ASIAN DEVELOPMENT BANK

Transcription

1 ASIAN DEVELOPMENT BANK TAR: AFG TECHNICAL ASSISTANCE TO THE ISLAMIC REPUBLIC OF AFGHANISTAN FOR THE SECURITY OF ADB-FINANCED PROJECTS IN AFGHANISTAN June 2004

2 CURRENCY EQUIVALENTS (as of 17 May 2004) Currency Unit afghani/s(af) AF1.00 = $ $1.00 = AF50.35 ABBREVIATIONS ADB Asian Development Bank ADF Asian Development Fund AFRM Afghanistan Resident Mission EIRRP Emergency Infrastructure Rehabilitation and Reconstruction Project EMP Emergency Management Plan ISAF International Security Assistance Force JFPR Japan Fund for Poverty Reduction MOSS Minimum Operating Security Standards NATO North Atlantic Treaty Organization NGO nongovernment organization PRT Provincial Reconstruction Team TA technical assistance TASF Technical Assistance Special Fund UN United Nations NOTES (i) (ii) The Afghan fiscal year (FY) coincides with the Afghan solar year (SY). The current FY, SY 1383, runs from 20 March 2004 until 20 March In this report, $ refers to US dollars. This report was prepared by J. Capdevila.

3 I. INTRODUCTION 1. Since September 2001, Asian Development Bank (ADB) has assumed a key role in the international community s efforts to plan for and assist in Afghanistan s reconstruction, drawing on ADB s experience in providing postconflict assistance in Cambodia, Sri Lanka, Tajikistan, and Timor-Leste. At the Tokyo Conference in January 2002, ADB pledged $500 million in concessional loans and grants by June By April 2004, ADB had approved the delivery of $382.2 million in loans from the Asian Development Fund (ADF) and $26.4 million in grant technical assistance (TA), and was administering $65 million in grant pilot projects. 2. The overall security situation in Afghanistan remains tenuous despite two and a half years of nation building following the ouster of the Taliban in November 2001, and the United Nations (UN) mandated safety precautions remain in place. Donor nations, development organizations, and humanitarian nongovernment organizations (NGOs) are not immune to the vagaries of this environment, or the frustrations generated by public expectations from the international community. Taliban elements are returning to southern provinces in Afghanistan from Pakistan border areas and radical political and religious factions have stepped up their attacks in recent months on international representatives and NGOs. The Government of Afghanistan (Government) is unable to provide sustained security outside the immediate environs of Kabul. 3. In September 2003, a fact-finding mission was fielded to Afghanistan. The mission conducted field visits to Kandahar, Mazar-e-Sharif, and Sheberghan provinces, to review ongoing and planned projects, discuss security arrangements for ADB-financed projects, and meet provincial reconstruction teams (PRT). While the Mission was in Afghanistan, a particularly serious incident occurred on 7 September on the Kabul-Kandahar road near Qalat (in Zabul Province), where the security force protecting the contractor s construction work on the road was attacked by an armed group. Several members of the contractor's Afghan security force were killed in the attack. Given this development, the mission enlisted the assistance of a security coordinator for drafting a security plan for the Kandahar-Spin Boldak road improvement project. The seriousness of the security situation in Afghanistan was again highlighted in a bomb explosion at the Intercontinental Hotel in Kabul on 22 November 2003 involving ADB staff. 4. The heightened security situation in Afghanistan poses unique challenges for implementing of ADB-financed projects, and will require that ADB go to unusual lengths to ensure the security of staff, consultants, and contractors working in the country. Doing so is necessary to comply with UN security guidelines governing the operations of international organizations with presence in Afghanistan. The TA will address these issues by assisting the Government, selected contractors, and consulting firms to plan and implement appropriate security measures. 1 The TA framework is provided in Appendix 1. II. ISSUES 5. ADB Operations in Afghanistan. The objective of ADB s initial strategy and operations in Afghanistan was to help the Government reconstruct and rehabilitate the country and to ensure a smooth transition from humanitarian to reconstruction and development assistance, which is essential to securing peace and stability. ADB s operations in Afghanistan were 1 The TA first appeared in ADB Business Opportunities (Internet edition) on 4 February 2004.

4 2 resumed on 28 May 2002 with the approval of the Initial Country Strategy and Program (ICSP) , which committed $500 million in loans and grants to build capacity, establish appropriate policy and institutional framework, and rehabilitate essential infrastructure. This amount was consistent with ADB s pledge to deliver loan and grant assistance on the order of $500 million over 2½ years made at the Tokyo Conference in January On 3 June 2003, the ADB s Board of Directors endorsed a Country Strategy and Program Update (CSPU) for Afghanistan for , paving the way for delivery of $610 million in assistance over three years including $580 million in ADF and $30 million in TA grants. On 31 March 2004, ADB informed the Berlin Conference that its pledge made at the Tokyo Conference had been fully translated into a comprehensive assistance portfolio of programs and projects, including those to be approved in ADB pledged to consider assistance to Afghanistan during on the order of $800 million in the form of ADF loans and grants, subject to the outcome of ongoing ADF negotiations and the future availability of ADF. It was also mentioned that ADB had identified loan and equity investments of up to $100 million in partnership with local and foreign investors, and guarantees of about $100 million to catalyze private sector investments in Afghanistan. With these initiatives, it is expected that total assistance provided by ADB to Afghanistan would exceed $1 billion during , and $1.5 billion over Many ADB staff, consultants, and contractors are in Afghanistan and more are likely to join them (Appendix 2, ADB s field operations in Afghanistan). TAs use many consultants. Some of the interventions take place in the most difficult areas of the country. This is the case of the Road Employment Project for Settlement and Integration of Returning Refugees and Displaced Persons 4, which is ongoing in the delicate region of Kandahar. The implementation of the social components involving community mobilization, education, health, and microfinance is contracted out to an NGO. 7. For 2004, the most important assistance activity is the Emergency Infrastructure Rehabilitation and Reconstruction Project, 5 which will rehabilitate and reconstruct 447 kilometers of the primary national road network. The project will also repair or rebuild power transmission lines in the northern provinces; the power distribution system in Kabul; and the damaged gas production, transmission, and distribution facilities in Sheberghan, including the natural gas pipeline to Mazar-e-Sharif. There is as well an irrigation component, targeting smaller traditional irrigation schemes. The project will require establishing and securing numerous field work camps. 8. ADB is now processing several projects scattered all over the country, which are for consideration in 2004 and These include an irrigated agriculture development project ($40 million); a power transmission and distribution project ($50 million); a road improvement project ($80 million) that would construct the missing link on the national ring road from Herat to Andkhoy; a road network improvement project to further rehabilitate key roads ($45 million); and one project to rehabilitate regional airports ($30 million), which will cover nine of the 22 domestic and regional airports in Afghanistan. When these projects are approved, ADB will have operations in most of Afghanistan s 32 provinces. 2 ADB Initial Country Strategy and Program ( ): Afghanistan. Manila. 3 ADB Country Strategy and Program Update ( ): Afghanistan. Manila. 4 ADB Proposed Grant Assistance to Afghanistan for Supporting the Road Employment Project for Settlement and Integration of Returning Refugees and Displaced Persons. Manila (approved on 3 October 2002, amounting to a total of $30 million). 5 ADB Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Islamic Transitional State of Afghanistan for Emergency Infrastructure Rehabilitation and Reconstruction Project. Manila (the $150 million Asian Development Fund loan was approved on 3 June 2003).

5 3 9. All operations in Afghanistan face the uncertain security situation linked to smoldering ethnic tensions and the unfolding political process. Through quick impact projects, ADB is contributing to building confidence among people who will have a stake in helping to restore and maintain peace and security. 10. Evolution of the Security Situation. The overall security situation in Afghanistan remains tenuous despite two and a half years of nation building, following the ouster of the Taliban in November Most of Afghanistan continues to be torn by Taliban incursions, factional fighting, and widespread criminality. Taliban elements are returning to southern provinces in Afghanistan from Pakistan border areas, increasing the attacks in the last months on international representatives and NGOs. The UN views Afghanistan as the second most high-risk country, after Iraq, and there are increasing concerns about security threats. The UN has advised that agencies tighten security and increase vigilance. 11. United Nations Cooperation. In April 2002, ADB signed a memorandum of understanding with the UN on coordination of security arrangements. This effectively places all ADB international staff under the security umbrella of the UN at all locations outside of the Philippines. A key aspect of the UN Security Management Network is the Minimum Operating Security Standards (MOSS) program. Under this program, the UN has established minimum standards of security for each of its duty stations. As a member of the UN Security Management Network, ADB is obliged to comply with the UN's MOSS program. 12. Understandably in Afghanistan, the UN has a very robust MOSS program due to the high-risk security environment. It has established a long list of MOSS requirements. ADB is addressing the requirements for its personnel, facilities, and operations in Afghanistan. A number of additional security measures have been strongly recommended by the UN, although they are not mandatory. This includes a recommendation that each international organization under the UN Security Management Network should have a resident security specialist or fulltime contract security director in the country. Most international agencies operating in Afghanistan now hire contract security advisers. 13. ADB senior management recognizes that while the memorandum of understanding with the UN is an important step forward, it does not relieve ADB from its obligation to provide unilateral support for its field missions when called for. 14. In this context, and parallel to the measures described in the present TA proposal, ADB approved for Afghanistan Resident Mission (AFRM) a resident security coordinator. The coordinator will manage and coordinate the overall security and risk management plan, and will be responsible for managing and supervising this TA. III. THE TECHNICAL ASSISTANCE A. Purpose and Output 15. The TA is a response to address effectively the security environment in Afghanistan. The need for the TA was confirmed by the ADB mission in September 2003, the security assessment mission conducted by Facilities Management Division-Security Section (OAFM-SE) in November 2003, and the advisories provided by stakeholders in Afghanistan. The main objective of the TA is to assist the Government to provide security for contractors, consulting

6 4 firms, and NGOs working on projects funded by ADB. The specific objectives are to (i) prepare the security plans for each working site and project financed by ADB, as well as a master emergency management plan (EMP); (ii) assist the contractors and consulting firms implementing the different projects to set up the procedures required by their security plans; and (iii) support ADB s AFRM in coordinating with key agencies and organizations concerning security issues, through ADB AFRM s resident security coordinator. Due to the uncertainty and complexity of the security situation in Afghanistan, follow-up TA may be required. B. Methodology and Key Activities 16. The TA will provide to the Government the expertise for planning and improving the security measures of ADB-financed projects. The TA will provide project security plans and an EMP designed by four individual domestic consultants, and applicable to the work of contractors and consulting firms implementing ADB-financed projects. In addition, it will facilitate coordination among the ADB AFRM security resident coordinator and the Government, UN, and other agencies on security-related matters. 17. The objective of the EMP and the individual security plans will be to provide a safe work environment for on-site personnel assigned by the contractor, subcontractors, and consulting firms. The EMP and the individual security plans will provide the appropriate prevention and reaction measures to cope with theft, terrorism, demonstrations, and related problems. The following security measures will be included in the EMP: (i) protection of camps; (ii) medical evacuation plans; (iii) protection of work sites; (iv) protection of critical infrastructure; (v) patrols; (vi) protection of equipment and nighttime parking areas; (vii) protection of guesthouses; (viii) escorts as required; (ix) security screening of employees for the contractors, subcontractors, and consulting firms; and (x) assistance to develop and implement security contingency plans. The TA consultants will provide guidance to the contractors and consulting firms for implementing the measures described in the security plans. 18. In addition, the TA consultants will provide security-related information and advisories to project personnel; liaise with UN agencies, International Security Assistance Force (ISAF), coalition forces, PRTs and NGOs on security matters; and provide security briefings for contractors, subcontractors, and consulting firm personnel, and the ADB AFRM security resident coordinator, whenever required. C. Cost and Financing 19. The TA is estimated to cost $990,000 and will be financed by ADB on a grant basis from ADB s TA funding program. Cost and financing details are given in Appendix 3. Considering the extremely constrained financial capacity of the Government, its contribution will be waived. D. Implementation Arrangements 20. Afghanistan s Ministry of Finance of Afghanistan will be the executing agency for the TA and ADB will be the implementing agency. The AFRM will be responsible for overall TA administration, with the future ADB AFRM security resident coordinator being the focal person. Because of the multisector implications of the TA, it will be implemented in close consultation with the other South Asia Department (SARD) divisions, which will supervise their sector components of the TA. These are Transportation and Communication Division; the Energy Division; the Agriculture, Environment, and Natural Resources Division; the Governance,

7 5 Finance, and Trade Division; and the Social Sectors Division. AFRM staff will be assisted by assigned staff of the Operations Coordination Division, and others, when necessary. 21. For overall guidance on TA supervision and coordination, a security coordination committee will be established, represented by the deputy minister of the Ministry of Finance as a standing member and the deputy minister of the Ministry of Interior as an alternate member. It is expected that a close consultation with other involved stakeholders present in the field will be forged on security-related matters (mainly with the UN Field Security Office, PRTs, United Nations Assistance Mission in Afghanistan (UNAMA), ISAF, and coalition forces, as required). 22. For security planning and coordination, 96 person-months of domestic consulting services will be engaged under the TA. Four individual domestic consultants will be engaged for 24 person-months each. The four consultants will be managed under direct supervision of AFRM, and by the future ADB AFRM security resident coordinator and designated Afghan Government counterparts. The security experts will prepare security and risk management plans for each of the reconstruction and rehabilitation activities ADB is involved in, and assist in the coordination with the different security personnel from other agencies present in Afghanistan, such as the UN, US Agency for International Development (USAID), ISAF, coalition forces and others. They will participate in the coordination committee meetings and make presentations on findings and recommendations. One domestic consultant will be stationed at the AFRM headquarters, acting as a main focal point. The three remaining domestic consultants will be stationed in Herat, Kandahar, and Mazar-e-Sharif, providing coordination and logistics services. ADB will select the consultants in accordance with ADB s Guidelines on the Use of Consultants, and other arrangements for the selection of domestic consultants acceptable to ADB. Outline terms of reference are provided in Appendix 4. Equipment will be procured in accordance with ADB s Guidelines for Procurement under international procurement standards. 23. The TA will be implemented over 24 months and is expected to start in June 2004 and be completed in June IV. THE PRESIDENT'S DECISION 24. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $990,000 on a grant basis to the Government of Afghanistan for the Security of ADB-Financed Projects in Afghanistan, and hereby reports this action to the Board.

8 6 Appendix 1 TECHNICAL ASSISTANCE FRAMEWORK Design Summary Indicators and Targets Monitoring Mechanisms Assumptions/Risks Goal Assist the Government in enabling the necessary security to the contractors, consulting firms, and personnel working in the projects financed by the Asian Development Bank (ADB). Identification of security needs. Definition of security measures to be implemented by July Institutionalization of the meetings of the security coordination committee. Completion of master emergency management plan by the end of December 2004 and individual project security plans by October Reports of consultants. Security Coordination Committee meetings reports (i.e., summary of proceedings) to be prepared by ADB. Back-to-office reports of ADB consultation missions. Commitment of the Government, project contractors, and consulting firms to enhance security measures. Country security and political conditions. Implementation of the recommendations of the security plans by the end of April Purpose Prepare the necessary security plans for each working site and project financed ADB, as well as a master emergency management plan (EMP). Master EMP completed by the end of December Individual project security plans completed by October Security Coordination Committee meetings reports (i.e., summary of proceedings) to be prepared by ADB. Constraints caused by the political and security situation. Assist the contractors and consulting firms implementing the different projects in setting up the recommendations emanating from their security plans. Support and liaise with ADB s Afghanistan Resident Mission (AFRM) and by extension, the future AFRM security resident coordinator in coordinating with key agencies and organizations present in Afghanistan concerning security issues. Identification of requirements for developing and enabling the implementation of the security plans; facilitation and advice on the acquisition of necessary equipment, recruitment of security personnel, design and construction of security reinforcement measures for work camps and other physical assets; implemented security plans by the end of April Active participation with identified agencies present in Afghanistan in security-related matters. Reports of consultants. High-level participation from participating countries at steering committee and working group meetings. Participation in the security-coordinationrelated bodies; acquisition and sharing of securityrelated Information. Member country and involved contractors and consulting firms to timely implementing the technical assistance (TA) components. Suitability of the United Nations (UN), military international forces, and other organizations to share information.

9 Appendix 1 7 Design Summary Indicators and Targets Monitoring Mechanisms Assumptions/Risks Components/Outputs Master EMP. Individual project security plans. Needs assessment and professional advice for implementing the security plans. Permanent participation at security-related coordination bodies. Completion of project security plans by October 2004 and master EMP by the end of December Implementation of selected project security plans by the end of April Establishment of a regular information sharing scheme with other agencies. Completion of draft final report by June Security Coordination Committee meetings reports (i.e., summary of proceedings) to be prepared by ADB. Report of consultants. Constraints caused by the political and security situation may alter the assessed needs. Member country and involved project contractors and consulting firms implement the TA components in a timely manner. Delay in implementing the suggested measures may incur in serious threat to the normal pace of project implementation. Suitability of the UN, military international forces, and other organizations to share information; lack of willingness to cooperate may hinder understanding and assessment of the security situation. Activities Prepare background papers. Review current security arrangements. Identify cooperating institutions in securityrelated matters. Hold Security Coordination Committee meetings to initiate, review, and finalize the security plans. Secure Government full participation. Assess the needs of the individual components of the security plans, including human resources, equipment, and infrastructure needed for implementing the suggested security measures: Security Coordination Committee inception meeting in July Consultation missions fielded by July Draft background papers, EMP, and key project security plans completed by end of October Revised background papers, EMP, and key project security plans to be completed by end of December Security Committee periodical meetings. Periodical coordination meetings with other agencies on securityrelated matters. Inception meeting of the Security Coordination Committee report (i.e., summary of proceedings) to be prepared by ADB. Back-to-office reports of ADB consultation missions. Draft background papers, EMP, and key project security plans prepared by consultants. Revised background papers, EMP, and key project security plans prepared by consultants. Reports of consultants. Security Coordination Committee meeting reports (i.e.. summary of proceedings) to be prepared by ADB. Constraints caused by the political and security situation may alter the assessed needs. Member country and involved project contractors and engaged consulting firms to timely implement the TA components. Delay in implementing the suggested measures may result in a serious threat to the normal pace of project implementation. Suitability of the UN, military international forces, and other organizations to share information. Lack of willingness to cooperate may hinder understanding and assessment of the security situation.

10 8 Appendix 1 Design Summary Indicators and Targets Monitoring Mechanisms Assumptions/Risks (i) (ii) protection of camps; medical evacuation plan (MEDEVAC) of project personnel; Implementation of the measures and actions suggested in the security plans in close cooperation with the Government. Interagency cooperation reports (i.e., summary of proceedings) to be prepared by ADB. (iii) protection of work sites; (iv) protection of bridges and vital infrastructure; (v) patrols; (vi) protection of equipment and nighttime parking areas; (vii) protection of guesthouses; (viii) provision of escorts as required; (ix) employee security screening for the contractors, subcontractors, and consulting firms; and (x) provide assistance for developing and implementing security contingency plans. Inputs Domestic consulting (96 person-months) $240,000 Recruitment of consultants. Appropriate skills and experience of consultants. Consultants international travel Consultants domestic travel Technical and administrative support Equipment $20,000 $40,000 $185,000 $470,000 Meetings of the Coordination Committee. Attendance at UN/other agencies security coordination meetings. Reports of consultants and Bac-to-Office Reports of ADB missions. Timely deployment of consultants. Adequate commitment and motivation of consultants.

11 Appendix 1 9 Design Summary Indicators and Targets Monitoring Mechanisms Assumptions/Risks Contingency Total ADB budget $35,000 $990,000 Provision of a master EMP and individual project security plans. Staff movements at ADB. Cost overrun. Reports of meetings. TA completion report.

12 10 Appendix 2 ADB S FIELD OPERATIONS IN AFGHANISTAN 1. At the International Conference on Reconstruction Assistance to Afghanistan in Tokyo in January 2002, the Asian Development Bank (ADB) pledged $500 million in concessional loans and grants to Afghanistan over the first 30 months of the transitional government, or by June ADB assigned this assistance the highest priority. By April 2004, ADB had approved the delivery of $382.2 million in loans from the Asian Development Fund (ADF) and $26.4 million in grant technical assistance (TA), and was administering $65 million in grant pilot projects. The following is a list of major ADB loan and grant assistance to date and its planned field presence in Afghanistan. A. Ongoing Loans 2. Postconflict Multisector Program (PMP) Loan. This $ million loan from the Asian Development Fund (ADF) was approved on 4 December 2002, the first loan made by an international financial institution to Afghanistan in over 23 years. The loan supports policy and institutional reforms to improve governance; strengthen the financial, transport, and energy sectors; and contribute to economic recovery and growth within a market-based system, consistent with the Government s National Development Framework and National Development Budget. The first tranche of $100 million was released on 6 December A second tranche of $50 million was disbursed in December This program loan does not imply a substantial field presence. 3. Emergency Infrastructure Rehabilitation and Reconstruction Project. This $150 million ADF loan was approved on 3 June 2003 and will rehabilitate and reconstruct 447 kilometers (km) of the primary national road network (including a link to Uzbekistan); power transmission and distribution facilities; gas production, transmission, and distribution facilities; natural gas wells; a gas pipeline; and smaller traditional irrigation schemes. The project contributes to economic recovery, diversification of economic activities, employment generation, higher productivity, improved per capita income, increased revenue generation, public sector reform, private sector development, environmental preservation, and social stability. The project maximizes use of local labor and will generate 580,000 person-days of employment during construction. The Government of Japan approved $20 million in grant assistance through the Japan Fund for Poverty Reduction (JFPR) for cofinancing the northern roads component of this project. 4. The project will require establishing numerous field work camps, which will require appropriate security plans. With its three components (roads, energy [electricity and gas], and irrigation) it will create a wide presence in the northern part of the country. 5. Roads Component. The design and civil works' contractor is expected to mobilize by the second quarter 2004 for the project. The contract period is 2 years. There will be two main camps, in Mazar-e-Sharif and Sheberghan, and 6 8 camps for the entire 447-km road. 6. Energy Component. The power component will probably have construction operation sites in Kholm and Pol-e Khomri. Implementation is expected to start in October 2004 and finish by December The work on the gas component is likely to start in June/July 2004, with 3 years for its completion. Construction activity will occur for over 12 gas wells that ADB will rehabilitate in Sheberghan and operation sites in Mazar-e-Sharif and Sheberghan, with perhaps one site mid way between these cities. The gas transmission line will also be reconstructed or partially repaired.

13 Appendix Irrigation Component. ADB is proposing to have one field office in Mazar-e-Sharif. ADB will have two international engineers for 18 months plus a host of other international and national personnel with much shorter inputs. The work will target smaller traditional irrigation schemes that will spread out through the provincial areas, so there may be several different project sites at one time. The team should be on site by July Agriculture Sector Program. This $55 million ADF program loan was approved by ADB on 4 May The goal of the program is to promote agricultural growth and poverty reduction through support for market-based policy reforms, public infrastructure investment, and institutional reform and organizational capacity building. Its purpose is to enhance opportunities for sector revival by addressing key policy, institutional, and organizational constraints for an efficient and effective functioning of agriculture and the sustainable use of natural resources. This program loan does not imply a substantial field presence. 9. Herat-Andkhoy Road Project. This $80 million ADF project is being processed for consideration by September 2004 and will construct the missing link in the Afghanistan ring road from Andkhoy to Herat, and thus connect to the northwestern regions and facilitate trade and commerce in Central and South Asia. The road works are expected to start in early The design and construction contracts will be for 3 years ending early About 8 10 site camps will be on the 550-km road. B. Planned Projects 10. ADB is processing an irrigated agriculture development project ($40 million), a power transmission and distribution project ($50 million), a road network improvement project to further rehabilitate key roads ($45 million), and one project to rehabilitate regional airports ($30 million), for consideration in late 2004 and For the proposed irrigated agriculture development project loan, a project preparatory technical assistance (PPTA) will be processed in July 2004, and the project loan may start in early 2005 if approved. The location is not yet known, but it will involve extensive civil works, with a large work camp. 12. The proposed power transmission and distribution project loan, on standby in 2004 and firm for 2005 approval, is expected to be around Andkhoy, Konduz, Mazar-e-Sharif, and Sheberghan. 13. The airports that will likely be covered under the 2004 airports project are 9 regional airports: Bamian, Chaghcharan, Farah, Feyzabad, Meymaneh, Nimroz, Qal eh-ye now, Taloqan, and Tarin Kowt. C. Technical Assistance 14. TAs intensively use consultants. For TA cluster, about 29 consulting contracts are currently under implementation. The details of each TA is shown on Table A2.

14 12 Appendix 2 Table A2: ADB Technical Assistance (TA) to Afghanistan ($ 000) Project Title Date Approved Amount ($) Type of Assistance Capacity Building for Reconstruction and Development 30 May ,500 Grant TA Disaster Preparedness and Management Capacity 30 May Building Grant TA Energy Sector Review and Gas Development Master Plan 18 March Grant TA Preparing for the Power Transmission and Distribution 13 August Grant TA Project Preparing for the Herat-Andkhoy Road Project 17 September ,000 Grant TA Preparing for the Regional Airports Rehabilitation Project 5 November ,000 Grant TA Institutional Strengthening of the Gas Sector 3 December Grant TA Support for Public Administration Reform Program 11 December ,400 Grant TA Poverty Assessment and Socioeconomic and 26 December ,750 Grant TA Macroeconomic Statistical Capacity Building Preparing the National Power Transmission Grid Project 26 February Grant TA Capacity Building for Agricultural Policy Reform 4 May ,000 Grant TA Community-Based Gender-Sensitive Basic Education for the Poor 10 September ,000 Grant Pilot Project Road Employment Project for Settlement and Integration of Returning Refugees and Displaced Persons 3 October ,000 Grant Pilot Project Primary Health Care Partnership for the Poor 19 December ,000 Grant Pilot Project Emergency Road Rehabilitation Project 19 December ,000 Grant Pilot Project Integrated Community Development in Northern Afghanistan 26 December ,000 Grant Pilot Project Rural Recovery through Community-Based Irrigation Rehabilitation Project 26 December ,000 Grant Pilot Project 1. Capacity Building for Reconstruction and Development 15. This grant, made through ADB s Technical Assistance Special Fund (TASF), has 19 components and is helping strengthen the ability of Government ministries and departments to formulate policies and plans and implement projects in a range of sectors. Equipment, computers, and vehicles delivered under the TA have improved the operational capacity of the Government. Training of Government staff is also under way. 2. Disaster Preparedness and Management Capacity Building 16. This grant, made through the TASF, is helping strengthen Afghanistan s Office of Disaster Preparedness. Under the grant, an assessment of the institutional environment, technical capacity, and training and equipment needs of the office was completed in October Energy Sector Review and Gas Development Master Plan 17. This grant, made through ADB s Technical Assistance Special Fund (TASF), will review the energy sector and prepare a comprehensive gas subsector development master plan that will guide and promote the energy supply based on identification of promising potential resources; attract private capital by removing impediments in government policies and strategies; improve sector efficiency through institutional strengthening; and prepare a gas development master plan to meet the expected increased domestic demand for natural gas,

15 Appendix 2 13 reduce the consumption of imported petroleum products, and reduce the environmental impact associated with the use of other fossil fuels. 4. Preparing for the Power Transmission and Distribution Project 18. Made through ADB s Technical Assistance Special Fund (TASF), this grant will help prepare a power transmission and distribution project. It will ensure a sufficient and stable power supply for Kabul identified as one of the key economic zones of Afghanistan and other major cities. 5. Preparing for the Herat-Andkhoy Road Project 19. This grant, made through ADB s Technical Assistance Special Fund (TASF), is for a project preparatory study for rehabilitating and improving the road connecting Herat to Andkhoy. This technical assistance will explore the viability of providing efficient road infrastructure, which could improve the provision of humanitarian aid, basic public services, safety, and security, and achieve regional economic development and national integration. 6. Preparing the Regional Airports Rehabilitation Projects 20. This Technical Assistance Special Fund (TASF) grant will prepare a civil aviation master plan to provide the framework and time-bound action plan for sustainable and effective development of Afghanistan s civil aviation sector. The grant technical assistance will undertake feasibility studies for rehabilitating selected airports and develop the capacity of the Ministry of Civil Aviation and Tourism to implement ensuing investment projects and operate and maintain the rehabilitated airports. 7. Institutional Strengthening of the Gas Sector 21. This grant, made through the Technical Assistance Special Fund (TASF), will help the Ministry of Mines and Industry (MMI) develop policies and strategies for sector development, efficient institutional management, and human resource development. Key areas of MMI s Planning Department will be strengthened to rebuild and develop the gas subsector. Specifically, MMI capacity in policy formulation, energy sector assessment, organizational restructuring, and overall sector management and coordination should be strengthened. The technical assistance will develop and strengthen the institutional capability to plan, review, monitor, assess needs, and modernize the gas subsector. Afghan Gas personnel will receive hands-on training in safety, operation and maintenance, and project management. 8. Support for Public Administration Reform Program 22. This grant, made through ADB s Technical Assistance Special Fund (TASF), is helping the Government implement its Public Administration Reform (PAR) program to enable civil servants to function more efficiently and effectively. In particular, it will strengthen the capacity of the Independent Administrative Reforms and Civil Service Commission (IARCSC) to perform its functions, improve the performance of departments delivering essential services, and help institute sound policies for human resources management. The technical assistance will establish a mechanism to harmonize and coordinate donor-funded projects supporting the PAR program. Also part of the program is the restructuring of the emergency and disaster management system, which was the recommendation of a previous technical assistance for capacity building in disaster management.

16 14 Appendix 2 9. Poverty Assessment and Socioeconomic and Macroeconomic Statistical Capacity Building 23. This grant, made through ADB s Technical Assistance Special Fund (TASF), is helping the Government improve the collection and analysis of national statistics. Focusing on the Central Statistics Office and selected line ministries, the technical assistance will strengthen their systems for gathering data needed by a wide variety of users for monitoring, planning, and research. The project was designed within the framework of a statistical master plan being developed by the Government with the joint support of ADB, United Kingdom Department for International Development (DFID), International Monetary Fund, United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP), and World Bank. The technical assistance will conduct the first comprehensive poverty assessment for Afghanistan, improve national accounts estimates, and collect trade, balance-of-payments, and fiscal data. It will also update the consumer price index, expanding coverage to six major urban centers, and review the legal and institutional framework for statistical gathering. Training will be provided for staff and new data collection systems will be introduced to help fill major gaps in statistics collection. 10. Preparing the National Transmission Grid Project 24. This grant, made through ADB s Technical Assistance Special Fund (TASF), will support the Government s strategy for poverty reduction through economic growth by assisting in the preparation of a national power transmission grid project to interconnect the northwestern power system with the northern and central power systems, thereby improving system stability and security, reducing losses, and improving the reliability of supply in the interconnected power systems. The project will supply the provinces of Badghis, Faryab, and Jawzjan which currently are not electrified from a grid. 11. Capacity Building for Agricultural Policy Reform 25. This grant, will be provided under the Agriculture Sector Program to assist the Government in program coordination and monitoring, developing a comprehensive land policy and an appropriate institutional framework for land titling and administration, assessing the human resources needs of the core agriculture sector ministries, assessing institutional options to meet the full spectrum of rural credit needs, improving the efficiency of agricultural commodity markets, and developing procedures for restructuring and divesting state-owned enterprises. 12. Community-Based Gender-Sensitive Basic Education for the Poor 26. ADB is administering a grant of $4 million from the JFPR, financed by the Government of Japan, to help rebuild Afghanistan s education system by constructing new facilities and providing necessary equipment and materials. Training is also being provided for teachers and school administrators. 13. Road Employment Project for Settlement and Integration of Returning Refugees and Displaced Persons 27. ADB is administering grants of $15 million from the JFPR, financed by the Government of Japan, and $15 million from the Kuwait Fund for Arab Economic Development, financed by State of Kuwait, to rehabilitate the km Kandahar to Spin Boldak road, one of the country s major trade and transport links with its neighbors. The project s social components include training to develop skills in road construction; supporting education for children and adults; and basic health services and microcredit for returning refugees and displaced persons, including demobilized combatants.

17 Appendix The road rehabilitation contractor has established a main camp and will establish two smaller camps. The contractor has 342 staff (85 international, 57 skilled local, and 200 other local workers). The implementation of the social components involving community mobilization, education, health, and microfinance is contracted out to a nongovernment organization. 14. Primary Health Care Partnership for the Poor 29. ADB is administering a grant of $3 million from the JFPR, financed by the Government of Japan, to explore how the Ministry of Health can effectively contract nongovernment organizations to develop community-based primary health care and thereby reduce rural poverty. The project is supporting the development of community organizations to construct, upgrade, and maintain small health centers, water supply facilities, and toilets. It is also establishing community-managed health centers for clusters of villages in 10 districts. The project aims to reduce child mortality rates by 30% over 3 years as well as reduce common infectious diseases, child malnutrition, and maternal mortality rates. 15. Emergency Road Rehabilitation Project 30. ADB is administering a grant of $20 million from the Japan Fund for Poverty Reduction (JFPR), financed by the Government of Japan, for emergency rehabilitation of priority roads in northern Afghanistan. The grant will be used to rehabilitate 112 kilometers of the northern ring road, including 57 km of the Khulum-Naibabad-Mazar-i-Sharif-Balkh road, and 55 km of the Naibabad-Hairatan international road link with Uzbekistan. 16. Integrated Community Development in Northern Afghanistan 31. ADB is administering a grant of $3 million from the Japan Fund for Poverty Reduction (JFPR), financed by the Government of Japan, to harness community participation in improving the living standards of poor villagers in northern Afghanistan. The project will provide communities a chance to participate in the processes that affect their livelihoods, develop key infrastructure, promote natural resource management, and provide access to credit and business advice to help create micro enterprises. The community mobilization program will be carried out by nongovernment organizations (NGOs), targeting 72 communities along a road being repaired under ADB s Emergency Infrastructure Rehabilitation and Reconstruction Project. 17. Rural Recovery through Community-Based Irrigation Rehabilitation Project 32. ADB is administering a grant of $5 million from the Japan Fund for Poverty Reduction (JFPR), financed by the Government of Japan, to repair severely damaged irrigation systems in northern Afghanistan. The community-based project will rehabilitate and improve about 120 small to medium-scale traditional irrigation schemes in up to 40 micro-watersheds in the three northern provinces of Jowzjan, Faryab, and Sar-E-Pol. Over two years, communities will play a key role in identifying, prioritizing, planning, and undertaking the subprojects. The project will have a positive impact on cultivation of poppy and other sources of drugs by focusing farmers attention on food crops. The project will provide short-term jobs for up to 45,000 people. About 150,000 families dependent on agriculture-based activities will reap the benefits of improved irrigation.

18 16 Appendix 2

19 Appendix 2 17

20 18 Appendix 3 COST ESTIMATES AND FINANCING PLAN ($ 000) Foreign Exchange Local Currency Total Cost Item Asian Development Bank (ADB) Financing a 1. Consultants a. Remuneration and Per Diem, Four Domestic Consultants b. International Travel (Airfares Only), b Four Domestic Consultants c. Local Travel Technical and Administrative Support c a. Administrative Expenses b. Three Regional Offices Rental Equipment d a. Eight 4x4 Cars b. UHF Communication Equipment Contingency Total a Financed by ADB s technical assistance (TA) funding program. b Domestic consultants will be required to attend security coordination meetings outside of the country, to attend security orientation and training at ADB Headquarters or outside of Afghanistan. c The consultants must be posted in different regions of Afghanistan. Therefore, they must have the appropriate working facilities including renting adequate office space in safe buildings (i.e., UN compound), providing the necessary stationary and office equipment, allocating funds sufficient for utilities, and providing funds for hiring administrative staff and drivers to assist the domestic consultants. The budget is designed for 2 years, at a rate of $18,000 per year and regional office, and $6,000 per year for the consultant posted in Afghanistan Resident Mission, who will be able to use some of the already established facilities. The other consultants posted in the three cities other than Kabul will need to take care of fully securing the adequate means to develop their normal activity. d United Nations Minimum Operating Security Standards (MOSS), to which ADB adheres, obliges any road mission going out of the main cities be composed of a convoy of a minimum two cars. The cars should comply with MOSS standards, including specific radio communications equipment. Due to the shortage of adequate vehicles in Afghanistan Resident Mission or even UN vehicles for hire, and taking into consideration the field-intensive working plan the consultants will follow, each consultant must have permanent access to two cars and corresponding drivers to perform his or her duties. Source: Asian Development Bank estimates.

21 Appendix 4 19 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS A. Objective 1. The four domestic consultants will assist the Government of Afghanistan with the security provision needed for contractors and consulting firms personnel working in projects funded by ADB. The specific objectives of the technical assistance (TA) are to (i) help prepare and implement the necessary security plans for each working site and project implemented under the responsibility of ADB, and help develop and implement a master emergency management plan (EMP); (ii) assist the contractors and engaged consulting firms projects to implement their security plans; (iii) support ADB Afghanistan Resident Mission (AFRM) in coordinating with key agencies and organizations present in Afghanistan concerning security issues; and (iv) help develop and implement security-related contingency plans. B. Qualifications of Consultants 2. The TA consultants will have (i) excellent local knowledge of their working areas in Afghanistan, with excellent language skills appropriate to that area, and English; (ii) experience in preparing and implementing security plans in postconflict and high risk environments; and (iii) sound analytical skills. The TA consultants will need to work closely with the AFRM resident security coordinator, who will be their team supervisor. The TA will require about 96 person-months of domestic consulting services, distributed equally among four domestic consultants. The consultants will be required to assist and be part of ADB TA and loan preparatory missions in the country during the study as required. C. Scope 3. The consultants will work closely with the staff of the Ministry of Finance and Ministry of Interior and officials of other related ministries or international agencies or local governments. The liaison will primarily be through the AFRM resident security coordinator, although direct liaison will be required sometimes. A Security Coordination Committee will be established in conjunction with the Government, with the vice minister or secretary of the Ministry of Finance as a standing member and joint secretary of the Ministry of Interior as an alternate member. The TA consultants will be represented at this forum through the AFRM international resident security coordinator, who will be based in AFRM in Kabul. The domestic consultants will be based in Herat, Kabul, Kandahar, and Mazar-e-Sharif, depending on security considerations prevailing at the time. The outline terms of reference for the consultants include, but are not limited to, the following. 1. Security Risk Information Gathering and Assessment 4. The consultants will provide advice on the overall TA program and related operational issues. Their duties will include the following: (i) (ii) (iii) Identify and report potential security hazards. Establish close liaison with the ADB AFRM resident security coordinator and other agencies such as the Untied Nations, as required. Conduct field visits to all ADB-financed projects in their area of responsibility (to be assigned by the AFRM resident security coordinator). Meet with contractors