EUROPEAN COMMISSION EXTERNAL RELATIONS DIRECTORATE GENERAL DIRECTORATE ASIA (EXCEPT JAPAN AND KOREA) Unit H.4 - Pakistan, Afghanistan, Bangladesh, Sri Lanka, Maldives NATIONAL INDICATIVE PROGRAMME OF EUROPEAN COMMUNITY SUPPORT 2003-2004 BETWEEN AFGHANISTAN AND THE EUROPEAN COMMUNITY
NATIONAL INDICATIVE PROGRAMME TABLE OF CONTENTS 1. GENERAL FRAMEWORK... 2 2. AREAS OF CONCENTRATION... 2 2.1. Pillar 1: Human Capital and Social Protection... 4 2.1.1. Rural Development and Food Security... 4 2.1.2. Health... 6 2.1.3. Social Protection... 7 2.1.4. Human Rights, Civil Society, culture and media... 8 2.1.5. Repatriation of Refugees... 9 2.2. Pillar 2: Physical Infrastructure... 10 2.3. Pillar 3: Trade and Investment, Public Administration and Security... 11 2.3.1. Public Administration Reform... 11 2.3.2. Demining... 13 3. REGIONAL CO-OPERATION... 14 4. IMPLEMENTATION AND MONITORING... 14 4.1. Implementation Structures and Procedures... 14 4.2. Coordination... 16-1-
1. GENERAL FRAMEWORK This National Indicative Programme (NIP) sets outs the support which will be given by the European Community in 2003 and 2004 to address the priority areas identified in the response strategy of the Afghanistan Country Strategy Paper. The Afghanistan Transitional Authority (ATA), represented by the Ministry of Finance has agreed this document with the European Commission (EC). The NIP is fully in line with the provisions of the Bonn Agreement (November 2002) and the priorities set within the National Development Framework (April 2002), and the National Development Budget (October 2002). The Government of Afghanistan and the European Commission have laid down the following overall benchmarks which underpin continued EC cooperation: To promote the Bonn Agreement and its implementation by all groups. To promote democracy and the protection of Human Rights. To establish an effective macro-economic and monetary framework To reinforce the fight against illegal drugs and terrorism. To promote cooperation with neighbouring countries. To enhance the role of women For 2002, the EC will provide 207 million for recovery and reconstruction. For 2003/04, the NIP sets out an indicative envelope of about 400 million, providing a total of 609 million over the three years 2002-2004. This indicative contribution is subject to yearly approval of funds by the budgetary authority. This NIP does not programme humanitarian support from the EC s Humanitarian Office which has contributed 73.6 million in 2002. However, ECHO currently expect to provide up to 55 million for humanitarian support in 2003. Looking ahead, it is clearly important to take all sources of funding into account - in line with the move towards a Consultative Group process, encompassing the entire spectrum of Afghanistan s needs 1. 2. AREAS OF CONCENTRATION The overall objective of EC support is to reduce poverty and promote stability 2 in Afghanistan. This will be achieved through channelling support to four major areas of concentration: (a) rural development and food security (b) economic infrastructure; (c) 1 We would expect about 45 million to be spent on refugees and IDPs inside Afghanistan in 2003, with a further 10 mn on Afghan refugees in Iran and Pakistan. 2 Internal stability is a prerequisite for recovery and poverty reduction in Afghanistan. - 2-
good governance, including public administration reform and support for the recurrent budget and (d) support for the health sector. Specific objectives for each are to: support sustainable livelihoods, protection, income diversification and social risk management; promote sustainable and efficient utilisation of natural resources and the development of productive economic assets; define and establish the future structure and roles of a public administration at central, provincial and district levels able to resume delivery of essential public goods and services and to stabilise the budgetary position of the Government. Support the provision of a basic health care package, and contribute to a reduction in the under 5 and maternal mortality rate, as well as reducing discriminatory practices against women in healthcare. The Commission will also finance substantial non-sectoral programmes for human rights, media and civil society, de-mining, and through continued support from the EC Humanitarian Office for returning refugees and IDPs. Key cross-cutting themes that will be built into each programme area will be (a) gender equality (b) tackling poppy reduction through alternative livelihoods (c) environmental sustainability and (d) conflict prevention including the demobilisation of excombatants. The Community will also seek regional co-operation where appropriate on transboundary issues such as trade, refugees and drugs so as to enhance the effectiveness of Government owned development strategy. The programmes will help to address the transition from humanitarian support to reconstruction. Resulting from close cooperation with ECHO, programmes in rural recovery directly address the longer-term needs of refugees and IDPs who have returned with support from ECHO. On health, specific services supplied by ECHO will be taken over by EC reconstruction support from 2002/3. EC programmes will be designed and undertaken within the framework of the priority programmes outlined in the Government Development Budget 2002. This is particularly relevant for public administration reform, rural recovery and food security, and the health sector. For each key sector, more specific performance indicators will be developed as financing proposals are brought forward. The following sections summarise Commission activities in all areas. Thus in addition to setting out the Commission objectives for each of the four major areas of concentration discussed above, the paper also highlights how the Commission will contribute to tackling issues such as refugee return and de-mining, as well as promoting democracy through support for civil society. - 3-
2.1. Pillar 1: Human Capital and Social Protection 2.1.1. Rural Development and Food Security Definition: Rural poverty in Afghanistan is a multi-dimensional problem that includes low incomes, inequalities in access to productive assets, poor access to health and education, poor nutritional status, natural resource degradation, and weak institutions to drive change. It impacts disproportionately on women and children. In order to be effective, national strategies for poverty reduction must address all of these areas and take account of the diversity of rural areas and population groups. Mainstreaming objectives associated with the sustainable reintegration of returnees, internally displaced persons and ex-combatants into all policy and programme areas will be essential to the revitalisation of rural communities. Government Policy: The NDF and NDB recognise that effective support to rural development and food security require both (a) a wide range of sectoral interventions (agriculture, health, education, labour markets, water and sanitation, livestock, transport and communication, natural resource management) and (b) sustainable macroeconomic policies. They also stress the need for effective coordination mechanisms to cover all policy, institutional and programme initiatives in rural areas and to ensure that they contribute to the overarching objective of poverty reduction. Key elements for success therefore include: A systematic and comprehensive approach to the needs of rural communities, especially women and children. The reintegration of refugees, ex-combatants and internally displaced, and the diversification of livelihoods to provide opportunities other than poppy. Effective Government leadership and management to integrate and focus the various programs of individual foreign donors, UN agencies, and NGOs. EC Support Objectives: The overall objective is to support rural recovery and sustainable rural livelihoods, hence reducing poverty. Specific objectives are to support a coherent Government rural development and poverty reduction strategy that: promotes broad-based rural economic growth; facilitates the move away from poppy production through support to alternative livelihoods backed by effective law and order. For 2003, 10 mn has been earmarked to help in the fight against drugs. ensures more equitable access to productive assets, markets and services, for women in particular; supports human and social development in the areas of health, nutrition and access to water; supports for sustainable natural resource management through improved water management and irrigation; - 4-
supports for vulnerability reduction through the generation of gainful employment (public works and food aid), through strengthening rural production (including both on-farm and off-farm income/livelihood diversification), through improved access to micro-finance and through enhanced vulnerability surveillance; addresses social exclusion through the development of more effective provincial and community based institutions; Support from the EC: Past support from ECHO and other Community instruments have focused heavily on rural livelihoods, facilitating sustainable returnee integration and rural recovery in drought-affected areas. In 2002, this totalled around 70 million of EC support. Looking to the future, the EC will promote rural development and food security by providing support : to the Ministry of Finance for the development of the national budget and annual plans through improved policy and planning linkages. to the Ministry of Rural Rehabilitation and Development (MRRD) to finance: development of sustainable rural development and food aid policies. institutional reforms including establishing provincial offices and developing integrated provincial plans covering MRRD and other ministries activities. employment generation (3-5 million person days) and the creation of productive economic assets through public works programmes (roads, irrigation schemes). effective participation of women in projects, including access to credit support to the livelihoods and food security surveillance systems. rural recovery and food security support, including livelihood diversification. to the Ministry of Irrigation and Environment to improve irrigation policy and strategies and to invest in environmentally sustainable micro-watershed development, including institutional and technical rehabilitation of irrigation schemes. Assessing the environmental impact of projects is key to ensure rural recovery is sustainable over time. to the private sector, NGOs and UN agencies to develop informal financial markets and micro-finance institutions, livestock and grain market development. Cross Cutting Issues: There will be continued co-ordination with ECHO to ensure that returned refugees and IDPs are supported under reconstruction to ensure sustainability of their return. Other cross cutting issues related to opium reduction, human rights, including the role of women, and the environment will be mainstreamed within the sub areas of concentration outlined above. In particular, the focus on policy and strategy development and the development of provincial area programmes will - 5-
provide opportunities to help tackle those issues with a strong regional focus e.g. poppy production. 2.1.2. Health Definition: Afghanistan continues to suffer some of the worst health indicators in the world, especially for women and children.the capacity of the state to help is minimal. Existing health services only cover limited geographical regions and even in districts where services are available, the recommended basic health care package is only partially met. There are only some 650 clinics in the country split run largely by NGOs and some by Ministry of Public Health (MoPH), citizens in certain areas have little or no access to healthcare at all and level of actual health care delivered through these clinics is very variable. Government policy: The overarching objective of the MoPH is to improve the health status of the population of Afghanistan by ensuring broad access to a basic package of quality services that are accessible, equitable, sustainable and effective. But the policy is limited by budgetary constraints and a reliance on external donors. EC Support Objectives: Specific objectives are to increase the number of Afghans, in particular women, who will have access to a Basic Healthcare Package and to strengthen technical and financial capacities of central and provincial government. The end goal is to reduce the high rates of child and maternal mortality. Support from the EC: The EC has been the major donor in the health sector for the last 8 years, now supporting over 200 rural clinics (roughly one third of all clinics) and three provincial hospitals. This support has been recently renewed, guaranteeing continuation of these services for a further two years. But this support does not in all cases deliver the Basic Healthcare Package. In 2002, the EC is co-funding a nationwide survey on exiting health facilities and embarking on capacity building of the ministry. Looking ahead, The EC has agreed to provide assistance to the Government s health policy through support to the Ministry of Public Health for: Capacity building, including projects on: (a) strengthening health information systems; (b) promoting health policy development - including the role of the hospital referral system - with the objective of ensuring better provision of and accessibility to a basic package of health services, (c) improvement of health sector management at central and provincial levels. Service Delivery: The EC will finance service delivery for 3 million Afghans for primary health care, with support to development of the referral system as well as development of cost saving measures, such as commodity drug and input procurement programmes. Support will focus on delivery of the basic healthcare package notably, mother and child healthcare including reproductive health, family planning, health education and vaccination. Technical assistance will be provided to help central and local health administrations to develop delivery strategies, and to be actively involved in monitoring. Basic renovation and extension of the health network will also be considered in the supported areas, mainly at the level of health centres and district - 6-
hospitals. The EC comparative advantage is clear given its extensive past support. In terms of coherence, EC support will be delivered in line with government policy. The intervention complements other donors, including World Bank, WHO, EU member states and US, with coordination exercised via the Ministry s programme secretariat structure. Emergency health support from ECHO may continue but several agencies supported by ECHO that give longer-term support will be taken over by EC reconstruction support. Cross cutting issues: A key cross cutting theme addressed through health is gender and protection of vulnerable groups, namely ensuring fair and equal access to health care for females, children and vulnerable groups. Health is also a cross cutting issue in EC rural development and food security programmes that target poor nutrition and water. 2.1.3. Social Protection Definition: A combination of many factors have led to a very high rate of disability amongst the population: malnutrition, perinatal health issues, precarious access to health care, war effects and mine accidents. Particularly vulnerable are the circa 800,000 persons living with disabilities in Afghanistan, the number of street children that now total some 37,000 in Kabul alone and lastly, drug users especially among returning refugees. The later group raise the threat of AIDS spreading through Afghanistan a risk that has not yet been acknowledged sufficiently. Government policy: The government does not have a clear policy towards social protection. Part of the programme will be to raise awareness of the need to address this issue. There is no clear legal framework and ministry responsibility is blurred - on disabilities or indeed street children. On drug use, the Government is now actively taking forward a national drugs strategy with support from the UK, UNODC and other donors, which includes demand reduction. EC Support Objectives: To increase levels of social protection for persons with disabilities and street children and to reduce demand for drugs internally. Support from the EC: The EC is already supporting activities for people with disabilities through AUP budget line (artificial limb and rehabilitation facility). In addition, EC support has supported street children refuges in Kabul. Future EC support will focus on: Disabilities: (a) supporting the development of a national strategy on disability with relevant players, including Ministry of Martyrs; (b) training in physical rehabilitation professions and physiotherapists with the Ministry of Health; and, (c) improvement and integration of regional referral structures of physical rehabilitation with the Ministry of Health. Street children: (a) service delivery to the street children for protection, training and literacy and for psychological support; and, (b) based on clearer data and survey work, help responsibilise government on this issue and raise awareness in - 7-
the general. If resources permit, support may be provided in secondary cities on this issue. Drug demand reduction: Programmes will be financed which address the particular needs of the increasing number of drug dependants inside Afghanistan. This includes a large number of women who are more difficult to reach for sociocultural reasons. The EC comparative advantage is based on past support and experience in these areas. The intervention complements other donors activities which include largely other EU member states. Cross cutting issues: Key cross cutting themes addressed through social protection are acute social vulnerability, drugs and gender. Street children support addresses vulnerable families, especially single mothers. After rural development support which seeks to provide alternative livelihoods to poppy cultivation, drug demand reduction is the EC s major contribution to the drug strategy recently developed by the government. 2.1.4. Human Rights, Civil Society, culture and media Definition: After thirty years of conflict, Afghanistan has limited civil society and cultural expression and is without an independent media which are crucial ingredients to democratisation and conflict resolution. Government policy: Effective government policy in these areas is to enshrine laws and other instruments that protect media, civil society and cultural expression from interference by the state. The government has started the task of such a protection and the commitment to set up a foundation for civil society and cultural expression. EC Support Objectives: To facilitate cultural expression, the growth of a vibrant civil society and the establishment of a free and independent media. Support from the EC: Past support by the EC was limited pre-2002 due to war and conflict and specific sensitivities of the Taliban regime. Support in 2002 has totalled 4.5 million focusing on: (a) in media, independent radio (good Morning Afghanistan), independent newspaper and nation-wide distribution network and media incubator and training centre in Kabul (which also trains women journalists); and, (b) in civil society, human rights and culture, a small projects facility has been established to finance small community level projects. In addition, two gender related projects have been financed public baths for women and a women s park in Kabul. The support provided in 2002 will be complemented by further funds in 2003 and 2004. In media, this will involve ensuring the initiatives launched in 2002 continue and have a long term impact. Civil society, human rights and cultural activities will focus on small projects from individual communities such as recording oral histories, raising awareness in schools or communities-at-large on human rights and basic freedoms, mobilising citizens to advocate rights for disadvantaged and excluded groups - especially women.. In addition, the EC will support direct projects for human rights - 8-
and gender for example, continuing the rehabilitation of the hammans (public baths) programmes started in 2002. In terms of specific benchmarks, EC support to government is conditional on government compliance with: (a) respecting media freedoms, especially in assuring broadcasting license and non-interference editorially in the Good Morning Afghanistan programme and facilitating an independent press and distribution; and, (b) establishment of, and non-interference in, the Foundation for Civil Society and Media. Cross cutting issues: Key cross cutting themes addressed are democratisation, promoting awareness and understanding of the 2004 election process, the rule of law (especially with regard paving the way for reintegration of minority returnees), the protection of vulnerable groups, and respect for human rights, including the role of women. 2.1.5. Repatriation of Refugees Definition: During the years of conflict, up to 20% of the population were uprooted, either through internal displacement, or flight to neighbouring countries and further afield, including to Europe, the United States and America. Afghanistan now faces two major challenges. First how to absorb the substantial refugee returns now occurring largely from Pakistan and Iran about 1.7 million are thought to have returned over the last year. Second, how to encourage the return of highly skilled workers within the Afghan Diaspora, including from Europe, to help drive the process of recovery and reconstruction. Government policy: The October 2002 National Development Budget stresses the need to co-ordinate humanitarian and development support to ensure the return of refugees is sustainable. The Afghan government is also pursuing an active policy of recruitment of skilled Afghans abroad. This is reflected in government structures with the creation of a Minister for Refugees and Returnees. EC Support Objectives: The specific objectives of future EC support to this sector are: To provide humanitarian support where needed, and to promote the sustainable return of refugees through effective integration of humanitarian and development aid. Identify key skilled Afghan nationals to fill human resource needs. To support the return of the Afghan Diaspora in Europe. Support from the EC: In the ten years up to 2001, the European Commission funded over 500mn of Humanitarian support to Afghanistan. In 2002, the Commission financed a further 73.6 mn in support for refugees in Afghanistan, Pakistan and Iran. In addition, the budget line for the repatriation of refugees, allocated 3.6 mn to support the return of qualified Afghans in 2002. - 9-
Looking to the future, humanitarian support through ECHO will continue in 2003. Commission activities in other areas notably rural recovery, health and the rebuilding of infrastructure will to underpin the sustainability of return. Within the European Union, a High Level Working Group has been taking forward the Seville European Council mandate to urgently adopt a repatriation programme which includes the best possible facilities for early return to Afghanistan. This is likely to involve the Commission leading an Afghanistan Co-ordination Return Group (ACRG) which will help to co-ordinate and support returns from Member States. In addition, the program foresees the Commission having an important co-ordination role sur place in terms of ensuring there is adequate post-return support including by liaising with Afghan authorities to help returnees benefit from key re-integration measures. For 2003, 7 mn will be available to support European returns, plus additional 10 mn to help ensure all returns are sustainable. Cross cutting issues: In tackling the sustainability of return key cross-cutting issues will include the promotion of human rights, including the role of women, and conflict resolution. Improved internal security including de-mining will also be critical. 2.2. Pillar 2: Physical Infrastructure Definition: More than two decades of war have devastated Afghanistan s infrastructure. Problems range from erratic and limited electricity supply, a generally collapsed transport system and inadequate water supply and wastewater treatment. For a mountainous, landlocked country like Afghanistan, the current state of roads is particularly damaging in terms of facilitating national economic activity and international trade, national integration and security. The average costs of road freight and passenger transport inside Afghanistan are four times higher than in neighbouring countries. Government policy: The government policy for transportation is: To develop high quality transport links within Afghanistan and to neighbouring countries, thereby contributing to national integration and to economic and social development in rural and urban areas throughout the country. The ability to progress quickly on roads is however complicated by limited funding, the absence of plans and prioritisation, the lack of maintenance capacities and the lack of national and international contractors. EC Support Objectives: To help reconstruct the national road network. Support from the EC: Until 2002, EC support to transport was restricted to small rural feeder and urban road rehabilitation generally associated with NGO projects of one form or another. In 2002, EC has continued to finance rural roads,has supported emergency work on the Kabul-Jalalabad-Torkham road, and has worked with Germany on electricity rehabilitation in Kabul. On future support, the EC has agreed to provide assistance to the Ministry of Public Works and of Transport for the following activities: reconstruction of the Kabul-Jalalabad-Torkham road. With complementary support from SIDA of Sweden, full reconstruction will be undertaken through 2003/04. - 10-
This builds on an emergency repair project that will ease traffic flow during reconstruction which is being financed from 2002 funds. This 221 km road is in poor condition leading to considerable loss of material in traffic lanes. The project will assist in the economic regeneration of Kabul and eastern provinces, in raising political security in eastern regions, including closer linkage to Kabul, and facilitating regional co-operation and international trade with Pakistan. policy and capacity building support for key transport institutions. Investment support is not coherent without capacity building support to the institutions involved in national transport that will ensure both a coherent policy framework and a ministry and private sector capable of maintaining the roads after construction is complete. additional programmes will be considered in provincial roads and urban development, depending on resource availability, including small community based infrastructure work in Kabul implemented by the communities themselves with ISAF. The Kabul-Torkham project offers an excellent opportunity to work with Pakistan. Cross Cutting issues: Key cross cutting themes addressed are national unity and security. Refugees and ex-combatants will benefit by the jobs created in the reconstruction. We will also need to ensure that projects promote environmental sustainability. 2.3. Pillar 3: Trade and Investment, Public Administration and Security 2.3.1. Public Administration Reform Definition: The public administration inherited in December 2001 was in a state of neglect reflecting a weak skill base, low motivation and a Soviet style planning structure. Government policy: Government policy is to create an effective central government structure that re-establishes national unity on the basis of strong institutions, while (i) building community level participation and effective management at the local level, (ii) installing strong systems of financial and information management, and (iii) using the NDF and the development budget as a major instrument for planing policy. The government has put in certain building blocks to achieving this such as the new currency, budget and national development framework, the Capacity Building Group initiative and Commissions for civil service and constitution. However, more profound public administration reform has yet to start. EC Support Objectives: The specific objectives of future EC support to this sector are: To foster reform of the administration where it is feasible and politically supported. - 11-
To establish an effective civil service system, based on merit, with compensation sufficient to attract and retain qualified employees, and to ensure equality of opportunity for women; To re-create the physical infrastructure needed to function as a government, at both central and provincial levels; To evolve a governmental organisation structure and operating procedures that are effective in meeting the needs of Afghanistan. To stabilise the budgetary position of the ATA while own revenues increase. Support from the EC: Past EC support in this area has been very limited due first to war and then due to the absence of direct support to the Taliban national regime. However, in 2002, 52.5 million has been put through the Trust Funds to support the functioning of government. Future EC support will build on this approach seen in 2002: (a) strengthening the capacity and skills of the public administration in Kabul and provinces to deliver the necessary services to the Afghan citizen; while also, (b) supporting government recurrent expenditure while revenue collection and self financing capacities improve. The EC has agreed to provide assistance through AACA and directly to ministries for the furtherance of public administration reform and budget stabilisation by: Establishing a national payments system. As a complement to the new national currency and to provide an alternative to the informal hawala banking system, a national payments system will be established based on the regional offices of the central bank. Strengthening the revenue position. This will focus on projects that improve tax and customs revenue collection. As a complement to this, the EC will continue to support the Afghanistan Reconstruction Trust Fund while domestic revenue increases. Facilitating Trade and Investment. Assistance to the private sector, for example, in understanding regulatory and market requirements, ability of finding and exploiting new market opportunities, improving the use of trade preferences (GSP/ Everything But Arms), as well as dealing with certification, standards and trade promotion activities.furthermore, interaction with the Government should ensure that new policies, laws and regulations are conducive to attracting foreign direct investment and help move Afghanistan to WTO membership Building capacity of civil service. Capacity Building Groups will be set up and operated in core ministries and provincial governor structures, tailored to each Ministry s particular needs, to strengthen capacities in policy formulation (including in regards to the drugs policy), budgeting, project preparation, procurement and management. A central facility for generic training in English, computers and project management will be set up. - 12-
Reform of the civil service will be promoted wherever possible, including through the Consultative Group. Security. Enhanced security and justice lie at the heart of Afghanistan s recovery and the Bonn Agreement. The EC will support police, law and order and justice through the relevant Trust Funds 3.. The EC will also potentially provide support for the election process. In terms of comparative advantage, the EC has a long tradition of support in this area and can bring many models and approaches to bear on helping Afghanistan restore a lean but efficient government that is both accountable to its people, capable of policy formulation and able to deliver (or assure delivery by the private sector) of basic services. The above approach is fully in line with the emergent government policy on public administration. The intervention complements other donors, notably World Bank, Asian Development Bank and other bilateral donors, with coordination exercised via the Afghan Assistance Coordination Authority. In terms of specific benchmarks, this support is conditional on agreement to above average CBG salary levels and their payment via the normal salary payment system; Government compliance with IMF recommendations on monetary policy; adherence to the provisions of the budget law of 2002: presentation of a new constitution on the basis of the Constitutional Commission; compliance with the Bonn provisions on security and police and, finally, on the presentation to Cabinet by mid 2003 of a draft civil service reform law. Cross cutting issues: Support in this area will provide a direct vehicle to address the role of women and - through helping to create a strong, cohesive state the sustainable return of refugees and IDPs and future conflict prevention. 2.3.2. Demining Definition: Afghanistan is one of the most heavily mined countries in the world. This prevents the return of refugees and displaced persons, and keeps valuable land out of economic use. In 2002, about 800 hectares was cleared. Government policy: The government target is to clear mines and UXO within seven years. Demining is undertaken within the framework of the multi-donor Mine Action Programme for Afghanistan. This is coordinated by the UN, implemented by NGOs and increasingly supervised and guided by the government. This oversight by the government is undertaken by a department within the Office for Disaster Preparedness. EC Support Objectives: To clear Afghanistan of mines and UXO within seven years. 3 To ensure an adequate balance between support to general public expenditure and promoting security, the Commission intends to channel, subject to the overall funding picture, about 1/3 of the 82 mn in budget support as a contribution to LOFTA. - 13-
Support from the EC: The EC has supported demining throughout the Taliban period, helping to demine the battlefield and other mine areas resulting from the civil war. In 2002, 10.4 million was provided to accelerate demining. This support will continue to the government for the furtherance of its demining strategy, specifically for: (a) mine and UXO survey and awareness work; (b) mine and UXO clearance; and, (c) strengthening government capacities in mine clearance. The EC will continue to direct its support through the MAPA framework while this remains efficient for payment, monitoring and control of implementing NGOs. Cross cutting issues: Mine clearance includes three major cross cutting themes: (a) facilitating refugee return and demobilisation by clearing settlements and agricultural areas; (b) increasing security around the country; and, (c) protecting women and children which are the majority victims of mine accidents. 3. REGIONAL CO-OPERATION The problems and challenges facing Afghanistan require both national actions but also regional cooperation most notably on the drugs and refugee issues. On drugs, regional cooperation plays a major part in the strategy agreed with the Government with lead support from the UK. The EC will support this regional cooperation through promoting links between the various regional governments drug enforcement agencies and cooperation with international enforcement bodies. Drug and people trafficking are often linked the regional approach to drugs should take account of this. On refugees, regional cooperation is obviously crucial. Many of the 5 million Afghans who have lived in Iran and Pakistan in recent years are now returning. However, many have also put down roots in their host countries and present a particular challenge to the Afghan, Iranian and Pakistan governments. The EC will continue to help the Iranian and Pakistani governments deal with this issue by supporting services such as health and education as well as helping to prepare these refugees for return. In addition to these issues, the EC will provide further support for promoting wider regional cooperation, including links between business and trade promotion. In project design, the EC ensures that all neighbouring countries are eligible for tendering. 4. IMPLEMENTATION AND MONITORING 4.1. Implementation Structures and Procedures The EC will finance the above National Indicative Programme over two years 2003 and 2004. These indicative contributions are subject to the annual approval of funds by the budgetary authority. The provisional allocation of resources for each priority in the NIP in each year is set out in Annex 1. The NIP will be funded through a number of budget lines. In 2002, several budget lines have been used to finance the NIP, including: - 14-
Financial and Technical Co-operation, Asia (ABB article 19.10.01 "Financial and Technical co-operation with Asian development countries - traditional nomenclature B7-300); Food Security (ABB article 21.02.01 "Products mobilised under the Food Aid Convention - traditional nomenclature B7-200); Aid to Uprooted People (ABB article 19.10.03 "Aid to uprooted people in Asian countries - traditional nomenclature B7-302); The Rapid Reaction Mechanism (ABB article 19.02.05 "Rapid reaction mechanism" traditional nomenclature B-671/B671A); Asylum/Migration (ABB article 18.03.07 " Cooperation with third countries on migration - traditional nomenclature B7-667). European Initiative on Democracy and Human Rights. (ABB article 19.04 "Human Rights and Democratisation - traditional nomenclature B7-7) In 2003, the use of different budget lines will change. As part of the 2003 budget process, the budgetary authority has created a specific budget article for Afghanistan Aid for the rehabilitation and reconstruction of Afghanistan (ABB 19.10.06 "Aid for the rehabilitation and reconstruction of Afghanistan"- traditional nomenclature B7-305). This has a total appropriation of 124 million, of which 24 million has be taken from the budget article Aid to uprooted people (ABB 19.10.03), and 100 million from the Financial and technical co-operation with Asia (ABB 19.10.01). A further 35 million is anticipated from Food Security (ABB 21.02.01), and additional support will come from cross-cutting budget lines such as Asylum/ Migration. No contribution is currently foreseen from the RRM (ABB 19.02.05), as this is intended to target rapid support onto new crisis situations. Support to public administration reform will continue to be funded via the budget article Financial and Technical Cooperation, Asia. Each Commission Financing Decision will: i. be subject to the procedure set out in the relevant Regulation; ii. contain a number of projects, each comprising one or more contracts; iii. be for a duration of up to five years but contracting should take place within two years. The medium term goal is to channel EC support as much as possible via direct sectoral budget allocations. However this requires more effective management and financial control capacities than currently exists in those target ministries through which EC funds would be channelled, notably the Ministry of Health, the Ministry of Public Works and the Ministry of Rural Rehabilitation and Development. Line ministries will focus on overall policy rather than direct service delivery. - 15-
Until such a time as sectoral support is possible, EC aid will be implemented directly by the Commission (including via NGOs) or via the Ministry of Finance using EC procedures. For programmes implemented via the Ministry of Finance, standard Commission procedures shall be followed. A Financing Agreement will be signed for each Commission Decision with the Minister of Finance. On the basis of a Work Plan, the Ministry of Finance through its procurement agent presently located in AACA will manage the funds covered by the Financing Agreement including undertaking procurement according to Commission rules and supervision. Funds will be disbursed to an account in the Da Afghanistan Central Bank as required for meeting Work Plan planned commitments and disbursements. Payment on contracts will be made directly from the Da Afghanistan Central Bank under responsibility of the Minister of Finance as signatory of the Financing Agreement until such time as accounts are cleared by the Commission. Project definition and monitoring will be undertaken by the relevant ministry, either the Ministry of Health, Ministry of Public Works or the Ministry of Rural Rehabilitation and Development. Each EC project will be subject to monitoring to assess progress as well as ex post project evaluation through the normal AIDCO system. All support that is directed to help restart the government recurrent budget shall be directed through the Afghan Reconstruction Trust Fund and Law and Order Trust Fund 4. Agreements for EC support in these areas shall be agreed directly between EC and World Bank and UNDP. 4.2. Coordination The National Development Framework and the Development Budget help to set clear Government priorities for recovery in Afghanistan. These form the planning documents for ensuring donor support is effectively targeted. The October 2002 Implementation Group meeting also agreed to move to a Consultative Group (CG) structure by March 2003. This will be backed by 12 Local Consultation groups for each of the major sectors identified in the National Development Budget. Gender will be mainstreamed through a Gender Advisory group. This structure is key to ensuring effective donor co-ordination. It will be further backed by Afghanistan Assistance Coordination Authority (AACA). The National Indicative Programme has been discussed and agreed with the ATA. Looking to the future, the ATA will be closely involved in the various implementation stages from tendering through management to monitoring of the EC support outlined in this NIP. Coordination with other donors is particularly important in Afghanistan, given the large number of players involved. The Commission assures this through extensive work both at the international level, within the EU and within the countries themselves. 4 The World Bank are responsible for monitoring the use of these funds, and have appointed an in country team from Price Waterhouse Coopers. - 16-
First, the Commission has co-chaired the Afghan Reconstruction Steering Group and has also participated actively in the Implementation Group process for Afghanistan (now being transformed into a normal Consultative Group structure). Second, the Commission delegation participates in regular meetings in-country with Member states and other involved organisations (such as International Financial Institutions) to ensure monitoring and coordination on an on-going basis. Specifically, Heads of EU Missions meet once per week and assistance coordination meetings are held with all member states once per month. Clearly humanitarian aid cannot be programmed well in advance, nonetheless effective linking between of EC humanitarian and reconstruction support is crucial in ensuring a comprehensive EC s response to Afghanistan s needs. Most important is the interface on refugee return, on health, on demining and on general vulnerability. This coordination is undertaken through programming jointly and weekly co-ordination meetings in the field. - 17-
National Indicative Programme (M ) 5 Pillar 1: Human and Social Capital 2002 2003 2004 Total Health 12 10 15 37 Social protection, human rights, civil society and media 9 3 11 23 Repatriation of refugees (JAI) 3.6 7 6 10.6 Enhancing sustainability of all refugee returns 7 10 10 Rural development & food security 8 70 43 60 173 Additional initiative to combat drugs 9 10 10 Pillar 2: Physical Infrastructure Economic Infrastructure 18 38 55 111 Pillar 3: Public administration and security. Public administration - capacity building and reform 16 5 10 31 Afghan Reconstruction Trust Fund / Law and Order Trust Fund 52,5 42,5 40 135 Demining 10,4 10 10 30.4 Regional Cooperation 2 7 7 16 Other human rights, pilots, TA and contingency 13,3 1,5 6 20.8 Total reconstruction and recovery 206.8 187 214 607.8 Humanitarian 73.6 10 [55] 11 128.6 Total humanitarian and reconstruction aid 280.4 242 214 736.4 5 6 7 8 9 10 11 Subject to yearly approval of funds by the budgetary authority. Appropriations from the budget article B7-667 Cooperation with third countries on migration for assisting a European wide initiative for the return of Europe based Afghan refugees. Currently under consideration, to be confirmed by February 2003. For 2003, this includes a contribution of 35 million from the Food Security budget article (traditional nomenclature B7-200). For 2004, this includes a minimum contribution of 20 million from the Food Security budget article. Currently under consideration, to be confirmed by February 2003. The 2002 Emergency Aid Reserve in Heading 6, which is mobilised for external assistance according to the provision point 23 (c), in the IIA of 6 May 1999. Obviously, it is not possible to programme humanitarian assistance, and this figure is not a commitment. Nonetheless, we would expect about 45 million to be spent on refugees and IDPs inside Afghanistan in 2003, with a further 10 mn on Afghan refugees in Iran and Pakistan.