WASHINGTON, July 30: The World Bank said on Friday it was granting $456 million in additional support to Afghanistan. This is more than half of nearly $900 million the bank has pledged Afghanistan and will be released by June next year.

"The large proportion of grant funding to Afghanistan recognizes the scale of the challenge facing this nation as it recovers from a 20-year conflict," says a statement the bank released in Washington.

The bank's board of directors also approved a $145 million package of assistance to the country. The package includes $35 million in grant funding for education, a $25 million credit for urban reconstruction, a $80 million credit to support the Afghan government's medium-term development strategy, and a $5 million in seed money for a private investment guarantee initiative.

The credits carry no interest and just a small service fee. The urban reconstruction project will support reconstruction and rehabilitation in some of Kabul's most vulnerable neighbourhoods.

The huge and sudden increase in the urban population of Kabul has created entire neighbourhoods outside the city's already weak ability to deliver services. A system of land tenure security will be worked out for residents.

The costs of the project are estimated to be around $52 million, and further co-financing of about $27 million will be sought from other donors to scale up the project.

The support for institution building of $80 million is the first of a series of similar operations aimed at supporting the implementation of the Afghan government's medium-term development strategy.