Afghanistan: Power Transmission and Distribution Project

Sovereign Project | 37078-013

Summary

The Project will construct and rehabilitate 114 kilometers of transmission network, and rehabilitate the associated substations and distribution systems in 8 rural towns and adjacent rural areas in the northern and eastern provinces. The Project will connect 10,320 new consumers, most of whom are poor, to the grid with affordable power supply.

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Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Power Transmission and Distribution Project
Project Number 37078-013
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0004-AFG: Power Transmission and Distribution Project
Asian Development Fund US$ 22.76 million
Loan 2165-AFG: Power Transmission and Distribution Project
Asian Development Fund US$ 26.50 million
TA 4579-AFG: Capacity Building for the Power Sector
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The Project will construct and rehabilitate 114 kilometers of transmission network, and rehabilitate the associated substations and distribution systems in 8 rural towns and adjacent rural areas in the northern and eastern provinces. The Project will connect 10,320 new consumers, most of whom are poor, to the grid with affordable power supply.
Project Rationale and Linkage to Country/Regional Strategy

Most of Afghanistan's 30 million people mostly rural poor have no access to reliable, modern forms of energy such as electricity, gas, and liquid fuels. The national electrification ratio was about 9% in 2005. As the power sector's poor state severely constrains economic growth, the Government puts priority on developing the sector.

Afghanistan's power generation, transmission, and distribution systems have been severely damaged by years of conflict. There is no national transmission grid, and the overall condition of lines is very poor. The Northern Transmission Link, which is being rehabilitated, serves the major northern cities and Kabul and is the backbone of the transmission system. Because of the lack of generation capacity, power has to be imported in the near term from neighboring countries, which are rich in gas. In the long term, when Afghanistan's hydropower potential is realized, power could be exported to neighboring countries. The transmission system needs to be rehabilitated and reinforced to improve reliability and reduce system losses.

Distribution systems are stretched beyond their technical and economic lives because of inadequate investment and lack of maintenance. The substations and low-voltage distribution networks are either destroyed or overloaded. A large number of unauthorized consumers are overloading the system, thus reducing supply voltage and increasing technical losses.

The Project is part of the Government's power master plan and is consistent with the Government's policy of providing reliable power supply to all Afghans. The Project's scope has been coordinated with other external funding agencies.

A 2005 International Monetary Fund (IMF) debt sustainability study suggests that Afghanistan will need to rely primarily on grants and, in a limited way, on borrowings. It highlights the importance of a high grant element for loans.

Impact Improved and cost-effective power supply to all consumers
Project Outcome
Description of Outcome Improved power supply in the northern and eastern areas of AFG
Progress Toward Outcome The Project is 100% physically completed. Testing and comissioning were accomplished during 2013 and 2014. All payments for completed works under the Grant 0004 were made and the grant account was closed on 31 July 2014. Remaining payment claims under L2165 are being prepared and will be submitted to ADB by 30 June 2015. A reallocation memo under process by AFRM so that remaining balance could be disbursed ($9.2 m), against the eligible works originally to be funded under the grant portion of project. The closing date of L2165 is 31 December 2015.
Implementation Progress
Description of Project Outputs

(1) Rehabilitation and expansion of transmission network, grid substations, and new distribution systems in 8 towns (Northern and Eastern AFG)

(2) Additional consumers connected to grid supply

Status of Implementation Progress (Outputs, Activities, and Issues)

Commissioned. Transmission and distribution works under Lots 1 and 2 have been completed in early 2013. Distribution of allowances to affected families as per LARP in northern districts were finished.

Commissioned. All works on substations were completed.

All project areas were connected to the grid. However load shedding still persists due to a power shortage in the system.

Project Completion Report to be prepared in Q1 2015 will review actual number of connections vis-a-vi planned.

Geographical Location Surobi, Kabul,Jalalabad, Nangarhar,Taluqan, Takhar,Qarghayi, Laghman,Mehtarlam, Laghman,Imam Sahib, Kunduz,Khan Abad, Kunduz,Shekanbandar, Kunduz,Sar-e-Pul, Sar-e-Pul
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is classified under category B in accordance with ADB s environmental policy (2002). An initial environmental examination (IEE) was prepared. Sufficient community consultations for a category-B project were undertaken during project design. All project components follow environmental safeguards and technical specifications established for ADB financed projects.

The Project has been prepared to follow the requirements of ADB s environment policy and the relevant parts of the Environmental Assessment Guidelines (2003). Based on the IEE, the Project generated only minor environmental impacts, which was mitigated by standard measures normally associated with international best practices in the design and construction of transmission lines, substations, and distribution systems. An environmental management and monitoring plan has been developed and implemented by MEW. Mitigation measures were specified in all contract documents and followed.

MEW was responsible for ensuring that the Project was implemented in an environmentally acceptable manner in accordance with the Environmental Management and Monitoring Plan (EMPP). The Government, MEW and supervision consultant monitored construction, implementation and operation of the Project to ensure its compliance with applicable laws and regulations, ADB s Environmental Policy (2002), and all monitoring and mitigation measures in the IEE. MEW provided required quarterly progress reports on all matters in the EMMP to ADB. The Government, MEW and consultant monitored the contracts implementation to ensure compliance of the civil works with the EMMP.

The Project did not result in any significant environmental impacts. The mitigation measures were incorporated into contract documents and its implementation and monitored during the entire Project. Training in environmental management and monitoring was provided to MEW staff. The IEE, including the EMPP and monitoring program, is considered sufficient to meet the environmental assessment requirements for the Project.

Involuntary Resettlement

The Government provided all land and rights-of-way to the Contractor so that any land acquisition and resettlement activities are implemented in accordance with all applicable laws and regulations; ADB s Policy on Involuntary Resettlement (1995); and the updated resettlement plan.

MEW with the assistance from SMEC ensured that any people losing land, housing, or other assets and means of production will be helped to restore their incomes and living standards to at least the levels without the Project's intervention. Assets will either be replaced or their owners compensated at replacement cost.

A short resettlement plan has been prepared. Consultations have been held with the project-affected people to obtain inputs on the design of the plan and to inform the project affected people of ADB s policies regarding involuntary resettlement, and explained the proposed plan. The plan has been translated to Dari and Pushto and explained to project-affected people at community meetings in November and December 2004. After the detailed measurement survey of the line routes, specific project-affected people were contacted by the implementation consultants to explain the their rights under the plan and to inform them of the compensation rates which will be based on the actual market rates at the time of the detailed measurement survey. A system has also been designed for addressing grievance and registering complaints. It has three stages: (i) A project-affected person files a complaint about compensation and unpaid losses with the village resettlement committee (VRC). The VRC is obliged to reply and explain the decision within 15 days from the date the complaint was received. (ii) If the project-affected person is not satisfied or the VRC does not reply, the grievance application will be forwarded to the district resettlement committee (DRC). The DRC must decide within 15 days from the date the complaint was filed. (iii) If the project-affected person is not satisfied with the decision or the DRC does not reply, the complaint can be forwarded to the committee on compensation, which will issue the final decision within 30 days.

All LARP implementation compensations of Lot-1 and Lot-2 have been effected and the final compliance reports have been submitted to ADB in early Oct 2012. Accordingly No LARP issues are now pending in regard to MEW/337 Contract executed by KEC.

Indigenous Peoples No negative effects on indigenous peoples have been identified. Benefits are received evenly to all sections of the population regardless of ethnicity. The project completion report to be prepared in Q2 2014 will identify socioeconomic changes from increased electrification rates of households. The Project brought grid power for the first time to areas with high numbers of ethnic minorities, such as Imam Sahib and Sar-e-Pul, while bringing equal benefits to the wider population.
Stakeholder Communication, Participation, and Consultation
During Project Design

Consultations were held with local officials to minimize resettlement effects during the setting of the alignment during the feasibility study. Land acquisition and resettlement impacts were minimized through the following actions: (i) aligning any new transmission lines away from areas with high population density and by avoiding agriculturally or culturally important areas; (ii) occupying wasteland and waste hills for alignment, where possible; (iii) using existing alignments and/or upgrading local distribution structures, where possible; (iv) protecting water conservancy and irrigation facilities as far as possible.

Electricity will be new to many project beneficiaries, and a safety awareness campaign is included in the terms of reference of the implementation consultants. The campaign was conducted via schools, printed materials, community meetings, and the radio. Safety information was provided during local consultation meetings.

During Project Implementation

The implementation of ADB-approved Land Acquisition and Resettlement Plan (LARP) proposals (Lot 1 and Lot 2) were completed on 31 March 2012. Meetings were conducted and attended by SMEC Social Safeguard and Resettlement Specialist, Ministry of Energy and Water (MEW) team, DABS representatives, and the affected people (APs) for distribution of the vulnerable allowances to the APs. Adequate announcements were made for the APs who were eligible for receiving the allowance to gather at a meeting for allowance distribution.

LARP for Lot 2A (for those APs missed in the original LARP Lot 2) was prepared and approved by ADB on 3 April 2012. Distribution of compensation among APs were held on 25 and 27 September 2012.

Business Opportunities
Consulting Services

Consulting services will be required to help the MEW and DABM implement the Project. The consulting services will involve project management, detailed design, preparation of bid documents, assistance in procurement, supervision of construction and installation of equipment, testing and certifying of completed works, training of MEW and DABM staff in management and O&M and in monitoring and evaluation. The consultants will also assist the MEW in environmental management and monitoring of social and resettlement safeguards.

About 40 person-months of international and 100 person-months of domestic consultants will be required. All consultants financed from the proposed ADB loan will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements for recruitment of domestic consultants acceptable to ADB following the quality-and-cost-based selection (QCBS) method. Advance recruitment of consultants will be undertaken.

Procurement

Loan-financed goods, services, and civil works will be procured in accordance with ADB's Guidelines for Procurement and by the procurement unit of the Afghanistan Reconstruction and Development Services on behalf of the MEW and assisted by the project implementation consultants. ADB has approved advance procurement action for the turnkey contracts, including preparation and issuance of bid documents, and evaluation of the bids received.

Procurement of goods and services to be financed under the Project will be carried out in accordance with ADB's Guidelines for Procurement. Turnkey contract for design-build of the transmission lines, substations and distribution networks will be procured through International Competitive Bidding (ICB) procedures. Contract for supply of equipment with value of not more than $0.5 million will be procured through International Shopping (IS) procedures, and through ICB procedures if valued above $0.5 million.

Responsible ADB Officer Asad Aleem
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Energy and WaterEng. Shah Mohammadshahmew@gmail.comKabul, Afghanistan
Timetable
Concept Clearance 29 Jan 2003
Fact Finding 22 Aug 2004 to 05 Sep 2004
MRM 27 Oct 2004
Approval 14 Apr 2005
Last Review Mission -
PDS Creation Date 12 Feb 2007
Last PDS Update 17 Mar 2015

Grant 0004-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Apr 2005 02 Aug 2005 02 Mar 2006 31 Dec 2008 30 Jun 2013 31 Jul 2014
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 48.96 Cumulative Contract Awards
ADB 22.76 14 Apr 2005 21.83 0.00 96%
Counterpart 26.20 Cumulative Disbursements
Cofinancing 0.00 14 Apr 2005 21.83 0.00 96%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - - - Satisfactory

Loan 2165-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Apr 2005 02 Aug 2005 02 Mar 2006 31 Dec 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.50 Cumulative Contract Awards
ADB 26.50 14 Apr 2005 18.07 0.00 70%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Apr 2005 16.63 0.00 65%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - - - Satisfactory

TA 4579-AFG

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 - 0.00
Title Document Type Document Date
Power Transmission and Distribution Project Project/Program Administration Manual Oct 2005
Power Transmission and Distribution Project Reports and Recommendations of the President Mar 2005

Evaluation Documents

See also: Independent Evaluation

No documents found.


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  • 06 Jul 2012 | Project Result / Case Study

    Energy in Afghanistan: Reliable On-Grid Power for Kabul

    After years of darkness and air pollution caused by countless diesel generators, Kabul has reliable grid-supplied power, and initiatives are in motion to do the same for the rest of Afghanistan. Kabul, Afghanistan - Adela, 47 and a mother of six, remembers the dark, cold nights in Kabul, when she cooked dinner on a wood fire in a corner of her backyard amid falling snow. Sadly, her daughter, Sharifa, now a fourth-grader, has the scars to prove it.