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World Bank proposal would shift $600 million from Afghan trust

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The World Bank’s management has signed off on a proposal that would repurpose $600 million of the just over $1 billion left in a frozen trust fund to benefit Afghan education, families and communities, a source familiar with the plan told Reuters.

The board of the World Bank is due to discuss the proposal on March 1, with a final decision on disbursement of the funds left up to the donors of Afghanistan Reconstruction Trust Fund (ARTF), which is administered by the bank, the source said.

The funds would be disbursed by various United Nations agencies, including UNICEF and the Food and Agriculture Organization, amid escalating concerns about the collapsing Afghan economy, the source told Reuters.

Donors to the trust fund in December approved the transfer of $280 million from the trust to the World Food Program and UNICEF to support nutrition and health in Afghanistan.

U.N. Secretary-General Antonio Guterres urged the U.N. Security Council last month to free up the remaining $1.2 billion in the fund to help Afghanistan’s people survive the winter.

The fresh funds will help support food security, health and education programs in Afghanistan as it sinks into a severe economic and humanitarian crisis. The crisis accelerated in August when the former government collapsed and the last U.S. and allied troops withdrew.

The United States and other donors cut off the financial aid that had kept Afghanistan running during 20 years of war after the Islamic Emirate of Afghanistan (IEA) takeover.

The United Nations is warning that nearly 23 million people – about 55% of the population – are facing extreme levels of hunger, with nearly 9 million at risk of famine as winter takes hold in the impoverished country.

The United States last week announced plans to free up half of the $7 billion in frozen Afghan central bank assets on U.S. soil to help the Afghan people while holding the rest to possibly satisfy terrorism-related lawsuits against the IEA, the White House said on Friday.

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New Afghanistan-China transport corridor launched via Turkmenistan

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A new multimodal freight corridor linking China and Afghanistan via Turkmenistan has been officially launched, aiming to improve the speed and efficiency of overland cargo transportation across Central Asia.

According to the Turkmenistan Embassy in London, the country has become part of a newly established route designed to accelerate freight deliveries between China and Afghanistan.

The corridor, developed with the involvement of Uzbekistan Railways’ subsidiary Uztemiryulcontainer, covers approximately 7,400 kilometers and is expected to reduce transit time to around 30 days, improving overall logistics efficiency.

Under the new route, containers are transported by rail from China through the Altynkol station in Kazakhstan, continuing via Uzbekistan to a logistics hub in Bukhara. From there, cargo is transferred to road transport and moved across Turkmenistan before reaching Herat in Afghanistan.

Officials say the new system integrates rail and road networks into a unified logistics chain, making transport more predictable and efficient.

 

 

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Uzbekistan launches new cargo corridor linking China and Afghanistan

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

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Uzbekistan’s national railway operator has announced the launch of a new multimodal freight route designed to strengthen logistics links between China and Afghanistan via Central Asia.

According to Trend news agency the new corridor will see container used goods transported by rail from China through Kazakhstan’s Altynkol station into Uzbekistan. Cargo will then be handled at the Bukhara logistics centre, operated by Uztemiryulkonteyner, before continuing its journey by road.

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

Previously, freight along this trade corridor was largely routed via sea from China to Iran’s Bandar Abbas port, before continuing overland into Afghanistan. The new overland alternative is expected to streamline logistics and improve reliability.

Covering approximately 7,400 kilometres, the route is projected to reduce transit times to around 30 days, offering a more efficient option for regional cargo movement between East Asia and South Asia.

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Afghanistan presses Chinese contractor over delays in Mes Aynak copper project

During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.

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Afghanistan’s Minister of Mines and Petroleum Hedayatullah Badri has raised concerns over delays in the Mes Aynak copper project during a meeting with Chinese officials and company representatives.

The talks brought together the Chinese ambassador, the head of MCCT, and the chairman of MJAM, the contractor responsible for the major mining project. Discussions focused on the lack of progress and the failure to implement key obligations outlined in the mining contract.

Officials reviewed outstanding commitments that had previously been formally communicated to the company, with Afghan authorities stressing that agreed mining activities have yet to be carried out.

During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.

Badri emphasized that the contractor must fully comply with all terms and conditions of the agreement, as well as follow the ministry’s formal directives. He called for concrete and immediate steps to accelerate the project and ensure full implementation of planned activities.

Mes Aynak copper project

The Mes Aynak copper deposit, located about 40 kilometres southeast of Kabul, is one of the world’s largest untapped copper reserves, with an estimated 11 million tonnes of copper.

The project was awarded to a Chinese consortium led by state-run Metallurgical Corporation of China in 2007 and formally signed in 2008 under a 30-year lease. Valued at roughly $3–4 billion, it was the largest foreign investment in Afghanistan at the time.

The agreement included plans to develop the mine along with major infrastructure such as railways, roads, and power facilities, although several of these commitments were later delayed or renegotiated.

Despite its scale, the project has seen little progress over the past decade. Work slowed significantly around 2013–2014, with ongoing delays attributed to security concerns, lack of infrastructure, and disputes over contractual terms. The presence of a significant archaeological site at Mes Aynak — containing ancient Buddhist remains — has also complicated development, requiring extensive preservation efforts.

Afghan authorities have repeatedly raised concerns over the contractor’s failure to meet key obligations and timelines, while Chinese companies have cited security and logistical challenges as major obstacles.

Since the political changes in Afghanistan in 2021, the project has repeatedly come under focus, with officials pushing to revive stalled mining initiatives as part of broader economic recovery efforts. Chinese firms have signaled continued interest, but meaningful progress has yet to materialize.

The project remains strategically important, with the potential to generate significant revenue, create jobs, and support Afghanistan’s long-term economic development — if longstanding challenges can be resolved.

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