OPPORTUNITY FOR MAXIMIZING AGRIBUSINESS INVESTMENTS AND DEVELOPMENT (OMAID) PROJECT

Islamic Republic of Afghanistan Ministry of Agriculture Irrigation and Livestock

The OMAID Project
The OMAID Project is structured as an Investment Project Financing (IPF), proposed to be funded by an IDA grant in the amount of US$25 million and a US$150 million contribution from the Afghanistan Reconstruction Trust Fund (ARTF) over a five-year period.  It will focus primarily on the agro-processing segments of the horticulture and livestock value chains, including the critical linkages to upstream raw material.  
Field operations will be implemented sequentially in the five selected areas of the country which have a comparative advantage to produce for these value chains (Mazar e-Sharif, Kandahar, Kabul, Herat, and Nangarhar).  
Constraints to be addressed
The project will address the following constraints to agri-business development identified as part of the consultation process for the preparation of the Afghanistan Agribusiness Charter:
a)    High cost of doing business in Afghanistan;
b)    Access to markets remains challenging for Afghan agri-food enterprises:
c)    Access to industrial serviced land for agri-food enterprises and SMEs is limited;
d)    Access to finance; and,
e)    Producer organizations are inefficient.
Project Development Objectives (PDOs)
Component 1: Improving the enabling environment for agribusiness development (US$ 22.5 million)
Subcomponent 1.1: Establishing the overall governance and implementation of the Agribusiness Charter (US$ 5 million).
Subcomponent 1.2. Strengthening the capacities of the Ministry of Industry and Commerce (US$ 7.5 million).
Subcomponent 1.3. Addressing food safety and sanitary and phytosanitary issues (US$ 10 million).
Component 2: Support for the development of integrated agri-spatial solutions (US$ 142.5 million)
Subcomponent 2.1: Investing in critical agri-industrial infrastructure in selected provinces (US 127.5 million).
Subcomponent 2.2: Supporting agribusiness investments in the IAFPs’s broader catchment areas (US$ 15.0 million).
component 3: Project Coordination, Monitoring, and Crisis  Management (US$10 milion)
Project activities to be promoted
In as much as different types of economic and ancillary support activities identified for agri food parks are concerned, a list is provided below. However, more activities could also emerge when the project is rolled out.
•    Agro-dealers and input supply stores;
•    Extension services and training, by Government bodies, donors, and NGOs;
•    Testing and certification laboratories;
•    Warehousing, grain silos, and cold storage providers;
•    Truck parking, container stacking, and rail yards;
•    Agro-processing units, including for the packaging and/or processing of fresh fruit (juice, drying of fruits and nuts, bottling, etc.);
•    Dairy processing;
•    Commercial and auction center/ wholesale market;
•    Green area/ parks, vehicle parking, service buildings;
•    Maintenance and repair facilities and shops;
•    Any other, relevant to the project.

1. resettlement policy framework (RPF)  
2. Environmental and Social Management Framework  
3. Pest manaGEment Plan  

4. ESMF FOR OMAID PROJECT