Project Agreement for Industrial Development in Afghanistan

The project objectives are multifaceted, focusing on enhancing the investment environment, providing technical support for small private industries, and creating better overall support facilities for private entrepreneurs. To achieve these objectives, the Ministry of Commerce intends to establish the Industrial Development Committee, which will serve as a catalyst for the creation of new sources of commercial and industrial credit. The committee will also provide recommendations for necessary improvements in commercial legislation. Furthermore, the project aims to provide the insights and information needed to guide the government in the development of industrial policy, as well as strengthen the indigenous private sector by providing training for people from local firms and institutions. The project will be implemented in collaboration with the United States, which will provide a resident senior experienced management and coordinator, supported by short-term advisors and provision of training in the US and friendly countries. The advisor will assist in the work of the Investment Committee and the Agency for the Support of the Private Sector (Investment Advisory Group). The project will also provide a budget for the Secretariat of the Investment Committee and the Agency for the Support of the Private Sector, with a total amount of Afs 30 million for the Secretariat and Afs 30 million for the Agency. The project will also cover the costs of clearing, handling, and forwarding of commodities, which will be provided by AID from the Supply Delivery Point to the USAID Terminal Delivery Point nearest the project site. The HMG undertakes to accept delivery of commodities at any of the above-mentioned USAID Terminal Delivery Points within the free port and will provide and pay for onward transportation and all other charges. The USAID undertakes to schedule shipments to Terminal Delivery Points at a reasonable frequency, taking into account the HMG's capacity to supply and transport commodities. The project will also require the preparation and issuance of reports for all commodities furnished under this project, which will be titled with the HMG within ten days after receipt of those commodities. The reports will be maintained in English and AID personnel will be granted ready access to them upon request. Authorized sources of procurement for all commodities covered under this project will be the United States only. Any procurement required to be made from other sources shall be financed by the HMG.