The US ambassador to Afghanistan Michael McKinley said on Monday that the U.S will provide $800 million USD to Afghanistan in aid within the framework of a new development partnership between the two countries.

On Monday the US diplomat signed a memorandum of understanding with Afghanistan that states that from the total amount, $100 million USD will go towards reconstruction. The money will be spent in consultation with the World Bank (WB) and in line with Afghanistan's development budget.

The Afghan Minister of Finance Eklil Ahmad Hakimi said that on the basis of the new development partnership, the US funding will be conditional and the government of Afghanistan has to consider some key programs such as the establishment of good governance, maintaining financial stability and poverty alleviation efforts in order to be given the funds.

The aid package will be paid out over four years.

"The U.S aid package is conditional and covers five areas on the basis of which we can get the rest of the money. This will be a bilateral accountability process for the allocation of the funds. This also covers better utilization of the funds on which both sides have consensus and agreement," Hakimi said.

The U.S ambassador meanwhile said the start of the funding package within the new framework is the start of a new chapter in bilateral cooperation between the two nations.

"This new development partnership represents a fundamental transformation in the nature of development cooperation between our two countries. Today as we commit ourselves to achieving specific development and reform objectives I am confident we have shared values and interests," U.S ambassador Michael McKinley said.

From the $800 million financial package, the U.S will provide $200 million to Afghanistan on an annual basis and the money will be spent on priority programs.