RESULTS-

RESULTS-BASED EVALUATION
OF
THE KABUL PROCUREMENT MARKETPLACE
(KPM)
PILOT PROJECT

- PEACE DIVIDEND TRUST (PDT)

EVALUATION REPORT

PREPARED BY

ASIF CHIDA

JANUARY 2008

1
 Acknowledgements
This evaluation report forms part of the Canadian International Development Agency’s
(CIDA) Afghanistan Task Force’s (ATF) performance monitoring cycle. The evaluation
involved extensive interactions with CIDA and Peace Dividend Trust (PDT) officials in
Ottawa and Kabul, Afghanistan, whose valuable cooperation was indispensable and
greatly beneficial. The evaluator would like to express gratitude to Elizabeth Lee, Senior
Development Officer, ATF, CIDA, Ottawa and George Saibel, Michel Tache and Abdul
Qadir Danish, CIDA Kabul’s office. My special thanks to Scott Gilmore, Ainsley Butler
Ostojic and Keith Forsythe of PDT, Ottawa and Ms Shirine Pont, Barb Everdene, Nita
Colaco, Akbar Ahmadzai, Omid Delbary and Ahmad Asiyan of PDT field office in
Kabul.

During the mission, meetings were held with officials of government departments,
private sector and other stakeholders to whom I wish to express my thanks. The list of
persons met is provided in Appendix B.

Special thanks are to my PSI colleagues Pamela Branch and Hubert LeBlanc for giving
useful comments and support.

Value added from this evaluation of the PDT’s “The Kabul Procurement Marketplace”
will result from the sharing of what is learned from such investments, and the
development of more efficient and effective allocation strategies for consideration of
future CIDA projects.

Asif Chida
Senior Consultant
Project Services International
Ottawa, Canada
January 2008

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 TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................................... 1
1.0 INTRODUCTION.......................................................................................................................... 9
1.1 BACKGROUND .............................................................................................................................. 9
1.2 PROJECT SCOPE ............................................................................................................................ 9
1.3 PROJECT GOAL ............................................................................................................................. 9
1.4 PURPOSE OF THE REPORT ........................................................................................................... 10
1.5 KEY AUDIENCES ........................................................................................................................ 10
1.6 SCOPE OF CIDA’S SUPPORT TO PDT .......................................................................................... 10
2.0 PROJECT PROFILE .................................................................................................................. 11
2.1 KEY CONTEXTUAL FACTORS ..................................................................................................... 11
2.2 PRIVATE SECTOR DEVELOPMENT IN AFGHANISTAN................................................................... 11
2.3 DOING BUSINESS IN AFGHANISTAN............................................................................................ 12
2.4 LOCAL PROCUREMENT AND PRIVATE SECTOR DEVELOPMENT .................................................... 15
2.4.1 A brief overview of Donor funding in Afghanistan and local procurement.......................... 16
2.5 REASONS FOR LOW LOCAL PROCUREMENT:................................................................................ 17
3.0 EVALUATION PROFILE .......................................................................................................... 19
3.1 EVALUATION OBJECTIVE ........................................................................................................... 19
3.2 EVALUATION FRAMEWORK ........................................................................................................ 19
3.3 EVALUATION METHODOLOGY ................................................................................................... 19
3.4 DOCUMENTATION REVIEW ......................................................................................................... 19
3.5 FIELD VISIT ................................................................................................................................ 19
3.6 ADDITIONAL ANALYSIS ............................................................................................................. 20
3.7 LIMITATIONS .............................................................................................................................. 21
4.0 EVALUATION ANALYSIS AND FINDINGS.......................................................................... 22
4.1 EFFECTIVENESS .......................................................................................................................... 22
4.2 EFFICIENCY ................................................................................................................................ 26
4.3 COST EFFECTIVENESS ................................................................................................................ 26
4.4 RELEVANCE ............................................................................................................................... 27
4.5 SUSTAINABILITY ........................................................................................................................ 27
4.5.1 Local national partners ........................................................................................................ 27
4.1.1 Donor support....................................................................................................................... 28
4.1.2 Financial viability................................................................................................................. 28
4.1.3 Capacity Development.......................................................................................................... 28
4.1.4 Institutional Memory ............................................................................................................ 29
5.0 LESSONS LEARNED AND RECOMMENDATION .............................................................. 30
5.1 LESSONS LEARNED ................................................................................................................... 30
5.1.1 Focus .................................................................................................................................... 30
5.1.2 Partnerships are difficult to develop: dependencies are not ................................................ 30
5.1.3 What gets measured gets done.............................................................................................. 30
5.1.4 Monitoring and Evaluation................................................................................................... 30
5.2 RECOMMENDATIONS ................................................................................................................ 31
5.2.1 Policy Issues ......................................................................................................................... 31
5.2.2 Operational Matters ............................................................................................................. 32
5.2.3 Sustainability Issues ............................................................................................................. 33
6.0 CONCLUDING REMARKS....................................................................................................... 35
APPENDIX A ............................................................................................................................................. 36
APPENDIX B.............................................................................................................................................. 49

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 ABBREVIATIONS AND ACRONYMS

ABA Afghan Builders Association

ADB Asian Development Bank
AFM Afghanistan Market Place
AICC Afghanistan International Chamber of Commerce
AISA Afghanistan Investment Support Agency
ARDS Afghanistan Reconstruction and Development Services
ARDS PU Afghanistan Reconstruction and Development Services Procurement Unit
ARTF Afghanistan Reconstruction Trust Fund
ATF Afghanistan Task Force
DFAIT Department of Foreign Affairs and International Trade
DFID UK Department for International Development
DND Department of National Defense
GDP Gross Domestic Product
GoA Government of Afghanistan
GTZ Gesellschaft fuer Technische Zusammenarbeit (German Development
Agency)
HDI Human Development Index
HPI Human Poverty Index
IDA International Development Association
IMF International Monetary Fund
ISAF International Security Assistance Force
KPM Kabul Procurement Marketplace
MoF Ministry of Finance
NGO Non-Governmental Organization
ODA Official Development Assistance
PDT Peace Dividend Trust (NGO)
PPL Public Procurement Law
PPU Procurement Policy Unit (within the MoF)
TDP Tender Distribution Point
ToR Terms of Reference
TSU Technical Support Unit
UNDP UN Development Programme
USAID United States Agency for International Development

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 EXECUTIVE SUMMARY

Private sector in Afghanistan is at a crossroads. As stabilization and reconstruction move

forward in Afghanistan, there are significant opportunities in all sectors. At the same
time, the security fears and risks have kept most of the investments and borrowing at a
minimal level. The recent World Bank’s Doing Business 2008 Report has put things in
perspective on the environment within which the private sector operates in Afghanistan.
It has ranked Afghanistan 159 out of 178 economies of the world with indicators of
starting a business ranked 24th while getting credit and protecting investors ranked 177th
and 178th respectively.

Although no significant Foreign Direct Investments (FDIs) have come into Afghanistan,
the huge amount of donor aid (approx US$1.5 billion in 2005-2006)1 flowing into the
country provides substantial potential for the local private sector to flourish, expand and
diversify. Purchasing local goods and services is the mechanism by which the
operational funds disbursed for Afghanistan can be directly injected into the local
economy providing increased opportunities that serve to increase the confidence and role
of domestic private sector in their country’s reconstruction. This approach adopted by
the Peace Dividend Trust (PDT)2 and supported by CIDA underscores the importance of
spending money in Afghanistan, not only on Afghanistan. Increased spending in country
has multiple benefits, including job creation that draws workers into the formal labour
force, unleashing entrepreneurship, stimulating growth and encouraging domestic
investment.

In response to these challenges, PDT launched the Kabul Procurement Marketplace

(KPM) in January 2006, a two-year pilot project with financial support (CD$1.16 million)
from CIDA. The project’s broad objectives are to:
a) Improve the lives of Afghans by creating jobs, increasing living standards and
strengthening economic growth through increasing the level of local procurement by
international agencies.
b) Harness the existing operational spending of international agencies and companies
for the purpose of development and poverty alleviation by linking their large
procurement needs to local suppliers.

This evaluation report provides feedback on progress to the CIDA’s Afghan Task Force
(ATF) and through it to stakeholders, identifies any obstacles to achieving objectives, and
provides advice on any changes needed to improve relevance, effectiveness, efficiency or

1
According to PDT’s research study, approximately $1.5b in official development assistance was
disbursed in Afghanistan during the Afghan fiscal year 1384 (21 March 2005 to 20 March 2006).
2
Peace Dividend Trust (PDT) is registered as a NGO in Afghanistan. PDT is a non-profit foundation
operating in post conflict areas of Sierra Leone, Timor-Leste and Afghanistan with offices in London
UK and Ottawa Canada. PDT’s mission is to make peace and humanitarian operations effective,
efficient and equitable resulting in cheaper, faster and more successful missions, delivering a stronger
peace and a more sustainable recovery.

1
sustainability. The evaluation methodology included primary and secondary data
collection through the combination of literature and document reviews, field visit to
Kabul, key stakeholders interviews, and physical verification. The information was
analysed to answer the key evaluation questions.
SUMMARY OF FINDINGS
For the purpose of the evaluation, the services and activities of PDT’s KPM pilot project
are broadly divided into the following five main streams:

i) Match Making
ii) Afghan Procurement Directory
iii) Policy Development
iv) Tender Dissemination
v) Capacity Development

Since its inception in January 2006, PDT’s pilot project services including activities and
principal achievements are provided below:

Services Offered Activities Principal Achievements

Matchmaking • Link procurement directors
to potential suppliers
• Identify procurement needs
that can be sourced from the
local market
• Assess/research market
sectors
• Successful matches made
with ISAF, US Military,
Kabul Serena Hotel,
Supermarkets (A1,
Chelsea)
• Facilitated relationships
leading to US$34.9
million in contracts

Afghan Procurement • Established the only online • Currently features

Directory source that connects
international and national
buyers to Afghan companies
• PDT team initially verifies
all businesses.
• Information updated on a
regular basis.
business profiles of over
3,500 Afghan companies
• Helped prime contractors
identify construction
companies for tenders
worth roughly US$4.7
million
• Approximately 945,000
hits since December
2006

Policy Development • Promotes local procurement • Works with US Military

over newspaper articles, TV,
fairs
• Engages in promotional
campaign, “I Buy Afghan
Products”
and ISAF on “Afghan
First” Initiatives
• Works with UN and
ISAF HQ on “Afghan
First” policy
• Established linkages with
the Government’s Public
Procurement Unit and
Private Sector.

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Tender Dissemination • Collects tender notices from
international and national
organizations
• Distributes tenders and
RFQs via email, print media,
hard copy
• Assists business
representatives with
preparing
tender documents
• Customer visits since
November 2006: 1250
• 671 tenders collected and
disseminated
• Helped businesses win
tenders of over US$1
million
• Many repeat tenders won
by businesses have not
been reported.

Capacity Development • Conducts training sessions • Trained a total of 134

on the tender process
• Develop business and
management skills
• Involves buyers in the
preparation and delivery of
training
• Collaborates with business
associations for training
programs (AICC, ABA).
companies in
construction/ printing
sectors
• Helped 86companies win
over US$24 million
worth of construction
contracts
• Delivered 6 training
packages
in 4 cities: Kabul (3),
Mazar- e-Sharif,
Jalalabad, Herat

a) Effectiveness: The above table demonstrates PDT-KPM project’s significant

resilience in promoting its effectiveness to assist local SMEs by navigating a
challenging environment for the private sector in Afghanistan. Local businesses in
the country are still grappling with security fears, non-availability of skilled labour,
high shortage of raw materials, unpredictable utilities, non-availability of finance
and credit while government policies are still in the process of evolving, among
other factors prevailing in Afghanistan. The pilot project’s focus on the crosscutting
themes of gender equality and environment has been limited.

b) Efficiency: The five key project services have been quite efficient. All stakeholders
interviewed in the field have also expressed the positive contribution of the project
as well as its usefulness resulting from the achievement of the outcomes. Within the
budget and funding allocated, the PDT-KPM project has efficiently utilized its
resources. Most of the initiatives are cost effective and provided good return for
value of investment for each of the five streams of PDT services. (E.g. PDT held six
training sessions, the average cost per session for salaries was $9.035.92 and for hard
costs (including materials) was $2,887.33 for a total of $11,923.25 per session. Over 60%
(86 out of 134 companies) of training participants have won contracts worth $24 million,
which is an outcome of training dispensed by PDT. In other words, average training cost
per company trained amounted to approximately $534.)

c) Relevance: Meetings with stakeholders (private sector, government ministries,

international buyers and financing agency) have all indicated the relevance of PDT-
KPM’s project to Afghanistan. The project has also demonstrated its impact in

3
 facilitating matchmaking contracts to the tune of US$ 34.9 million, procurement
deals through tender dissemination US$ 4.7 million, while more than 3,500
businesses have been listed in the online directory after physical verification. All
the constituents have also welcomed the other PDT services such as training and
capacity development as well as promotion of Afghan First Policy.

d) Sustainability: One of the key sustainability issues 3 of PDT-KPM project to be

addressed in the next phase is choosing national partner or partners.

• PDT-KMP project is currently housed within Afghanistan International

Chamber of Commerce (AICC). Kabul is headquartering two national chambers
of commerce, one promoted by the Germans as Afghan Chamber of Commerce
and the other being AICC promoted by the USAID. Due to internal problems
between these two chambers, the Afghan Government passed an ordinance to
recognize only one chamber and advised the two private sector organizations to
merge as one. The merger is currently ongoing and remains unclear when the
final structure of the new chamber will be in place. AICC has expressed interest
to house PDT’s activities even after merger.
• Meanwhile Afghan Investment Support Agency (AISA) - a semi autonomous
agency within the Ministry of Commerce, National Government of
Afghanistan- is also keen to house PDT and is interested in PDT’s two key
activities i.e. Afghan Procurement Directory and Tender Dissemination. AISA
has also constructed a new building to house PDT’s project team.

RECOMMENDATIONS

Following are the key recommendations from the evaluation of the PDT KMP pilot
project:

1. Policy Issues

a) Partnerships: One of the successes of the project has been to develop and
maintain partnerships with stakeholders. Being a CIDA supported project, it is
important to demonstrate that similar partnerships exist with Canadian
institutions. Unfortunately, there is no evidence of local procurements by
either the Canadian embassy or the military. It is recommended that CIDA, in
collaboration with PDT headquarters, meet and brief the officials or ministers
of DFAIT and DND on the project’s objectives and seek support for local
procurement.
b) Institutional Capacity Development: PDT has obtained significant credibility
from international procurement agencies and military as well as local private
sector of being a neutral organization. Can similar credibility and neutrality be
expected if the activities are transferred to local institutions? This needs to be
addressed during the next project phase. It should be noted that PDT is still
refining activities dispensed during the pilot phase. While the pilot project
3
The other issues of financial viability and donor support are discussed as a part of the recommendations

4
 has been highly successful in impact and in developing initial working
methods and tools, these have not yet reached the point where they can be
transferred to a partner organization mainly because the mid-term future of
both partner organizations (AICC and AISA) is currently unclear. It is
imperative; therefore, PDT starts collaborating with the proposed local
organization(s) very early in the next phase and gradually transfer its activities
depending on the readiness and preparedness of the national counterpart(s).
c) Impact Assessments: The focus of pilot project’s achievements has been on
the number of beneficiaries and total value of contracts signed by the local
private sector. It would have been ideal for the pilot project’s overall
outcomes to be measured by developing baseline data on the actual number of
jobs created (or protected) including for women, incomes generated, reduction
in poverty, taxes paid and other indicators which will help to develop better
strategies as a case for local procurements. However, it should be noted that
tracking information is a significant challenge to the PDT project team
because most of the data acquired remain estimates, despite follow-up with
buyers and suppliers. Compiling basic economic data for Afghanistan is
difficult in a continuously fluid economy but mechanisms need to be
developed for baseline data and impact assessments.
d) Crosscutting Themes (Gender and Environment): The Afghanistan
Marketplace proposal contains a gender strategy and an environmental
component that will be implemented. This strategy will allow CIDA to ensure
that the principles developed by PDT for integrating gender and environment
considerations in the project’s next phase are applied from the outset. Taking
into consideration the social and economic situation of Afghanistan, it should
be noted that the number of existing female entrepreneurs remains low. In
addition, businesses operating in one of the most difficult business and
security environments in the world may not direct scarce economic resources
to environmental interventions. Therefore, PDT should focus on providing
suggestions for environmental best practices that are linked to cost savings,
thereby proposing a realistic approach to getting Afghan businesses to
implement these measures. Additionally, if the national partner is deemed
deficient with respect to gender-sensitivity or lacking in the ability to manage
environmental impact assessment and mitigation, sufficient expertise needs to
be accessed, preferably from in-country sources such as local NGOs,
academia, and development-related institutions, or from the Canadian sources.
Sufficient financial resources directed toward gender mainstreaming and
environmental sustainability must be allocated in the next phase of the project
if gender and environment are to be integrated as cross cutting themes.
e) Exit Strategy: There is a clear future for PDT’s activities in Afghanistan
rather than creating a new institution. The activities of PDT are seen as great
benefit to the two existing institutions, namely AISA and AICC. Therefore, it
is possible that activities implemented by PDT can be transferred to these
institutions. The exit strategy proposed for the Afghanistan Marketplace
project allows for some flexibility in the transfer of activities since the
medium term future of any potential partner organization remains unclear. It is

5
 recommended that a clear exit strategy be spelt out by the beginning of the
next phase by clearly dividing the roles and responsibilities.

2. Operational Matters

a) Needs Assessment to strengthen PDT’s services:

• PDT’s pilot project has established clear benchmarks on local

procurements, based on the international agencies policies, procedures
and standards, rules and regulations, quantities and values. Though
construction and water bottling sectors were the main beneficiaries so
far, there is a significant scope to target other sectors. Based on the
requirements of international agencies, the next phase of the project
therefore has to undertake a needs assessments and a market analysis
to map the local private sector’s capabilities both countrywide and
sector wide. Currently PDT is working with DFID for funding support.
Although there is a direct link to the pilot project, this research activity
is directly linked to PDT’s other project in Afghanistan, evaluation in
the economic impact of official development assistance to Afghanistan
(aid effectiveness). However, the Evaluator finds since this is an
important activity of PDT, it should have been part of the next phase
of CIDA’s funding.
• Future training programs should be organized with appropriate needs
based assessments and includes relevant sessions to be handled by
private sector and other stakeholders as well as past participants who
were successful. In other words, PDT should become more a facilitator
than a supplier of training. PDT is currently revamping its training
modules and needs to measure the effectiveness of training as well as
change in practices on a regular basis.
• Need to further strengthen business development services by
collaborating with other training providers (national or international)
to facilitate all inclusive assistance to local SMEs especially in the
following areas:
o quality control and standards,
o environmental issues,
o targeted training sector specific, issues specific,
o financial services.

b) Updating financial systems at the field office:

Updating the current accounting systems at the field office from basic Excel
sheets to Quick Books accounting method will help in simplifying procedures
(currently significant time is wasted in account posting and maintenance) and
providing management information systems.

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 c) Strengthening institutional memory:

In view of high staff turnover due to short-term contracts and poaching by

other international organizations, it is important to develop a strong database
of all activities as a corporate memory. Tool kits, manuals, archiving data and
software for tracking the beneficiaries will help not only to retain the past
records but could also help to design new models and strategies.

3. Sustainability Issues

In order to achieve maximum sustainability and benefits, it is critical to ensure the

following:
a) Supporting and developing capacity of national Partners’
The decision to select and approve (an) institutional partner(s) requires a
thorough institutional assessment, including capacity in gender mainstreaming.
If capacity-development is needed to allow it to meet its institutional
objectives, the assessment should include identification of institutional needs,
priorities, resources and mandates:
• collection of baseline data;
• a clear definition of the support to be provided;
• milestones and benchmarks;
• and a clear exit strategy.
Partner institutions need to be provided with financial planning, management
tools and training. Maximum responsibility should be transferred to the
national partner (s) as a component of overall capacity development /
institutional strengthening
b) Financial Viability

Following the recent post-training survey results wherein nearly 60% of the
past participants had indicated willingness to pay training fees, PDT in
conjunction with the national partner(s) should examine the possibility of
introducing nominal affordable fees. As most of the activities of PDT bring
direct commercial benefits to local businesses, it would be advisable to
recover the cost of some of the initiatives. This would help in future planning
of PDT’s training as well as other services.

c) Donor Support

The PDT-KPM project has demonstrated its relevance and effectiveness to all
its stakeholders. Donor support to maintain the continuity of the project’s
ongoing activities is critical. Previous experience of delay in CIDA’s funding
resulted in PDT scrambling for funds to keep the project running.
Sustainability and credibility of the project is likely to be affected if the

7
 funding is not in place early enough for the next phase. It is recommended that
CIDA initiate a dialogue with relevant departments on local procurements and
with donors to seek further support to the project’s national partners to
continue PDT’s activities. This will ensure long-term sustainability of the
project especially due to limited resources available locally.

CONCLUDING REMARKS

After examining the documentation provided, and meeting with key stakeholders of
PDT’s Kabul Market Place, it can be concluded that this pilot project has both achieved
all its outputs and outcomes, and has far exceeded its goals. In particular, the project
provides core services such as local procurement, tender dissemination and training
which, no other agency provides in Afghanistan. The pilot project has rightly identified
and developed a special niche area of services that are critical for the development of
private sector in Afghanistan. Additionally PDT’s KPM project deserves special credit
for the accomplishment within the given timelines, especially working under difficult
situations in post conflict zones. PDT’s next phase of the project, namely Afghan Market
Place, deserves full support as the project intends to deepen and widen its activities with a
focus on both sectors-wide and countrywide.

Overall CIDA has to be commended for supporting this initiative and it can be the
flagship of ATF’s achievements and needs to be widely publicized particularly in leading
Canadian business magazines and newspapers.

8
1.0 INTRODUCTION

1.1 Background

Peace Dividend Trust (PDT) - a registered NGO in Afghanistan administers the

Kabul Procurement Market Place project, also known locally as the Peace
Dividend Market Place (PDM). PDT is a non-profit foundation operating in post
conflict areas of Sierra Leone, Timor-Leste and Afghanistan with offices in
London UK and Ottawa Canada. PDT’s mission is to make peace and
humanitarian operations effective, efficient and equitable resulting in cheaper,
faster and more successful missions, delivering a stronger peace and a more
sustainable recovery.

In January 2006, PDT launched the Kabul Procurement Marketplace (KPM) pilot
project with financial support from CIDA. The project’s broad objectives are to:

a) Improve the lives of Afghans by creating jobs, increasing living standards

and strengthening economic growth through increasing the level of local
procurement by international agencies.
b) Harness the existing operational spending of international agencies and
companies for the purpose of development and poverty alleviation by
linking their large procurement needs to local suppliers.

1.2 Project Scope

The KPM project scope covers the whole country, with specific focus on areas
where international buyers and local suppliers operate. Currently the project’s
focus has been mainly in and around Kabul. The KPM is located within the
Afghanistan International Chamber of Commerce (AICC) in Kabul.

1.3 Project Goal

The goal of PDT’s KPM pilot project is to support the private sector development
in Afghanistan by channeling the operational spending of international agencies,
donor countries and enterprises into Afghan economy by enabling better
marketplace access and working with local companies to improve their chances of
winning new contracts. Broad activities of KMP project are as follows:

1. Identify viable local partner organization and establish partnership,

2. Identify common procurement needs of the UN and other international
agencies in Afghanistan,
3. Map the local small and medium enterprises (SMEs) ability to supply goods
and services demanded by the UN and other international agencies,
4. Match local SMEs and the UN and international agencies to ensure that as
many of the international communities needs as possible can be satisfied
within the country

9
5. Train and assist entrepreneurs in areas that will help them improve their
ability to supply goods and services to the UN an international agencies,
6. Design and launch an on-line business directory of local SMEs to provide
good and services,
7. Assist women’s SMEs to market to international buyers.

1.4 Purpose of the Report

This evaluation report provides feedback to the CIDA’s Afghan Task Force (ATF)
and through it to stakeholders on progress, identifies any obstacles to achieving
objectives, and provides advice on any changes needed to improve relevance,
effectiveness, efficiency or sustainability.

1.5 Key Audiences

In addition to CIDA, PDT is the primary institutional stakeholder for this

evaluation along with its Afghan and Canadian partners responsible for
implementation of the Program.
CIDA relies on evaluations to promote more effective and efficient international
development programming, and to enhance the Agency's capacities to
demonstrate accountability and transparency to Parliamentarians and Canadians.
Evaluation results will contribute to CIDA’s Planning, Reporting and
Accountability Structure (PRAS), which in turn is used to demonstrate how the
Agency is performing to a number of audiences. Making the Evaluation Abstract
accessible on CIDA’s Corporate Memory System and the Executive Summary
available on the Afghan Task Force website will promote institutional learning.
The sharing of results will inform other key Canadian and Afghan stakeholders,
and other donors about project's achievements and lessons learned.

1.6 Scope of CIDA’s support to PDT

PDT’ KPM pilot project has received a total amount of CD$ 1,163,470 from
CIDA since its inception in January 2006.

10
2.0 PROJECT PROFILE

2.1 Key Contextual Factors

Afghanistan, ranked as the world’s seventh poorest nation, continues to struggle

to establish a democratic nation state that can provide security, promote licit
economic growth, provide essential services and reduce poverty for its people.
The Human Development Index (HDI) puts Afghanistan at the bottom of the 177
countries ranked by the global Human Development Report 20044, far behind all
its neighbours and just above Burundi, Mali, Burkina Faso, Niger and Sierra
Leone. The Gender Development Index (GDI) that reflects the level of
discrepancies between men and women in terms of the HDI, places the country
further down in the scale of human development, above only Niger and Burkina
Faso. The Human Poverty Index (HPI) ranks Afghanistan just above Niger and
Burkina Faso and far below neighbouring Iran and Pakistan. With the majority of
the Afghan population classified as poor, human poverty in Afghanistan is a
multidimensional problem.

2.2 Private Sector Development in Afghanistan

Private sector in Afghanistan is at crossroads. As stabilization and reconstruction

move forward in Afghanistan, there are significant opportunities in all sectors
however, at the same time the security fears and risks have kept most of the
investments and borrowings at a minimal level. Though no significant Foreign
Direct Investments (FDIs) have come into Afghanistan nevertheless the huge
amount of donor aid flowing into the country provides substantial potential to
local private sector to flourish, expand and diversify. Local purchasing of goods
and services is the mechanism by which the operational funds disbursed for
Afghanistan can be directly injected into the local economy providing increased
opportunities that serve to increase the confidence and role of domestic private
sector in their country’s reconstruction. This approach by PDT and supported by
CIDA underscores the importance of spending money in Afghanistan, not only on
Afghanistan. Increased spending in country has multiple benefits including job
creation that draws workers into the formal labour force, unleashing
entrepreneurship, stimulating growth and encouraging domestic investment.

One of the principal achievements of the post-Taliban era has been the sustained
high level of formal economic growth and an exponential rise in trading volumes
with regional partners, including Pakistan, Iran, India, Uzbekistan and Turkey.
The IMF estimates that official GDP growth averaged 22.5% between 2002 and
2004 5 , while growth is predicted to reach 12% in 2007/2008 and 10% in
2008/2009. These growth rates are based on two key factors: rebounding

4
The HDR for 2006 does not include Afghanistan due to insufficient data.
5
World Bank, “The Investment Climate in Afghanistan”, Official Draft, December 2005.
www.aisa.org.af/PDF/Afghanistan%20ICA-Official%20Draft.pdf.

11
 agriculture and a sustained level of activity in construction and services6. These
factors underscore the dual importance of growth stimulated by both the domestic
market and demand from international reconstruction partners.

2.3 Doing Business in Afghanistan

The private sector in Afghanistan has demonstrated significant resilience to

operate amidst a non-conducive environment, which is still grappling with
security fears, non-availability of skilled labour, high shortage of raw materials,
unpredictable utilities, non-availability of finance and credit, while government
policies are still in the process of evolving, among other factors prevailing in the
country.

To put things in perspective on the environment within which private sector

operates in Afghanistan, the recent World Bank’s Doing Business 2008 Report
ranked Afghanistan 159 out of 178 economies of the world. The following
indicators on the ease of doing business give further insight of private sector
operations in Afghanistan.

Doing Business 2008 Rank (out of 178 countries)

Ease of Doing Business 159
Starting a Business 24
Dealing with Licenses 141
Employing Workers 24
Registering Property 169
Getting Credit 177
Protecting Investors 178
Paying Taxes 38
Trading Across Borders 174
Enforcing Contractors 160
Closing a Business 178

6
“Statement of the IMF Staff at the Conclusion of the Mission for the First Review under the Poverty
Reduction and Growth Facility”, Kabul, November 26, 2006,
www.imf.org/external/np/ms/2006/112602/htm

12
13
Table below provides a World Bank’s graphic display of ranking and Afghanistan’s
position in relation to each of the indicators.

14
2.4 Local procurement and private sector development

In the past 27 years, Afghanistan has been secluded from developments in

international standards, quality control, safety and hygiene requirements that
much of the rest of the world has experienced and has furthermore lost most of its
skilled workforce. The KPM project channels more humanitarian development
and security-related funds into the local economy by matching international
buyers with local suppliers. Increased local procurement in Afghanistan can inject
millions of additional dollars in the recovering economy.

In order to ensure the most effective and efficient use of funds being delivered to
Afghanistan, the international community and the Afghan Government committed
themselves to the Afghanistan Compact Agreement. Under the Compact, donors
agreed to channel an increasing proportion of their assistance through the core
government budget, either directly or through trust fund mechanisms by: (a) using
national partners rather than international partners to implement projects; (b)
increasing procurement within Afghanistan; and (c) using Afghan goods and
services wherever possible, rather than imported goods and services. This
approach is founded in the understanding that by using development assistance
locally it can provide the impetus for economic growth by injecting income and
wealth into the local economy. Some of the benefits that development assistance
projects can deliver are as follows:

Cost Savings
• Reduces freight, transport costs
• Savings in the range of 30-60 percent

Economic Impact
• Generates employment and revenue for the private sector and government
• Promotes and increases skills and capacity of local businesses
• Justifies capital investments to build infrastructure
• Develops a sustainable market

Image & Branding

• Demonstrates social responsibility and awareness

Environmental Benefits
• Reduces waste
• Reduces pollution and greenhouse gas emissions

Building a Stronger Peace

• Contributes to sustainable development, prosperity, and long-term stability

15
 A recent study7 on the "Economic Impact of Peace keeping" concluded that only
between 4%-9% of UN peacekeeping missions funds stay in the local economy.

External Expenditure

Local Procurement

MS A

National S taff

External expenditure (91.5%) :( Cars, computers, troop costs, fuel, international

staff salaries, medicine, airfare)
Spending in local economy (8.5%) :( Local procurement (3.59%) Mission
Subsistence Allowances (MSA) - 3.61%), national staff salaries- 1.22%)

2.4.1 A brief overview of Donor funding in Afghanistan and local procurement

According to PDT’s research study,8 approximately $1.5b in official development

assistance was disbursed in Afghanistan during the Afghan fiscal year 1384 (21
March 2005 to 20 March 2006). Table below provides details of ODA
disbursements by different donors in Afghanistan.

The study further analyzed the major channels of ODA disbursements including
international and local contracts, which are provided in the following table.

7
“Economic Impact of Peace Keeping”, - a study 10 UN Peace Keeping Nations, January 2006
8
PDT, “Afghanistan Compact Procurement Monitoring Project”, April 2007

16
 The PDT study9 concluded the following:

• The high-level commitment made to increase the local impact of development

spending has yet to translate into a focus on the ground in either assessing this
impact, or instituting practical ways to enhance its impact on the Afghan
economy.
• A greater focus on collecting and analyzing data on actual disbursements (that
is funds that have been paid out) rather than on commitments (that is funds
that have been promised) would both provide a baseline for better analysis and
raise awareness of the importance of the issue.
• Within the different ways that donors spend their funds, by far the greatest
local economic impact is obtained when resources are provided directly to the
government (local impact around 85%) compared to funds provided to
international companies or NGOs (less than 20%) to carry out projects. Thus
increasing the level of monies provided through trust funds represents the
simplest way to increase local economic impact.
• Finally, when funds are provided outside trust fund channels for the purchase
of goods and services there are still a number of approaches that can be
explored to ensure that the local economic impact is heightened.

2.5 Reasons for low local procurement:

Various reasons are attributed for low local procurement includes:

a) From buyers’ perspective:

• Lack of information on the local marketplace

• Lack of trust in Afghan businesses
• Lack of access to marketplace
• Lack of policies
• Lack of relevant laws and regulations including enforcement mechanisms.

9
ibid

17
b) From suppliers’ perspective:

• Lack of good business practices

• Limited exposure to international markets
• Difficulty accessing opportunities
• Lack of bidding capacity
• Insufficient access to finance

18
3.0 EVALUATION PROFILE

This evaluation is carried out in accordance with the CIDA’s published Evaluation
Guidelines and it intends to improve performance by assessing progress of PDT’s pilot
project in Kabul, and to contribute towards decision-making, organizational learning, and
greater accountability and transparency. Lessons learned from this evaluation will also
allow more informed preparation of subsequent phase two of the Project “Afghan Market
Place (AMP)” which intends to widen and deepen its activities both geographically as
well as outreach to more local businesses sector wide and Afghan wide.

3.1 Evaluation Objective

The key objective of this evaluation is to review the progress of PDT’s pilot project since
its inception, determine how it has evolved, and identify any issues or practical measures
that can be taken following the conclusion and recommendations with this evaluation.

3.2 Evaluation Framework

The evaluation framework is the key element of this report, as it systemizes the
methodology, identifying the issues to be addressed, sub-questions that provide
elaboration; and the performance indicators. The evaluation issues reflect what was set
out in the TORs, but have been simplified and re–organized.
The evaluation framework is provided in Appendix A.

3.3 Evaluation Methodology

The methodology adopted for this evaluation is designed to meet the requirements and
expectations set out in the TORs for this assignment. The approach is considered credible
and appropriate for identifying the results attributable to the KPM project given the range
of information that is currently available, and the limited time and resource constraints.
3.4 Documentation Review

The process of identifying and reviewing available project documents began with the
awarding of the contract and a review of key project management documents was
instrumental in preparing this report.

3.5 Field Visit

The evaluation work started with meeting the ATF officials at CIDA, Ottawa and PDT
officials at the headquarters in Ottawa on December 4th followed by field missions to
Kabul Afghanistan from December 6th -18th, 2007. CIDA’s ATF and PDT's Kabul office
in consultation with its Ottawa headquarters had facilitated meetings with the following
organizations:

19
• PDT Country Office (Director and Key Staff)
• Local private sector (beneficiaries of PDT’s activities)
• International Buyers (including International Security Assistance Force (ISAF)
of NATO)
• CIDA staff based in Kabul
• Government Ministries (Ministry of Commerce, Ministry of Finance’s Public
Procurement Unit)
• Afghan International Chamber of Commerce (AICC) – PDT’s National
hosting organization
• Afghanistan Investment Support Agency (AISA) –PDT’s potential partner for
future operations
• Afghan Growth Finance – A key financing agency for SMEs in Afghanistan

The field visits were well coordinated by the PDT’s Afghan Office to make best
use of the limited time available, including arranging meetings with key contact
points of government ministries, international buyers and private sector. The field
mission started with a good professional presentation by PDT Afghan office
country director and key staff on its activities and accomplishments and the
cooperation with the team has been good, and interaction has been marked by a
strong degree of candour.

3.6 Additional Analysis

Following primary and secondary data collection through the combination of

literature and document reviews, site visits, key informant interviews, and focus
groups, the information was analyzed to answer the key evaluation questions.
The reference points used to measure the relevance of the program is
Afghanistan’s national policies and CIDA’s Key Agency Results (KARs). The
evaluator also reviewed these documents against the information gathered to
ascertain:

a) For the efficacy analysis, the evaluator assessed whether the program is
meeting its developmental objectives (or can be expected to reach its
developmental objectives by the end of the program) by reviewing the program
plans, performance measurement framework, and reports to ensure:
• Progress made towards the achievement of results at the output and outcome
levels
• Level of actual versus intended results
• If there is shared responsibility and accountability for results
• Whether there is active participation of local country partners and
beneficiaries in the design, implementation, monitoring and periodical
evaluation of the Program
• Is there an appropriate level of coordination between the various
stakeholders
• Is the coordination with other donors is adequate

20
• Does the local partners have the appropriate authority and tools that are
required to make decisions and take actions

b) For efficiency analysis, the evaluator briefly analyzed project’s schedules and
budgets to ascertain whether the program is achieving its objectives on schedule
and within budget generally, and answer the following principal evaluation
questions:
• Are resources and services delivered in a manner that effectively responds to
conditions, including risks, needs, opportunities or problems?
• Has the Performance Measurement Framework been applied during Program
implementation?

c) Finally, Sustainability Analysis will shed light on whether the results/benefits

achieved by the Project are likely to continue after CIDA's involvement ends.
• Is there a demonstrated partner and local commitment to Project activities, to
the attainment of results and the methods chosen to achieve them?

3.7 Limitations

Due to limited time during the field visit to Kabul, the evaluator had to depend on
the meetings arranged by the local PDT office. Most of the private sector
respondents were selected by the PDT office, though some additional meetings
particularly with the government departments were arranged at the request of the
evaluator.

KPM project’s accomplishment in terms of contracts won and success stories are
based on the information provided by the PDT Kabul office. The evaluator has
therefore depended on the PDT’s information and success stories matrix with a
couple of on the spot verifications. Triangulation was used to verify and validate
the findings.

21
4.0 EVALUATION ANALYSIS AND FINDINGS

Evaluation findings are provided in detail in evaluation framework in Appendix A

4.1 Effectiveness

The table below provides the efficacy of PDT’s KPM pilot project by assessing the
outputs and outcomes.

PDT’s Kabul Market Place Pilot Project Assessment of Outputs and Outcomes
(Source: Peace Dividend Market Place LFA)

Outputs at the end of

Assessments of Outputs
Pilot Project
1) Identification of i) PDT has established strong relationships with most of the
common procurement procurement officials (even though these officials are often
needs of international transferred) of international agencies resulting in sharing of
agencies in Kabul potential tender requirements and procurement information
for various goods and services.
ii) PDT has become a credible and crucial link between
international agencies and local businesses.
iii) PDT also updates market data through ongoing market
research including the business verification process and
maps purchasing organizations through their buying plans
via direct contacts and relationship management. After
opportunities are identified, PDT assists in providing
targeted information about buying Afghan. Exposure to
the Afghan private sector is achieved through on-demand
research including sectoral feasibility studies (e.g. Water-
Bottling Facilities in Afghanistan), sector assessments (e.g.
The Handicraft Sector in Afghanistan), vendor days,
surveys (e.g. Afghan Construction Company Survey), and
providing case-by-case market information.

Results
• More than one dozen international agencies have
been identified, contacted and enrolled as the
potential procurement buyers.
Establishment of the Tender Distribution Point by PDT
has provided access to current tenders from international
organizations, private business, government line ministries,
and military organizations. This facility has assisted local
SMEs significantly in terms of cost saving and timely
information. (E.g. PDT’s tender distribution statistics
indicates that a construction company would have to visit

22

2) Identify and analyze
ability of local SMEs to
supply goods and services
demanded by UN and other
international agencies.
3) Matching local SMEs
with the UN and
international agencies to
ensure that as many of the
international communities’
needs as possible can be
satisfied within the
country.
4) Training and assistance
to entrepreneurs in areas
that will help them improve
their ability to supply
goods and services to UN
and international agencies.
14 ministries, at least 5 international organizations, and
browse 10 different websites in order to access all of the
tenders open to bids in the span of one month). Locating
tenders in a single office therefore increases transparency,
enhances understanding of the procurement needs of major
buyers and facilitates greater access to information.
i) PDT has established business verification mechanism
by conducting site visits to local businesses to ensure that
accurate business profiles are recorded for uploading on the
Afghanistan Procurement Directory (an online business
directory) which has reliable and accurate data. It is now
the only valuable web based tool for buyers.
Result
• In collaboration with USAID’s Afghanistan Small
and Medium Enterprise Development project, PDT
has established a call center to support the
verification and crosschecking activities by which
businesses are registered for the procurement
directory and their information updated regularly.
The four-person team also conducts market surveys
to generate reliable market information
i) Business matchmaking stream of PDT consists of
establishing business opportunities aimed at maximizing
returns for the local economy by identifying emerging
opportunities based on up-to-date market information along
with the criteria such as demand, value of potential
contracts, competitiveness of local businesses, procurement
regulations, and subjective quality, among
Results
• Successful matches made with ISAF, US Military,
Kabul Serena Hotel, Supermarkets (A1, Chelsea)
• Facilitated relationships leading to US$34.9 million
in contracts
i) The PDT’s capacity development program provides
targeted sector-specific training to Afghan businesses to
facilitate understanding of the procurement process. The
objective of the capacity development stream is to improve
domestic capacity of local entrepreneurs to bid for tenders
and win new contracts. The training sessions are organized
jointly with local or regional partner organizations
Results
• Trained a total of 134 companies in construction/
printing sectors
23
 • Helped 86 companies win over US$ 24million
worth of construction contracts
• Delivered 6 training packages in 4 cities:
- Kabul (3), Mazar-e-Sharif, Jalalabad, Herat

5) Design and launch on-
line business directory of
local SMEs to provide
goods and services.
i) PDT launched country’s first online business directory
“Afghanistan Procurement Directory”, it is the only
online directory that connects international and national
buyers to Afghan companies. It currently features business
profiles of over 3,500 Afghan companies.
ii) All businesses are initially verified by PDT team with
regard to their registration, business address, and nature of
business including experience among other criteria.
Information is updated on a regular basis.
www.buyafghan.af
www.peacedividendmarketplace.af

6) Assistance to women’s
SMEs to market to
international buyers.
Results
• Helped prime contractors identify construction
companies for tenders worth roughly US$4.7
million
Approximately 945,000 hits since December 2006
i) PDT’s pilot project key focus was on start-up, market
research, networking and establishing of linkages, as well
as promoting PDT’s activities to various stakeholders as a
result gender was not the main focus. Efforts were made to
include women in the training and capacity development
programmes. However, the next phase of Afghan Market
Place has given prominence to gender in most of its
initiatives.

Evaluation of PDT’s KPM Pilot Project Outcomes

End of Pilot Project Outcomes Evaluation findings

1) Spur sustainable growth in local
enterprises and create more and better jobs
through increased private sector linkages,
particularly by paving the way for larger
international companies to operate and
procure locally.
i) PDT pilot project has brought renewed
confidence in the private sector. Most of
the beneficiaries are either existing
businesses or those businesses that were
dormant due to difficult business
environment.
ii) Based on PDT’s initiatives, many
international agencies have now developed
confidence to source their procurement
locally

24
2) Enable a business climate that draws i) There has been no evidence of informal
informal entrepreneurs into the formal entrepreneurs moving into formal
economy, increasing local tax revenues and economy. Most of the beneficiaries are
adherence to labour standards. already registered and operate within the
formal economy.
ii) No study or survey has been initiated to
know exact amount of tax generated or
local businesses adhering to labour
standards and environment regulations.
3) Build capacity of local entrepreneurs and i) PDT’s capacity building and training
improve their ability to attract international programmes have provided local
clients and investors in the wake of the entrepreneurs to understand and adapt to
peacekeeping economy by encouraging the the requirements of international bidding
development of commercially sustainable procedures.
business models that can be expanded and ii) lessons learned from pilot project
replicated. (namely: advocacy, systematic tracking of
results, relationships and partnerships with
both buyers and vendors) can be further
strengthened in the next phase

4) Enhance ability of UN agencies to i) PDT’s pilot project accomplishments can

provide capacity building and support
private sector development in other UN
missions by refocusing operational
spending into the host economy.
form a good platform to promote its
activities and encourage other UN and
international agencies to refocus their
operational spending in host economies.
ii) PDT can develop Manuals for
Matchmaking, Tender Distribution Centre,
Business Verification and Capacity
Development as well as web based tools
that can help other UN missions and
international agencies.

5) Reduce costs of UN and other PDT’s Matchmaking and tender

international agencies by facilitating access
to local sources for goods and services that
otherwise would be imported.
distribution point has enabled UN and
other international agencies to source local
goods and services. According to PDT’s
survey, international agencies save between
40%-60% by sourcing goods and services
locally. This was proved in the case of
water being sourced locally for US
military.

The table above clearly demonstrates PDT-KPM project’s significant resilience in

promoting its effectiveness to assist local SMEs amidst a non- conducive
environment for private sector. Local businesses are still grappling with security
fears, non- availability of skilled labour, high shortage of raw materials,

25
unpredictable utilities, non- availability of finance and credit while government
policies are still in the process of evolving, among other factors prevailing in
Afghanistan.

4.2 Efficiency

All stakeholders interviewed in the field have also expressed the positive
contribution of the project as well as its usefulness in achieving the outcomes. The
information provided by the project to local SMEs is also considered timely and
has been appreciated by all businesses. Meeting with the international buyers
particularly with ISAF indicated that PDT-KPM’s project has been efficiently
providing its services and information about the background of local vendors as
well as helping local businesses to understand the rules and procedures of
international procurement.

4.3 Cost Effectiveness

Within the budget and funding allocated, the PDT-KPM project has efficiently
utilized its resources. In fact, the project had earned quite good credibility among
other donor agencies that were able to provide bridging finance at the critical
juncture when CIDA’s financing was delayed. Most of the initiatives of PDT-
KPM are cost effective and it has provided good return for value of investment for
each of the five streams of services provided. An example of PDT’s cost effective
training programmes and its result is provided below:

26
 Cost Effectiveness of the PDT’s KPM training Programme
During the pilot project, from April 2006 to January 2007, six training sessions were held in Kabul
and in regional areas of Afghanistan and 134 Private sector participants were trained mostly from
Construction and Printing sectors. In 2007, no trainings were provided, as there was no resourced
position for a trainer in place
It should be also noted that the previous training workshop were funded mainly by Bearing Point
(USAID) as well as DFID. CIDA-funded costs amounted ONLY to $28,390 or 40%. Salary scales
were determined by Bearing Point, although hiring was done by PDT. Here is an approximate
breakdown (based on available records) of the previous training program, which covered an 11
month period:
Item Description Cost
Personnel International Consultant and National $54,216.00
Training Associate
Materials Stationary, Manual (3,000 copies $2,680.00
printed) and CDs (1,000 copies printed)
Travel & Logistics Bulk cost of all other workshop costs, $14,644.00
including travel, venue, logistics, etc.
Total $71,540.00

Given that PDT held six training sessions and trained 134 companies at a total cost of $71,540,
therefore the average cost per session was $11,923.25. Average training cost per company trained
amounted to approximately $534 per company. In total, the fifty companies that responded to
PDT’s evaluation reported that they were able to obtain $ $24,207,446 in contracts directly because
of improved knowledge resulting from their participation in PDT’s training program. This amounts
to an average of $180,653 per company.
PDT training investment of $534 resulted in $180,653 of contract value on average for
companies that participated.
(Source: PDT Training Program 2006- Survey Assessment, December 2007)

4.4 Relevance

Meetings with stakeholders (private sector, government ministries, international

buyers and financing agency) have all indicated the relevance of PDT-KPM’s
project to Afghanistan. The project has also demonstrated its impact in facilitating
matchmaking contracts worth to the tune of US$ 34.9 million, procurement deals
through tender dissemination US$ 4.7 million, while more than 3,500 businesses
have been listed in the online directory after physical verification. All the
constituents have also welcomed the other services such as training and capacity
development as well as promotion of Afghan First Policy.

4.5 Sustainability

Sustainability of PDT-KPM project has several dimensions:

4.5.1 Local national partners

PDT-KPM project is currently housed within AICC. Kabul has

headquarters of two national chambers of commerce, one promoted by the
Germans as Afghan Chamber of Commerce and the other being AICC
promoted by the USAID. Due to ongoing bickering and infighting within
these two chambers, the Afghan Government passed an ordinance to
recognize only one chamber and advised the two private sector
organizations to merge as one. Meeting with the President of AICC
indicated that the process is on going and will be settled early 2008. The

27
President of AICC also assured that the changes would not affect PDT’s
operations.

Meanwhile Afghan Investment Support Agency (AISA) - a semi

autonomous agency within the Ministry of Commerce, National
Government of Afghanistan- is also keen to house PDT and is interested in
PDT’s two key activities i.e. Afghan Procurement Directory and Tender
Dissemination. AISA has also constructed a new building to house some
of PDT’s activities.

The sustainability of the project’s activities through national partners may

need to be further scrutinized closely by examining strengths and
weakness of each of the partners.

4.5.2 Donor support

The PDT-KPM project has clearly demonstrated its relevance and

effectiveness to all its stakeholders. Donor support to maintain the
continuity of the project’s ongoing activities is critical. Previous
experience of delay in CIDA’s funding resulted in PDT scrambling for
funds to keep the project running. Sustainability and credibility of the
project is likely to be affected if the funding is not in place early enough
for the next phase.

4.5.3 Financial viability

Most of the activities of PDT bring direct commercial benefit to local

businesses. Hence, it would be advisable to recover the cost of some of the
initiatives. In fact, PDT’s recent post training survey has indicated that
nearly 60% of the past participants have clearly seen real value in
attending the training programmes and are willing to pay nominal fees.
This is indeed quite encouraging for future planning of PDT’s training as
well as other services.

4.5.4 Capacity Development

Sustainability of PDT’s activities directly depends on the training and

capacity development of its local staff and national partners. Investment in
training on its staff is an on going exercise but due to prevailing conditions
in the country especially limited qualified and trained staff, there is a
significant poaching by other organizations and there is a real threat of
PDT loosing some of its trained staff.

28
4.5.5 Institutional Memory

Institutional memory of PDT’s record keeping of its five core activities

has been weak; however, systems are now being put in place for better
information and management systems and stock taking of its post training
and other activities.

29
5.0 LESSONS LEARNED AND RECOMMENDATIONS

5.1 Lessons Learned

5.1.1 Focus

KPM pilot project had a strong impact by focusing on local procurements by

international agencies while at the same time developing delivery capabilities of
local SMEs. However, local entrepreneurs have expressed extreme hardships to
win tender bids from national government departments and agencies due to highly
bureaucratic procedures, lack of transparency, corruption and favoritism, etc.
Maximum impact from relatively limited resources therefore comes from PDT
focusing on the needs of targeted beneficiaries such as matchmaking, tender
dissemination, training and capacity development

5.1.2 Partnerships are difficult to develop: dependencies are not

Building partnership is easier in a direct relationship with local institutions than

by working through an executing or implementing agency. KPM pilot project had
successfully met its objectives by working thorough partnerships both local and
international levels, thanks to PDT’s excellent public relationship,
communications strategy and personal contacts. Institutional capacity building
takes time and a long-term commitment. The next phase of the project will be
crucial to work along with institutions like AISA and AICC (under new
management). Young and fragile institutions do not have the capacity to manage
and mitigate the impact of limited budget and development priorities but will only
develop this capacity through managing not being managed.

5.1.3 What gets measured gets done

Matchmaking and successful tender bids have shown the total value of contracts
signed by local private sector. However actual impact needs to be measured
especially in terms of jobs created (including women employment), income
generated and retained within the country, wealth created through new
investments, taxes paid, number of women entrepreneurs, among others.
Additionally needs assessment has to be done both geographically and sectoral
basis for widening and deepening the next project phase.

5.1.4 Monitoring and Evaluation

Continuous performance measurement and evaluation is an important tool for

developing new strategies to address the rapid changing needs of the targeted
beneficiaries. Buyers’ survey, market assessments, vendors and buyers tool kits,
policy and regulations tracking systems are some of the important in house
evaluation methods that can help in achieving the project activities. PDT has
adopted a long-term M&E strategy and clear M&E policy for daily, weekly and

30
 monthly tracking of project indicators. Tracking systems could benefit from
moving away from Excel-based systems to an integrated MIS.

5.2 Recommendations

Following are the key recommendations from the evaluation of the PDT KMP pilot
project:
5.2.1 Policy Issues

a) Partnerships:
One of the successes of the project has been to develop and maintain partnerships
with stakeholders. Being a CIDA supported project, it is important to demonstrate
that similar partnerships exist with Canadian institutions. Unfortunately, there is
no evidence of local procurements by either the Canadian embassy or the military.
It is recommended that CIDA, in collaboration with PDT headquarters, meet and
brief the officials or ministers of DFAIT and DND on the project’s objectives and
seek support for local procurement.

b) Institutional Capacity Development:

The PDT has obtained significant credibility from international procurement
agencies and military as well as local private sector of being a neutral
organization. Can similar credibility and neutrality be expected if the activities are
transferred to local institutions? This needs to be addressed during the next
project phase. It should be noted that PDT is still refining activities dispensed
during the pilot phase. While the pilot project has been highly successful in
impact and in developing initial working methods and tools, these have not yet
reached the point where they can be transferred to a partner organization mainly
because the mid-term future of both partner organizations (AICC and AISA) is
currently unclear. It is imperative; therefore, PDT starts collaborating with the
proposed local organization(s) very early in the next phase and gradually transfer
its activities depending on the readiness and preparedness of the national
counterpart(s).

c) Impact Assessments:
The focus of pilot project’s achievements has been on the number of beneficiaries
and total value of contracts signed by the local private sector. It would have been
ideal for the pilot project’s overall outcomes to be measured by developing
baseline data on the actual number of jobs created (or protected) including for
women, incomes generated, reduction in poverty, taxes paid and other indicators
which will help to develop better strategies as a case for local procurements.
However, it should be noted that tracking information is a significant challenge to
the PDT project team because most of the data acquired remain estimates, despite
follow-up with buyers and suppliers. Compiling basic economic data for
Afghanistan is difficult in a continuously fluid economy but some mechanisms
need to be developed for baseline data and impact assessments.

31
 d) Crosscutting Themes (Gender and Environment):
The Afghanistan Marketplace proposal contains a gender strategy and an
environmental component that will be implemented. This strategy will allow
CIDA to ensure that the principles developed by PDT for integrating gender and
environment considerations in the project’s next phase are applied from the outset.
Taking into consideration the social and economic situation of Afghanistan, it
should be noted that the number of existing female entrepreneurs remains low. In
addition, businesses operating in one of the most difficult business and security
environments in the world may not direct scarce economic resources to
environmental interventions. Therefore, PDT should focus on providing
suggestions for environmental best practices that are linked to cost savings,
thereby proposing a realistic approach to getting Afghan businesses to implement
these measures. Additionally, if the national partner is deemed deficient with
respect to gender-sensitivity or lacking in the ability to manage environmental
impact assessment and mitigation, sufficient expertise needs to be accessed,
preferably from in-country sources such as local NGOs, academia, and
development-related institutions, or from the Canadian sources. Sufficient
financial resources directed toward gender mainstreaming and environmental
sustainability must be allocated in the next phase of the project if gender and
environment are to be integrated as cross cutting themes.

e) Exit Strategy:
There is a clear future for PDT’s activities in Afghanistan rather than creating a
new institution. The activities of PDT are seen as great benefit to the two existing
institutions, namely AISA and AICC. Therefore, it is possible that activities
implemented by PDT can be transferred to these institutions. The exit strategy
proposed for the Afghanistan Marketplace project allows for some flexibility in
the transfer of activities since the medium term future of any potential partner
organization remains unclear. It is recommended that a clear exit strategy be spelt
out by the beginning of the next phase by clearly dividing the roles and
responsibilities.

5.2.2 Operational Matters

a. Needs Assessment to strengthen PDT’s services:

• PDT’s pilot project has established clear benchmarks on local procurements,

based on the international agencies policies, procedures and standards, rules and
regulations, quantities and values. Though construction and water bottling sectors
were the main beneficiaries so far, there is a significant scope to target other
sectors. Based on the requirements of international agencies, the next phase of
the project therefore has to undertake a needs assessments and a market analysis
to map the local private sector’s capabilities both countrywide and sector wide.
Currently PDT is working with DFID for funding support. Although there is a
direct link to the pilot project, this research activity is directly linked to PDT’s
other project in Afghanistan, evaluation in the economic impact of official
development assistance to Afghanistan (aid effectiveness). However, the

32
 Evaluator finds since this is an important activity of PDT, and it should have
been part of the next phase of CIDA’s funding.

• Future training programs should be organized with appropriate needs based

assessments and includes relevant sessions to be handled by private sector and
other stakeholders as well as past participants who were successful. In other
words, PDT should become more a facilitator than a supplier of training. PDT is
currently revamping its training modules and needs to measure the effectiveness
of training as well as change in practices on a regular basis.

• Need to further strengthen business development services by collaborating with

other training providers (national or international) to facilitate all inclusive
assistance to local SMEs especially in the following areas:
o quality control and standards,
o environmental issues,
o targeted training sector specific, issues specific,
o financial services.

b. Updating financial systems at the field office:

Updating the current accounting systems at the field office from basic Excel
sheets to Quick Books accounting method will help in simplifying procedures
(currently significant time is wasted in account posting and maintenance) and
providing management information systems.

c. Strengthening institutional memory:

In view of high staff turnover due to short-term contracts and poaching by

other international organizations, it is important to develop a strong database
of all activities as a corporate memory. Tool kits, manuals, archiving data and
software for tracking the beneficiaries will help not only to retain the past
records but could also help to design new models and strategies.

5.2.3 Sustainability Issues

In order to achieve maximum sustainability and benefits, it is critical to ensure the

following:
a) Supporting and developing capacity of national Partners’
The decision to select and approve (an) institutional partner(s) requires a
thorough institutional assessment, including capacity in gender mainstreaming.
If capacity-development is needed to allow it to meet its institutional
objectives, the assessment should include identification of institutional needs,
priorities, resources and mandates:
• collection of baseline data;
• a clear definition of the support to be provided;

33
 • milestones and benchmarks;
• and a clear exit strategy.
Partner institutions need to be provided with financial planning, management
tools and training. Maximum responsibility should be transferred to the
national partner (s) as a component of overall capacity development /
institutional strengthening
b) Financial Viability

Following the recent post-training survey results wherein nearly 60% of the
past participants had indicated willingness to pay training fees, PDT in
conjunction with the national partner(s) should examine the possibility of
introducing nominal affordable fees. As most of the activities of PDT bring
direct commercial benefits to local businesses, it would be advisable to
recover the cost of some of the initiatives. This would help in future planning
of PDT’s training as well as other services.

c) Donor Support

The PDT-KPM project has demonstrated its relevance and effectiveness to all
its stakeholders. Donor support to maintain the continuity of the project’s
ongoing activities is critical. Previous experience of delay in CIDA’s funding
resulted in PDT scrambling for funds to keep the project running.
Sustainability and credibility of the project is likely to be affected if the
funding is not in place early enough for the next phase. It is recommended that
CIDA initiate a dialogue with relevant departments on local procurements and
with donors to seek further support to the project’s national partners to
continue PDT’s activities. This will ensure long-term sustainability of the
project especially due to limited resources available locally.

34
 6.0 CONCLUDING REMARKS

After examining the documentation provided, and meeting with key stakeholders of
PDT’s Kabul Market Place, it can be concluded that this pilot project has both achieved
all its outputs and outcomes, and has far exceeded its goals. In particular, the project
provides core services such as local procurement, tender dissemination and training
which, no other agency provides in Afghanistan. The pilot project has rightly identified
and developed a special niche area of services that are critical for the development of
private sector in Afghanistan. Additionally PDT’s KPM project deserves special credit
for the accomplishment within the given timelines, especially working under difficult
situations in post conflict zones. PDT’s next phase of the project, namely Afghan Market
Place, deserves full support as the project intends to deepen and widen its activities with a
focus on both sectors-wide and countrywide.

Overall CIDA has to be commended for supporting this initiative and it can be the
flagship of ATF’s achievements and needs to be widely publicized particularly in leading
Canadian business magazines and newspapers.

35
 APPENDIX A
Kabul Procurement Market Place (KPM) – Pilot Project Evaluation Framework
Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
A-1 Is the project Are continental, regional national and Afghan Government and Donor agencies are quite supportive
Relevance responsive to YES local policies and strategies supportive of KPM pilot project and fits within the national priorities of
Afghanistan’s of the Project? How is the project supporting PSD
development responsive to Afghanistan’s priorities?
challenges,
priorities and
objectives?
Does the YES Does the intervention make sense in Very practical hands-on intervention providing solutions and
program terms of the conditions, needs and addressing needs.
address the problems that it is intended to address?
real needs of Is the design (as defined in the Project Design suits the local context and needs.
targeted Program Approval Document and the
beneficiaries? Program Implementation Plan)
appropriate, and is it based on a sound
understanding of the local context?
Is the intervention still relevant to the YES, the project is quite relevant and useful
needs of the targeted beneficiaries and
local partners?

Are beneficiaries clearly identified and Pilot project has identified the target beneficiaries
are they targeted for benefits
throughout implementation?
Does the YES Do the results contribute to CIDA's YES. With local procurement from local SMEs, it is anticipated
program overall goals of poverty reduction and that jobs will be created, income generated and wealth created
support CIDA’s sustainable development? which will help in reducing poverty as well as create
policies, sustainable development
priorities, and
Canadian
foreign policy?

Project Services International i

 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
A-2 To what extent KMP Pilot What progress has been achieved Negligible in the pilot project phase.
Equality has equality project has generally in equality between men and
between between men addressed the women with partner countries and Expected to address the issues of women’s involvement in the
men and and women role of women institutions with respect to the next phase.
women been only partially. following :- Shift to equality between
addressed in However the men and women focus
the Program? second phase - Supportive institutional policy
(Where has drawn a framework
feasible, this detailed - Institutional enabling environment
will include strategy to - Institutional momentum and
ratings as per address this commitment
CIDA's issue - Gender balance/Employment equity
Framework for To what extent do women and men There is awareness of and commitment to incorporate gender
assessing have equal access to, and can derive concerns and consideration into the next phase of Afghan
gender Equality benefits from this program? Market Place and operational structures and practices.
results, section Is there evidence of advancements in Women have access to all KPM programmes but very few have
6 in particular) women’s equal participation as actually benefited from the programmes.
decision-makers, of clearly increased
women’s political rights generally
including adequate representation and
empowerment?
What progress generally was made by Though KPM project has encouraged for women’s
partners towards the achievement of participation but very few takers.
results at the output and outcome
levels for women?
What is the quality generally of Too early to monitor in this pilot project.
monitoring for equality between men
and women results

ii
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
A-3 What are the KPM pilot Is there evidence of improved PDT did most of the initiatives but local partners were also
Efficacy development project has capabilities of local counterparts to involved. The next phase may include capacity development
Results and clearly deliver quality services to the local and of local counterparts when handover will be required, which
Success demonstrated international businesses? Of increased will likely to help in the delivery of services by local partners.
Factors? the potential capacity of partners to deliver services PDT’s local staff are being trained on the job
for PSD in to their members and diversify service
Afghanistan lines? PDT Survey has indicated that there is a possibility of
and that the Are there improved revenue streams, generating revenue from training programs. Similar analysis/
local SMEs in both cases? surveys have to be undertaken for other initiatives to ascertain
have the Were/are the pilot projects contributing whether a fee can be charged.
necessary to attainment of results (i.e. are they a
capabilities to useful mechanism towards achieving KPM project has clearly identified niche area of international
supply and project results and how so)? procurement locally and its impact in the host economy.
meet Is there evidence of policy and Govt. of Afghanistan’s Ministry of Commerce, PSD policy and
international regulatory impact or micro-macro strategy and Ministry of Finance’s Public Procurement Unit
standards linkages? have recognized the need to support local SMEs through local
provided they procurement in their policy and strategy documents.
are given: a)
necessary Similarly, Both Afghanistan Compact Agreement and National
information on Development Strategy have acknowledged the importance of
opportunities local procurement as well as support.
b) training and
c) enabling What is the level of actual versus Both national government and private sector are supportive of
environment. intended results with respect to all PDT initiatives. In fact, the have incorporated PDT's
advocacy? Are the partners happy to initiatives in their respective policies and programs.
go with the flow of both program
activities and national policies and
regulation? Alternatively, are the
partners increasingly proactive in their
engagement with government and
other stakeholders? In short, do the
partners drive the agenda?
Are there any unintended results that Multi million dollars business generated and recycled within
can be attributed to the Project? the local economy has far exceeded the initial expectations.

iii
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
Is there evidence generally of PDT’s training and capacity development has provided new
enhanced skills, improved economic skills to local SMEs especially on tender bidding and business
means and prospects, capacities for plans. The success of businesses wining repeat international
being self-sustaining, empowerment, bids is evidence of sustainable economic development
and self-awareness?
To what extent KPM pilot Is there active participation of partners KPM pilot project was designed to test various initiatives in
have project’s and beneficiaries, including women, in consultation with stakeholders. Constant monitoring of its
partnerships success is the design, implementation, monitoring activities through surveys and call centre helped PDT to
and/ or linkages mainly due to and evaluation of the Project? design the next project phase namely Afghan Market Place.
between strong Within the partnership or linkages that KPM project has clearly gained significant respect from all
institutions and linkages with are facilitated, is there shared stakeholders. Sharing of responsibility and accountability is
organizations both national responsibility and accountability for likely to take place in the next phase of the project.
been and decisions and results? Is there a
encouraged international sufficient level of trust and respect
and supported? organization. between the partners?
PDT staff have Is there an appropriate level of YES
demonstrated coordination between the various
very good stakeholders?
interpersonal Do Afghan partners have the YES
skills of appropriate authority and tools required
working with to make decisions and take actions?
different In this project, how strong is the The interest shown on KPM project activities by the Ministry of
organizations partnership-ownership linkage for Commerce’s Afghan Investment Support Agency and the
sustainability of improvements to local private sector organization AICC demonstrates strong
government? partnership linkage as well as continuity of the project’s
activities. The partners have infused KPM project with a
climate of inclusion and togetherness that translates into a
culture of optimism and “can do”.

iv
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
Are management structures effective in YES.
responding to ongoing challenges and Strengths: international expertise, adaptability to local
in promoting creativity and innovation? conditions, quick learning of local language and traditions,
What are the strengths and designing of various initiatives, and adapted to the local
weaknesses of management needs. Good Teamwork and involvement of all staff in future
structures? activities. Excellent public relations and Communications.
High level of commitment and vision.
Weaknesses: Management staff comprises of all external staff
on short term contracts and if they leave the project will have
serious impact on the project’s activities
Are the Resources Are human, financial and physical All resources have been appropriately used and financial
A-3 resources and were just resources used appropriately and information maintained. However, financial systems in Kabul
Efficiency services sufficient to financial information accurately and need to be upgraded. Currently financial records are
provided by initial design adequately maintained? Are the maintained manually in Excel sheets which, can be upgraded
PDT designed of the project. variances justified? to Quick Books.
to effectively However, PDT
respond to the had to source Is there an adequate level of Due to short term, contracts of the staff there has been
needs and additional management personnel and resources activities suspended due to non-availability of new staff due to
address the funding to in place for effective management and lack of funding. ( e.g. Training and capacity development)
problems meet the new monitoring of the Project?
identified in the project needs Has the Project identified and is it KPM pilot project got support from various international
design? like training, making effective use of Canadian and agencies including military. Unfortunately, there has been no
surveys. Etc. Afghan areas of competitive evidence of local procurement from either Canadian Embassy
advantage? What has been the benefit or the Canadian military.
of using a Canadian executing agency?
Are resources and services delivered in YES
a manner that effectively responds to
conditions, including risks, needs,
opportunities or problems?

v
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
Is the project well coordinated with Donors in Afghanistan have supported KPM project. The
other donors? Is this coordination project has also become a reliable and credible partner of
based on a high level of knowledge of many donors including UNDP, World Bank, DFID, USAID
what other interveners are doing in among others
difficult contexts such as Afghanistan?
Does the project know and take into
account their views on key aspects
such as the absorptive capacity of
partners?
Are the Project office What evidence is there of prudence Both at the PDT field office and at Headquarters, evaluator was
accounting and in Kabul needs and probity being appropriately given all the required financial information. The quarterly
financial to upgrade the exercised? Is there adequate reports also demonstrate sufficient transparency
system accounting transparency at all levels?
adequate for software
effective project system similar
management? to Quick
Books
Is there effective sharing of KPM project has been promptly sharing the required
information? Is knowledge knowledge and information with its partners. This has been
management effective, in the sense highly appreciated by the stakeholders. However, knowledge
that the partners actively engage in management now needs to go further, play to its own
knowledge production, sharing, and strengths i.e. address elements of Monitoring and Evaluation
practice derived from knowledge? How where possible, and start monitoring development outcomes
prevalent is the KAP results chain: by using KAP results chain where feasible.
knowledge → attitude→ practice?
Are there YES Has the Performance Measurement PMF has been applied in this pilot project, work plans and
appropriate and Framework been applied during reporting on activities and outputs through quarterly reports
adequate Program implementation? What have
information the partners contributed?
systems in Number and nature of systems in place Responding to changes taking place in a volatile environment
place to identify Evidence that systems function and are like Afghanistan, there are on going changes to activities,
emerging risk, used effectively procedures, templates, timelines roles and responsibilities

vi
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
developing Is there evidence of the success of Following an operational review of KPM IN October 2006 and
issues, and systems in responding to change? internal assessments there is evidence of systems have
project Application of lessons learned. changed responding to the needs especially the new training
performance Evidence of timeliness of using and capacity development program, Tender Distribution Point,
levels? information to manage effectively, Call Centre, Matchmaking and Policy Development
appropriateness of actions taken
Has the Project YES Did CIDA anticipate and respond to CIDA has been supportive to the changes made to suit the
anticipated and change based on adequate local environment.
responded to information?
risks identified Is the relationship between costs and Quite reasonable. In fact in certain areas it has far exceeded
during design results generally reasonable? the expectations i.e. minimum cost and high returns. E.g
or which may ( interim results demonstrate that a PDT training investment of
arise $534 resulted in $180,653 of contract value on average for
subsequently companies that participated.
during
implementation Are the expected results achievable YES
? with the level of Canadian and Afghan
resources available for
implementation?
Are resource Due to Is there demonstrated local There is a high commitment and ownership on the part of the
levels shortage of commitment to Project activities, to the government and private sector associations. Both national
adequate? financial attainment of results and the methods government and private sector are supportive of all PDT
resources chosen to achieve them? Does this initiatives and have incorporated in their respective policies
KPM sourced translate into proactive project of and programs. The next phase is likely to have the PDT’s
funds from activities driven by partners? programs can be shared by AISA & AICC to drive the agenda
other donors
(USAID and
DFID)
A-4 Extent of local The next Is there a commitment on the part of AISA is working on a new corporate plan and strategy to
Sustainabili ownership Phase will local partners to provide the necessary incorporate and integrated PDT’s activities. However in the
ty demonstrate and timely level of human resources case of AICC due to changes in the structure and
the exact and financial support to maintain management, it is not clear at this stage how such resources
nature of local benefits/results? will allocated for PDT’s initiatives.
ownership

vii
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
Commitment of AISA is Is there adequate institutional capacity Both AISA and AICC need support and assistance in capacity
adequate working on the of local, national or regional partners to development.
resources commitment maintain results?
but not quite
clear form
AICC
Institutional Possible in the Is the policy and regulatory YES
capacity next phase environment conducive to maintaining
building results?
Conduciveness New policies To what extent did CIDA develop, CIDA’s support to the project has helped in raising the project
of international/ and strategies encourage and support new profile.
national are quite approaches and practices?
environment (e. conducive
g. domestic
policies)

How did CIDA CIDA’s What has been learned from project The level of participation and inclusiveness is very high
programming support for the implementation to date that could resulting in finding value to the services provided by the KPM
contribute to next phase strengthen the project’s capacity to project. Enhancing capacities of the local private sector
the ensures respond to its development challenges, through training and encouraging to bid for tenders on one
sustainability of continuity and priorities and objectives? side and working with international agencies to source locally
results? sustainability on the other has helped the project to achieve high level of
of the project. acceptance by all the stakeholders.
A-5 lessons What (if any) CIDA should What methods are successful? Direct and regular contacts

viii
 Evaluation Performance Indicators – Variables Evaluation Findings
Issues Sub-Questions
Comments to be Considered
Learned main hold What needs to be done to further - direct and indirect impact assessment of the project in terms
implementation discussions achieve/enrich the project objectives? of jobs created, incomes generated, taxes earned by the Gov't,
and policy with the DFAIT etc.
issues need to and DND to - more support for gender equality and making sure it is more
be brought to encourage to strategic.
the attention of procure some - Strengthening B2B platform through increased local
the partners, of their procurement
Governments requirements - Increase local capacity of businesses through Business
and/or CIDA? locally and Development Services.
support the - Grading of local businesses on performance and
project. - better tracking system of local procurement
- establishing linkages to business development services with
finance
What changes (if any) to present CIDA initatie a dialogue with Donors to support PDT’s national
strategies and practices are partners to continue the initiatives and their institutional
recommended? capacity to deliver.
What should be future CIDA support to Subject/ Theme: Strengthening the institutional capacity of
Afghan Market Place? national partners for the provision of services and for
Subjects/themes advocacy
Geographic focus Geographic Focus should be first based on safe and secure
Macro-meso-micro level of intervention environment and based on the needs based survey of where
Balance between Canadian support most of the procurement goods and services are required as
agency/Afghan partner driven well as the capacity of local private sector to supply the needs.
Coordination with other donors Macro-meso or micro level interventions: No matter what level
is supported, the primary beneficiaries should be the local
private sector through national partners and local
governments. In the same vein, Afghans should progressively
become the principal orienters, planners and implementers,
with Canadian institution gradually assuming the role of arm's
length mentor, monitor and quality controller. Coaching
mentoring should gradually replace workshops.
Donor Coordination: can be further enhanced

ix
 APPENDIX B

LIST OF PERSONS CONTACTED

CIDA
Elizabeth Lee, Senior Development Officer, CIDA, Afghan Task Force
George Saibel, Manager, CIDA, Kabul Office
Michel Tache, CIDA, Kabul Office
Abdul Qadir Danish, Development Officer, CIDA, Kabul Office

PDT Headquarters, Ottawa

Scott Gilmore, Executive Director
Ainsley Butler Ostojic, Projects Director
Keith Forsythe, Financial Officer

PDT Kabul Office

Shirine Pont, Country Director
Omid Delbary, Database Verification Officer
Rawajudin Dakhunda, Tender Distribution Point Officer
Barb Everdene, Policy & Business Development Consultant
Ahmad Asiyan, Finance & Admin Manager
Nita Colaco, Communications Consultant
Akbar Ahmadzai, Capacity Development Officer

Kabul Contacts
Hamidullah Farooqi, CEO of Afghanistan International Chamber of Commerce
Al Haj Zabiullah Ehsan, President, Al Ehsan Construction Company
M.Ihsan Saffi, Managing Director, Melli Factories
Ahmad Jawid Omary, Procurement Policy Unit, Ministry of Finance
Mustafa Kazem, Director, Afghan Growth Finance
Siad Mubin Shah, Research and Policy Director, Afghanistan Investment Support Agency (AISA)
LTC William Lorey, ISAF HQ Procurement
Eng Ali, Managing Director, First Option Engineering Co.
Mrs Fazelah, Planning and Finance Manager, First Option Engineering Co.
Mohd. Homayun Azizi, Managing Director ETC Power Company
Hafizullah “Walirahimi”, General Director, Private Sector Development, Ministry of Commerce
& Industries

Project Services International i