Afghanistan Policy Page

A twice-weekly, one-page brief on a major issue concerning U.S. policy and engagement in Afghanistan.

2 February 2010

Roads in Afghanistan

Take Aways

• The World Bank classifies Afghanistan’s road system as one of the worst in the world.

• Improved transport is fundamental for Afghanistan’s economic recovery.

Key Issues

Road Reconstruction – Decades of war destroyed Afghanistan’s road networks, and the Afghan government has put a high priority on road reconstruction to foster economic growth. Approximately 2,961 km of regional roads have been completed, but the deteriorating security situation has caused significant delays and higher costs.

Economic development – Among landlocked developing countries, Afghanistan is one of the farthest from a seaport, more than 2,000 km over rough terrain. Road repair is crucial to foster foreign and internal trade. USAID reports that paving roads improved travel times and enabled farmers to get their more produce to market without damage.

• Walnut exports (to Kabul and overseas) increased from 270 tons last year to 2,000 tons this year.

Ring Road – Connecting Afghanistan’s major cities, approximately 60% of Afghans live within 50 km of the 1,925 mile Ring Road. USAID leads the Ring Road reconstruction, which is 90% completed and nearly two years behind schedule.

The Afghan government lacks fiscally sustainable road maintenance program

• Significant human and financial resource constraints – The Ring Road alone will cost at least $200 million per year in upkeep.

• Fragmented institutional structure – Multiple Afghan ministries with weak capacity hold competing stakes in the transportation sector.

• No sustainable revenue collection – Absence of comprehensive legal framework and means of fee collection enforcement.

International Assistance – The U.S. Department of Defense Financial Management Regulation does not allow CERP funds to be used for maintenance of infrastructure projects such as roads.

Possible Questions

• How is ?

• What is being to develop a fiscally sustainable road maintenance program in Afghanistan?

• What is being done…?

• What strategies exist to….?

Top Key Facts

• $1.7 billion provided by the U.S. for road construction since 2002 through DoD and USAID funding

• $800 million through CERP (63% of total CERP budget)

• 90% of Ring Road 1,384 miles, complete; total cost $2.5 billion

• $200 million per year Minimum yearly maintenance cost of the ring road

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