3RECONSTRUCTION UPDATE

Transcription

1 3RECONSTRUCTION UPDATE 75

2 RECONSTRUCTION UPDATE RECONSTRUCTION UPDATE CONTENTS CONTENTS Status of Funds 8 Security 96 Governance 146 Economic and Social Development 18 Counternarcotics 218 Photo on previous page Afghans in Jalalabad gathered on September 8, 217, to protest the oppression and deaths of Rohingya Muslims in Myanmar (formerly Burma). (AFP photo) 76 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

3 RECONSTRUCTION UPDATE RECONSTRUCTION UPDATE This quarter, President Donald Trump unveiled his Administration s new strategy for the war in Afghanistan after a comprehensive review of the situation on the ground by officials in the Departments of Defense and State, and other U.S. agencies. In a speech at Fort Myer in Virginia on August 21, President Trump emphasized that the new approach to Afghanistan would be conditions-based, not built around arbitrary timetables, in order to break the stalemated conflict and avoid the unacceptable consequences of a hasty withdrawal. Efforts are already under way to implement the President s strategy. Before determining new troop levels for Afghanistan, the Pentagon acknowledged in August that there are more than 11, U.S. personnel already on the ground, about 3, more than the 8,4 figure previously reported. On August 31, Secretary Mattis signed new deployment orders to add over 3, troops in Afghanistan, which will bring the total to 14, 15, personnel, not including civilians and contractors. The force increase is expected to expand the advising mission, increase training for Afghanistan s special operations forces, and allow for increased provision of U.S. air and artillery strikes in support of Afghan forces. On October 5, the Afghan government, international community, and representatives from Afghanistan s civil society and private sector met to discuss progress and achievements in Afghanistan s reform agenda, and to reaffirm their partnership and commitment to Afghanistan s long-term development. The Senior Officials Meeting was held one year after the October 216 Brussels Conference on Afghanistan. At the Brussels conference, the Afghan government had agreed to draft and endorse an anticorruption strategy for the whole of government by the first half of 217. On September 28, 217, the High Council on Rule of Law and Anti-Corruption approved the National Strategy for Combatting Corruption. In commenting on the strategy, President Ghani said that the drive against corruption should be measurable and vision-oriented. He also ordered that the government produce a comprehensive report every six months that covers the strategy s implementation. In the July 3, 217, quarterly report, SIGAR reported that Afghanistan s total domestic revenues for the first six months of FY 1396 (which began December 22, 216) decreased by 25% compared to the first six months REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

4 RECONSTRUCTION UPDATE The October 217 Senior Officials Meeting drew members of the Afghan government, international community, and Afghan civil society to Kabul to discuss the country s reform agenda. (Afghan government photo) of FY Using updated data, SIGAR analysis this quarter showed that aggregate domestic revenues remained roughly the same for the first eight months of FY 1396, compared to the first eight months of FY MOF senior officials told SIGAR this quarter that they classify revenues into one-off and sustainable categories. The MOF considers certain revenues including customs, taxes, and non-tax fees as sustainable. Using the Afghan government s definition of sustainable domestic revenues, these categories collectively increased by about 12%, year-on-year, for the first eight months of FY 1396, compared to the first eight months of FY This quarter, the United States and the Afghan government announced the launch of the bilateral Kabul Compact. The Kabul Compact process consists of four U.S.- and Afghan-chaired working groups covering governance, economic development, peace and reconciliation, and security issues. Each working group has a matrix of benchmarks to chart reform progress for the next three years. A joint U.S.-Afghan statement described the compact an important factor in developing the new U.S. Afghanistan policy. Despite the United States having provided $8.6 billion for counternarcotic efforts since 22, the area under opium-poppy cultivation continues to rise. The United Nations will release official cultivation and eradication results this winter but media stories and MCN officials report cultivation results will likely exceed 216 s level of 21, hectares. As a part of the U.S. administration s new strategy for South Asia, U.S. government agencies are finalizing a revised counternarcotics strategy, which had been postponed since 215. The Kabul Compact gives short shrift 78 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

5 RECONSTRUCTION UPDATE to counternarcotics, with only three counternarcotics benchmarks out of over 4 on security, governance, economics development, and peace and reconciliation. The Department of Defense Inspector General examined DEA s counternarcotics program in Afghanistan between 29 and 216 and found that DOD possibly wasted over $64 million during that period. The aircraft purchased and modified for counternarcotics operations were never used. Cumulative appropriations for relief and reconstruction in Afghanistan totaled approximately $12.8 billion, as of September 3, 217. Of the total cumulative amount appropriated for Afghanistan reconstruction, $11.8 billion went to the seven major reconstruction funds featured in the Status of Funds subsection of this report. Approximately $7.4 billion of this amount remained available for potential disbursement, as of September 3, 217. REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

6 STATUS OF FUNDS CONTENTS U.S. Reconstruction Funding for Afghanistan 82 Afghanistan Reconstruction Funding Pipeline 84 Afghanistan Security Forces Fund 86 ASFF Budget Activities 87 Commander s Emergency Response Program 88 Afghanistan Infrastructure Fund 89 Task Force for Business and Stability Operations 9 DOD Drug Interdiction and Counter-Drug Activities 91 Economic Support Fund 92 International Narcotics Control and Law Enforcement 93 International Reconstruction Funding for Afghanistan 94 8 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

7 STATUS OF FUNDS This section details the status of U.S. funds appropriated, obligated, and disbursed for reconstruction activities in Afghanistan. As of September 3, 217, the United States had appropriated approximately $12.78 billion for relief and reconstruction in Afghanistan since FY 22. This total has been allocated as follows: $73.53 billion for security ($4.44 billion for counternarcotics initiatives) $32.98 billion for governance and development ($4.18 billion for counternarcotics initiatives) $3.39 billion for humanitarian aid $1.88 billion for civilian operations Figure 3.1 shows the major U.S. funds that contribute to these efforts. ASFF: Afghanistan Security Forces Fund CERP: Commander s Emergency Response Program AIF: Afghanistan Infrastructure Fund TFBSO: Task Force for Business and Stability Operations DOD CN: DOD Drug Interdiction and Counter-Drug Activities ESF: Economic Support Fund INCLE: International Narcotics Control and Law Enforcement FIGURE 3.1 U.S. FUNDS SUPPORTING AFGHANISTAN RECONSTRUCTION EFFORTS ($ BILLIONS) FUNDING SOURCES (TOTAL: $12.78) ASFF CERP AIF TFBSO DOD CN ESF INCLE Civilian Operations Other Reconstruction Funds $68.27 $3.69 $.99 $.82 $3.13 $19.88 $5.6 $1.88 $8.7 AGENCIES Department of Defense (DOD) $76.9 USAID $19.88 Department of State (State) $5.6 Distributed to Multiple Agencies a $1.88 Distributed to Multiple Agencies b $8.7 TOTAL MAJOR FUNDS $11.84 Note: Numbers have been rounded. a Includes: State, USAID, Broadcasting Board of Governors, SIGAR, USAID IG, and State IG. b Includes: USAID, State, DOD, DOJ, USDA, and Treasury. Source: DOD, response to SIGAR data call, 1/18/217, 1/12/217, 1/22/212, 1/14/29, and 1/1/29; State, response to SIGAR data call, 1/11/217, 1/13/217, 9/21/217, 5/4/216, 1/2/215, 4/15/215, 4/15/214, 6/27/213, 1/5/212, and 6/27/212; Treasury, response to SIGAR data call, 7/1/217; OMB, response to SIGAR data call, 4/16/215, 7/14/214, 7/19/213, and 1/4/213; USAID, response to SIGAR data call, 1/16/217, 1/15/21, 1/15/21, and 1/9/29; DOJ, response to SIGAR data call, 6/3/217 and 7/7/29; USDA, response to SIGAR data call, 4/29; DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217; OSD Comptroller, PA: Omnibus 216 Prior Approval Request, 6/3/216; Pub. L. Nos , , , , 113-6, , 112-1, , REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

8 ASFF CERP AIF TFBSO DOD CN ESF INCLE CO ORF DOD USAID State The amount provided to the seven major U.S. funds represents more than 84.3% (over $11.84 billion) of total reconstruction assistance in Afghanistan since FY 22. Of this amount, nearly 93.9% (almost $95.62 billion) has been obligated, and nearly 88.4% (over $89.98 billion) has been disbursed. An estimated $4.44 billion of the amount appropriated these funds has expired. U.S. RECONSTRUCTION FUNDING FOR AFGHANISTAN As of September 3, 217, cumulative appropriations for relief and reconstruction in Afghanistan totaled approximately $12.78 billion, as shown in Figure 3.2. This total can be divided into four major categories of reconstruction funding: security, governance and development, humanitarian, and oversight and operations. Approximately $8.62 billion of these funds support counternarcotics initiatives which crosscut both the security ($4.44 billion) and governance and development ($4.18 billion) categories. For complete information regarding U.S. appropriations, see Appendix B. This quarter, State and USAID transmitted to Congress the FY 217 allocation report for foreign assistance accounts. For Afghanistan, State and USAID allocated $65 million for the Economic Support Fund (ESF) and $16 million for the International Narcotics Control and Law Enforcement (INCLE) account, bringing total funding for FY 217 to nearly $5.59 billion, as shown in Figure FIGURE 3.2 CUMULATIVE APPROPRIATIONS BY FUNDING CATEGORY, AS OF SEPTEMBER 3, 217 ($ BILLIONS) $ $96.57 $13.38 $19.66 $115.2 $ $ $ $ Security Governance/Development Humanitarian Civilian Operations Total Note: Numbers have been rounded. DOD reprogrammed $1 billion from FY 211 ASFF, $1 billion from FY 212 ASFF, and $178 million from FY 213 ASFF to fund other DOD OCO requirements. DOD reprogrammed $23 million into FY 215 ASFF. ASFF data reflects the following rescissions: $1 billion from FY 212 in Pub. L. No , $ million from FY 214 in Pub. L. No , $4 million from FY 215 in Pub. L. No , and $15 million from FY 216 in Pub. L. No DOD transferred $11 million from FY 211 AIF, $179.5 million from FY 213 AIF, and $55 million from FY 214 AIF to the ESF to fund infrastructure projects implemented by USAID. Source: DOD, response to SIGAR data call, 1/18/217, 1/12/217, 1/22/212, 1/14/29, and 1/1/29; State, response to SIGAR data call, 1/11/217, 1/13/217, 9/21/217, 5/4/216, 1/2/215, 4/15/215, 4/15/214, 6/27/213, 1/5/212, and 6/27/212; Treasury, response to SIGAR data call, 7/1/217; OMB, response to SIGAR data call, 4/16/215, 7/14/214, 7/19/213, and 1/4/213; USAID, response to SIGAR data call, 1/16/217, 1/15/21, 1/15/21, and 1/9/29; DOJ, response to SIGAR data call, 6/3/217 and 7/7/29; USDA, response to SIGAR data call, 4/29; DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217; OSD Comptroller, PA: Omnibus 216 Prior Approval Request, 6/3/216; Pub. L. Nos , , , , 113-6, , 112-1, , SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

9 The United States is reviewing its previous policy aim of chanelling at least 5% of its development assistance on-budget to the Government of Afghanistan. 17 This assistance is provided either directly to Afghan government entities or via contributions to multilateral trust funds that also support the Afghan government s budget. 18 Since 22, the United States has provided nearly $1.64 billion in on-budget assistance. This includes about $5.69 billion to Afghan government ministries and institutions, and nearly $4.95 billion to three multinational trust funds the World Bank s Afghanistan Reconstruction Trust Fund (ARTF), the United Nations Development Programme s Law and Order Trust Fund (LOTFA), and the Asian Development Bank s Afghanistan Infrastructure Trust Fund (AITF). Table 3.1 shows U.S. on-budget assistance disbursed to the Afghan government and multilateral trust funds. FIGURE 3.3 APPROPRIATIONS BY FISCAL YEAR, AMOUNT, AND CATEGORY ($ BILLIONS) TABLE 3.1 U.S. ON-BUDGET ASSISTANCE TO AFGHANISTAN, SINCE 22 ($ MILLIONS) Government-to-Government DOD $4,946 State 92 USAID 651 Multilateral Trust Funds LOTFA $1,667 ARTF 3,128 AITF 154 Note: Numbers have been rounded. Figures reflect amounts the United States has disbursed in on-budget assistance to Afghan government entities and multilateral trust funds. As of September 3, 217, USAID had obligated approximately $1.3 billion for government-to-government assistance. Source: USAID, response to SIGAR data call, 1/15/217; DOD, response to SIGAR data call, 6/25/215; World Bank, ARTF: Administrator s Report on Financial Status as of August 22, 217 (end of 8th month of FY 1396), p. 4; UNDP, response to SIGAR data call, 1/15/217. $ $16.71 $15.86 $ $ $6.81 $6.28 $5.43 $ Security Governance/Development Humanitarian Civilian Operations Total Note: Numbers have been rounded. DOD reprogrammed $1 billion from FY 211 ASFF, $1 billion from FY 212 ASFF, and $178 million from FY 213 ASFF to fund other DOD OCO requirements. DOD reprogrammed $23 million into FY 215 ASFF. ASFF data reflects the following rescissions: $1 billion from FY 212 in Pub. L. No , $ million from FY 214 in Pub. L. No , $4 million from FY 215 in Pub. L. No , and $15 million from FY 216 in Pub. L. No DOD transferred $11 million from FY 211 AIF, $179.5 million from FY 213 AIF, and $55 million from FY 214 AIF to the ESF to fund infrastructure projects implemented by USAID. Source: DOD, response to SIGAR data call, 1/18/217, 1/12/217, 1/22/212, 1/14/29, and 1/1/29; State, response to SIGAR data call, 1/11/217, 1/13/217, 9/21/217, 5/4/216, 1/2/215, 4/15/215, 4/15/214, 6/27/213, 1/5/212, and 6/27/212; Treasury, response to SIGAR data call, 7/1/217; OMB, response to SIGAR data call, 4/16/215, 7/14/214, 7/19/213, and 1/4/213; USAID, response to SIGAR data call, 1/16/217, 1/15/21, 1/15/21, and 1/9/29; DOJ, response to SIGAR data call, 6/3/217 and 7/7/29; USDA, response to SIGAR data call, 4/29; DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217; OSD Comptroller, PA: Omnibus 216 Prior Approval Request, 6/3/216; Pub. L. Nos , , , , 113-6, , 112-1, , REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

10 AFGHANISTAN RECONSTRUCTION FUNDING PIPELINE Since 22, Congress has appropriated approximately $12.78 billion for Afghanistan relief and reconstruction. Of this amount, $11.84 billion (84.3%) was appropriated to the seven major reconstruction funds, as shown in Table 3.2. FIGURE 3.4 CUMULATIVE AMOUNT REMAINING TO BE DISBURSED ($ BILLIONS) Expired $4.44 Remaining $7.42 Total : $11.84 $89.98 TABLE 3.2 CUMULATIVE AMOUNTS APPROPRIATED, OBLIGATED, AND DISBURSED FY ($ BILLIONS) Remaining Afghanistan Security Forces Fund (ASFF) $68.27 $65.45 $63.53 $2.86 Commander s Emergency Response Program (CERP) Afghanistan Infrastructure Fund (AIF) Task Force for Business & Stability Operations (TFBSO) DOD Drug Interdiction and Counterdrug Activities (DOD CN) Economic Support Fund (ESF) International Narcotics Control & Law Enforcement (INCLE) Total Major Funds $11.84 $95.62 $89.98 $7.42 Other Reconstruction Funds 8.7 Civilian Operations 1.88 Total $12.78 Note: Numbers have been rounded. Amount remaining reflects the total disbursement potential of the seven major reconstruction funds after deducting approximately $4.4 billion that expired before being obligated. and disbursed DOD CN funds reflect amounts transferred to the military services and defense agencies to be spent for Afghanistan. Figures reflect transfers, rescissions, and reprogramming activity to date. Source: SIGAR, analysis of appropriating legislation and quarterly obligation and disbursement data provided by DOD, State, and USAID, 1/19/217. As of September 3, 217, approximately $7.42 billion of the amount appropriated to the seven major reconstruction funds remained for possible disbursement, as shown in Figure 3.4. These funds will be used to train, equip, and sustain the ANDSF; complete on-going, large-scale infrastructure projects, such as those funded by the AIF and ESF; combat narcotics production and trafficking; and advance the rule of law, strengthen the justice sector, and promote human rights. The pipeline total will rise if Congress approves the Administration s budget request. On May 23, President Trump released his FY 218 budget request. The request, if approved, would provide an additional $4.94 billion for the ASFF, an increase of $674.8 million over the FY 217 appropriation. The FY 218 CERP request remained the same as the FY 216 and 217 appropriations at $5 million SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

11 Congress appropriated nearly $5.63 billion to the seven major reconstruction funds for FY 214 and more than $5.3 billion for FY 215. Of the combined $1.66 billion, more than $1.51 billion remained for possible disbursement, as of September 3, 217, as shown in Table 3.3 and Figure 3.5. TABLE 3.3 FY AMOUNTS APPROPRIATED, OBLIGATED, AND DISBURSED ($ MILLIONS) Remaining ASFF $7,91.67 $7, $7, $24.74 CERP AIF TFBSO DOD CN ESF 1, , INCLE Total Major Funds $1,66.77 $1, $8,94.7 $1,512.4 Note: Numbers have been rounded. Amount remaining reflects the total disbursement potential of the seven major reconstruction funds after deducting approximately $179 million that expired before being obligated. and disbursed DOD CN funds reflect amounts transferred to the military services and defense agencies to be spent for Afghanistan. Figures reflect transfers, rescissions, and reprogramming activity to date. FIGURE 3.5 FY AMOUNT REMAINING TO BE DISBURSED ($ BILLIONS) Expired $.18 Total : $1.66 Remaining $1.51 $8.94 Source: SIGAR, analysis of appropriating legislation and quarterly obligation and disbursement data provided by DOD, State, and USAID, 1/19/217. Congress appropriated nearly $4.49 billion to five of the seven major reconstruction funds for FY 216. Of that amount, more than $1.43 billion remained for possible disbursement, as of September 3, 217, as shown in Table 3.4 and Figure 3.6. TABLE 3.4 FIGURE 3.6 FY 216 AMOUNTS APPROPRIATED, OBLIGATED, AND DISBURSED ($ MILLIONS) Remaining ASFF $3,52.26 $3,52.55 $2, $ CERP DOD CN ESF INCLE Total Major Funds $4, $4, $3,21.73 $1, Note: Numbers have been rounded. Amount remaining reflects the total disbursement potential of the seven major reconstruction funds after deducting approximately $35 million that expired before being obligated. and disbursed DOD CN funds reflect amounts transferred to the military services and defense agencies to be spent for Afghanistan. Figures reflect transfers, rescissions, and reprogramming activity to date. Source: SIGAR, analysis of appropriating legislation and quarterly obligation and disbursement data provided by DOD, State, and USAID, 1/19/217. FY 216 AMOUNT REMAINING TO BE DISBURSED ($ BILLIONS) Expired $.4 Total : $4.49 Remaining $ REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

12 ASFF DOD ASFF FUNDS TERMINOLOGY DOD reported ASFF funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: DOD, response to SIGAR data call, 4/13/21. AFGHANISTAN SECURITY FORCES FUND The Congress created the Afghanistan Security Forces Fund (ASFF) to provide the ANDSF with equipment, supplies, services, training, and funding, as well as facility and infrastructure repair, renovation, and construction. 2 The primary organization responsible for building the ANDSF is the Combined Security Transition Command-Afghanistan (CSTC-A). 21 A financial and activity plan must be approved by the Afghanistan Resources Oversight Council (AROC) before ASFF funds may be obligated. 22 The Consolidated Appropriations Act, 217, appropriated more than $4.26 billion for the ASFF for FY 217 and rescinded $15 million of FY 216 funds, bringing cumulative funding to nearly $68.27 billion, as shown in Figure As of September 3, 217, more than $65.45 billion had been obligated from the ASFF, of which over $63.53 billion had been disbursed. 24 The President is requesting an additional $4.94 billion for the ASFF for FY DOD reported that cumulative obligations increased by more than $1.96 billion over the quarter, and cumulative disbursements increased by more than $ million. 26 Figure 3.8 provides a cumulative comparison of amounts made available, obligated, and disbursed for the ASFF. FIGURE 3.7 ASFF APPROPRIATED FUNDS BY FISCAL YEAR ($ BILLIONS) $12. FIGURE 3.8 ASFF FUNDS, CUMULATIVE COMPARISON ($ BILLIONS) $ $68.27 $63.49 $62.56 $68.27 $65.45 $ As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Data reflects reprogramming actions and rescissions. DOD reprogrammed $1 billion of FY 211, $1 billion of FY 212, and $178 million of FY 213 out of the ASFF to fund other DOD requirements. DOD reprogrammed $23 million into FY 215 ASFF. Pub. L. No rescinded $15 million from FY 216. Pub. L. No rescinded $1 billion from FY 212. Pub. L No rescinded $ million from FY 214. Pub. L No rescinded $4 million from FY 215. Source: DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217; DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts June 217, 7/18/217; Pub. L. Nos , , , , and 113-6; OSD Comptroller, PA: Omnibus 216 Prior Approval Request, 6/3/ SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

13 ASFF BUDGET ACTIVITIES DOD allocates funds to three budget activity groups within the ASFF: Defense Forces (Afghan National Army, ANA) Interior Forces (Afghan National Police, ANP) Related Activities (primarily Detainee Operations) Funds for each budget activity group are further allocated to four sub-activity groups: Infrastructure, Equipment and Transportation, Training and Operations, and Sustainment. 27 The AROC must approve the requirement and acquisition plan for any service requirements in excess of $5 million annually and any non-standard equipment requirement in excess of $1 million. 28 As of September 3, 217, DOD had disbursed more than $63.38 billion for ANDSF initiatives. Of this amount, nearly $43.32 billion was disbursed for the ANA, and nearly $2.7 billion was disbursed for the ANP; the remaining $ million was directed to related activities such as detainee operations. The combined total $63.38 billion is about $243.9 million lower than the cumulative total disbursed due to an accounting adjustment which arises when there s a difference between the amount of disbursements or collections reported to the Defense Finance and Accounting Service and the Department of the Treasury. 29 As shown in Figure 3.9, the largest portion of the funds disbursed for the ANA more than $2.35 billion supported ANA troop sustainment. Of the funds disbursed for the ANP, the largest portion nearly $8.73 billion also supported sustainment of ANP forces, as shown in Figure Budget Activity Groups: categories within each appropriation or fund account that identify the purposes, projects, or types of activities financed by the appropriation or fund Sub-activity Groups: accounting groups that break down the command s disbursements into functional areas Source: DOD, Manual M Department of Defense Budget Guidance Manual, accessed 9/28/29; Department of the Navy, Medical Facility Manager Handbook, p. 5, accessed 1/2/29. FIGURE 3.9 FIGURE 3.1 ASFF DISBURSEMENTS FOR THE ANA BY SUBACTIVITY GROUP, FY 25 SEP 3, 217 ($ BILLIONS) ASFF DISBURSEMENTS FOR THE ANP BY SUBACTIVITY GROUP, FY 25 SEP 3, 217 ($ BILLIONS) Total: $43.32 Total: $2.7 Infrastructure $5.86 Equipment and Transportation $13.25 Training and Operations $3.85 Infrastructure $3.11 Equipment and Transportation $4.69 Training and Operations $3.54 Sustainment $2.35 Sustainment $8.73 Note: Numbers have been rounded. Source: DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217. REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

14 CERP DOD CERP FUNDS TERMINOLOGY DOD reported CERP funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: DOD, response to SIGAR data call, 4/14/21. COMMANDER S EMERGENCY RESPONSE PROGRAM The Commander s Emergency Response Program (CERP) enables U.S. commanders in Afghanistan to respond to urgent humanitarian relief and reconstruction requirements in their areas of responsibility by supporting programs that will immediately assist the local population. Funding under this program is intended for small projects that are estimated to cost less than $5, each. 31 CERP-funded projects may not exceed $2 million each. 32 The Consolidated Appropriations Act, 217, appropriated $5 million for CERP for FY 217. Figure 3.11 displays the amounts appropriated for CERP by fiscal year. As of September 3, 217, total cumulative funding for CERP amounted to more than $3.68 billion. Of this amount, more than $2.28 billion had been obligated, of which nearly $2.28 billion had been disbursed. 33 Over the quarter, DOD obligated $573,538 and disbursed $876,546 from CERP. 34 Figure 3.12 provides a cumulative comparison of amounts made available, obligated, and disbursed for CERP. FIGURE 3.11 CERP APPROPRIATIONS BY FISCAL YEAR ($ MILLIONS) FIGURE 3.12 CERP FUNDS, CUMULATIVE COMPARISON ($ BILLIONS) $1, $4. $3.69 $ & $2.28 & $ $. As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Data may include inter-agency transfers. Analysis includes data from a draft DOD financial report because the final version had not been completed when this report went to press. Source: DOD, response to SIGAR data call, 1/18/217 and 7/17/217; OMB, response to SIGAR data call, 1/4/213; Pub. L. Nos , , , , 113-6, , SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

15 AFGHANISTAN INFRASTRUCTURE FUND The AIF was established in FY 211 to pay for high-priority, large-scale infrastructure projects that support the U.S. civilian-military effort. Congress intended for projects funded by the AIF to be jointly selected and managed by DOD and State. Each AIF-funded project is required to have a plan for its sustainment and a description of how it supports the counterinsurgency strategy in Afghanistan. 35 Although the AIF no longer receives appropriations, many projects remain in progress, and DOD may obligate up to $5 million from the ASFF to complete existing AIF projects. 36 On September 22, DOD notified Congress that up to $8 million of the FY 217 ASFF appropriation will be used to fund the completion of the Northeast Power System Arghandi to Gardez Phase I project. 37 The AIF received cumulative appropriations of over $1.32 billion; however, $335.5 million of these funds were transferred to the Economic Support Fund (ESF) for USAID s power transmission lines projects, bringing the cumulative amount remaining in the AIF to $988.5 million. 38 Figure 3.13 shows AIF appropriations by fiscal year. As of September 3, 217, more than $773.3 million of total AIF funding had been obligated, and nearly $ million had been disbursed, as shown in Figure AIF DOD AIF FUNDS TERMINOLOGY DOD reported AIF funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: DOD, response to SIGAR data call, 4/13/212. FIGURE 3.13 AIF APPROPRIATIONS BY FISCAL YEAR ($ MILLIONS) FIGURE 3.14 AIF FUNDS, CUMULATIVE COMPARISON ($ MILLIONS) $8 $1,2 6 9 $988.5 $ $779.7 $65.91 $773.3 $ As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Updated data resulted in a lower obligated figure than reported last quarter. Data reflects the following transfers from AIF to USAID's Economic Support Fund: $11 million for FY 211, $179.5 million for FY 213, and $55 million for FY 214. Source: DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts September 217 (Draft), 1/18/217; DFAS, AR(M) 12 Appropriation Status by FY Program and Subaccounts June 217, 7/18/217; Pub. L. Nos , 113-6, , and REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

16 DOD TFBSO TFBSO FUNDS TERMINOLOGY DOD reported TFBSO funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: DOD, response to SIGAR data call, 4/13/21. TASK FORCE FOR BUSINESS AND STABILITY OPERATIONS In 21, the TFBSO began operations in Afghanistan aimed at stabilizing the country and countering economically motivated violence by decreasing unemployment and creating economic opportunities for Afghans. TFBSO authorities expired on December 31, 214, and the TFBSO concluded its operations on March 31, 215. TFBSO projects included activities intended to facilitate private investment, industrial development, banking and financial system development, agricultural diversification and revitalization, and energy development. 4 Through September 3, 217, the TFBSO had been appropriated more than $ million since FY 29. Of this amount, nearly $ million had been obligated and more than $ million had been disbursed. 41 Figure 3.15 displays the amounts appropriated for the TFBSO by fiscal year, and Figure 3.16 provides a cumulative comparison of amounts appropriated, obligated, and disbursed for the TFBSO and its projects. FIGURE 3.15 FIGURE 3.16 TFBSO APPROPRIATIONS BY FISCAL YEAR ($ MILLIONS) $25 TFBSO FUNDS, CUMULATIVE COMPARISON ($ MILLIONS) $1, $ $ $64.63 $ $ $ As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Updated data resulted in a lower obligated figure than reported last quarter. Of the $ million appropriated the TFBSO, $366.5 million was from the Operations and Maintenance, Army, account to pay for the sustainment of U.S. assets, civilian employees, travel, security, and other operational costs; all FY 215 funding was from this account. Source: DOD, response to SIGAR data call, 1/12/217, 7/17/217, and 1/4/211; Pub. L. Nos , 113-6, , SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

17 DOD DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES The DOD Drug Interdiction and Counter-drug Activities (DOD CN) fund supports efforts to stabilize Afghanistan by combating the drug trade and related activities. DOD uses the DOD CN to provide assistance to the counternarcotics effort by supporting military operations against drug traffickers; expanding Afghan interdiction operations; and building the capacity of Afghan law enforcement bodies including the Afghan Border Police with specialized training, equipment, and facilities. 42 DOD CN funds are appropriated by Congress to a single budget line for all military services. DOD reprograms the funds from the Counter-narcotics Central Transfer Account (CTA) to the military services and defense agencies, which track obligations of the transferred funds. DOD reported DOD CN accounts for Afghanistan as a single figure for each fiscal year. 43 DOD reported that DOD CN received nearly $ million for Afghanistan for FY 217, bringing cumulative funding for DOD CN to more than $3.13 billion since FY 24, all of which had been transferred to the military services and defense agencies for DOD CN projects, as of September 3, Figure 3.17 shows DOD CN appropriations by fiscal year, and Figure 3.18 provides a cumulative comparison of amounts appropriated and transferred from the DOD CN CTA. DOD DOD CN DOD CN FUNDS TERMINOLOGY DOD reported DOD CN funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: DOD, response to SIGAR data call, 4/13/21. FIGURE 3.17 FIGURE 3.18 DOD CN APPROPRIATIONS BY FISCAL YEAR ($ MILLIONS) $5 DOD CN FUNDS, CUMULATIVE COMPARISON ($ BILLIONS) $ $3.14 Transferred a $3.5 and Transferred a $ As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Updated data resulted in a lower amount appropriated for FY 217 than reported last quarter. DOD reprogrammed $ million out of FY 215 DOD CN due to several requirements for the Afghanistan Special Mission Wing being funded from the ASFF instead of DOD CN. a DOD reprograms all DOD CN funds to the military services and defense agencies for obligation and disbursement. Source: DOD, response to SIGAR data call, 1/18/217 and 6/25/217; OSD Comptroller, PA: Omnibus 215 Prior Approval Request, 6/3/215, p. 42. REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

18 ESF USAID ESF FUNDS TERMINOLOGY USAID reported ESF funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: USAID, response to SIGAR data call, 4/15/21. ECONOMIC SUPPORT FUND Economic Support Fund (ESF) programs advance U.S. interests by helping countries meet short- and long-term political, economic, and security needs. ESF programs support counter-terrorism; bolster national economies; and assist in the development of effective, accessible, independent legal systems for a more transparent and accountable government. 45 The ESF was appropriated $65 million for FY 217, bringing cumulative funding for the ESF to more than $19.88 billion, including amounts transferred from AIF to the ESF for USAID s power transmission lines projects. Of this amount, nearly $18.46 billion had been obligated, of which more than $15.56 billion had been disbursed. 46 Figure 3.19 shows ESF appropriations by fiscal year. USAID reported that cumulative obligations as of September 3, 217, increased by nearly $ million and cumulative disbursements increased by more than $334.7 million from the amounts reported last quarter. 47 Figure 3.2 provides a cumulative comparison of the amounts appropriated, obligated, and disbursed for ESF programs. FIGURE 3.19 ESF APPROPRIATIONS BY FISCAL YEAR ($ BILLIONS) FIGURE 3.2 ESF FUNDS, CUMULATIVE COMPARISON ($ BILLIONS) $ $2 18 $19.41 $17.86 $19.88 $ $15.23 $ As of Jun 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Data reflects the following transfers from AIF to the ESF: $11 million for FY 211, $179.5 million for FY 213, and $55 million for FY 214. FY 216 ESF for Afghanistan was reduced by $179 million and put toward the U.S. commitment to the Green Climate Fund. Source: USAID, response to SIGAR data call, 1/16/217 and 7/1/217; State, response to SIGAR data call, 1/11/217, 5/4/216, 1/2/215, 4/15/215 and 4/15/ SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

19 INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT The U.S. Bureau of International Narcotics and Law Enforcement Affairs (INL) manages the International Narcotics Control and Law Enforcement (INCLE) account which funds projects and programs for advancing rule of law and combating narcotics production and trafficking. INCLE supports several INL program groups, including police, counter-narcotics, and rule of law and justice. 48 State reported that INCLE was appropriated $16 million for FY 217, bringing cumulative funding to more than $5.6 billion. Of this amount, more than $4.76 billion had been obligated, of which nearly $4.14 billion had been disbursed. 49 Figure 3.21 shows INCLE appropriations by fiscal year. State reported that cumulative obligations as of September 3, 217, increased by more than $29.95 million and cumulative disbursements increased nearly $ million from the amounts reported last quarter. 5 Figure 3.22 provides a cumulative comparison of amounts appropriated, obligated, and disbursed for INCLE. INCLE State INL FUNDS TERMINOLOGY INL reported INCLE and other INL funds as appropriated, obligated, or disbursed Appropriations: Total monies available for commitments Obligations: Commitments to pay monies Disbursements: Monies that have been expended Source: State, response to SIGAR data call, 4/9/21. FIGURE 3.21 FIGURE 3.22 INCLE APPROPRIATIONS BY FISCAL YEAR ($ MILLIONS) INCLE FUNDS, CUMULATIVE COMPARISON ($ BILLIONS) $8 $ $4.88 $4.55 $3.98 $3.95 $5.6 $4.76 $ As of June 3, 217 As of Sep 3, 217 Note: Numbers have been rounded. Data may include inter-agency transfers. An additional $25 million of unallocated FY 216 INCLE OCO funding was allocated for Afghanistan duing FY 217. Previous quarter's figures reflect an INL correction to the amount disbursed and differ from amounts reported last quarter. Source: State, response to SIGAR data call, 1/13/217, 1/1/217, 7/1/217, and 4/7/216. REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,

20 INTERNATIONAL RECONSTRUCTION FUNDING FOR AFGHANISTAN In addition to assistance provided by the United States, the international community provides a significant amount of funding to support Afghanistan relief and reconstruction efforts. Most of the international funding provided is administered through trust funds. Contributions provided through trust funds are pooled and then distributed for reconstruction activities. The two main trust funds are the Afghanistan Reconstruction Trust Fund (ARTF) and the Law and Order Trust Fund for Afghanistan (LOTFA). 51 Contributions to the Afghanistan Reconstruction Trust Fund The largest share of international contributions to the Afghan operational and development budgets comes through the ARTF. From 22 to August 22, 217, the World Bank reported that 34 donors had pledged nearly $1.41 billion, of which nearly $1.1 billion had been paid in. 52 According to the World Bank, donors had pledged $93.46 million to the ARTF for Afghan fiscal year 1396, which runs from December 22, 216 to December 21, Figure 3.23 shows the 11 largest donors to the ARTF for FY As of August 22, 217, the United States had pledged nearly $3.22 billion and paid in almost $3.13 billion since The United States and the United Kingdom are the two biggest donors to the ARTF, together contributing 49% of its total funding, as shown in Figure FIGURE 3.23 ARTF CONTRIBUTIONS FOR FY 1396 BY DONOR, AS OF AUGUST 22, 217 ($ MILLIONS) EC/EU United States United Kingdom Germany Sweden Australia Netherlands Denmark Norway Finland Japan Others Total Commitments: $93 Total Paid In: $ Commitments Paid In Note: Numbers have been rounded. FY 1396 = 12/22/216 12/21/217. Source: World Bank, ARTF: Administrator's Report on Financial Status as of August 22, 217 (end of 8th month of FY1396), p SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION

21 Contributions to the ARTF are divided into two funding channels the Recurrent Cost (RC) Window and the Investment Window. 55 As of August 22, 217, according to the World Bank, nearly $4.55 billion of ARTF funds had been disbursed to the Afghan government through the RC Window to assist with recurrent costs such as salaries of civil servants. 56 The RC Window supports the operating costs of the Afghan government because the government s domestic revenues continue to be insufficient to support its recurring costs. To ensure that the RC Window receives adequate funding, donors to the ARTF may not preference (earmark) more than half of their annual contributions for desired projects. 57 The Investment Window supports the costs of development programs. As of August 22, 217, according to the World Bank, nearly $4.88 billion had been committed for projects funded through the Investment Window, of which nearly $3.91 billion had been disbursed. The World Bank reported 3 active projects with a combined commitment value of nearly $3.54 billion, of which nearly $2.57 billion had been disbursed. 58 Contributions to the Law and Order Trust Fund for Afghanistan The United Nations Development Programme (UNDP) administers the LOTFA to pay ANP salaries and build the capacity of the Ministry of Interior (MOI). 59 Since 22, donors have pledged nearly $5.23 billion to the LOTFA, of which nearly $5.1 billion had been paid in, as of October 12, 217. The United States has committed and paid in nearly $1.67 billion since the fund s inception. 6 Figure 3.25 shows the four largest donors to the LOTFA since 22. On December 18, 216, the LOTFA Project Board extended the Support to Payroll Management (SPM) project through December 31, 217 after assessments commissioned by UNDP revealed that the MOI had not yet met various critical donor conditions for the transition of payroll management. The board also approved a multi-year extension of the MOI and Police Development (MPD) project. The MPD project focuses on institutional development of the MOI and police professionalization of the ANP and will now run through December 31, 22. The SPM and MPD projects were established at the start of the LOTFA s eighth phase on July 1, 215, and were initially planned to run through December 31, After the extension, the SPM project s budget was raised from $85.56 million to $1.12 billion the majority of which will be transferred from the UNDP Country Office to the Ministry of Finance (MOF) for ANP and Central Prison Directorate staff remunerations. The MPD project s budget was also increased from $33 million to a new total of $11.78 million. 62 From July 1, 215, through June 3, 217, UNDP had expended more than $ million on the SPM project. Of this amount, more than $ million was transferred to the MOF to pay for ANP and CPD staff. In addition, more than $23.33 million was expended on the MPD project. 63 FIGURE 3.24 ARTF CONTRIBUTIONS PAID IN BY DONORS, 22 AUGUST 22, 217 Netherlands 5% Note: Numbers have been rounded. Others includes 28 donors. Source: World Bank, ARTF: Administrator s Report on Financial Status as of August 22, 217 (end of 8th month of FY 1396), p. 4. FIGURE 3.25 Total Paid In: $1.1 billion Others 24% EU 8% United States 31% United Kingdom 18% Canada 7% Germany 7% DONOR CONTRIBUTIONS TO THE LOTFA SINCE 22, AS OF OCTOBER 12, 217 Total Paid In: $5 billion United States 33% Others 19% Japan 29% EU 11% Germany 8% Note: Numbers have been rounded. EU = European Union. Others includes 26 donors. Source: UNDP, response to SIGAR data call, 1/15/217. REPORT TO THE UNITED STATES CONGRESS I OCTOBER 3,