Afghanistan will receive 166 million dollars in interest-free credits from the World Bank to reconstruct post-war communities, strengthen local governance, provide water to farms and aid the Government in increasing the efficiency of its customs and transit regime.
The Banks Board of Executive Directors in Washington Tuesday approved an interest-free loan of 95 million dollars to expand Afghanistans World Bank-supported National Solidarity Program (NSP), which was launched in 2002.
The NSP, which strengthens local governance and provides resources for reconstruction and development, is so far being implemented in over 3.000 of Afghanistans 20.000 villages. Community Development Councils, elected through secret ballot, lead local participation in deciding how the grants will be spent.
The World Bank will also provide 40 million dollars in interest-free credit in support of Afghanistans emergency irrigation rehabilitation project, an urgent response to the Governments plan to rehabilitate the national irrigation system in the countrys five river basins.
New interest-free financing of 31 million dollars is also being directed toward an emergency customs modernization and trade facilitation project to install customs and communications infrastructure at border crossing stations, inland clearance depots, transit checkpoints, and Kabul airport, the Bank said.
Customs revenues contributed nearly 50 million dollars to Afghanistans tax revenues in fiscal year 2002, amounting to 60 per cent of total revenue. The Bank projects that this amount could be much higher with a more efficient customs and transit regime.
The NSP and irrigation loans have a grace period of 10 years.
Kilde: FNs Nyhedstjeneste
