Afghanistan: World Bank Helps Reform Public Administration
Contacts: In Kabul: Abdul Raouf Zia (93) 702 80800
E-mail: azia@worldbank.org
In Washington: Zita Lichtenberg (202) 458-7953
 E-mail: Zlichtenberg@worldbank.org
Washington, June 24, 2003 – The Transitional Islamic State of Afghanistan will continue to reform its civil service
organizations, making them more effective and transparent, with the support of a US$8.4 million grant approved today by the
World Bank.
The World Bank financing will support the ongoing Emergency Public Administration Project which is supporting the
employment by the Government of qualified firms to assist it with carrying out procurement and select financial management
functions. Services will also be provided to assist the authorities develop a framework for transparent appointments within the
senior civil service and for monitoring its implementation, and to initiate restructuring in key government departments.
While administrative structures of the state have proven to be far more robust and functional than many had expected, over
decades of conflict, skills have been depleted and there is no established track record of transparent and efficient
implementation of a development budget. If these issues are not addressed, this could severely limit the scope for successful
implementation of a large recovery program. The Government has been developing a set of basic yet important improvements
in public administration which will achieve substantial progress and provide the foundation for further enhancements that may be
considered in the future.
“Over the past year, ground realities proved that Government of Afghanistan has made significant achievements in
addressing public administration problems after decades of war,” said Alastair Mckechnie, World Bank Country Director
for Afghanistan. “The encouraging message is that the Government is focusing on enhancing the capacity within its
institutions to manage reconstruction and development programs. The World Bank appreciates the opportunity to make a
contribution to support the government’s program in this area, based on the government’s clear strategy for bringing
Afghanistan back on track.”
The first Emergency Public Administration Project, which received initial financing of US$10 million from the World Bank in April
2002, was the first World Bank project in Afghanistan after more than 20 years’ interruption due to protracted conflict. Its main
objective was to develop, on an emergency basis, capacity in key public administration areas to facilitate better use of public
resources. Specifically, the grant financed international firms to work with the government of Afghanistan to carry out
procurement, financial management and audit functions. (see box)
The Second Emergency Public Administration Project will help the Government of Afghanistan enhance the accountability
and transparency with which it manages public resources. The project will help the government lay the foundation for more
broad-based civil service reform directed at increasing the efficiency with which basic services are delivered to the population.
It will also further enable the government to make effective use of external assistance channeled through the national budget.
The project will be implemented by the Afghanistan Finance Ministry and Administrative Reform and Civil Service Commission,
in coordination with Afghanistan Assistance Coordination Authority (AACA).
The total project cost is US$ 10.9 million, of which the International Development Association is providing US$ 8.4 million and
the British Department for International Development is providing US$2.5 million.
                                For More Information on the World Bank’s Activities in Afghanistan visit:
                                                     http://www.worldbank.org/af

                                           For More Information on the Project visit:
                                http://www4.worldbank.org/sprojects/Project.asp?pid=P082610

First Emergency Public Administration Project -- progress to date:
Financial Management--A system for computerized check issuance went on-line in Kabul in October 2002. This enabled real-
time reporting on all expenditures that are processed in Kabul. This accounting system has been augmented to allow for control
of budget execution against budget allotments. Recording of revenues is now also possible. Work is progressing towards the
integration of a standard payroll module. Connectivity testing has started with an aim to introduce the accounting system in one
remote location.
Procurement-- By end-April, 2003, a procurement agent has assisted in the placement of 80 contracts valued at just under $50
million. Contracts valued at an additional $160 million are in hand.

Auditing--A steering group within the Auditor General’s Office has been established to guide project implementation. In
addition to computer and language training, technical courses have also started in which over 100 staff have participated.