sential investment required to restore the 
energy infrastructure in Afghanistan; 
(ii) engaging in an exhaustive out-
reach program to involve United States 
business in energy development in Afghani-
stan and exploring potential new public- 
private partnerships, supported by the Cor-
poration, which will assist Afghanistan in 
developing its energy sector; and 
(iii) consulting and coordinating with 
the Government of Afghanistan and re-
gional governments and international fi-
nancial institutions to promote private in-
vestment in the energy sector. 
(g) ASSISTANCE
FOR CAPACITY-BUILDING.—Sub-
section (a) of such section, as amended by subsection 
(f)(1) of this section, is further amended by adding at the 
end the following new paragraph: 
‘‘(10) ASSISTANCE FOR CAPACITY-BUILDING.— 
To increase the capacity and improve the sustain-
ability of national, provincial, and local governmental 
institutions, including assistance such as— 
‘‘(A) providing technical assistance to all 
ministries through funding to the Afghanistan 
Reconstruction Trust Fund to improve trans-
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parency and ability to respond to the needs of 
the Afghan people; 
‘‘(B) promoting the implementation of fis-
cal and personnel management, including rev-
enue tracking and expenditure systems; 
‘‘(C) assisting in developing ministry-wide 
recruitment systems; 
‘‘(D) creating or improving databases and 
other human resource information systems; 
‘‘(E) supporting the expansion of the Af-
ghan National Solidarity Project and other pro-
vincial and local-led development projects; 
‘‘(F) providing training and technical as-
sistance to the Ministry of Finance to better ac-
count for funding to the Afghanistan Recon-
struction Trust Fund and other funds imple-
mented by the Government of Afghanistan; 
‘‘(G) supporting the Afghanistan Inde-
pendent Administrative Reform and Civil Serv-
ice Commission; and 
‘‘(H) providing financial and technical as-
sistance to support the Transition Support 
Strategy for Afghanistan, including the Public 
Administration Reform project.’’. 
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(h) LIMITATION.—Subsection (b)(1) of such section 
is amended by striking ‘‘adopting a constitution and’’. 
(i) MONITORING OF ASSISTANCE FOR AFGHANISTAN; 
REPORT.—Subsection (d)(1)(A) of such section is amend-
ed— 
(1) by striking ‘‘Committee on International 
Relations’’ and inserting ‘‘Committee on Foreign Af-
fairs’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘The report required by this paragraph may 
be included in the report required by section 304 of 
this Act.’’. 
SEC. 104. CERTIFICATION AND PHASED-IN LIMITATION ON 
ECONOMIC 
AND 
DEMOCRATIC 
DEVELOP-
MENT ASSISTANCE. 
Title I of the Afghanistan Freedom Support Act of 
2002 (22 U.S.C. 7511 et seq.) is amended— 
(1) by redesignating sections 104 through 108 
as sections 105 through 109, respectively; and 
(2) by inserting after section 103 the following 
new section: 
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‘‘SEC. 104. CERTIFICATION AND PHASED-IN LIMITATION ON 
UNITED 
STATES 
ECONOMIC 
AND 
DEMO-
CRATIC DEVELOPMENT ASSISTANCE FOR AF-
GHANISTAN. 
‘‘(a) CERTIFICATION.— 
‘‘(1) IN GENERAL.—Not later than October 1, 
2008 and each October 1 thereafter, the President 
shall transmit to the appropriate congressional com-
mittees a certification that contains a determination 
of whether or not, based upon substantiated and 
credible evidence, any senior official of the Govern-
ment of Afghanistan, at the provincial or local levels, 
is engaged in or benefits from the illicit narcotics 
trade or is engaged in terrorist or criminal activities, 
including the names of any such senior officials and 
the provincial or local governments over which such 
senior officials exercise authority. 
‘‘(2) FORM.—The certification required by 
paragraph (1) shall be transmitted in unclassified 
form, but may contain a classified annex. 
‘‘(b) LIMITATION ON ASSISTANCE.—For fiscal year 
2009 and each subsequent fiscal year, assistance author-
ized under this title or under the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.) may not be provided 
to a provincial or local government of Afghanistan if the 
President determines and certifies to the appropriate con-
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gressional committees pursuant to subsection (a) for such 
fiscal year that, based upon substantiated and credible evi-
dence, one or more senior officials from such provincial 
or local government is engaged in or benefits from the nar-
cotics trade or is engaged in terrorist or criminal activi-
ties.’’. 
SEC. 105. MONITORING AND EVALUATION OF ASSISTANCE. 
Title I of the Afghanistan Freedom Support Act of 
2002 (22 U.S.C. 7511 et seq.), as amended by section 104 
of this Act, is further amended— 
(1) by redesignating sections 105 through 109 
(as redesignated) as sections 106 through 110, re-
spectively; and 
(2) by inserting after section 104 the following 
new section: 
‘‘SEC. 105. MONITORING AND EVALUATION OF ASSISTANCE. 
‘‘(a) IN GENERAL.—The President shall establish 
and implement a system to monitor and evaluate the effec-
tiveness and efficiency of assistance provided under this 
title on a program-by-program basis in order to maximize 
the long-term sustainable development impact of such as-
sistance. 
‘‘(b) REQUIREMENTS.—In carrying out subsection 
(a), the President shall— 
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