Afghanistan’s infrastructure is grossly inadequate in comparison with the world and even regional standards and is one of the critical reasons holding back economic growth. The existing infrastructure is largely inadequate to satisfy the needs of economic development as well as the demand arising from population growth. However, the large fiscal deficit and paucity of resources limit the Government’s capacity to meet growing infrastructure needs and has emerged as a major constraint to the country’s efforts to improve its investment climate.
Given the increasing demand for services and the need for significant level of investment, capacity and resource requirements, and the constrained fiscal situation and declining in international aid, among other factors, has led the government of Islamic republic of Afghanistan to start a PPP program in order to support the development and delivery of high-quality infrastructure services for the public.
Therefore the government has established PPP Unit at Ministry of Finance in 2015, the purpose of the unit was to develop legal and regulatory framework and as policy maker and serve as a coordinating body. According to the importance and need for this reform the Ministry of Finance has upgraded the Unit as a directorate general Public Private Partnerships of Ministry of Finance which is working under the direct supervision of the Minister of Finance
The Directorate General Public Private Partnerships is a technical board providing qualified assistance on all what related to PPP, to the political and administrative decision makers, for enhancing their planning, developing and implementing projects activities and protect the vested public interest and budget.
The main achievements of the Directorate General Public Private Partnership are that PPP Law which is set under the constitution of the Islamic Republic of Afghanistan is finalized and approved as per the legal presidential decree; National Policy are finalized and approved by the Cabinet of the Islamic republic of Afghanistan.
PPP Regulation is finalized and soon will be approved by the Cabinet of the Islamic republic of Afghanistan.