(EnergyAsia, March 17, Tuesday) — The Asian Development Bank (ADB) said that it and the Afghanistan government have forged a new Country Partnership Strategy (CPS) 2009-2013 that continues to focus on investments to bolster the country’s energy, transport, and irrigation sectors.

“In addition to being one of the poorest countries in the entire Asia and Pacific region, Afghanistan is confronted with a daunting set of development challenges,” said ADB vice-president Xiaoyu Zhao.

“Pervasive insecurity and the country’s still-limited human capacity constrains effective implementation not only of the government’s ambitious reform agenda, but also of physical works that will create employment and economic growth.”

Approved by ADB’s board in Manila, the new partnership strategy is closely aligned with the Afghanistan National Development Strategy and focuses on a limited number of priority sectors.

“The new CPS calls on ADB support for the provision of essential infrastructure including roads, power and irrigation facilities,” said Craig Steffensen, Country Director of ADB’s Afghanistan Resident Mission.

In a country where only 6% of the population has access to electricity, ADB’s ongoing energy sector investments will expand the power grid by rehabilitating power substations and transmission lines, construct small to medium-sized hydropower plants, and improve power trading and interconnection with neighbouring countries.

ADB assistance in this sector will contribute to the government’s goal of delivering electricity to 65% of urban households and 25% of rural households.

In the transport sector, the CPS calls for the completion of Afghanistan’s “ring road” and the construction of new national roads, including links with neighbouring countries. This will cut transport costs and raise the country’s competitiveness profile.

ADB said that improved road transport is tangible evidence of Afghanistan’s reconstruction. Freight traffic has increased dramatically. 

Complementary investments in regional road corridors and regional trade policy and facilitation will increase the value of trade with neighbouring countries from about US$5 billion in 2005 to $12 billion by 2016.

ADB said its support for Afghanistan’s agriculture sector will focus on the rehabilitation of irrigation systems.