Afghan projects, officials in limbo with delay of cabinet

(Reuters) - On the outskirts of Kabul, contractor Saif-ul Rahman Sherzad overlooks a half-finished road leading to Afghanistan's north and pronounces much of the $5 million spent on it a waste.

Afghanistan's government has not released the funds needed to lay two more layers of asphalt to finish the road, meaning the coming winter snow and ice will likely destroy most of the work already done, Sherzad said.

He blamed the shortfall on the government's delay in appointing ministers, more than two months after President Ashraf Ghani was sworn in following an election dispute that ended in a power-sharing deal with rival Abdullah Abdullah, who took up a prime-minister-like new role as chief executive.

"The new government is busy dividing positions among themselves and does not care what situation the country is in," said Sherzad, owner of Elyas Wais Construction and Road Company.
The delay in forming a cabinet has raised worry that the government could break down in squabbling, adding to the many troubles of a country mired in war with the Taliban.

Failure to agree on new ministers threatens to dent aid-donor confidence just as the country is appealing for more funds to meet a budget deficit.

Afghanistan depends on foreign assistance for two-thirds of its $7.6 billion budget. It is having trouble meeting its own share of the budget because political uncertainty has dented business and tax revenues.

Revenue collection was down 24 percent in January-October compared with a 15 percent rise last year to $1.8 billion. The government faces a shortfall of $375 million, said FinanceMinistry spokesman Abdul Qader Jilani.  Read More