URBAN DEVELOPMENT

PROJECT TITLE:
CITIES INVESTMENT PROGRAM
GRANT AMOUNT:
$50 million (ARTF grant: $25 million; IDA grant: $25 million)
APPROVAL DATE:
December 19, 2018
CLOSING DATE:
June 30, 2024
PROJECT OBJECTIVE:
The development objective of the Cities Investment Program (CIP) Project for Afghanistan is to
improve the sustainability and livability of nine regionally balanced provincial capital cities
(PCCs).

PROGRAM SUMMARY

The program will support the government and the PCCs to build municipal capacity to improve revenue
collection and design a system for performance-based fiscal allocations. It will also provide support to
strengthen municipal planning and management through technical assistance, training, and supply of
equipment and software. CIP will provide financing to five PCCs (Herat, Jalalabad, Kandahar, Khost,
and Mazar-e-Sharif) to rehabilitate urgently needed basic municipal infrastructure to improve service
delivery and livability. This would consist of localized and small-scale interventions with limited and
mitigatable environmental and social impacts.

This project is co-finannced with $25 million IDA grant.

EXPECTED RESULTS:

1. Percent of surveyed project beneficiaries who rate municipal services satisfactory or better,
disaggregated by gender
2. Number of urban residents benefitting from project components, disaggregated by gender
3. Number of PCCs meeting their planned budgetary improvement targets
4. Number of PCCs meeting their own source revenue targets

Afghanistan - Cities Investment Program

Project
ABSTRACT

The development objective of the Cities Investment Program (CIP) Project for Afghanistan is to
improve the sustainability and livability of nine regionally balanced provincial capital cities
(PCCs). The project comprises of four components. The first component, rehabilitate municipal
infrastructure will provide financing on a performance basis to support five participating PCCs
(Herat, Jalalabad, Kandahar, Khost, and Mazar-e-Sharif) in the rehabilitation of urgently-needed
basic municipal infrastructure. The second component, strengthen the municipal finance
framework will support Government of the Islamic Republic of Afghanistan (GoIRA) and 9
participating PCCs in building municipal capacity for improved own source revenue (OSR)
collection and design of a system for performance-based fiscal allocations. The third
component, improve the municipal management framework will provide support for
strengthening municipal planning and management at 9 PCCs through technical assistance,
training, and the supply of urgently needed equipment and software. It consists of following sub-
components: (i) technical assistance support through municipal capacity building packages; (ii)
preparation of strategic development frameworks (SDFs); (iii) feasibility and design studies for
catalytic investment projects; and (iv) technical assistance for urban policy reforms. The fourth
component, project implementation management will support Independent Directorate for Local
Governance (IDLG) in managing the implementation of the CIP in coordination with the
participating PCCs and ministry of urban development and housing (MUDH)