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Wednesday, September 01, 2004
ADB to extend 600 million dollars to Afghanistan (4:15 p.m.)
MANILA -- Afghanistan will obtain up to 600 million dollars in soft loans and grants from the Asian Development Bank (ADB) over the next three years to rebuild the war-torn country, the Philippines-based lender said Wednesday.
The 2004-2006 program will include 570 million dollars in soft loans, with another 30 million dollars in grants from the ADB's technical assistance fund.
"The final lending allocations over the period will depend on country performance and resource availability," the bank said in a statement.
The 12 projects and programs financed by the loans cover the agriculture sector, water resources and irrigation, regional airport and road rehabilitation, power transmission and distribution, an investment guarantee facility and reforms in public service delivery.
As part of its policy of promoting private sector-led economic recovery, the ADB said it could also invest in the energy, transport, bank and non-bank financial institutions in Afghanistan.
"ADB private sector investments are expected to catalyze investments of about 240 million dollars in 2004 and 450 million dollars in 2005," the bank said.
However it added that such investment "will depend on the progress of discussions with the government and co-financers."
"Afghanistan has made good use of aid and is making good progress in recovery and rehabilitation after two decades of war and internal strife. But reconstruction and development will occur over a much longer horizon, requiring a fairly large lending program," the ADB said. (AFP)
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