21
Wed, Nov

Minister of Finance Chairs the First Steering Group Meeting on EU State Building Contract

Afghanistan
Typography

Eklil Hakimi the Minister of Finance chaired the First Steering Group Meeting on the European Union’s State Building Contract EURO 200 million with Franz-Michael Skjold Mellbin EU Special Representative for Afghanistan on 21 November here in the Ministry of Finance.


The Minister of Finance thanked EU for co-hosting Brussels Conference and EU’s contribution to the Development of Afghanistan from EU’s total contribution about 78% is channeled through Trust Funds (on-budget).The Government of Afghanistan welcomes EU’s new mechanism of channeling funds through State Building Contract and agreed on reforms. This kind of modality not only give the GOA flexibility and fiscal space to respond quickly to Afghanistan’s evolving development priorities, but also gives incentives for performance in crucial areas such as public policy, macro-economic, financial management and budget transparency and oversight. He added.
Franz Mellbin EU Special Representative pledged long term assistance with Afghanistan and said: The SBC is a good way and positive signal for aid effectiveness.
State Building Contract will assist Government of Afghanistan in reform of Public Policy, Macro-economic Framework, Public Finance Management, Transparency and Oversight of Budget, which has been proposed by EU and accepted by the Afghan Government.
From the Total State Building Contract EURO 100 million will be disbursed in second quarter of 2017 and remaining EURO 100 million in 2018.