Regional: Regional Power Transmission Interconnection Project (AFG/TAJ)

Sovereign Project | 40043-013

Summary

The Project will interconnect the power grids in Afghanistan and Tajikistan.

The Project's scope will cover the construction of a 220 kilovolt (kV) double-circuit transmission line that will link the hydropower stations located on the Vakhsh River in Tajikistan to the border town of Sherkan Bandar; then to Kunduz, Baglan, and Pul-e-Khumri in Afghanistan. This line will be ultimately linked to Afghanistan's major electricity demand centre, Kabul, through the Afghan 220 kV corridor currently under construction, linking Pul-e-Khumri to Kabul.

The Project will also include upgrading and new investments in Tajikistan that will help reduce the winter power deficit by (i) increasing the available level of generation, and (ii) decreasing the level of technical losses in south Tajikistan. Both measures will aim to export 300 megawatt (MW) to Afghanistan and generate additional 320 gigawatt-hour (GWh) annually in Tajikistan.

Latest Project Documents


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Project Name Regional Power Transmission Interconnection Project (AFG/TAJ)
Project Number 40043-013
Country Regional
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Loan 2304-REG: Regional Power Transmission Interconnection Project (AFG/TAJ)
Asian Development Fund US$ 35.00 million
TA 4908-REG: Improving Capacity of Afghanistan Electricity Authority
Japan Special Fund US$ 1.50 million
TA 4909-REG: Improving Capacity of Afghanistan Electricity Authority
Technical Assistance Special Fund US$ 1.20 million
Loan 2303-REG: Regional Power Transmission Interconnection Project (AFG/TAJ)
Asian Development Fund US$ 21.50 million
Loan 8230-REG: Regional Power Transmission Interconnection Project (AFG/TAJ)
OPEC Fund for International Development US$ 8.50 million
Loan: Regional Power Transmission Interconnection Project (AFG/TAJ)
Islamic Development Bank US$ 10.00 million
Islamic Development Bank US$ 16.50 million
Grant 0230-REG: Regional Power Transmission Interconnection Project
Asian Development Fund US$ 12.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution - Large hydropower generation
Gender Equity and Mainstreaming No gender elements
Description

The Project will interconnect the power grids in Afghanistan and Tajikistan.

The Project's scope will cover the construction of a 220 kilovolt (kV) double-circuit transmission line that will link the hydropower stations located on the Vakhsh River in Tajikistan to the border town of Sherkan Bandar; then to Kunduz, Baglan, and Pul-e-Khumri in Afghanistan. This line will be ultimately linked to Afghanistan's major electricity demand centre, Kabul, through the Afghan 220 kV corridor currently under construction, linking Pul-e-Khumri to Kabul.

The Project will also include upgrading and new investments in Tajikistan that will help reduce the winter power deficit by (i) increasing the available level of generation, and (ii) decreasing the level of technical losses in south Tajikistan. Both measures will aim to export 300 megawatt (MW) to Afghanistan and generate additional 320 gigawatt-hour (GWh) annually in Tajikistan.

The Project is in line with the governments' strategies and policies. In Afghanistan, the policy is to provide reliable power supply to all Afghans. In Tajikistan, the policy is to maximize the use of its hydropower assets.

The project scope has been coordinated with other external funding agencies.

Project Rationale and Linkage to Country/Regional Strategy

Afghanistan's power generation, transmission, and distribution systems have been severely damaged by years of conflict. There is almost no transmission grid and generation is very limited. Lack of generation capacity has led to widespread use of load shedding throughout the country, including the capital Kabul where supply is available only a few hours a day. To cope with this situation, where the grid is unable to provide reliable supply, most of the energy users and industry have shifted to decentralized smallscale diesel power generation. Consequently, Kabul has become up to more than $0.33 per kilowatt-hour (kWh), taking into account high international market prices for crude oil.

Regionally, there are large surpluses of generation in Tajikistan, Turkmenistan, and Uzbekistan while Afghanistan is struggling with a large power deficit. All economic and technical studies show that importing power from neighboring countries even during a limited period of the year has a sound rate of return. Recent studies recommend that interconnections with neighboring countries should be pursued and encouraged in parallel with the development of domestic generation. Reconstruction of power lines between Uzbekistan and Afghanistan is ongoing under Asian Development Bank (ADB) financing. A few small interconnections between Iran, Tajikistan, and Turkmenistan are in operation but none of them are able to meet the demand in Kabul city.

Tajikistan has an installed generation capacity of 4,405 MW (98% hydropower) and current surplus generation of 1,500 GWh per year. At a nominal value of $0.02/kWh this surplus is potentially worth $30 million per year.The surplus is only available for export for 6 - 8 months during the spring-summer period and 90% of the installed generation capacity in Tajikistan is located in the southern part of the country. Tajikistan has three separate transmission grids that are not interconnected (north, south, and east grids). The only way for Tajikistan to export its surplus at present is to use the Uzbek grid. However, transmission constraints in Uzbekistan mean that Tajikistan is not able to use the Uzbek grid most of the time. Therefore, water is spilled without generating electricity during the summer and potential electricity supply is wasted.

Based on the above, the Project offers a win-win situation where Afghanistan's lack of power supply can be met by Tajikistan's surplus, which it is currently unable to export.

Impact Enhanced regional power trade in Central Asia.
Project Outcome
Description of Outcome Increased AFG power imports from TAJ.
Progress Toward Outcome The line was officially energized on 8 October 2011. It was commissioned on 27 October 2011 and taken over by DABS for commercial operation. Total 16,562 MWh of electricity imported by AFG in 2011; and 349,076 MWh in 2012 up to September.
Implementation Progress
Description of Project Outputs

Construction and rehabilitation of TAJ power systems (Baipaza excitation system, Perpadnaya and Golovnaya HPP)

Construction and installation of power systems in AFG (Kunduz, Baghland, Pul-e-Khumri)

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

Tajikistan Components.

1. Transmission Line. The actual length of the completed transmission line was 116.5 km compared. The transmission line was completed on 30 November 2010; commissioned and energized for electricity export to Afghanistan on 8 October 2011 upon completion of the Afghan portion.

2. Work at the Sangtuda substation under this output was completed as planned

IsDB financed. Construction work completed; energization of Unit 3 was expected in November 2012.

3. Replacement of Transformer T3 at Golovnaya HPP was not implemented due to insufficient funds available by the EA, BT.

4. Dredging of the canals at Centralnaya and Perepadnaya HPPs completed.

5. Upgrading of Unit 3 at Golovnaya HPP: construction completed and energization was expected by 25 December 2012.

6. Rehabilitation of the excitation system at Baipaza HPP (Lot 5) completed.

7. The optimization of the Vakhsh River cascade is being carried out under the ADB-financed Regional Power Transmission Project.

8. The supply of bulk metering systems completed.

Afghan Components.

1. Transmission Line was completed with the final length of 163 km. Electricity flow from TAJ to AFG commenced on 8 Oct 2011.

2. Two Substations in Kunduz and Baghlan (entirely financed by IsDB) are being carried out by an Iranian contractor. Construction progress has been severely affected by the sanctions imposed on Iran, the contractor and its banks by the international communities, prohibiting cash flow to the contractor. At the time of the PCR Mission, progress was at 75%, with major equipment already installed. Completion is expected by June 2013.

3. In compliance with the LARP implementation, MEW has undertaken the following -

a) Section A, B, and C: The distribution of allowances process has been completed. The compliance reports have been revised and submitted.

b) Section c, Addenda C: The compensation for the remaining three affected families is still pending.

c) Section B, Addenda LARP: Compliance report has been reviewed and found acceptable.

Geographical Location Vakhsh River to Sherkan Bandar,Pul-e-Khumri,Baghlan,South Tajikistan and North Afghanistan,Kunduz,Kabul
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Initial environmental examinations (IEEs) have been undertaken and summary IEEs were prepared.
Involuntary Resettlement

Land acquisition or impacts on crops were limited, both for the Afghanistan and the Tajikistan components, and depended only on the construction of tower bases and expansion of Baglan substation. All other items constructed under the Project, including temporary access roads, will have no impacts on property and livelihoods. No house will be affected and no resettlement is needed in either country.

In Afghanistan, most of the transmission line passes over unused desert land where impacts were greatly limited by locating the towers within the tower footing of an old Soviet line in disuse. In Tajikistan, most of the transmission line passed in unused desert land and impacts occured only where the transmission line crosses strips of cultivated land.

To plan the compensation program, EAs have prepared a short resettlement plan (RP) for each component. Each RP fits the relevant national law/regulation and ADB's policy on Involuntary Resettlement (1995) and Operations Manual F2 on Involuntary Resettlement.

Indigenous Peoples No project-affected person in Afghanistan or Tajikistan fits the definition of indigenous person provided by The Bank's Policy on Indigenous Peoples (1998). Therefore, there will be no impact on indigenous peoples from either of the project components.
Stakeholder Communication, Participation, and Consultation
During Project Design Repeated consultations and close communication with stakeholders (affected families) were maintained during Project design.
During Project Implementation Regular dialogues with affected familes were maintained during project implementation.
Business Opportunities
Consulting Services Consulting services will be required to assist (i) MEW and DABM (DABS, after dissoltion of DABM) for the Afghanitan component and (ii) Barki Tajik for the Tajikistan component, in project implementation. All project-financed consultants will be selected and engaged in accordance with ADB's guidelines, pursuant to quality- and cost-based selection. MEW and Barki Tajik will take advance action for the recruitment of consultants.
Procurement Loan-financed goods, services and civil works will be procured in accordance with ADB's Procurement Guidelines and by MEW and Barki tajik and assisted by the respective project implementation consultant.
Responsible ADB Officer Joonho Hwang
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Barki TajikMr. RahimovFax no. (10992372) 35 86 92Dushanbe, Tajikistan
Timetable
Concept Clearance 08 Sep 2005
Fact Finding 28 Aug 2006 to 24 Sep 2006
MRM 31 Oct 2006
Approval 10 Jan 2007
Last Review Mission -
PDS Creation Date 13 Mar 2006
Last PDS Update 31 Mar 2014

Grant 0230-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2010 18 Jan 2011 12 Sep 2011 31 Dec 2011 30 Jun 2013 29 Oct 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.40 Cumulative Contract Awards
ADB 12.00 18 Nov 2010 4.57 0.00 38%
Counterpart 0.40 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2010 4.57 0.00 38%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 44.90 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 18.40 Cumulative Disbursements
Cofinancing 26.50 - 0.00 0.00 %

Loan 2303-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2006 22 Feb 2007 22 Aug 2007 31 Dec 2010 15 Mar 2011 16 May 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 62.00 Cumulative Contract Awards
ADB 21.50 19 Dec 2006 18.90 0.00 100%
Counterpart 14.00 Cumulative Disbursements
Cofinancing 26.50 19 Dec 2006 18.90 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 2304-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2006 20 May 2007 22 Aug 2007 30 Sep 2009 30 Jun 2013 05 Mar 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 39.00 Cumulative Contract Awards
ADB 35.00 19 Dec 2006 35.15 0.00 100%
Counterpart 4.00 Cumulative Disbursements
Cofinancing 0.00 19 Dec 2006 35.15 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 8230-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jan 2007 06 Sep 2007 15 Jan 2008 31 Dec 2010 - 21 Jun 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.50 Cumulative Contract Awards
ADB 0.00 10 Jan 2007 0.00 7.91 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 8.50 10 Jan 2007 0.00 7.91 100%

TA 4908-REG

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 - 0.00

TA 4909-REG

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,200,000.00 0.00 0.00 0.00 0.00 0.00 1,200,000.00 - 0.00
Title Document Type Document Date
Regional Power Transmission Interconnection Project (Afghanistan and Tajikistan) Project/Program Completion Reports Jun 2014
Grant Agreement (Special Operations) for Regional Power Transmission Interconnection Project (Afghan Component) between Islamic Republic of Afghanistan and Asian Development Bank dated 18 January 2011 Grant Agreement Jan 2011
Regional Power Transmission Interconnection Project Reports and Recommendations of the President Oct 2010
Improving the Capacity of DA Afghanistan Breshna Moassessa (DABM) TA Completion Reports Aug 2010
Improving Capacity of the Afghanistan Electricity Authority Consultants' Reports Jul 2009
Amendment to the Loan Agreement for Regional Power Transmission Interconnection Project (Tajik Component) between Republic of Tajikistan and Asian Development Bank dated 12 Mar 2008 Loan Agreement (Special Operations) Feb 2008
Loan Agreement for Regional Power Transmission Interconnection Project (Afghan Component) between Islamic Republic Of Afghanistan and Asian Development Bank dated 20 May 2007 Loan Agreement (Special Operations) May 2007
Amendment to the Loan Agreement for Regional Power Transmission Interconnection Project (Tajik Component) between Republic of Tajikistan and Asian Development Bank dated 16 November 2007 Loan Agreement (Special Operations) May 2007
Regional Power Transmission Interconnection Project (AFG) Project/Program Administration Manual Mar 2007
Regional Power Transmission Interconnection Project (TAJ) Project/Program Administration Manual Feb 2007
Loan Agreement for Regional Power Transmission Interconnection Project (Tajik Component) between Republic of Tajikistan and Asian Development Bank dated 22 February 2007 Loan Agreement (Special Operations) Feb 2007
Regional Power Transmission Interconnection Project Design and Monitoring Frameworks Nov 2006
Regional Power Transmission Interconnection Project (Tajikistan) Reports and Recommendations of the President Nov 2006

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Afghanistan and Tajikistan: Regional Power Transmission Interconnection Project Validations of Project Completion Reports Nov 2014

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