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PROJECT INFORMATION DOCUMENT (PID) 
PROJECT RESTRUCTURING 
Report No.:  52231 
 
Project Name 
Afghanistan: Emergency Horticulture and Livestock Project 
(HLP)
 
Region 
SOUTH ASIA 
Sector 
General agriculture/fisheries/forestry (50%) 
Agricultural marketing & trade (25%) 
Agro-industry (25%) 
Project ID 
P098256 
Borrower(s) 
Islamic Republic of Afghanistan  
Implementing Agency 
Ministry of Agriculture, Irrigation and Livestock (MAIL) 
Environment Category 
[
]
A
[
X] B   [ ] C   [ ] FI   [ ] TBD (to be determined) 
Date PID Prepared 
September 14, 2009 
Date of Appraisal  
--March 20, 2006 (Original Project);  
--June 10, 2009 (Restructuring) 
Date of Board Approval  
--May 25, 2006 (Original Project) 
-- December 9, 2009 (Restructured Project) approved on the basis 
of “absence of objection”  
A. Background 
 
1. 
Agriculture is central to the Afghan economy.  The sector accounts for over 30 percent of the GDP
1
and is a major source of employment of the labor force.   A large majority of the population lives in rural 
areas which also harbor the highest incidence of poverty.  Agricultural performance is thus pivotal for 
overall economic growth and poverty reduction and offers the only significant prospect for raising farmer 
incomes, contributing to food security, providing rural employment and reducing the vulnerability of 
resource poor rural people.  The importance of agriculture to the Afghanistan economy and people has been 
recognized all along in various documents, starting from the Agricultural Master Plan in 2005 followed by 
the Interim Afghanistan National Development Strategy in 2006, the Ministry of Agriculture, Irrigation and 
Livestock (MAIL) Strategy in 2007, the joint Agricultural and Rural Development strategy in January 2008, 
the ANDS in March 2008, and finally in the National Agricultural Development Framework (NADF)  
prepared in April 2009.   After cereal and industrial crops, Horticulture and Livestock subsectors are 
recognized as the highest priorities, given Afghanistan’s comparative advantage in these subsectors and 
their close linkage with exports and poverty reduction.  The HLP was prepared in 2005 this context.  
 
2. 
The original project objective was 
to assist the Recipient in stimulating marketable output of 
perennial horticulture and livestock by improving the incentives framework for private investments and 
strengthening institutional capacity in the agricultural sector
.
The key project components were: 
 
Component 1 
–
Horticulture Development
 
–
rehabilitating existing orchards, establishing new 
orchards, establishing fruit tree nurseries, establishing and supporting the National Union for 
Horticulture Development Association  
1
Source: Central Statistics Office 
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Component 2 - Livestock
 
Development
–
Animal Health services, livestock production and 
marketing initiatives, support to Animal Husbandry Dept 
Component 3 
–
Management and Implementation  
B.  
Rationale for Restructuring  
 
3. 
Overly ambitious and complex project design coupled with sub-par performance of implementing 
agency led to unsatisfactory execution of the project with slow disbursements.   By the middle of 2008, it 
was clear that the project as originally designed would not achieve its objective by December 31, 2009, the 
closing date.  Also, there was no tested and successful model that could be used as a basis for proceeding 
with restructuring of the project.  The Mid Term Review (MTR), completed in November 2008, therefore, 
adopted a strategy of making the project simpler and focused with a view to evolve a model that could be 
used under a restructured project.  
4. 
Since the MTR, several factors and positive developments have contributed to improved 
performance:  (i) a major emphasis by Government  and its development  partners on the need for a 
significantly improved performance in the agriculture sector; (ii) presence of dynamic leadership and build 
up of a dedicated team in MAIL , representing a significant change in policy and institutional environment, 
which bodes well for future performance; and (iii) preparation of the NADF to guide future investments in 
the sector, which recognizes horticulture and livestock as strategically important subsectors in which 
Afghanistan has a comparative advantage.  In June 2009 on the basis of an in-depth review carried out 
jointly by MAIL, Bank and other donors it was agreed to restructure the project as follows. 
 
C. 
Revised Project Objective 
 
5. 
The revised project objective 
is to assist
 
producer households in adopting improved practices so as 
to increase horticulture and livestock productivity and production in focus areas
.
The focus would be on 
productivity and production rather than on the incentives framework
2
as envisaged in the original project 
design.   
 
D.  
Changes in Project Scope
 
Part 1: Horticulture Development  
 
a. The 
approach to horticulture development
 
would be modified
 taking into account: (i) the 
overarching constraints of
 
water availability
;
(ii) the 
existence of poly-culture
 in existing 
orchards; (iii) the 
need for strengthening extension services
 through structured mobilization, 
capacity building and training in 
farmer field schools
;
(iv) introducing elements of 
farm planning 
and orchard management
;
(v) emphasizing 
integrated pest management
;
(vi) phasing out 
engagement in 
germ plasm
 and nursery development with increasing reliance on existing 
improved nurseries; (vii) gradually 
phasing out input subsidies
 in line with MAIL policy; and 
(vii) supporting 
value chain development
 for 4 fruit crops.  
 
b. 
The target for new orchard development would be reduced from 5,000 to 3,000 ha,
 
considering capacity constraints. The sub-component for development of green raisins drying 
sheds and pomegranate export clusters in Kandahar would be dropped because of security 
concerns.  Horticulture research stations and preparation of a Land Cover Atlas would be picked 
2
The revised objective recognizes the fact that increased productivity is the vital first link in the value chain.
 
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up under other future programs.  Finally, given its unsatisfactory track record, and the lack of 
demand for an apex body
3
in the horticulture sector, support to 
the Horticulture Development 
Council (later renamed NUHDA/ANHDO) would be phased out
 
by
end of CY2009
.
Marketing 
aspects would be supported through a bottom-up approach under the farmer organization 
development (FOD) component and the proposed value chain pilots
.
Part 2: Livestock Development 
 
a. 
Strengthening the capacity of the General Department for Livestock Protection and 
Development (GDLPD).
 The original project sought to strengthen the capacity of GDLPD to 
supervise and regulate animal husbandry services. Unfortunately little progress could be made on 
this front because of lack of interest and staff, particularly at the field level for livestock 
extension. The
 restructured project would develop
 
livestock extension packages
 that would be 
disseminated in areas where intensive farmer mobilization efforts would be made.   
 
b.  
Animal Health Improvement.  
The original aim of this subcomponent to promote 
private-public sector partnership for the delivery of veterinary services would remain unchanged 
and actively supported
.
Preparatory activities for the privatization of 120 government veterinary 
clinics have been completed and the process for their transfer to the concerned veterinarians 
would be completed within CY2009.  An additional 45 government clinics
4
would also be 
supported for privatization subject to their suitability.  
The project would also support 
preparation of a Breeding Policy for cattle in the context of the artificial insemination supported 
under the project.
 
c. 
Poultry Development. 
This pro-poor project component, targeting poor rural women,  is 
off to a good start and would continue to be supported under the restructured project with two 
changes
 to improve prospects of sustainability and provide the intended beneficiaries with one 
additional development option.   First, the project would meet the full requirement of grower-feed 
and layer-feed for one month to ensure that the beneficiaries can securely reach the point where 
they start to earn income from sale of eggs. And, second, the beneficiaries would be offered a 
choice between the semi commercial layer enterprise, and a broiler option.   
 
d.  
Dairy Development
.
The original project envisaged a significant investment in dairy 
production. Implementation was envisaged in two phases: (i) an Inception Phase involving a 
detailed analysis of the dairy sub sector; and (ii) based on the final inception report, the agreed 
investments were to be implemented.  Regrettably, the contract with the facilitating partner was 
not finalized until March 2009 and mobilization took place only in May 2009.  
Experience in 
Afghanistan and elsewhere shows that sustainable dairy development requires a period of more 
than three years. 
 In addition, continued support is required in the post-commissioning phase.  
Based on these considerations, 
this sub-component would be limited to
 
completing the ongoing 
Inception Phase and some follow up activities. 
 
e. 
Cashmere fiber development and bee and fisheries production studies
.
The original 
project included improving the collection, cleaning and marketing of cashmere fiber. A 
comprehensive study into the value chain for cashmere has been completed, which proposes 
sustainable ways for re-establishing cashmere harvesting and primary processing.  
The 
3
NUHDA, as it was originally constituted, was a quasigovernmental body that purported to represent the horticultural 
sector. The idea of establishing an apex horticultural organization on a top-down basis has not worked.  There is no 
demand for it from the sector. 
 
4
This number may increase to 80.
 
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recommendations of the study are already being implemented with assistance from other donors 
and the project would not carry out further activities under this component
.
Studies for bee and 
fisheries production are also ongoing.  
MAIL would share the proposals from these studies with 
other organizations to carry them forward
.
Part 3: Project Management and Implementation 
a. 
The existing project management and implementation arrangements would remain 
unchanged.  
However, the following additional activities would be carried out for enhancing 
effectiveness of project implementation and sustainability of project interventions
:
(i) 
Mobilizing and building capacity of 
producer groups
 (farmers and livestock owners) in 
the 11 focus districts and supporting their involvement in input supply, output marketing, animal 
health services, saving boxes, and delivery of extension services
5
;
and 
 
(ii) 
Building institutional capacity in the selected focus districts to improve delivery of 
horticulture and livestock related services through training of district and provincial level MAIL 
staff, and establishing linkages with input suppliers, service providers and micro-credit 
institutions. 
 
6. 
Project Implementation Arrangements. 
The existing project management, implementation, 
financial management, procurement and disbursement arrangements would remain unchanged.  However, 
the composition and skill mix of the implementation management support team (IMST) would be 
adjusted to reflect the requirements of the restructured project.   
7.  Financing 
Plan. 
 
Currently there is a financing gap for which resources would be identified. 
 
Source of Funds
 
US$ Million equivalent
1.
IDA Grant H226
 
20 
 
2.
ARTF Grant TF91885
 
11
 
3. 
Remaining amount in ARTF blanket approval 
9
Total financing available and in pipeline
 
40
 
Estimated Project cost
 
54.3
 
4.
Financing gap
 
14.3
 
5
In the current scenario of weak government and private institutions the role of producer groups to fill the service 
delivery-deficit would be critical.
 
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8. 
Safeguard Policies (including public consultation) 
 
Safeguard Policies Triggered by the Project
 
Yes
 
No
 
Environmental Assessment
(
OP
/
BP
4.01)
 
[
X]
 
[
]
Natural Habitats (
OP
/
BP
4.04)
 
[
]
[
X]
 
Pest Management (
OP 4.09
)
[X ]
 
[]
 
Physical Cultural Resources (
OP/BP 4.11
)
[
]
[
X]
 
Involuntary Resettlement (
OP
/
BP
4.12)
 
[
]
[X ]
 
Indigenous Peoples (
OP
/
BP
4.10)
 
[
]
[
X]
 
Forests (
OP
/
BP
4.36)
 
[
]
[
X]
 
Safety of Dams (
OP
/
BP
4.37)
 
[
]
[X ]
 
Projects in Disputed Areas (
OP
/
BP
7.60)
*
[
]
[
X]
 
Projects on International Waterways (
OP
/
BP
7.50)
 
[
]
[X ]
 
The restructured project would remain in Environmental Category B as originally envisaged
.
9. S
ocial and Gender Aspects.
 The restructured project would increase the level of participation of 
producer households in the project
 through their participation in producer groups; extension activities 
(including farmer field schools) value chain development; input supply; and marketing.  Similarly the 
restructured project would place more emphasis on gender mainstreaming than in the original project 
design.  Recently, a gender mainstreaming strategy has been prepared for HLP.  Gender mainstreaming 
efforts are ongoing across all
 
the project components, and would be reflected in staffing and in the results 
framework 
 
10. 
Counter-narcotics (CN)
.
The 11 focus districts in which HLP operates are reportedly free of 
poppy cultivation.  
In terms of CN, the restructured project will continue to follow the strategy of 
improving the economic returns of licit higher value crops and input and marketing facilities. Training 
and extension messages would continue to include CN issues.  
 
11.
 Contact 
points: 
 
Usman Qamar (Task Team Leader) 
Senior Rural Development Specialist 
World Bank, 
Kabul, Afghanistan 
Bank Link Line extension: 5232-424 
Email: 
uqamar@workdbank.org
Mio Takada 
Rural Development Specialist 
World Bank, 
Washington. D.C. Kabul, Afghanistan 
Telephone: (202) 458-0633 
Email: 
mtakada@workdbank.org
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the 
disputed areas
 
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12. 
For more information contact: 
 
The InfoShop 
The World Bank 
1818 H Street, NW 
Washington, D.C. 20433 
Telephone:  (202) 458-4500 
Fax:  (202) 522-1500 
Email: pic@worldbank.org 
Web: http://www.worldbank.org/infoshop