However, due to their uncertain and unstable environments, many FCV- affected countries struggle to attract and sustain private sector investment.
FCV Strategy 2020-2025 emphasizes the Bank’s role in the enabling environment for private sector-led growth, supporting local private sector actors, enhancing conflict-sensitive approaches to investments, and helping catalyze and de-risk investments in FCV settings.For this purpose, the World Bank
The Bank took this approach to support the revival of the local private sector in Afghanistan’s construction sector through the Community Resilience and Livelihoods Project.
Office for Project Services (UNOPS) and outside of the interim Taliban administration’s control.
, which is critical for the economy and reconstruction in conflict- affected regions.
The project was conceived to provide short-term livelihood opportunities and deliver urgent essential services in rural and urban areas. In urban areas, project design focused on supporting local contractors by engaging them in small private community works through a competitive bidding process, thus driving down costs through open competition and helping to create a market for local civil works.
Since this project began in May 2022, it has yielded impressive results. To date, 135 local contractors have won 265 contracts through local competitive bidding. Around 300 contractors have been trained on how to use the UNOPS online bidding process, enabling them to continue participating in the wider UN procurement system, which is used by UN for its procurements across Afghanistan.
In a survey of the contractors engaged in the project, 78 percent said they would retain these jobs after the completion of their contract. Around, 48,000 unskilled and semi-skilled short-term jobs have been created in the cities, and 10 percent of these jobs have gone to women.
The projects have been designed to promote the use of local materials, for example stone paving for streets that encourages local sourcing. In this way, the project has also supported additional sectors of the local supply chain, helping to catalyze the private sector.
This enables the Bank to help preserve development gains that can then be built on in the future when there is more stability.