in 2013. Among non-food items, the prices of communication services have constantly

Inflation has remained in single digits throughout 2013.

Figure 10: HEADLINE AND CORE INFLATION

Percent (Y-o-Y Growth)

50.0 40.0 30.0 20.0 10.0 0.0 10.0 Jun-13

Nov-12

Apr-12

Sep-11

Feb-11

Jul-10

Dec-09

Oct-08

May-09

Mar-08

Aug-07

Jan-07

Jun-06

Nov-05

Apr-05

20.0

Core (excl fuel & cereals)

Headline Source: CSO and Bank staff calculations

FIGURE 11: HEADLINE, FOOD AND NON-FOOD CONSUMER PRICES INFLATION Consumer Prices Inflation 14.0 Percent (Y-o-Y Growth)

12.0 10.0 8.0 6.0 4.0 2.0

Headline

Food

Dec-13

Oct-13

Aug-13

Jun-13

Apr-13

Feb-13

Dec-12

Oct-12

Aug-12

Jun-12

0.0 Apr-12

Both opium production and area under poppy cultivation increased considerably in 2013, although this is not reflected in estimated non-opium GDP growth figures for 2013. According to UNODC data, opium production increased by almost 50 percent to 5,500 tons in 2013, while the total area under poppy cultivation expanded by 36 percent to 209,000 hectares Opium production in 2013 appears to have recovered from the decline in 2012 triggered by adverse weather and disease. While the total value of opium production at farm-gate prices remained at about 4 percent of GDP (or $950 million) in 2013 due to a decline in the farm-gate price, the export value of opiates (including drugs) increased from 11 percent of GDP in 2012 to 15 percent of GDP—or $3.1 billion—in 2013. The UNODC estimates that the net value of the domestic market for opiates is far smaller, worth approximately 1 percent of GDP or $200 million, compared to the net export value of opiates which is around $2.9 billion. Despite substantial financial flows from opium production, analysis suggests that the contribution of opium to economic growth in the past ten years has been minimal, although it is likely to be an important source of livelihood for a segment of the rural population. Consumer prices inflation remained below 10 percent throughout the year. Periodaverage headline inflation increased slightly to 7.7 percent in 2013, up from 6.3 percent in previous year, but remained in single digits throughout the year. Further, as shown in Figure 10, Afghanistan has enjoyed a period of relative price stability in the last two years compared to the fluctuations and acute swings in prices which occurred during and after the 2008 world commodity price crises.

Non-food

Source: CSO

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

41

A F G H A N I S TA N E C O N O M I C U P D A T E

decreased as a result of declining costs for internet services and increased competition between GSM service providers. After a decade of strong revenue growth, domestic revenue collection weakened in 2012 and further in 2013. Domestic revenues declined to 9.5 percent of GDP in 2013 down from 10.3 percent in 2012 and 11.6 percent in 2011 (Figure 12). In nominal

terms, domestic revenues amounted to Afs 109 billion ($1.9 billion) in 2013 compared to the 12-month pro-rated figure of Afs 109 billion ($2.1 billion) in 2012. Both tax revenues and customs duties—which make up 48 percent and 26 percent respectively of all revenues—declined as a share of GDP (see Figure 13). More specifically, income tax and sales tax revenues—which together repre-

sent 32 percent of revenues—decreased even in nominal terms, by 8.2 percent and 10.4 percent, respectively. Furthermore, non-tax revenues (mostly income from capital property and sales of goods and services) also declined as a share of GDP.

Revenue collection weakened in 2013, while large security expenditure obligations and high aid dependence risk crowding out important civilian operating and development spending.

2.5 2.0 1.5 1.0

Billion US$

14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

0.5

in percent of GDP

2013

2012-12

2011

2010

2009

2008

2007

2006

2005

2004

2003

Percent

Figure 12: DOMESTIC REVENUE PERFORMANCE SINCE 2003

in nominal values

Source: AFMIS and MoF

Figure 13: DOMESTIC REVENUES IN 2012 AND 2013 (in percent of gdp) 12.0

Percent of GDP

10.0 8.0

2.7

2.5

2.7

1.0

1.9

1.6

2.0

1.7

-

1.0

1.4 1.0

2.5

2013

2012

6.0

Other taxes Non-tax revenues Customs duties Sales tax Income tax Fixed taxes

Source: AFMIS

42

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

A F G H A N I S TA N E C O N O M I C U P D A T E

The decline in revenue collections is a result of the economic slowdown as well as weaknesses in enforcement in both tax and customs administration. While the economic slowdown in 2013 is part of the explanation, weaknesses in enforcement and leakages are also part of the problem, particularly given that the decline in collections began in 2012 when economic growth was very strong. Increased uncertainty around the political and security transition has likely encouraged greater rent seeking and tax evasion activity. Further, a shift in the structure of imports—away from luxury

and other higher tariff items toward lower tariff items, in part due to the economic slowdown—is also likely to have impacted customs revenues. An analysis of the figures suggests that part of the decline in customs revenues can be attributed to lower imports of fuel, vehicles, and other high-tariff items. The Ministry of Finance introduced a number of measures in 2013 to stabilize revenues, reduce leakages, and improve administration. These measures included the implementation of a computerized risk management module, improving procedures for random post-verification of examination,

introducing post-clearance audits, salary incentives for detection of non-compliance, and an increase in fuel valuation at customs. While the immediate effects of these measures have been modest to date, they have likely prevented an accelerated decline. Furthermore, the authorities have submitted a Tax Administration Law to parliament to enhance and strengthen procedures in tax offices for small, medium and large tax payers. The law details all requirements and procedures in regard to tax payments, documentation, dispute resolution, and tax penalties.

Figure 14: total budget expenditures, 2006-13 6.0

Non-discretionary development

Billion US$

5.0 4.0

Discretionary development

3.0

Recurrent— civilian

2.0

Recurrent— security

1.0

Public expenditures increased only very modestly in 2013 to 24.2 percent of GDP, with austerity measures particularly affecting civilian recurrent and discretionary development spending. Afghanistan’s

2013

2011

2012-12

Source: AFMIS

2010

2009

2008

2007

2006

-

medium term fiscal framework is one where total budget spending is projected to rise over time as more off-budget spending (currently estimated to be as large as budget spending) comes on budget.4 In 2013,

however, total budget spending increased only very modestly to 24.2 percent of GDP ($5 billion) from 23.8 percent ($4.9 billion) in 2012. This is considerably lower than the previously projected budget spending of

4 The gradual move of off-budget spending into the budget is part of a medium term policy framework where Afghanistan’s public expenditure obligations are being consolidated within the budget. The World Bank’s analysis also indicates that on-budgeting of expenditures enhances their effectiveness and impact on economic growth and thus helps balance the medium term drawdown in aid.

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

43

A F G H A N I S TA N E C O N O M I C U P D A T E

Figure 15: CORE EXPENITURES BY SECTORAL SHARES, 2012 AND 2013 (PERCENT OF GDP) 30.0

Economic Governance & PSD Social Protection Agriculture & Rural Development Health Education Infrastructure & Natural Resources Governance Security

Percent of GDP

25.0 20.0 15.0

2.2

2.2

3.5

3.6

3.3

2.8

10.4

11.5

10.0 5.0 -

Source: AFMIS

2013

44

to 14.9 percent in 2013. As Figure 13 shows, the financing gap for core budget has widened considerably since 2011, both due to the on-budgeting of off-budget spending (as expected), but also due to weakness in domestic revenue collection.

2012

Figure 16: FINANCING GAP AND DOMESTIC FINANCING FOR TOTAL CORE EXPENDITURES 30.0 Percent of GDP

25.0 20.0 15.0 10.0 5.0

Financing gap

2013

2012-12

2011

Domestically-financed expenditures

Source: AFMIS and Bank staff calculations

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

2010

2009

2008

2007

2006

26.7 percent of GDP for 2013 and is a result of austerity measures put in place given the weak revenue collection and overall lower discretionary resources. The austerity measures have particularly affected civilian recurrent and discretionary development spending. Civilian recurrent spending declined to 6.6 percent of GDP in 2013 from 6.8 percent in 2012, whereas recurrent security spending increased to 10.7 percent of GDP in 2013 from 10.3 percent in 2012. Discretionary development spending declined by 0.2 percent of GDP in 2013, while non-discretionary development spending increased by 0.5 percent of GDP. Afghanistan’s large security expenditure obligations pose the risk of crowding out important civilian operating and development spending. With more security spending moving on budget, on-budget security expenditures increased to 11.5 percent of GDP in 2013 from 10.4 percent in 2012. Civilian expenditures, on the other hand, declined to 12.8 percent of GDP in 2013 from 13.4 percent in 2012, as the government tightened public spending following the mid-year review of the budget. Spending on sectors such as education, health, and agriculture & rural development increased modestly or held steady, while lower spending on infrastructure and economic governance accounted for most of the decline in civilian expenditures in 2013 (see Figure 15). While the grant share of budget financing is normally projected to rise due to the on-budgeting of off-budget spending, the decline in revenues has exacerbated this trend. Revenues financed 55 percent of recurrent expenditures and 39 percent of total core expenditures in 2013, while these ratios were respectively 60 percent and 43 percent a year earlier. As a result, the financing gap increased from 13.5 percent of GDP in 2012

A F G H A N I S TA N E C O N O M I C U P D A T E

THE AFGHAN ECONOMY AT A GLANCE ...due to lower investment in non-agricultural sectors. Source: Central Statistics Organization (CSO)

45.0

15.0 0.0 -15.0

4,000 3,000 2,000 1,000

Real GDP growth

Agriculture growth

Services growth

Industries growth

2012

60.0

85.0

57.5

80.0

55.0

70.0

50.0

Oct-13

Jul-13

Apr-13

Apr-05 Nov-05 Jun-06 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13

...and the financing gap has increased.

in nominal values

15.0 10.0 5.0

Financing gap

2012-12

2011

2010

2009

-

2013

20.0

2008

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-12 2013

-

25.0

2007

0.5

Percent of GDP

1.0

Billion US$

1.5

Source: AFMIS and MoF

2.0

Source: AFMIS and Bank staff calculations

30.0

2.5

in percent of GDP

Euro (right axis)

USD (left axis)

Core inflation (excl. fuel & cereals)

14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

Jan-13

60.0 Oct-12

45.0 Jul-12

65.0 Apr-12

47.5

Domestic revenues have declined since 2001,

Percent

75.0

52.5

Jan-12

Source: CSO and Bank staff calculations

50.0 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0

Headline

2013

...the exchange rate has constantly depreciated.

While inflation has been low and stable in 2013, Percent (Y-o-Y Growth)

5,000

2013p

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

-30.0

Services Construction Industries Agriculture

2006

Percent

30.0

6,000

Source: AISA

Growth declined in 2013…

Domestically-financed expenditures

A R T F M I D - Y E A R R e p o rt | D e c em b er 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

45

ANNEX 1 : STATUS O F ART F INVESTMENT P ORT F OLIO

ANNEX 1: STATUS OF ARTF INVESTMENT PORTFOLIO Status and Ratings of Active and Disbursing ARTF Investment Projects (Amounts in US$ million) Approved Grant Amount

Amount Disbursed

Amount Available

Start Date

Closing Date

Achievement of Grant Objectives

Implementation

Second Public Financial Management Reform Project - TF010024

73.00

41.99

31.01

09-Aug-11

31-Dec-14

MS

MS

Capacity Building for Results Facility Project (CBR) - TF011447

100.00

33.56

66.44

21-Jan-12

31-Dec-17

MU

MS

Irrigation Restoration and Development Project TF012029

48.40

10.18

38.22

14-Mar-12

31-Dec-17

S

MS

Justice Service Delivery Project - TF012533

40.00

8.71

31.29

31-May-12

01-Jun-17

MU

MU

Afghanistan Rural Access Project (ARAP) TF013093

107.00

13.47

93.53

15-Sep-12

31-Mar-18

S

S

National Horticulture and Livestock Project TF013820

50.00

15.13

34.87

22-Dec-12

31-Dec-18

S

S

Kabul Municipal Development ProgramPPG - TF014211

5.00

2.86

2.14

10-Mar-13

31-May-14

-

-

Afghanistan Resource Corridors Project TF014845

2.70

0.94

1.76

29-May-13

31-Dec-13

-

-

Naghlu Hydropower Rehabilitation Project PPG - TF014861

4.97

1.00

3.97

24-Jun-13

31-Dec-14

-

-

Afghanistan Agricultural Inputs Project - TF015003

74.75

6.17

68.58

30-Jun-13

30-Jun-18

S

MS

System Enhancement for Health in Transition Project (SEHAT) TF015005

100.00

26.59

73.41

06-Oct-13

30-Jun-18

S

MS

46

A R T F M I D - Y E A R R e p o rt | D e c e mb e r 2 2 , 2 0 1 3 – J U N E 2 1, 2 0 14

ANNEX 1 : STATUS O F ART F INVESTMENT P ORT F OLIO

Approved Grant Amount

Amount Disbursed

Amount Disbursed

Start Date

Closing Date

Achievement of Grant Objectives

Implementation

Preparation of Higher Education System Improvement Project TF015577

4.90

2.28

2.62

02-Oct-13

31-Dec-14

-

-

Non Formal Approach to Training, Education and Jobs in Afghanistan TF016354

15.00

1.00

14.00

11-Apr-14

30-Dec-18

-

-

CASA-1000 Community Support Project TF017012

40.00

0.00

40.00

11-Apr-14

30-May-14

-

-

Kabul Municipal Development Program (KMDP) - TF017016

110.00

6.00

104.00

11-Apr-14

31-Dec-19

-

-

Kabul Urban Transport Efficiency Improvement Project (KUTEI) TF017061

90.50

5.00

85.50

11-Apr-14

31-Dec-19

-

-

Power System Development Project TF093513

60.00

46.78

13.22

19-Mar-09

31-Jan-15

S

MS

Skills Development Project - TF093854

18.00

15.68

2.32

14-Apr-09

30-Jun-14

S

S

Second Education Quality Improvement Project TF093962

408.00

234.31

173.69

14-Apr-09

15-Aug-14

MS

MS

Third Emergency National Solidarity Project TF098459

950.00

680.77

269.23

24-Jan-11

30-Sep-15

S

S

On-Farm Water Management Project (OFWM) - TF099074

25.00

14.22

10.78

16-Mar-11

31-Dec-15

MS

MS

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ANNEX 2 : ART F F INAN C IAL TABLES

ANNEX 2: ARTF FINANCIAL TABLES The tables below show the financial situation of ARTF at June 21, 2014. The tables are updated monthly and are available at the ARTF web site: http://www.worldbank.org/artf

48

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48

Table 1 - Actual and Expected Donor Contributions Paid-In, Committed, Pledged (US$ Million) June 21, 2014 SY 1381

SY 1382

SY 1383

SY 1384

SY 1385

SY 1386

SY 1387

SY 1388

SY 1389

SY 1390

FY 1391

FY 1392

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Total Paid-in

Australia

0.00

2.63

6.27

7.65

5.84

2.09

31.44

14.99

28.49

89.47

6.03

62.36

58.14

0.00

0.00

58.14

Bahrain

0.00

0.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Belgium

0.00

0.00

0.00

0.00

0.00

0.00

2.61

2.72

0.00

2.71

0.00

2.60

0.00

2.72

0.00

Donor

Brazil

FY 1393 Signed Un-signed Pledges Pledges

FY 1381-93 FY 1381-93 Total % of Total FY 1393 FY 1393

FY 1381-93 FY 1381-93

Total

% of Total

Total Paid-in

% of Total Paid-in

6.1%

315.41

4.0%

315.41

4.4%

0.0%

0.50

0.0%

0.50

0.0%

2.72

0.3%

13.35

0.2%

10.63

0.1% 0.0%

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

0.20

0.0%

0.20

Canada

12.00

50.09

5.49

72.34

58.86

213.46

22.07

34.22

38.35

49.24

26.08

11.84

18.67

0.00

0.00

18.67

2.0%

612.73

7.8%

612.72

8.5%

Denmark

5.00

5.00

3.16

3.92

4.34

8.43

20.86

10.25

2.03

10.28

11.38

10.70

0.00

6.93

10.94

17.87

1.9%

113.22

1.4%

95.36

1.3%

EC/EU

15.87

52.72

47.60

58.77

52.72

73.62

11.31

14.19

25.52

9.44

34.79

39.55

56.03

0.00

100.04

156.07

16.4%

592.16

7.5%

492.12

6.8%

Estonia

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.29

0.00

1.26

0.00

0.00

0.00

0.00

0.0%

1.56

0.0%

1.56

0.0%

Finland

2.79

2.45

5.95

0.00

2.42

5.40

7.91

8.86

7.82

9.90

11.10

13.30

12.35

0.00

0.00

12.35

1.3%

90.25

1.1%

90.25

1.2%

France

0.00

0.00

0.00

0.00

0.00

0.00

5.13

5.72

5.56

0.00

5.17

5.52

0.00

0.00

17.53

17.53

1.8%

44.63

0.6%

27.09

0.4%

10.07

11.44

15.94

1.23

20.47

55.99

74.00

50.85

64.52

78.40

78.16

55.01

0.00

0.00

81.55

81.55

8.5%

597.64

7.6%

516.09

7.1%

0.20

0.20

0.00

0.40

0.20

0.20

0.19

0.20

0.20

0.00

0.00

0.00

0.00

0.01

0.00

0.01

0.0%

1.80

0.0%

1.79

0.0%

0.00

0.99

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

0.99

0.0%

0.99

0.0%

1.00

1.70

1.81

0.61

1.28

1.46

1.58

2.78

2.54

1.37

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

16.12

0.2%

16.12

0.2%

17.00

0.00

6.54

0.00

9.22

8.80

34.07

4.10

3.89

10.70

3.89

3.60

8.20

0.19

0.00

8.38

0.9%

110.20

1.4%

110.01

1.5%

5.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

20.00

138.00

110.00

70.00

0.00

0.00

70.00

7.3%

343.00

4.4%

343.00

4.7%

Germany India Iran, Islamic Republic of Ireland Italy Japan Korea, Republic of Kuwait

2.00

2.00

2.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

0.00

0.00

0.00

0.00

0.0%

16.00

0.2%

16.00

0.2%

5.00

5.00

5.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

15.00

0.2%

15.00

0.2%

Luxembourg

1.00

0.00

0.00

0.61

1.56

1.07

1.14

1.14

1.11

0.97

0.00

0.67

0.48

0.00

0.00

0.48

0.1%

9.74

0.1%

9.74

0.1%

Netherlands

33.67

41.15

46.41

29.66

50.81

39.76

39.46

41.90

32.66

32.57

32.48

23.78

0.00

0.00

27.18

27.18

2.8%

471.50

6.0%

444.32

6.1%

New Zealand

0.00

0.00

0.00

0.00

0.63

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

0.63

0.0%

0.63

0.0%

Norway

6.82

29.63

9.91

22.54

23.22

30.98

31.47

38.36

47.80

48.57

55.11

51.24

33.45

1.67

0.00

35.12

3.7%

430.77

5.5%

429.10

5.9%

Poland

0.00

0.00

0.00

0.00

0.29

0.27

1.17

1.20

1.00

1.40

1.26

0.59

0.00

0.00

0.00

0.00

0.0%

7.18

0.1%

7.18

0.1%

Portugal Russian Federation Saudi Arabia

0.00

0.46

0.73

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

1.18

0.0%

1.18

0.0%

0.00

0.00

0.00

0.00

0.00

0.00

2.00

2.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

4.00

0.1%

4.00

0.1%

10.00

5.00

5.00

0.00

5.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

25.00

0.3%

25.00

0.3%

Spain

0.00

0.00

0.00

0.00

0.00

22.04

0.00

35.22

27.59

6.64

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

91.50

1.2%

91.50

1.3%

Sweden

3.10

5.98

25.90

12.84

14.68

20.18

18.35

25.35

32.64

28.59

31.49

39.98

0.00

2.97

0.00

2.97

0.3%

262.06

3.3%

259.09

3.6%

Switzerland

0.67

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

0.67

0.0%

0.67

0.0%

Turkey

0.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

0.50

0.0%

0.50

0.0%

UNDP

0.00

2.41

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.0%

2.41

0.0%

2.41

0.0%

15.08

47.10

103.06

131.47

128.49

151.05

162.54

99.05

23.72

132.96

136.02

130.41

0.00

0.00

144.89

144.89

15.2%

1405.84

17.9%

1260.95

17.4%

United Kingdom United States TOTAL

38.00

20.00

89.59

62.00

73.90

0.00

159.50

264.00

265.00

400.00

371.24

218.59

77.23

0.00

223.00

300.23

31.5%

2262.05

28.8%

2039.05

28.2%

184.77

286.46

380.37

404.05

453.92

634.80

626.82

657.29

610.44

933.51

942.20

791.00

334.54

14.49

605.13

954.16

100.0%

7859.791

100.0%

7240.170

100.0%

49

1. Unsigned pledges are recorded based on a communication from the Donor to the ARTF Administrator 2. Signed pledges are commitments recorded based on countersigned legal documents confirming the pledged amount. 3. Paid amounts reflect receipt of funds and conversion to US dollars.

Table 2 (Part 1) - Expressed Donor Preferences By Projects—Paid-In, Committed, Pledged (US$ Million) June 21, 2014 Donor

Curr

Program

50 United States

USD

SY 1381

SY 1382

SY 1383

SY 1384

SY 1385

SY 1386

SY 1387

SY 1388

SY 1389

SY 1390

FY 1391

FY 1392

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

FY 1393 Pledged Own Curr.

FY 1381-93

Paid-in

US$ Est. Own Curr.

Total US$

FY 1393

Expressed Of which Preference

Paid-in

Afghanistan Resource Corridors Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.00

4.00

4.00

4.00

4.00

Total Afghanistan Resource Corridors Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.00

4.00

4.00

4.00

4.00 8.66

EC/EU

EUR

Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.35

1.80

1.73

0.00

0.00

0.00

0.57

0.78

0.78

8.66

Finland

EUR

Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.47

2.77

3.32

0.00

0.00

0.00

0.00

0.00

8.57

8.57

United Kingdom GBP

Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

13.10

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

13.10

13.10

Sweden

Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.98

2.86

3.00

0.00

20.00

2.97

0.00

0.00

2.97

11.81

8.83

Total Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

20.43

7.14

7.50

3.32

20.00

2.97

0.57

0.78

3.75

42.15

39.17 36.52

SEK

EC/EU

EUR

Capacity Building for Results Facility Project (CBR)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

25.70

0.00

0.00

0.00

7.95

10.82

10.82

36.52

Italy

EUR

Capacity Building for Results Facility Project (CBR)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.30

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.30

1.30

Japan

USD

Capacity Building for Results Facility Project (CBR)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

40.00

20.00

0.00

0.00

0.00

0.00

0.00

60.00

60.00

Total Capacity Building for Results Facility Project (CBR)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.30

65.70

20.00

7.95

10.81

0.00

0.00

10.81

97.80

86.99

Norway

NOK

Civil Service Capacity Building Project

0.00

0.00

2.92

3.10

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.02

6.02

United States

USD

Civil Service Capacity Building Project

0.00

0.00

4.30

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.30

4.30

Total Civil Service Capacity Building Project

0.00

0.00

7.22

3.10

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.32

10.32 11.97

Australia

AUD

Community Recovery

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.94

0.00

6.03

0.00

0.00

0.00

0.00

0.00

0.00

11.97

Finland

EUR

Community Recovery

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.47

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.47

2.47

United States

USD

Community Recovery

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

50.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

50.00

50.00

Total Community Recovery

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

55.94

2.47

6.03

0.00

0.00

0.00

0.00

0.00

0.00

64.45

64.45

Australia

AUD

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

7.62

1.78

2.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

12.10

12.10

Canada

CAD

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

29.80

0.00

9.29

23.15

4.91

10.04

11.84

0.00

0.00

0.00

0.00

0.00

89.02

89.02

Estonia

EUR

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.34

0.00

0.00

0.00

0.00

0.00

0.34

0.34

Finland

EUR

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.25

3.09

3.09

3.09

3.09

Germany

EUR

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

15.72

13.69

24.11

26.13

26.05

0.00

20.00

27.18

0.00

0.00

27.18

132.88

105.70

Italy

EUR

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.60

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.60

2.60

Spain

EUR

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.11

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.11

2.11

Norway

NOK

Education - EQUIP

0.00

0.00

4.61

0.00

0.00

5.13

0.00

8.45

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18.19

18.19

Sweden

SEK

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.03

4.29

6.00

6.11

0.00

0.00

0.00

0.00

0.00

19.43

19.43

Netherlands

USD

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

4.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.00

4.00

United States

USD

Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

12.00

0.00

0.00

0.00

30.00

50.00

0.00

0.00

0.00

0.00

0.00

92.00

92.00

Total Education - EQUIP

0.00

0.00

4.61

0.00

0.00

38.93

35.34

35.34

52.97

37.92

72.09

68.28

20.00

27.18

2.25

3.09

30.27

375.75

348.56

Canada

CAD

Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

3.53

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.53

3.53

United Kingdom GBP

Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

1.98

4.16

0.00

4.55

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.69

10.69

Japan

Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

0.00

0.00

25.00

25.00

25.00

35.00

35.00

Total Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

5.51

4.16

0.00

4.55

0.00

0.00

10.00

0.00

0.00

25.00

25.00

25.00

49.22

49.22

USD

Denmark

DKK

Irrigation Restoration and Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.83

0.00

0.00

0.00

0.00

0.00

0.00

1.83

1.83

Italy

EUR

Irrigation Restoration and Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.94

0.00

0.00

0.00

0.00

0.00

0.00

1.94

1.94

Total Irrigation Restoration and Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.77

0.00

0.00

0.00

0.00

0.00

0.00

3.77

3.77 4.28

Canada

CAD

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.00

1.28

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.28

Belgium

EUR

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.30

1.00

1.36

0.00

0.00

1.36

2.66

1.30

EC/EU

EUR

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.19

0.00

0.00

0.00

0.00

0.00

0.00

9.88

13.34

13.34

27.54

27.54

Ireland

EUR

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.62

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.62

0.62

Italy

EUR

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

14.79

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.79

14.79

United Kingdom GBP

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

4.90

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.90

4.90

Norway

NOK

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

2.10

2.32

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.42

4.42

United States

USD

Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.50

1.50

Total Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

21.79

21.01

1.28

0.62

0.00

1.30

1.00

1.36

9.88

13.34

14.70

60.71

59.35

Table 2 (Part 2) - Expressed Donor Preferences By Projects—Paid-In, Committed, Pledged (US$ Million) June 21, 2014 Donor

Curr

Program

SY 1381

SY 1382

SY 1383

SY 1384

SY 1385

SY 1386

SY 1387

SY 1388

SY 1389

SY 1390

FY 1391

FY 1392

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

FY 1393 Pledged Own Curr.

FY 1381-93

Paid-in

US$ Est. Own Curr.

US$

Total

Expressed

Of which

FY 1392

Preference

Paid-in

United Kingdom

GBP

Management Capacity Program

0.00

0.00

0.00

0.00

0.00

0.00

7.39

0.00

1.52

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.90

8.90

United States

USD

Management Capacity Program

0.00

0.00

0.00

0.00

0.00

0.00

1.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.00

1.00

Total Management Capacity Program

0.00

0.00

0.00

0.00

0.00

0.00

8.39

0.00

1.52

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9.90

9.90

Australia

AUD

Microfinance for Poverty Reduction Project

0.00

0.00

0.00

0.00

0.78

1.04

4.76

1.43

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.01

8.01

Canada

CAD

Microfinance for Poverty Reduction Project

0.00

4.71

5.49

12.85

24.16

38.83

5.41

4.47

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

95.93

95.93

Denmark

DKK

Microfinance for Poverty Reduction Project

0.00

0.00

0.00

1.63

2.11

1.47

6.40

3.03

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.63

14.63

Finland

EUR

Microfinance for Poverty Reduction Project

0.00

0.00

0.00

0.00

0.00

1.37

2.22

2.22

2.93

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.73

8.73

United Kingdom

GBP

Microfinance for Poverty Reduction Project

0.00

0.00

3.78

14.54

9.31

9.85

27.45

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

64.93

64.93

Sweden

SEK

Microfinance for Poverty Reduction Project

0.00

0.00

2.22

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.22

2.22

Netherlands

USD

Microfinance for Poverty Reduction Project

0.00

0.00

0.00

0.00

0.00

2.50

0.00

5.30

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.80

7.80

United States

USD

Microfinance for Poverty Reduction Project

0.00

0.00

5.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.00

5.00

Total Microfinance for Poverty Reduction Project

0.00

4.71

16.49

29.01

36.37

55.05

46.25

16.44

2.93

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

207.26

207.26 6.26

Australia

AUD

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.78

0.00

4.76

0.71

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.26

Canada

CAD

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

1.28

3.36

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.64

4.64

EC/EU

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

11.31

0.00

2.79

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.11

14.11

Spain

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.45

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.45

8.45

United Kingdom

GBP

National Emergency Rural Access Project

0.00

0.00

0.00

18.24

13.91

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

32.15

32.15

United States

USD

National Emergency Rural Access Project

0.00

0.00

0.00

2.00

0.00

0.00

21.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

23.00

23.00

Australia

AUD

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.72

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.72

2.72

EC/EU

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.71

3.61

3.46

0.00

0.00

0.00

1.15

1.56

1.56

17.34

17.34

Germany

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.74

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.74

6.74

Italy

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.46

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.46

1.46

Spain

EUR

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.80

3.32

0.00

0.00

0.00

0.00

0.00

0.00

0.00

8.12

8.12

Japan

USD

National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

10.00

Total National Emergency Rural Access Project

0.00

0.00

0.00

20.24

15.96

3.36

37.08

9.17

25.75

18.39

3.46

0.00

0.00

0.00

1.15

1.56

1.56

134.98

134.98

Australia

AUD

National Solidarity Project

0.00

0.00

0.00

0.00

0.78

0.00

9.53

1.43

2.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.42

14.42

Canada

CAD

National Solidarity Project

0.00

10.98

0.00

14.34

17.83

77.24

9.99

8.05

8.95

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

147.39

147.39

Denmark

DKK

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

3.66

0.00

0.00

0.00

0.00

4.35

3.28

25.00

4.56

0.00

0.00

4.56

15.85

11.30

Belgium

EUR

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

1.30

1.36

0.00

1.35

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.01

4.01

EC/EU

EUR

National Solidarity Project

0.00

0.00

9.69

21.57

13.18

22.08

0.00

0.00

9.67

4.03

3.90

0.00

89.50

121.65

3.18

4.38

126.02

210.14

88.49

Finland

EUR

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

1.37

1.74

2.22

2.93

2.47

2.77

3.32

0.00

0.00

2.25

3.09

3.09

19.92

19.92

Germany

EUR

National Solidarity Project

0.00

0.00

6.13

0.00

0.00

22.40

23.31

14.86

13.47

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

80.17

80.17

Italy

EUR

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.46

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.46

1.46

Spain

EUR

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.04

2.74

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9.79

9.79

United Kingdom

GBP

National Solidarity Project

0.00

5.72

0.00

16.39

9.31

30.25

0.00

0.00

4.55

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

66.24

66.24

Norway

NOK

National Solidarity Project

0.00

0.00

0.00

3.10

9.02

10.73

4.26

4.74

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

31.85

31.85

Sweden

SEK

National Solidarity Project

0.00

0.00

0.00

0.00

3.67

5.24

5.84

6.85

4.39

4.29

4.50

9.32

0.00

0.00

0.00

0.00

0.00

44.10

44.10

Japan

USD

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

44.00

25.00

0.00

0.00

0.00

0.00

0.00

69.00

69.00

United Kingdom

USD

National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

13.44

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

13.44

13.44

United States

USD

National Solidarity Project

0.00

0.00

10.00

0.00

25.00

0.00

65.00

160.00

180.00

250.00

175.00

0.00

0.00

0.00

0.00

0.00

0.00

865.00

865.00

Total National Solidarity Project

0.00

16.71

25.83

55.40

78.79

172.96

134.43

206.55

229.41

263.60

234.53

40.93

114.50

126.21

5.43

7.46

133.67

1592.78

1466.58

51

52

Table 2 (Part 3) - Expressed Donor Preferences By Projects—Paid-In, Committed, Pledged (US$ Million) June 21, 2014 Donor

Curr

Program

SY 1381

SY 1382

SY 1383

SY 1384

SY 1385

SY 1386

SY 1387

SY 1388

SY 1389

SY 1390

FY 1391

FY 1392

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

Paid-in

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

FY 1393 Pledged Own

FY 1381-93

Paid-in

US$ Est. Own Curr.

US$

Total

Expressed

Of which

FY 1393

Preference

Paid-in

Curr. France France Germany

EUR EUR EUR

On-Farm Water Management Project (OFWM)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.59

0.00

0.00

0.00

0.00

0.00

0.00

2.59

2.59

Total On-Farm Water Management Project (OFWM)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.59

0.00

0.00

0.00

0.00

0.00

0.00

2.59

2.59

Power System Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.86

2.78

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.64

5.64

Total Power System Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.86

2.78

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.64

5.64

Private Sector Development

0.00

0.00

0.00

0.00

3.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.20

3.20

Total Private Sector Development

0.00

0.00

0.00

0.00

3.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.20

3.20

Norway

NOK

Rural Water Supply and Sanitation Project

0.00

0.00

0.92

2.33

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.25

3.25

United States

USD

Rural Water Supply and Sanitation Project

0.00

0.00

0.00

0.00

0.00

0.00

0.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.50

0.50

Total Rural Water Supply and Sanitation Project

0.00

0.00

0.92

2.33

0.00

0.00

0.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.75

3.75 1.23

Denmark

DKK

Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.23

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.23

Poland

PLN

Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.63

0.00

0.00

0.00

0.00

0.00

0.00

0.63

0.63

Japan

USD

Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

10.00

10.00

10.00

10.00

United States

USD

Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.00

0.00

0.00

0.00

0.00

0.00

6.00

6.00

Total Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.23

0.63

6.00

0.00

0.00

10.00

10.00

10.00

17.86

17.86 6.67

Norway

NOK

Skills Development Project

0.00

0.00

0.00

0.00

0.00

0.00

2.80

3.87

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.67

United States

USD

Skills Development Project

0.00

0.00

0.00

0.00

0.00

0.00

3.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.00

3.00

Total Skills Development Project

0.00

0.00

0.00

0.00

0.00

0.00

5.80

3.87

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9.67

9.67

Australia

AUD

Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.78

2.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.47

4.47

Canada

CAD

Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15.02

15.02

EC/EU

EUR

Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

39.55

0.00

0.00

18.45

25.15

25.15

64.70

64.70

Estonia

EUR

Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.13

0.00

0.30

0.00

0.00

0.00

0.00

0.00

0.43

0.43

United States

USD

Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

43.23

43.23

43.23

43.23

43.23

Total Strengthening Health Activities for the Rural Poor (SHARP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.78

2.69

15.14

0.00

39.85

0.00

0.00

43.23

43.23

43.23

102.70

102.70

Strengthening Higher Education Project

0.00

0.00

0.00

0.00

0.00

0.00

1.00

1.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.00

2.00

Total Strengthening Higher Education Project

0.00

0.00

0.00

0.00

0.00

0.00

1.00

1.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.00

2.00

Technical Assistance Feasibility Studies

0.00

0.00

1.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.50

1.50

Total Technical Assistance Feasibility Studies

0.00

0.00

1.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.50

1.50

0.00

21.42

56.56

110.08

134.32

275.81

294.72

298.02

400.25

347.81

396.29

189.69

163.45

168.53

101.50

108.47

277.00

2801.98

2633.45

Russian Federation USD United States Grand Total

USD

Table 3 (Part 1) - ARTF Commitments and Disbursements (US$ million) as of June 21, 2014 Comm Disbursed SY 1381 SY 1381 Year End Year End

Comm SY 1382 Year End

Disbursed SY 1382 Year End

Comm Disbursed Comm Disbursed Comm SY 1383 SY 1383 SY 1384 SY 1384 SY 1385 Year End Year End Year End Year End Year End

Disbursed SY 1385 Year End

Comm Disbursed SY 1386 SY 1386 Year End Year End

Comm SY 1387 Year End

Disbursed SY 1387 Year End

Comm SY 1388 Year End

Disbursed Comm Disbursed Comm Disbursed Comm SY 1388 SY 1389 SY 1389 SY1390 SY 1390 FY1391 Year End Year End Year End Year End Year End Year End

Disbursed FY 1391 Year End

Comm FY1392 Year End

Disbursed FY 1392 Year End

Comm YTD FY1393

Disbursed FY 1381-93 YTD Total FY 1393 Committed (g)

21-Jun-14 Total Disbursed (h)

Current Month Disbursed

54.10

TF050577 - Recurrent & Capital Costs Component Wages

40.95

145.77

179.32

174.21

216.20

203.00

276.74

148.31

281.90

176.64

225.00

201.60

129.10

2398.74

O&M

13.65

51.16

55.28

79.04

84.01

87.55

33.32

73.11

54.78

0.00

0.00

54.50

0.00

586.41

0.00

0.77

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.77

0.00

Debt Service, IMF Debt Service, IDA

2.77

3.87

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.64

0.00

Debt Service, ADB

0.00

0.56

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.56

0.00

Bulk Contracts Disbursements(A) Special Account(Opening) Balance (B) Loan Account commitments and disbursements (C) Updated Special Account Balance * TF050578 - Monitoring Agent [2] TF010186 - Investment Window Monitoring Agent Subtotal Monitoring Agents [2]

1.07

12.78

0.56

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.41

0.00

59.21

214.14

235.16

253.25

300.21

290.55

310.06

221.42

336.68

176.64

225.00

256.10

129.10

3007.52

54.10

0.00 155.00

51.50

110.71 195.00 51.50

213.25

50.60 258.00

234.55

50.60

50.00 280.00

50.00

253.25

50.00 299.00

50.00

300.21

50.00 286.00

50.00

290.55

50.00 316.00

50.00

310.06

50.00 290.00

50.00

50.00

221.42 216.25 50.00

336.68

50.00 202.07

50.00

50.00

176.64 225.00 50.00

225.00

50.00 322.00

50.00

256.10

50.00 30.00

50.00

129.10

50.00 3074.32

50.00

3057.52

54.10

50.00

2.00 0.00

0.67 0.00

0.78 0.00

1.41 0.00

2.31 0.00

2.64 0.00

4.64 0.00

2.16 0.00

7.00 0.00

2.53 0.00

3.50 0.00

4.80 0.00

3.14 0.00

2.84 0.00

3.00 0.00

2.39 0.00

0.00 0.00

3.32 0.00

4.17 8.00

4.32 3.51

0.00 23.30

1.92 8.47

3.50 0.00

1.82 10.85

3.50 0.00

0.24 4.16

37.54 31.30

31.06 26.99

0.00 1.56

2.00

0.67

0.78

1.41

2.31

2.64

4.64

2.16

7.00

2.53

3.50

4.80

3.14

2.84

3.00

2.39

0.00

3.32

12.17

7.82

23.30

10.39

3.50

12.67

3.50

4.40

68.84

58.04

1.56

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.76

0.00

0.00

1.45

-2.16

-0.85

0.00

0.00

0.60

0.60

0.00

TF013393 - Afghanistan Second Skills Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.50

0.00

0.00

0.44

-0.01

0.06

0.49

0.49

0.00

TF050855 - UNDP Police Pr. 1 & 2

4.84

4.84

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.84

4.84

0.00

TF050970 - Technical Assistance Feasibility Studies

0.00

0.00

8.00

2.52

6.00

3.88

4.50

2.91

0.00

3.28

0.00

3.02

0.00

1.29

0.00

0.09

-1.53

-0.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

16.97

16.97

0.00

TF050973 - National Emergency Employment Program

0.00

0.00

16.62

8.31

0.00

8.31

20.20

0.00

16.00

20.20

0.00

15.12

0.00

0.88

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

52.82

52.82

0.00

TF052081 - Microfinance for Poverty Reduction

0.00

0.00

1.00

0.36

0.00

0.34

0.00

0.31

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.00

1.00

0.00

TF052366 - UNDP Police 3

0.00

0.00

16.80

16.80

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

16.80

16.80

0.00

TF052452 - Microfinance for Poverty Reduction Project

0.00

0.00

4.00

2.20

12.00

12.64

38.30

21.21

32.00

48.48

33.00

34.22

64.00

24.88

0.00

23.44 -15.36

0.88

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

167.94

167.94

0.00

TF052475 - Telecom & Microwave Link

0.00

0.00

3.00

0.15

3.13

1.03

0.00

3.07

0.00

1.52

-0.12

0.24

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.01

6.01

0.00

TF052482 - Kabul Roads and Water Drainage Systems Project

0.00

0.00

3.00

0.00

0.00

2.91

0.00

0.00

-0.17

-0.11

-0.03

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.80

2.80

0.00

TF052541 - Kabul Power Supply Project

0.00

0.00

7.44

0.00

0.00

2.90

0.00

1.51

0.00

1.40

0.00

1.03

0.00

0.26

-0.01

0.33

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7.43

7.43

0.00

TF052735 - Strengthening the Financial Capacity Project

0.00

0.00

5.10

2.05

0.00

0.26

0.00

1.38

-1.04

0.38

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.06

4.06

0.00

TF053939 - National Solidarity Program - I

0.00

0.00

0.00

0.00

27.00

26.62

70.90

47.58

58.50

82.04

12.29

12.45

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

168.69

168.69

0.00

TF053940 - Civil Service Capacity Building Project

0.00

0.00

0.00

0.00

0.00

0.00

8.00

2.38

5.00

4.24

0.00

4.98

0.00

1.08

0.00

0.31

-0.05

-0.05

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

12.95

12.95

0.00

TF054718 - Rehabilitation of Naghlu Hydropower Plant

0.00

0.00

0.00

0.00

20.00

0.00

0.00

0.00

0.00

0.16

0.00

0.07

0.00

6.05

0.00

2.60

0.00

3.55

0.00

2.84

0.00

0.00

-1.91

2.82

0.00

0.00

18.09

18.09

0.00

TF054729 - Urban Water Supply and Sanitation Project

0.00

0.00

0.00

0.00

20.00

0.00

21.00

3.63

0.00

3.48

0.00

11.51

0.00

4.48

0.00

4.14

0.00

8.80

0.00

4.96

0.00

0.00

0.00

0.00

0.00

0.00

41.00

41.00

0.00

TF054730 - Education - EQUIP

0.00

0.00

0.00

0.00

0.00

0.00

5.00

0.00

0.00

0.49

27.00

6.51

12.00

29.55

0.00

7.45

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

44.00

44.00

0.00

TF055447 - Rural Water Supply and Sanitation Project

0.00

0.00

0.00

0.00

0.00

0.00

5.00

0.00

0.00

0.59

0.00

0.63

2.65

2.05

0.00

2.25

-1.42

0.70

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.23

6.23

0.00

TF090077 - Management Capacity Program

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10.00

0.00

0.00

0.55

5.00

2.76

0.00

4.48

0.00

2.80

-3.89

0.52

0.00

0.00

0.00

0.00

11.11

11.11

0.00

TF090205 - National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

171.50

136.32

178.00

162.39

100.00

120.63

0.00

30.15

0.00

-0.30

-1.55

-1.25

0.00

0.00

0.00

0.00

447.95

447.95

0.00

TF091120 - Kabul-Aybak Mazar-e-Sharif Power Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

57.00

0.00

0.00

14.70

0.00

9.52

0.00

11.49

0.00

7.81

0.00

4.47

-1.58

7.45

0.00

0.00

55.42

55.42

0.00

TF091885 - Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

11.00

1.57

0.00

2.71

23.30

13.41

15.00

14.20

0.00

9.54

-3.25

4.62

0.00

0.00

46.05

46.05

0.00

TF092073 - Kabul Urban Reconstruction Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.60

0.00

0.00

1.14

0.00

1.04

0.00

2.35

0.00

0.82

-0.26

0.00

0.00

0.00

5.34

5.34

0.00

Closed Investment Projects [3] TF011825 - Justice Service Delivery Project - PPG

53

Note: * Includes US $50 million Special Account advance plus adjustment for any timing difference.

54

Table 3 (Part 2) - ARTF Commitments and Disbursements (US$ million) as of June 21, 2014 Comm Disbursed SY 1381 SY 1381 Year End Year End

Comm SY 1382 Year End

Disbursed SY 1382 Year End

Comm Disbursed Comm Disbursed Comm SY 1383 SY 1383 SY 1384 SY 1384 SY 1385 Year End Year End Year End Year End Year End

Disbursed SY 1385 Year End

Comm Disbursed SY 1386 SY 1386 Year End Year End

Comm SY 1387 Year End

Disbursed SY 1387 Year End

Comm SY 1388 Year End

Disbursed Comm Disbursed Comm Disbursed Comm Disbursed Comm Disbursed SY 1388 SY 1389 SY 1389 SY1390 SY 1390 FY 1391 FY 1391 FY 1392 SY 1392 Year End Year End Year End Year End Year End Year End Year End Year End Year End

Comm YTD FY 1393

Disbursed FY1381-93 21-Jun-14 Current YTD Total Total Month FY 1393 Committed Disbursed Disbursed (g) (h)

CLOSED INVESTMENT PROJECTS (continued) TF092160 - Justice Sector Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

27.75

0.40

0.00

3.35

0.00

5.07

-7.00

7.94

-2.70

1.29

0.00

0.00

0.00

0.00

18.05

18.05

0.00

TF092544 - Strengthening Higher Education Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.00

1.00

0.00

0.35

0.00

1.09

0.00

1.09

0.00

0.77

-0.88

-0.17

0.00

0.00

4.12

4.12

0.00

TF093632 - Kabul Urban Roads Improvement Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18.00

0.00

0.00

5.43

0.00

4.25

0.00

4.95

-2.40

0.96

0.00

0.00

0.00

0.00

15.60

15.60

0.00

TF093637 - Water Resources Development Technical Assistance Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.50

1.00

0.00

0.09

0.00

0.07

0.00

0.72

-2.40

1.23

0.00

0.00

3.10

3.10

0.00

TF096362 - Strengthening Health Activities for the Rural Poor (SHARP) TF096991 - On Farm Water Management Project (OFWM-PPG) TF099595 - Improving Agricultural Inputs Delivery system Project TFT00002 - Public Admin Reform

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

22.00

20.89

24.00

5.40

0.00

5.57

0.00

13.96

0.00

0.00

46.00

45.82

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.00

0.40

-0.17

0.43

0.00

0.00

0.00

0.00

0.00

0.00

0.83

0.83

0. 00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.40

0.50

0.00

0.73

0.00

0.75

-0.44

-0.02

1.96

1.96

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Subtotal Closed Investment Projects [3]

4.84

4.84

64.96

32.39

88.13

58.87

172.90

83.97

110.29

166.14

310.64

226.11

324.00

251.13

110.49

187.50

27.94

106.24

36.99

25.58 -12.43

30.23

-0.44

0.04 1228.26

1228.08

0.00

Current Investment Projects [4] TF000018 - Community Recovery

55.03 -10.04

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

TF010024 - Second Public Financial Management Reform Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

60.00

7.00

13.00

8.89

0.00

17.84

0.00

9.66

73.00

43.39

1.40

TF011447 - Capacity Building for Results Facility Project (CBR)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

100.00

25.00

0.00

0.04

0.00

6.17

0.00

2.77

100.00

33.98

0.42

TF012029 - Irrigation Restoration and Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

48.40

0.00

0.00

2.50

0.00

4.54

0.00

3.15

48.40

10.19

0.01

TF012533 - Justice Service Delivery Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

40.00

5.74

0.00

2.15

0.00

0.82

40.00

8.71

0.00

TF013093 - Afghanistan Rural Access Project (ARAP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 107.00

0.00

0.00

0.00

0.00

14.52

107.00

14.52

1.05

TF013820 - National Horticulture and Livestock Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

50.00

11.59

0.00

6.98

50.00

18.57

3.44

TF014211 - Kabul Municipal Development Program-PPG

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.00

2.86

0.00

0.00

5.00

2.86

0.00

TF014845 - Afghanistan Resource Corridors Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.70

0.60

0.00

0.34

2.70

0.94

0.00

TF014861 - Naghlu Hydropower Rehabilitation Project PPG

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.97

0.00

0.00

1.00

4.97

1.00

0.00

TF015003 - Afghanistan Agricultural Inputs Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

74.75

5.13

0.00

1.13

74.75

6.26

0.09

TF015005 - System Enhancement for Health in Transition Project (SEHAT)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 100.00

15.00

0.00

26.03

100.00

41.03

14.44

TF015577 - Preparation of Higher Education System Improvement Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.90

1.00

0.00

1.44

4.90

2.44

0.16

TF016354 - Non Formal Approach to Training, Education and Jobs in Afghanistan

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15.00

1.00

15.00

1.00

0.00

TF017012 - CASA-1000 Community Support Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

40.00

0.00

40.00

0.00

0.00

TF017016 - Kabul Municipal Development Program (KMDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

110.00

6.00

110.00

6.00

0.00

TF017061 - Kabul Urban Transport Efficiency Improvement Project (KUTEI)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

90.50

5.00

90.50

5.00

0.00

Note: * Includes US $50 million Special Account advance plus adjustment for any timing difference.

Table 3 (Part 3) - ARTF Commitments and Disbursements (US$ million) as of June 21, 2014 Comm Disbursed SY 1381 SY 1381 Year End Year End

Current Investment Projects [4] (continued) TF093513 - Power System Development Project

Comm SY 1382 Year End

Disbursed SY 1382 Year End

Comm Disbursed Comm Disbursed Comm SY 1383 SY 1383 SY 1384 SY 1384 SY 1385 Year End Year End Year End Year End Year End

Disbursed SY 1385 Year End

Comm Disbursed SY 1386 SY 1386 Year End Year End

Comm SY 1387 Year End

Disbursed SY 1387 Year End

Comm SY 1388 Year End

35.00

Disbursed Comm Disbursed Comm Disbursed Comm Disbursed Comm Disbursed SY 1388 SY 1389 SY 1389 SY1390 SY 1390 FY 1391 FY 1391 FY 1392 SY 1392 Year End Year End Year End Year End Year End Year End Year End Year End Year End

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

TF093854 - Skills Development Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9.00

2.51

0.00

5.04

0.00

TF093962 - Second Education Quality Improvement Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

35.00

35.00

50.00

45.86

50.00

TF095297 - National Emergency Rural Access Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

30.00

16.00

50.00

19.16

0.00

TF098045 - Afghanistan Rural Enterprise Development Project (AREDP)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

16.00

0.40

0.00

TF098459 - Third Emergency National Solidarity Project

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 250.00

40.00

100.00

TF099074 - On-Farm Water Management Project (OFWM)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

41.00

TFT00001 - Private Sector Development

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

109.00

58.67 391.00

113.18

399.40

265.59 467.00 231.28 466.55

394.16

580.50

307.91 2413.45

1370.79 117.93

116.22 260.73

247.04

348.44

296.07

457.54

339.37

416.29

468.89

600.14

521.46

643.14

564.03

512.49

469.98 635.19

559.42

650.63

505.09 705.26 492.25 779.61

693.16

613.56

441.45 6784.87

5714.44 173.59

TOTAL COMMIT & DISB. [1+2+3+4]

161.84

Note: * Includes US $50 million Special Account advance plus adjustment for any timing difference.

25.00

2.72

0.00

1.85

0.00

0.86

16.92

0.00

13.41

0.00

Disbursed FY1381-93 21-Jun-14 Current YTD Total Total Month FY 1393 Committed Disbursed Disbursed (g) (h)

0.00

Subtotal Current Investment Projects [4]

5.17

Comm YTD FY 1393

8.10

60.00

48.17

1.38

9.00

0.93

0.00

5.10

0.00

1.39

18.00

15.83

0.15

37.27 148.00

26.69

0.00

60.71

125.00

29.74

408.00

235.27

0.96

22.51

0.00

13.92

0.00

8.41

0.00

0.00

80.00

80.00

0.00

1.60

0.00

0.69

-9.77

3.54

0.00

0.00

6.23

6.23

0.00

165.00 150.00 153.36 250.00

229.30

200.00

185.55

950.00

773.22

92.45

6.82

0.00

3.29

25.00

16.20

1.98

0.00

0.00

0.00

0.00

4.50

0.00

1.60 -16.00

0.00

0.00

0.00

55

Table 4 - ARTF Consolidated Sources Uses of Funds (US$ million) as ofSYJune 2014 SY 1389 SY 1381 SY& 1382 SY 1383 SY 1384 SY 1385 SY 1386 1387 21, SY 1388 SY 1381 Total Actual

SY 1382 Total Actual

SY 1383 Total Actual

SY 1384 Total Actual

SY 1385 Total Actual

SY 1386 Total Actual

SY 1387 Total Actual

SY 1388 Total Actual

SY 1389 Total Actual

SY 1390 SY 1391 SY 1390 Total Actual

FY 1391 Total Actual

FY 1392 Total Actual

FY 1393 Total Actual

SOURCES OF FUNDS (A+B) A. Net Donors Contributions (A1-A2) A.1. Donors Contributions

184.24

284.38

378.77

404.09

460.00

654.25

632.69

653.92

608.48

925.25

928.69

779.93

331.95 334.47

184.77

286.46

380.37

404.05

453.92

634.80

626.82

657.29

610.44

933.51

942.20

791.00

A.2. IDA fees minus Investment Income

0.53

2.08

1.59

-0.04

-6.08

-19.44

-5.88

3.37

2.26

8.26

13.51

11.32

2.51

A.3. Refund of Ineligible Expenditure

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.29

0.00

0.00

0.26

0.00

119.52

155.97

238.07

302.79

293.89

426.68

495.34

679.28

728.33

1148.49

1584.93

1671.70

B. Cash Carried-Over (=D previous year)

USES OF FUNDS (C+D) C. Disbursements (C1+C2+C3+C4) C.1 Recurrent window - Disbursed by DAB

64.72

247.94

296.67

339.37

468.89

521.46

564.03

469.98

559.42

505.09

492.25

693.16

441.45

59.21

214.14

235.16

253.25

300.21

290.55

310.06

221.42

336.68

176.64

225.00

256.10

129.10 129.10

Wages

40.95

145.77

179.32

174.21

216.20

203.00

276.74

148.31

281.90

176.64

225.00

201.60

O&M

13.65

51.16

55.28

79.04

84.01

87.55

33.32

73.11

54.78

0.00

0.00

54.50

0.00

Other

4.60

17.21

0.56

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15.59

58.87

83.97

166.14

226.11

251.13

246.17

219.42

320.63

256.86

424.39

307.95

C.3. Pass-through to LOTFA (UNDP Police)

4.84

16.80

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

C.4. Fees to monitoring agent

0.67

1.41

2.64

2.16

2.53

4.80

2.84

2.39

3.32

7.82

10.39

12.67

4.40

C.2. Investment window

D. Cash Balance (end-of-period) (A+B-C=D1+D2)

119.52

155.97

238.07

302.79

293.89

426.68

495.34

679.28

728.33

1148.49

1584.93

1671.70

1562.21

97.12

109.91

161.68

279.85

227.24

305.93

385.03

427.54

503.31

648.85

861.86

948.32

1120.43

to recurrent window special account

51.50

50.60

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

to recurrent window Trust Fund

44.29

D.1. Committed Cash Balance:

undisbursed investment window balance to Monitoring Agent D.2. Unallocated Cash Balance

56

26.04

49.49

76.24

75.03

70.48

76.42

145.00

24.57

50.00

50.00

115.90

16.80

32.57

61.82

150.75

94.90

179.42

252.29

225.61

425.13

540.90

741.00

770.73

1042.83

1.33

0.70

0.37

2.85

7.32

6.02

6.32

6.93

3.61

7.95

20.86

11.69

10.79

22.40

46.05

76.39

22.94

66.65

120.75

110.31

251.74

225.02

499.64

723.07

723.38

441.78

57

Afghanistan Reconstruction Trust Fund The ARTF was established in 2002 to provide a coordinated financing mechanism for the Government of Afghanistan’s budget and national investment projects. Eleven years later, the ARTF is the largest single source of on-budget financing for Afghanistan’s development. The ARTF remains the vehicle of choice for pooled funding, with low transaction costs, excellent transparency and high accountability, and provides a well-functioning arena for policy debate and consensus creation (External Evaluation 2012 “ARTF at a Cross-Roads”). The ARTF is delivering important results within key sectors including education, health, agriculture, rural development, infrastructure, and governance. It is

World Bank Kabul Office Street 15, House 19 Wazir Akbar Khan Kabul, Islamic Republic of Afghanistan Telephone: 0700-27-60-02 Bob Saum Country Director [email protected] Illango Patchamuthu Operations Manager [email protected] Ditte Fallesen ARTF Coordinator [email protected] Paul Sisk Task Team Leader, Recurrent Cost Financing [email protected] Anantha Krishna Karur Financial Management Analyst [email protected] In Washington DC: Anthony Cholst Country Program Coordinator [email protected] Henriette von Kaltenborn-Stachau Senior Country Officer [email protected]

donor trust fund. As of June 30, 2014,

Marcia Whiskey Senior Country Program Assistant [email protected]

the ARTF has received a total of

All documents are available on

US$7.2 billion from 33 donors.

www.artf.af

also the World Bank’s largest multi-

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