Better living conditions are the cornerstone of democracy and peace
KfW Entwicklungsbank (KfW development bank) has been financing the reconstruction of Afghanistan on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) since December 2001. Its commitment focuses on relieving the serious hardships that the people are facing and on improving their living conditions. At the same time, it is concentrating on initiating the long-term reconstruction of the country. "In this way we are laying the foundations for democracy and peace," said Wolfgang Kroh, member of the Board of Managing Directors of KfW Bankengruppe (KfW banking group).
Altogether KfW Entwicklungsbank (KfW development bank) has used more than EUR 100 million in funds from the BMZ and other donor organizations to finance ongoing projects. Through German Financial Cooperation (FC), within a short time the first signs of reconstruction were already visible in the areas of water supply, energy and the reconstruction of schools and hospitals.
Thus far 42 schools have been rebuilt. After many years of absence 60,000 children can now go to school once again. Through KfW Entwicklungsbank 14 health stations and clinics have been reconstructed. The bank also supplied urgently needed medications and medical equipment. As a result, around 6,000 patients can be treated every day. In the field of water supply, the distribution network in Kabul was repaired and water losses were reduced. In the transport sector, 140 km of roads were rehabilitated in the Kabul city area. 500 newly built streetlights help light up Kabul at night, increasing security.
KfW Entwicklungsbank (KfW development bank) is operating in Afghanistan not only on behalf of the German government but also on a mandate from the European Union. As mandatary the bank will implement a project in the energy sector amounting to EUR 9 million. "By supporting reconstruction, the donors are pulling together," underscored Kroh.
KfW Entwicklungsbank, on behalf of the Federal Republic, is also a shareholder of the country's first microfinance bank, which it continues to support in the form of a refinancing credit line and financial resources for consulting services. In total, EUR 6 million are earmarked for this project.
Sent by the German government, KfW was one of the first organizations to arrive in Afghanistan once the Taliban regime was toppled. The first aid projects were prepared in December 2001, and in February 2002 KfW opened a joint office in Kabul together with the GTZ, which carries out German Technical Cooperation.