| Project Detail |
Proposed Development Objective(s)
The development objectives and pillars of the operation are: i) strengthening the policy framework to support relief
and recovery for vulnerable people and firms; and ii) strengthening the policy framework for recovery and resilience in
infrastructure provision.
Project Description
The proposed operation will support the Government of the Islamic Republic of Afghanistan (GoIRA) in managing the
impacts of the COVID-19 pandemic. Afghanistan is facing a major public health and economic crisis as a result of COVID19. The proposed DPO is fully aligned with government’s eight-point plan for COVID-19 response and the World Bank’s
broader rapid response. It will support vital policy and institutional reform measures under two pillars: i) strengthening
the policy framework to support relief and recovery for vulnerable people and firms; and ii) strengthening the policy
framework for recovery and resilience in infrastructure provision. The proposed operation will be supported by an IDA
grant of US$100 million and a US$100 million grant from the Afghanistan Reconstruction Trust Fund (ARTF).
Under the first pillar (strengthening the policy framework to support relief and recovery for vulnerable people and firms)
the proposed operation will support: i) changes to the regulatory framework to reduce provisioning requirements for
loans that are covered by risk guarantees, facilitating increased access to finance for small and medium-sized
enterprises; ii) changes to the regulatory framework to allow remote opening of e-money wallets and an increase in
limits on digital transaction numbers and values, facilitating wider use of e-money, potentially including for social
protection programs; iii) the issuance of guidelines to health facilities ensuring adequate protection of healthcare
workers, including through enhanced infection prevention, management of personal protective equipment, and disposal
of medical waste; and iv) the approval of an action plan to raise awareness and begin to address gender-based violence
in schools, encouraging resumed attendance when educational institutions are re-opened following the COVID-19 crisis.
Under the second pillar (strengthening the policy framework for recovery and resilience in infrastructure provision), the
proposed operation will support: i) approved revisions to the Partnership Agreement between the Ministry of Finance
and the electricity utility including measures to reduce public sector arrears to the utility, ensure the protection of utility
staff, and support improved financial performance through the COVID-19 crisis; and ii) the approval of Emergency
Response Plans for main urban water utilities, ensuring their capacity to maintain services through the current crisis and
building their resilience to respond to future disasters. |
