Ministry of Finance and German Development Bank KfW sign financing agreements over EUR 65 million
Enlarge image Road construction in Afghanistan (© picture-alliance/dpa) In support of the Afghan reconstruction and development efforts, the Ministry of Finance and the German Development Bank (KfW Entwicklungsbank) signed two Financing Agreements worth EUR 65 million (approx. USD 87 million). The long-standing partnership between Afghanistan and Germany will be expanded through these funds committed by the German Federal Ministry for Economic Cooperation and Development (BMZ) benefiting the Regional Infrastructure Development Fund (RIDF – EUR 25 million, approx. USD 33,5 million) and the Afghanistan Reconstruction Trust Fund (ARTF – EUR 40 million, approx. USD 53,5 million) and. This brings the German contribution to the ARTF to EUR 283 million to date. Since early 2002, payments of donors such as Germany have made ARTF the largest contributor to the Afghan budget for both operating costs and development programs. The Fund plays a major role for national priority programs, for operating costs of government operations and for the policy reform agenda. Therefore the ARTF is heavily contributing to the achievement of the Afghanistan National Development Strategy goals and improved effectiveness of reconstruction efforts. The RIDF is aimed at enabling provincial authorities in Badakhshan, Baghlan, Balkh, Kunduz and Takhar provinces to respond autonomously to the development needs of their provinces and districts and to realise infrastructure projects without external assistance. This is not only enhancing people’s quality of life in the region, but also strengthening their confidence in government structures and in their elected representatives.
His Excellency Minister Zakhilwal of the Ministry of Finance is welcoming the German assistance for ARTF and RIDF: “We were pleased to see that the German contribution reflects Afghan priorities. We hope that this is the beginning of a trend that will lead to more Afghan ownership of development assistance. The transition of support through the sub-national governance will build the capacity of provincial line departments.”
His Excellency Rüdiger König, Ambassador of Germany in Kabul highlighted: “The German Government is contributing to the ARTF because it is a valuable tool for the implementation of National Priority Programmes, but also due to the Trust Fund's importance as platform for the political dialogue on key reform processes. On the sub-national level new innovative funds such as the RIDF have proven their suitability to trigger Afghan-led development processes as indispensable civilian elements in the process of transition.”
Gunnar Wälzholz, KfW’s Country Director in Afghanistan: “Ownership is key to sustainable development in Afghanistan. The on-budget support provided to the ARTF as well as the bilateral support through RIDF, enables the Afghan authorities to efficiently manage their resources and lead development efforts in order to deliver services and fulfil public functions.”