The funds are expected to be spent through Afghanistan Reconstruction Trust Fund (ARTF) in coming three years.
An agreement was also signed between the Ministry of Finance of Afghanistan and World Bank during a ceremony on Tuesday where the grant was announced.
According to a joint statement by the Ministry of Finance and the World Bank, the aid would be spent both for incomplete and new development projects.
The statement further added around $918 million would be spent on incomplete projects while the $918 million would be allocated for the new development projects.
The remaining $1.2 billion of the funds would be allocated to the ordinary budget of the government of Afghanistan, the statement added.
In the meantime, the Ministry of Finance officials said the funds will be spent to support different sectors including agriculture, rural development, social protection and infrastructural areas and good governance.
The Afghanistan Reconstruction Trust Fund (ARTF) was established in 2002 with an aim to provide coordinated financing mechanism for the government of Afghanistan.
Supported by 34 donor countries, around $8 billion have been spent on reconstruction projects through ARTF so far.