RFI-_Promoting_Afghanistan's_Commerical_Agricultureal_Production_and_Export.pdf

STATEMENT OF OBJECTIVES (SOO)

1. PURPOSE

The United States Agency for International Development (USAID/Afghanistan) seeks to provide grants to private investors, in the form of capital equipment or funding, to increase Afghanistan's commercial agricultural production and exports. The proposed activity will culminate in the export of agricultural goods that will broadly benefit small agricultural producers and rural households.

2. CONTEXT

Over the last decade, Afghanistan has experienced robust economic growth averaging about 9 percent annually. Investment in select sectors, including construction and telecommunications, has been positive, and Afghanistan maintains one of the most liberal trade regimes in the region.

Despite the strong growth, the country is still struggling to overcome the challenges of poverty, food insecurity, lack of electricity and water. The agriculture sector in Afghanistan has high potential for income and employment. The sector is critical to the country’s food security and a key driver of the economic growth. Agriculture accounts for 25 percent of Afghanistan’s gross domestic product and almost 75 percent of the Afghan population is dependent upon agriculture for their livelihoods. Yet ongoing security concerns, low technology usage, sparse irrigation, and poor infrastructure limit the growth of the sector

Paired with the Government of Islamic Republic of Afghanistan (GIRoA) and other donors’ efforts and support, USAID/Afghanistan is committed to continue supporting the country’s agriculture sector by making agriculture-led economic growth a central part of its portfolio.

USAID strongly believes the private sector plays an important role as an engine of economic growth and job creation and has always given it due consideration in its strategy and implementation of economic growth activities.

As stipulated in this SOO, USAID/Afghanistan seeks to provide grant funding in form of cash, or preferably capital equipment to private sector firms and businesses to promote Afghanistan’s commercial agricultural production and exports. USAID grants may fund activities included but not limited to improving regional and international market linkages, reducing post-harvest losses, improving value add processing, and expanding access to affordable financial services and products.

USAID/Afghanistan anticipates that respondents will propose creative and innovative solutions to address the challenges outlined above. Under this funding or equipment grant support, respondents may propose any intervention considered best able to contribute within the operating constraints to address challenges and help USAID and the GIRoA promote Afghanistan’s commercial agricultural exports.

World Bank 2012 Estimates.

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2. REQUIREMENTS

Under this RFI, USAID/Afghanistan is requesting the following information from potential investors and entrepreneurs in agriculture regarding ventures that will result in the expansion of

Afghanistan's agricultural exports and broad-based benefits to rural households:

1) Please provide an investor background (who you are, what you do) of yourself; and why you are motivated to be engaged in such a development venture?

2) What specific agricultural business opportunities—including opportunities to use Afghan agricultural exports—do you see in Afghanistan within the next 1 to 2 years? What are the critical constraints to taking advantage of these opportunities?

3) How will your company add value to the aforementioned activitie(s)?

4) Please describe preferred activity- e.g. export of herbs to Russia - from farmer to importer in receiving country?

5) How does your proposed approach incorporate lessons learned and evidence from previous initiatives or projects? Why will such an approach succeed where others, or similar efforts have not?

6) How would you propose to overcome these constraints and thus begin to realize the aforementioned opportunities? For this approach:

a. Do you have estimates of capital and recurring costs? If you are able to supply a rough budget, please do so. How will these costs be financed?

b. What roles and contributions (including in the policy and regulatory environment) would be necessary from the public sector—whether Afghan government or donor community—in overcoming these constraints?

7) Please identify the assets that an investor could dedicate to the activity?

8) Please identify additional components required to make the venture a success?

9) Please share the costs of additional components?

10) What is known about the potential roles and interest of, and impact on:

a. Afghan producers and other actors in the relevant value chains?

b. Supporting institutions such as producer associations, water user associations, and quality assurance providers? What key questions still need to be answered?

11) Overall, what evidence do you have about labor requirements, financial returns—and risks—for key value chain actors? How about the sustainability of this approach? What key questions still need to be answered?

Responses to the above questions will help USAID/Afghanistan to ensure that the proposed activity is relevant and impactful.

Impediments to Fresh and Dried Fruit Exports January 1, 2016

Key: ★★★ High level of importance, CHAMP can influence change

★ Lower level of importance, CHAMP influence to change is limited, IP and other institutional assistance required.

Importance Ability to Change Issues Description of Issues Entity Potential Solution

Air, Land and Sea Cargo Transportation

★★★ ★★ Lack of freight handling and transport capabilities

In its current state, there is not sufficient capability either by ground or air to efficiently transport fresh/dried fruit products to international markets. For ground shipments, lack of reefer containers and container service facilities stifle transport operations. In terms of air cargo, there is limited reliable space available for traders making it extremely difficult to plan and execute orders.

MOCI, MOT,

AISA, private sector

International/domestic companies should be incentivized to invest in this sector, e.g.

in transport, freight forwarding, storage, container and cargo management. This can be achieved by tax incentives – tax holidays, and other tax breaks. Also land concessions could be pursued, possibly with international donors. Most importantly, transport companies must be motivated to incur the risk of expanding greater service provision, but in a sustainable manner.

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Ground Transportation

Restricted Afghan trucking access through Pakistan to India, even though APTTA allows it

Although Afghan trucks are now allowed to deliver products in Pakistan and Atari (loading and unloading area 14km inside India) they are not allowed to bring back any loads into Afghanistan. As a result, Afghan traders must hire Pakistani trucks so as to reduce the shipping cost to deliver their cargo to India. Pakistani trucks, on the other hand, can enter and transit through Afghanistan without any restrictions. Discussions are ongoing between the three countries.

MOCI, MOFA

MoCI and MoFA could intervene and open bilateral discussions with Pakistan and India to resolve this issue. At a recent meeting between the Finance Ministers of Afghanistan and Pakistan, both countries agreed to reduce the cost of transit through Pakistan. Special mention was made of the multiplicity of charges like cargo/terminal charges, customs duties, port clearance charges and inclusion of new bonded carrier companies. Both sides agreed to bring the port charges at a par with those being charged on local consignments.

Lack of trade agreement for shipping through Uzbekistan to Kazakhstan, Ukraine and Russia

Afghan trucks are not allowed to pass these borders even with bank guarantee and/or insurance. Afghan trucks must be unloaded at the Afghan side of the Amu Darya river border. Product must then be transferred by cargo ship to cross the river and then reloaded onto rail. These ships operate only once weekly and charge $.20 per KG. This same train, which brings cargo from Uzbekistan to Afghanistan and returns empty – crossing the river by bridge – does not accept cargo from the Afghan side on its return. Traders therefore must incur the additional time and costs associated with loading and unloading cargo ships for the sole purpose of crossing the river to be able to later load product on rail.

MOCI, MOFA,

MOT

A practical agreement must be established between Afghanistan and these bordering countries to allow the efficient transit of Afghan exports across these borders to reach target markets.

★★ ★★ Detainment of containers in Karachi Port

Pakistan does not prioritize containers arriving from Afghanistan for customs clearance of fresh/dry produce. This creates long delays for Afghan fresh fruit, which is highly perishable. Worldwide, fresh/dry products are strictly prioritized for the fastest clearance process at the border or at ports.

MOCI, MOFA

The Afghan government can play a vital role in solving this barrier through influence of the Afghan General Consulate Karachi. It can also identify specific customs brokers that can assist traders/importers in clearing Afghan goods.

This issue was discussed at the Nov. 23, 2014 bilateral meeting. Pakistan agreed to the following clearance time to be completed within one month:

• One day for 95% of consignments

• Two days for 5% consignments, after examination.

In addition, Pakistan offered to provide WeBOC training for Afghan customs at Karachi, technical cooperation for EDI at Torkham and Chaman, and training for Afghan customs officers in Karachi.

Moreover, the Government of Pakistan has agreed to allow Afghan Customs to collect duties for Afghan transit trade at Karachi, Port Qasim and Gwadar, and will also designate space for storage of Afghan cargo.

Lack of service center to maintain refrigerated containers

Currently, refrigerated containers used by Afghan traders are serviced in Karachi, which creates two problems.

Firstly, Afghans have to pay round-trip charges whenever they need sanitized containers for delivering fruits. Secondly, this results in delays of the container arriving in Karachi. This is especially challenging during fresh fruit season, when these containers are needed by exporters to deliver their goods to target markets.

MOCI, AISA,

private sector

A facility could be established by one of the Afghan transport/shipping companies in Kabul (or elsewhere in Afghanistan) with support from the Afghan government and/or international donors. Other USAID projects, such as ABADE, could be tapped for assistance. Government tax incentives could also be provided.

Pakistan has agreed to take steps for implementation of APPTTA provisions and allow Afghan refrigerated containers to pass through Pakistan. This would allow Afghan freight forwarders to access the major markets in Pakistan and/or use transit trough Wagah into India and Karachi for other international destinations. This would also allow the Afghan transport companies to have service centers established in the country and offer low transport costs for the exports.

However, there has been no progress in implementing this agreement. Currently, TIR agreements are under discussion between the three countries that would allow Afghan trucks carry goods back and forth.

Air Shipments

Lengthy customs clearance.

Four+ departments required for approvals

This is a major problem for both road and air shipments. Exporters need a day to clear documents from customs, with over 20 government officials’ signatures required.

MOF, MOIA

MOCN, MOCI,

MOT.

Issue should be raised to authorities at MOF and MOCI. Solution could include streamlining the process and installing a permanent government presence at export hangar of the airport. There is a one stop shop operating at Kabul customs but the process still remains lengthy.

★★★ ★★ Impact of limited cargo capacity on export operations

For small/mid-size shipments, most of the airlines do not confirm their load capacity until 4-6 hours before departure.

Traders need to know these timings in advance when preparing customs documentation. In some instances, documentation has been prepared for volumes exceeding allowable cargo.

Also, security restrictions make it difficult, if not impossible, for transport companies to do back shipments out of Afghanistan, raising transport costs.

Private sector, MOCI, MOT.

Greater investment in the transport sector is required. CHAMP also discussed the back shipment issue with air cargo companies that are currently delivering product to Afghanistan and returning empty, but could only obtain high shipping rates for this return cargo. MOT and other related government organizations need to raise this issue. Moreover, the shipping cost of the airlines is way too high which limits the Afghan produce to be competitive in the international markets.

★★★ ★★★ Export hangar too hot, need climate control. Limited space.

This decreases shelf life of perishable fruits during the inspection process. This process takes more than three hours in the hangar where the temperature is high enough to damage fruit. Moreover, cargo space has a capacity of only10 MT.

Private sector, MOCI, airport officials and

MOT.

Improvements are required at the export hangar. This could be championed by MOCI with accompanying private sector participation.

Additional climate controlled space needs to be established at the airport.

Certification Issues

★★ ★★★ Limited Global Gap certification

For destination markets where Afghanistan is active, these certificates are not required. However, Afghanistan is beginning to find new markets in Asia, the EU and North America where such certification is required for food products.

Identifying Afghan export companies capable of achieving these standards and willing to pay for certification is challenging. There are also a limited number of certification providers in country.

MAIL, ANSA,

private sector

After resolving key logistical issues, Afghanistan should move forward with MAIL leadership to promote Global GAP, HACCP certification. With the assistance of USAID a private certifier has recently started operating in the country.

Limited HACCP established for Afghan packing houses or other facilities

Same comment as above MAIL, ANSA, private sector Same comment as above

★★ ★★ Lack of private sector accredited labs for food safety

Afghanistan does not have any internationally accredited labs to accurately determine food safety of fruit as required by some importing countries/companies.

Private sector, ANSA

The Afghan government can encourage investment in this area by tax holidays, and other tax breaks. Land concessions could be pursued to establish labs. International donors could be involved in accreditation training.

Finance

★★★ ★★ Trade credit

Access to reliable trade credit is a significant impediment. As the volume of fresh fruit exports grows, there will be a greater need to finance export operations. In 2012, CHAMP was able to obtain four loans to exporters through ADF, but these credit levels must significantly grow, even in the short-term.

Traders and farmers lack the capacity to document the needed collateral to meet loan requirements. Yet, a bulk of trade financing is still coming through import commission agents (typically in Pakistan), who are importing product from traders. However, the terms of these loans are unfavorable and are restricting growth.

MAIL (ADF),

MOCI

Assistance could be provided to traders and farmers to better help them document their assets or collateral. Innovative mechanisms such as the development of guarantees (title insurance) of real property (e.g. land) should be investigated to help facilitate the loan-making process. Financial intermediaries willing to take on greater risks should also be identified.

Packaging

★★★ ★★★ Lack of quality cardboard packaging companies in Kabul

There are local companies operating in this sector, but most lack the technology and know-how to produce export quality packaging. In terms of cost and logistics, it is very important to have access to local packaging materials. Delays in sourcing needed inputs can disrupt the entire flow of export operations.

Private sector, AISA, MOF

Baheer Packaging Co. in Kabul has recently improved their machinery by importing a fully automated production line, although their packaging costs are higher than those of Pakistan companies. Baheer has been found to be using low-quality materials resulting is low-quality packaging.

The Afghan government can provide incentives through adjustments in the trade regime, as well as tax incentives for firms operating in this sector to enhance local production.

Disincentives for production of cardboard packaging in Kabul, versus imported boxes

Low import duties for finished cardboard packaging from Pakistan, and the high cost of locally sourced raw materials, makes production of packaging unfeasible in Afghanistan.

MOCI, MOF

Duties for finished cardboard boxes and raw materials should be adjusted so as to encourage local production. MOCI is planning to take the lead on this.

Import Duties

Cheap imported fruit from Iran and China hurting Afghan markets

Since 2012, Afghanistan is not able to compete with cheap Iranian and Chinese imports, especially apples, particularly in the off-season months.

MOF, MOCI,

private sector

The use of apple cool rooms (root cellars) can extend the shelf life of apples by 4-6 months and allow producers and traders to be more competitive during the off-season months. The Afghan government should levy duties during this period to level the playing field for Afghan producers.

CHAMP has already established 112 underground cool rooms for apples in Paktika, Paktya, Ghazni and Maydan Wardak Provinces. More need to be established.

★★★ ★ Pakistan duties hindering Afghan exports

Pakistan is charging up to 34+ USD per MT import duty for incoming Afghan products, while India has exempted these duties for over 450 commodities.

MOFA, MOCI

This issue is to be negotiated with the Pakistan Government, and should be added in the new APTTA. Pakistan is keen for an early negotiation of the Avoidance of Double Taxation Agreement. Afghanistan will ensure the timely initiation of these negotiations.

Post-harvest & Value Add

★★★ ★★★ Lack of pack houses

Pack houses are vitally needed for organizing production that can meet international standards, facilitating aspects such as selection, grading, and packaging. Currently there are not enough pack houses to meet the volume of export supply. Mechanized sorting lines and other technological improvements are needed as exports expand. A large percentage of fresh products are packed in fields, with no cleaning, sorting or grading.

MAIL, private sector

Promote the establishment of pack houses through trader groups willing to co- finance their operation. Private sector can play an important role in their formation.

★★★ ★★★ Lack of usable cold storage capacity

Cold storage facilities extend the shelf life of products and help producers avoid having to sell at peak production periods when prices are low. It then allows them to sell during the off at premium prices.

The number of cold storage facilities that are available is quite small and are mostly located in insecure areas. There are some existing facilities with good capacity that are damaged but could be repaired.

MAIL, private sector, CHAMP, Donors.

Good use must be made of existing facilities, in particular ones that can be restored. CHAMP can play an important role in this regard, and possibly work with the private sector to establish new facilities near high value crop production areas.

★★★ ★★★ Lack of cold storage capacity at Kabul Airport

As fresh fruit exports grow, there will be an increased need to be able to handle product at the airport prior to shipment.

MAIL, private sector, Donors

MAIL, Donors could install cold storage capacity, which could be augmented as export demand increases.

★★★ ★★★ Lack of trained labor in agricultural services

Increasingly, work in fresh produce ranging from harvesting to sorting, grading, packing and even loading and unloading has become more specialized.

Currently there is a deficiency in trained laborers.

MAIL, private sector, CHAMP

Training in this area could be provided by the Afghan government in close collaboration with the private sector to assure that skills are in line with market requirements. CHAMP has played an important role in training labors/packers engaged in fresh fruits and will continue its support in this sector.

Export Promotion

Limited export promotion support and incentives from government

Afghanistan has no strategic plan for agricultural exports. The government should create incentives that will promote sustainable export growth in this sector.

Such mechanisms could include tax incentives, VAT exemptions, duty drawbacks, and others.

MOCI,

MAIL,MOF

The Afghan government could conduct an in-depth assessment of best international practices in export development as concerns fresh fruit produce and introduce measures that promote and incentivize exports in a sustainable manner.

Business Start-up

Lack of incentives, support for start-up businesses in Afghanistan

In order to grow, the fresh fruit sector will require the incorporation of new businesses and investment – both domestic and foreign. Security, production in the remote areas, transportation, government taxes, time consuming custom processes are all issues that impair business in Afghanistan.

MOCI, MOF,

AISA

Domestic and international companies can be encouraged to invest in Afghanistan through tax and other incentives (land concessions, etc.). Also, the private sector in conjunction with the Afghan government can undertake needed infrastructure and services in support of the sector (expansion of packing houses, cold storage, etc.).

USAID/Afghanistan/OAG January 2016

Office of Agriculture (OAG) Project Portfolio1 (January 1, 2016)

COMPREHENSIVE AGRICULTURE AND ALTERNATIVE DEVELOPMENT

Commercial Horticulture and Agricultural Marketing Project (CHAMP) Award Type: Cooperative Agreement Implementer: Roots of Peace Duration: February 2010 – December 2016 Investment: $45.3 million off budget

The project is directed at reducing poverty among rural Afghan farmers by significantly increasing the productivity of existing vineyards and the conversion of former wheat, poppy, and cornfields to more profitable orchards and vineyards. In the south – Kandahar, Uruzgan, Hilmand, and Zabul provinces – the project focuses on trellising existing vineyards to improve production and increase usable space. The productivity gains from these interventions are expected to double the farmers’ income within two years. During the life of this project, farmers will contribute $0.65 million of their own funds to pay the costs of the new orchards and vineyards. CHAMP also promotes export and trade corridors, works with farmers to improve quality, and supports traders to improve harvesting, packing, cooling, and shipping.

Agricultural Development Fund (ADF) and Agricultural Credit Enhancement (ACE-II) Award Type: Contract [plus Grant to GIRoA] Implementer: Development Alternatives Incorporated (DAI) Duration: August 2010 – December 2014

This $150 million agricultural credit project consists of two complementary activities. The first activity is a $100 million grant from USAID to the Ministry of Agriculture, Irrigation, and Livestock (MAIL) that established the Agricultural Development Fund (ADF). ADF provides loans throughout the agricultural value chain through a broad range of partners including financial intermediary institutions and agribusinesses such as farm stores, leasing companies, food processors, etc. The second activity is the Agricultural Credit Enhancement (ACE) project, which is a $50 million technical assistance project that manages all ADF lending activities in close collaboration with MAIL. The ACE project provides technical support to: a) assess credit applications, b) encourage the development of new lending products suited to the agricultural sector, c) strengthen value chains to better absorb ADF funds, and d) facilitate collaboration among agricultural lending organizations to better serve the needs of the agricultural sector.

Regional Agricultural Development Program (RADP) South

1 All people-level descriptions in this document are intended to be gender inclusive. For example, where ‘farmer’ is used it shall be understood as inclusive of both women and men.

2MAIL – Ministry of Agriculture, Irrigation, and Livestock 3DAIL – Directorate of Agriculture, Irrigation, and Livestock 4GIRoA – Government of the Islamic Republic of Afghanistan 5NPP – National Priority Program [Afghan Government]

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Award Type: Contract Duration: October 2013 – October 2018 Investment: $125 million off budget

The purpose of the Regional Agriculture Development Program-South (RADP-S) is to improve food and economic security for rural Afghans in the provinces of Kandahar, Helmand, Zabul and Uruzgan. To accomplish this goal, RADP-S focuses on improving the productivity and profitability of the wheat, high value crops (HVCs), and livestock value chains, while addressing policy, legal and regulatory CONSTRAINTS affecting value chain development. This agricultural development program supports the consolidation of licit economies to fuel sustainable long term economic growth, including providing alternatives to poppy cultivation.

The implementation approach of RADP-S dovetails with Afghan and U.S. government strategies in its focus on advancing food security, regenerating agribusiness, women’s empowerment, and increasing agriculture sector jobs and incomes. RADP-S aims to strengthen the capacity of producers, associations, traders, and agribusinesses to respond to market demands; facilitate lasting market linkages between value chain actors; and support an enabling environment that allows the private sector to thrive. All activities work toward fostering greater and more socially inclusive growth in the agricultural economy.

Regional Agricultural Development Program (RADP) North

Duration: May 2014 – May 2019 Investment: $78.5 million off budget Regional Focus: Jowzjan, Balkh, Samangan, Kunduz, Baghlan, Badakhshan NPP Alignment: NPP 2: Component 1.2, Component 1.3, Component 1.4, Component 1.7, Component 1.8, and Component 2.2

RADP-North aims to improve food and economic security for rural Afghans in target areas. The main foci are improving productivity and profitability of major agricultural value chains: wheat, grapes, dried fruits and nuts, goats and sheep. Wheat, as the major staple, is particularly important for food security in Afghanistan. The other value chains have greater potential to improve income and diet diversity outcomes. The project (i) provides agricultural services and trainings, (ii) facilitates each value chain to achieve market-led and sustainable improvements in the sector, and (iii) strengthens the enabling environment via policy analysis and advocacy with the Ministry of Agriculture, Irrigation and Livestock.

Regional Agricultural Development Program (RADP) West Award Type: Contract Duration: August 2014 – August 2019 Investment: $69.9 million Off budget

RADP-West is very similar to RADP-North’s design. It will partner with the local private sector to develop inclusive, growth-oriented agricultural value chains in Western Afghanistan to increase incomes and on-farm productivity of Afghan producers. RADP-West will support the agricultural development objectives of the U.S. Government and the Government of the Islamic Republic of Afghanistan (GIRoA).

Regional Agricultural Development Program (RADP) East (to be awarded)

Implementer: TBD

RADP-East, when awarded, will partner with the local private sector to develop inclusive, growth-oriented agricultural value chains in Eastern Afghanistan to increase incomes and on-farm productivity of Afghan producers. RADP-East will support the agricultural development objectives of the U.S. Government and the Government of the Islamic Republic of Afghanistan (GIRoA). The project will also leverage results by coordinating with existing and planned USG programs to increase the impact of activities and reduce the possibilities for duplication. Along with building on the achievements of IDEA-NEW and CHAMP in the eastern region, RADP- East will pursue specific linkages to the USG strategy and other USG programs for Afghanistan.

Kandahar Food Zone (KFZ) Award Type: Cooperative Agreement Expected Duration: July 2013 – July 2015 Investment: $18 million Off-Budget

The KFZ Program is intended to strengthen and diversify legal rural livelihoods in seven targeted districts of Kandahar by identifying and addressing the root causes and sources of instability that lead to opium poppy cultivation. This will be achieved through training and capacity building to increase the Ministry of Counter Narcotics’ capacity in the implementation of alternative livelihoods programs. KFZ will use a participatory tool called the “Community-Based Planning to Support Alternatives to Poppy Cultivation” (CBPSA-PC)” to determine the drivers of poppy cultivation at the village level, invest in rehabilitating 130 kilometers of irrigation canals, and design small grant activities to address these drivers and create licit economic opportunities.

AGRICULTURAL RESEARCH, EXTENSION, & EDUCATION

Capacity Building and Change Management Program-II (CBCMP-II) Award Type: Cooperative Agreement Expected Duration: July 2014 – July 2017 Investment: $19.9 million Off-Budget The goal of CBCMP-II is to strengthen the human and institutional capacity of MAIL and the DAILs to effectively deliver agricultural public services to farmers and herders, as well as strengthen the linkage between MAIL and DAILs. The program will also strengthen MAIL’s capacity to coordinate activities of USAID funded programs like the Regional Agriculture Development Programs (RADPs) to improve agricultural production and productivity and enhance Afghan agribusinesses. Priority will be given to strengthening support functions in MAIL’s directorates of Finance and Accounting, Monitoring and Evaluation (M&E), Procurement and Contracts, Administration and Human Resources that are most important to MAIL to meet its core mandate and effectively support research and extension services.

Additionally, CBCMP-II will strengthen Provincial DAILs’ capacity to prioritize, plan, program, budget, and secure approval and resources to support extension services rendered at the provincial and district levels.

Afghanistan Agricultural Extension Project-II (AAEP-II) Award Type: Cooperative Agreement Expected Duration: October 2014 - September 2017 Investment: $20 Million Off-Budget The goal of AAEP-II is to help build the capacity of Afghanistan's Ministry of Agriculture, Irrigation, and Livestock (MAIL) to deliver effective extension services to rural clientele. AAEP- II’s approach to building the capacity at the MAIL and District levels will involve training extension agents in extension methodologies designed to improve participatory extension including farmer field schools, agent field visits, model training farms, communication technologies, and train-the-trainer activities to support DAIL extension staff that directly impact farmers and support village priorities. Security permitting, AAEP-II will focus on 5 core provinces with support to DAILS in a total of 25 provinces.

Strengthening Afghan Agricultural Faculties (SAAF) Award Type: Cooperative Agreement Expected Duration: March 2011– December 2016 Investment: $7.8million Off-Budget

The objective of SAAF is to strengthen the capacity of the Faculties of Agriculture and Veterinary Science at Afghan universities. SAAF’s primary partner is Ministry of Higher Education (MOHE) and the program is collaborating closely with the Ministry of Agriculture, Irrigation and Livestock (MAIL). With a view to achieving these goals, the program has supported a limited number of Masters and Ph.D. scholarships for Afghan professionals.

However, the scope of the program was reduced in the summer of 2012 due to reduced budgets and the need to reduce duplication of donor efforts. SAAF will not grant additional scholarships or activities going forward, but will continue to support 34 students already selected for scholarships to pursue higher-level degrees in the United States and India through 2016.

Digital Integration to Amplify Agricultural Extension in Afghanistan (DIAAEA)

Award Type: Cooperative Agreement Implementer: Digital Green Foundation Expected Duration: November 2014 - November 2015) Investment: $0.39 million Off-Budget

The one-year pilot project will engage over 5,000 smallholder farmers across two provinces in Afghanistan in the development and dissemination of locally produced videos on improved agronomic practices. Farmers who participate in this project will gain knowledge about improved farming practices resulting in higher adoption of new practices than those served by existing extension services alone. Ultimately, farmers adopting these practices will see increased productivity of crops featured in the videos. The activity will strengthen the software and ICT skills of public and private extension agents and other community-based service providers in Afghanistan to effectively engage and mobilize farmers, thereby accelerating the sustained adoption of new practices and tools. It will also build an evidence base for effective extension programs in areas of agriculture, nutrition, and health by experimenting with new modalities for technological, platform and service delivery components optimized for the Afghan context.

WATER AND NATURAL RESOURCE MANAGEMENT

On-Farm & Watershed Management Award Type: PIO Grant Expected Duration: 18 months Investment: $15 million

The goal is to improve agricultural productivity in project areas by enhancing the efficiency of water used. To improve on-farm water management the project has established and strengthened Irrigation Associations (IAs) for water management and operations and maintenance; improved on-farm physical irrigation infrastructure to reduce system water losses and facilitate water distribution; and demonstrated and disseminated improved water saving techniques, including high efficiency irrigation systems and agronomic water saving measures. The project also supports institutional strengthening and capacity building of MAIL’s General Directorate of Irrigation, with the goal of enabling the Directorate to develop capacity for planning, designing, implementing, and monitoring on-farm water management investments throughout the country.