Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 4/17/2016
Project financing is available from the following organizations:
 
The Overseas Private Investment Corporation (OPIC) is an independent agency of the U.S. Government that offers specialty insurance (stand-alone terror/sabotage and political risk coverage), loans and guarantees to help U.S. businesses of all sizes invest and compete in more than 140 emerging markets and developing nations worldwide.  For a list of current OPIC projects in Afghanistan, go to this website: http://www.opic.gov/projects/current-opic-projects and select Afghanistan.
 
The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries and is the largest multilateral source of loan and equity financing for private sector projects in the developing world.  IFC provides loans, equity finance and quasi-equity.  It also offers financial risk management products and intermediary finance.  For information on IFC’s Afghanistan portfolio, go to this website: http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/europe+middle+east+and+north+africa/ifc+middle+east+north+africa+and+southern+europe/countries/afghanistan+country+landing+page.
 
The U.S. Trade and Development Agency (USTDA) advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA moved quickly to establish its program and has provided more than $9 million in funds for projects benefiting Afghanistan since 2002. USTDA has financed projects in telecommunications, civil aviation, oil and gas, higher education, private sector development, and power.
 
The Export-Import Bank of the United States (Ex-Im) provides financing for the sale of U.S. products and services overseas.  Although Ex-Im is currently not open for business in Afghanistan, it will continue to survey future opportunities.
 
Many business opportunities are connected to the reconstruction effort.  The following agencies have large programs through which opportunities for interested businesses are available.
 
U.S. Agency for International Development (USAID) has taken a leading role in Afghanistan's reconstruction effort, focusing on health clinics and basic health services, school construction and education programs, revitalizing agriculture through irrigation systems, farm-to-market roads, market centers, SME development, and infrastructure, including the Kabul-Kandahar-Herat highway.  USAID is also funding programs that enhance the central Government's capacity and provide it with the tools and technical assistance to govern effectively.  Between 2006 and 2011, USAID received $9.5 billion for Afghanistan assistance, of which $8.3 has been disbursed as of September 30, 2011.  USAID’s Afghanistan website, http://afghanistan.usaid.gov/en/home, has information on procurement opportunities and doing business with USAID.  U.S. firms interested in bidding on USAID projects in Afghanistan can review requests for applications, proposals, quotations and invitation for bids on this website.  U.S. firms should also review the main portal for U.S. government procurements: http://www.fedbizopps.gov/.
 
The World Bank projects primarily focus on improving rural livelihoods by rebuilding infrastructure and providing employment opportunities, education and basic health services.  It is the largest international donor to the Government’s flagship National Solidarity and National Emergency Employment Programs, which, respectively, channel block grants through elected community councils to around 17,000 villages and offer cash-for-work on infrastructure projects. In addition, the World Bank administers the multi-donor Afghanistan Reconstruction Trust Fund (ARTF), which provides coordinated financing of unfunded priority expenditures in Afghanistan's reconstruction program as well as supporting the recurrent costs of government.  The World Bank’s website, http://www.worldbank.org/, includes an information portal for the business community seeking to participate in opportunities that are generated from World Bank-financed projects. Afghanistan-specific projects, programs and results can be found http://www.worldbank.org.af/external/default/main?menuPK=306016&pagePK=141155&piPK=141124&theSitePK=305985.  Projects can also be tracked at tjos website: http://www.dgmarket.com/ or at this one: http://www.devex.com/.
 
Asian Development Bank (ADB) as of December 31, 2011, ADB had provided Afghanistan with $2.7 billion in loans, grants, guarantees, technical assistance, ADB --the fourth largest donor to Afghanistan after US, Japan and European Commission -- administers co-financing, and private sector investments.  ADB projects focus in the areas of agriculture and natural resources, energy, gender, governance, financial and private sector development, transport and communications.  A detailed description of ADB’s Afghanistan strategy and programs can be found at this website: http://www.adb.org/countries/afghanistan/maine.  Projects can be also be tracked http://www.dgmarket.com/ and http://www.devex.com/.
 
In addition, there are also opportunities to bid on donor-funded projects administered by Afghanistan.  The Afghanistan Reconstruction and Development Service (ARDS) manages the purchase of goods and services on behalf of the Afghan Government. Companies that wish to receive procurement notices can do so by registering through email: ards.procurement@ards.org.af.
 
Political risk insurance is available both through OPIC and the Afghanistan Investment Guarantee Facility, a program of the World Bank’s Multilateral Investment Guarantee Agency (MIGA).

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Afghanistan Market Access Project Financing