Announcement of IDA to Assist Agricultural and Rural Development and Highway Improvement in Afghanistan on June 11, 1979

FOR IMMEDIATE RELEASE ·•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. e Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/92 June 11, 1979 IDA TO ASSIST AGRICULTURAL AND RURAL DEVELOPMENT AND HIGHWAY IMPROVEMENT IN AFGHANISTAN The I nt'ernat i ona 1 Deve 1opment Association (IDA), the Wor 1d Bank's aff i 1 i ate for concessionary lending, has announced credits to the Democratic Republic of Afghanistan of $16.5 million and $17.6 million, respectively, for an agricultural and rural development project and a highway improvement project. Agricultural and Rural Development Under the $39 million agricultural and rural development project, the stan- dard of living of the rural poor will be raised in the provinces of Ghazri, Kabul, and Paktika by increasing agricultural and livestock production, providing clean drinking water, and improving minor roads. • Investments will be made in irrigation rehabilitation and in agricultural extension and applied research. Small- and medium-scale diversion weirs, cross- ings, and intakes will be built to reduce f1ood damage to irrigation canals and weirs, cut canal maintenance time, and improve the reliability of irrigation water supply on some 17,000 hectares. The reorganization and improvement of the agricultural extension service will help the rapid extension of existing and new technologies to farmers, many of whom presently do not have access to these ser- vices. An applied agricultural research station will develop improved technology adapted for the project area, and some 150 service cooperatives will be estab- lished to serve nomadic and rural families. Other investments will be made for an experimental range improvement center, cadastra1 survey, veterinary services for disease control and improved animal production, and agricultural credit for farmers, cooperatives, and non-farm enterprises. Increased community participation is expected through the mobilization of vi11age assistance in project planning and implementation. The project will he1p improve government institutions concerned with agricultural and rural de- velopment, enabling them to direct subsequent development efforts. Furthermore, it is expected that the project will provide a replicable design for rural de- velopment throughout the country. Access to cultivated areas will be improved by upgrading about 400 kilo- meters (km) of minor roads. Better roads will help ensure the extension of agricultural services to all farmers, assist in promoting agricultural develop- • ment, and will be instrumental in bringing remote villages within reach of other economic and social services. NOTE: Money figures are expressed in U.S. dollar equivalents. . .. I  - 2 - A village water supply component will provide about 100 villages with safe drinking water. Again, community education and participation are essential features, as the local people will be responsible for the operation and maintenance of the water supply. •• The project also includes the establishment of a Rural Development Department Regional Planning and Implementation Unit, which will be respon- sible for project planning, coordination, and evaiuation. Technical assistance, training, and feasibility studies are also included. Some 62,000 poor farm families are expected to benefit from the project, fncluding an estimated 3-4,000 nomad and transhumant (those who follow the seasonal movement of 1 ivestock) families .. At least 100,000 more people should benefit indirectly from the infrastructural improvements. Nearly 700 permanent jobs are expected to result from the project, as are 200 man-years of temporary part~time employment. Over its life, the project will stimulate an increased demand for farm laborers, providing another 500,000 workdays of annual ~mploy- ment for unskilled laborers. The project will also contribute to the area's general ecological stability by indirectly providing for the protection of watersheds and checking soil erosion. Highways The $33,2 mill ion third highways project will provide for the maintenance ~ of some 4,000 km of secondary and tertiary roads; improvements to 300 km of such roads, and pavement strengthening on about 450 km of primary road network. Spare parts will be supplied for existing mechanical road equipment, and worn equip- ment will be replaced. The maintenance of the existing road network is a priority of the highway subsector. Parts of the primary road network have reached the end of their working 1 ife, and this improvement program is essential if adequate domestic transport is to be assured. The project will also make possible savings in vehicle operating costs and maintenance and reconstruction costs. Co-financing for the highways project amounting to $4.4 mill ion is being provided by the European Economic Community Special Action Account credit. The Government of Afghanistan is also contributing $11.2 million. The IDA credit is for 50 years, including a 10-year grace period. The credit carries no inter- est, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. The credit for the agricultural and rural development project carries identical terms. That project is being co-financed by the International Fund for Agricultural Development, $13 million, and the United Nations Development Programme, $1 million, with the Bank acting as the executing agency. - 0 - •  F=ORM NO. 1121 (5-76) T ECHNI CAL D A T A •• PROJECT: COUNTRY: Agricultural and Rural Development Democratic Republic of Afghanistan (DRA) TOTAL COST: $39 mi l l i on IDA FINANCING: $16.5 million, standard IDA terms OTHER FINANCING: International Fund for Agricultural Development (IFAD), $13 mill ion; United Nations Development Programme (UNDP), $1 mill ion, with the World Bank as the Executing Agency IMPLEMENTING ORGANIZATIONS: Ministry of Agriculture and Land Reform Kabul, Afghanistan Rural Development Department (ROD) Mi kro-Rayan Kabul, Afghanistan Agricultural Development Bank of Afghanistan P. 0. Box 414 Cab J e: Kabul, Afghanistan AgBank, Kabul PROJECT DESCRIPTION: It consists of: a) agricultural investments in irrigation rehabilitation, agricultural extension, and applied re- • search, credit, veterinary and cooperative services, range manageme11t, and cadastral survey; b) investments in rural infrastructure, including minor road improvements and the provision of village water supplies; c) project planning, coordination, and evalu- ation; and d) related technical assistance and feasibility studies. PROCUREMENT: Contracts for $100,000 or more worth of equipment, vehicles and materials will be awarded through international· compet- titive bidding, in accordance with Bank guidelines. Domestic preferences of 15% of the c. i .f. price or the customs duty, whichever is lower, will be granted. Contracts of less than $100,000 {aggregate value: $2 mill ion) will be awarded after inviting quota- tions from at least three suppliers. Most of the civil works will be completed through a combination of local competitive bidding, construction units of the ROD-Regional Planning and Implementation Unit (RPIU) through force account, and village self-help. CONSULTANTS: A team of consultants will be recruited under a UNDP/DRA Technical Assistance Project (the World Bank as executing agency) to assist with staff training and project implementation. ECONOMIC RATE OF RETURN: 18% ESTIMATED COMPLETION DATE: 1984 • - 0 - FORM NO. 1121 (5-76) T E CHN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Third Highways Democratic Republic of Afghanistan (DRA) $33,2 million •• IDA FINANCING: $17.6 mil I ion, standard IDA terms OTHER FINANCING: European Economic Community (EEC) Special Action Account credit, $4.4 mill ion Government of Afghanistan, $11 .2 mill ion IMPLEMENTING ORGANIZATION: Road Construction and Maintenance Department Ministry of Public Works Mic ro-Rayan Kabul, Afghanistan PROJECT DESCRIPTION: It consists of: a) a pavement-strengthening program for about 450 km of road, and surface dressing for the pres- ervation of about 160 km of this road; b) a road maintenance anrl improvement program, which wi 11 include the provision of spare parts for existing r-.,echanical equipment, as well as the replacement of equipment to be used for the improvement of about 300 km of secondary and tertiary roads, and for road maintenance on about 4,000 km of such .ai. roads; and c) technical assistance provision for the Road Construction and Maintenanc,PI' Department (RCMD). PROCUREMENT: Procurement of equipment for the road strengthening and road improvement components, and for the asphaltic bitu- men for the overlay and surface dressing, will be by international competitive bidding in accordance with Bank guidelines. Spare parts will be bought from the cr~ginal sup- plier or through international shopping. Procurement of the bitumen and equipment to be financed by the EEC Special Action Account credit will be in accordance with the procedures established by this institution. RCMD will execute both the pavement strengthening and preservation program and the improvement and maintenance program. CONSULTANTS: Consultants' services will provide technical assistance and help ensure quality control for the pavement strength- ening program. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 40% 1983 - 0 - •