Afghanistan: Supporting the Inter-Ministerial Commission for Energy

Sovereign Project | 46347-001

Summary

It is estimated that nearly $5 billion of grant assistance and private sector investments will go into the Afghanistan energy sector during 2013-2015. Although the government has taken charge of strategic and operational planning in the energy sector and donor coordination to harmonize investment plans since 2002, there remains a critical need to institutionalize ICE and ensure its sustainability. The TA will help bridge this gap. In addition, the TA will assist in (i) institutionalizing the power sector master plan; (ii) updating energy policy and sector plans, including the operation and maintenance strategy; and (iii) preparing technical reports and working papers through the formation of working groups or subcommittees (e.g., renewable energy, development of unified grid, and synchronization with neighboring countries) supported by consultants to debate and conclude operational issues in the sector.

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Project Name Supporting the Inter-Ministerial Commission for Energy
Project Number 46347-001
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8328-AFG: Supporting the Inter-Ministerial Commission for Energy
Afghanistan Infrastructure Trust Fund US$ 1.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Energy - Electricity transmission and distribution - Energy sector development and institutional reform
Gender Equity and Mainstreaming
Description It is estimated that nearly $5 billion of grant assistance and private sector investments will go into the Afghanistan energy sector during 2013-2015. Although the government has taken charge of strategic and operational planning in the energy sector and donor coordination to harmonize investment plans since 2002, there remains a critical need to institutionalize ICE and ensure its sustainability. The TA will help bridge this gap. In addition, the TA will assist in (i) institutionalizing the power sector master plan; (ii) updating energy policy and sector plans, including the operation and maintenance strategy; and (iii) preparing technical reports and working papers through the formation of working groups or subcommittees (e.g., renewable energy, development of unified grid, and synchronization with neighboring countries) supported by consultants to debate and conclude operational issues in the sector. Most importantly, the TA will ensure that capacity support to sustain ICE beyond 2014 is factored into the program.
Project Rationale and Linkage to Country/Regional Strategy Persistent conflict and security challenges have inhibited development of energy infrastructure and human capacity in Afghanistan. The sector experiences technical, financial, and governance deficits and has begun to develop integrated energy planning systems. The lack of integrated planning so far has caused more than 65% of sector investments to bypass the government's core budget and planning systems, leaving sector ministries and agencies with limited information on donors' funded projects, plans, and activities. There is also a diversity of stakeholders in the country's emerging energy sector--five ministries, 10 key development partners, and several private sector participants and civil society organizations. Thus, harmonizing and sequencing investment plans remain very difficult. In the past, the Inter-Ministerial Commission for Energy (ICE) has proved to be the most effective and coherent mechanism to brainstorm and agree on an investment and governance agenda. However, it has ceased to exist in June 2012 due to funding constraints. The TA will support coordination, harmonization, and collaboration between development partners and energy sector ministries and agencies in Afghanistan for a coherent strategy and implementation of investment plans, as well as provide capacity and analytical support to strengthen energy sector investments in Afghanistan.
Impact Effective coordination between energy sector stakeholders in Afghanistan
Project Outcome
Description of Outcome Greater capacity of energy managers to support sector coordination, integrated policy and planning, governance, and implementation
Progress Toward Outcome A team of consultants is engaged since June 2013 to implement the Project. Sector coordination has been improved through the identification of pressing coordination issues such as duplication in efforts among development partners for power and natural gas strategy development. These issues have been identified, discussed during stakeholder consultations, and consensus paths-to-resolution developed and disseminated by the consultant team. Energy sector implementation co-ordination has been improved through the development of platforms to provide ministry and development partner stakeholders with a common view of plans and implementation progress. Efforts to institutionalize the power sector master plan through a dedicated secretariat are underway.
Implementation Progress
Description of Project Outputs ICE Secretariat re-established to serve as the point of contact for energy reform and to unify energy sector in Afghanistan
Status of Implementation Progress (Outputs, Activities, and Issues)

An ICE Energy Sector Database consisting of project plans and implementation progress from major development partners (ADB, USAID, USFOR-A, KfW, GiZ, DFID, World Bank) and ministries (MEW, DABS, MoMP, MRRD) has been developed and has undergone periodic updates. An Energy Sector Status Report containing this database information as well as analysis such as identification of pressing coordination issues, gaps in funding and delays in implementation has been produced in Q1 2014 and Q1 2015 respectively. All progress reports are being posted onto ICE website and updated, resulting in a live' version. TA has also prepared sub-sector briefs in areas such as solar energy that are also accessible on the website.

The TA has helped coordinate efforts to prepare a combined strategy and implementation roadmap in areas such as natural gas (now also part of a separate TA), and renewable energy (including access to climate funding).

The TA has also developed and strengthened working groups in areas such as database development, renewable energy, private sector involvement, and natural gas development.

Upon the request of the EA and the Ministry of Finance, the TA is being extended by 12 months through till 31 March 2016. The extension will have no cost implication. The project now will be fully implemented by National Consultants and staff of the EA, to ensure of ICE, once the TA closes on 31 March 2016.

Geographical Location Afghanistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Economy (MoEc) was primarily consulted during the TA design. Extensive consultations were held with Afghanistan Breshna Sherkat (DABS), Ministry of Energy and Water (MEW), Ministry of Finance (MoF) as well as with the international development partners, to determine the scope of the TA as well as identify the government agencies and stakeholders that are active in the country's energy sector.
During Project Implementation Monthly stakeholder meetings are held with the Minister of MoEc as chair and with core representation from senior representatives of ministries and development partners, and with ad-hoc representation from NGOs, contractors, consultants and related government agencies (e.g. National Standards Authority). Agendas for these meetings consist of information updates and discussion of pressing coordination issues and are set by the TA team. The TA conducts follow ups, prepares and disseminates reports, and coordinates further discussion/resolution through working groups and focused stakeholder consultations.
Business Opportunities
Consulting Services Based on ADB's experience in TA implementation in Afghanistan and the lessons from recent ICE interventions, recruiting a consulting firm would not be appropriate for the coordination assignment under the TA, which is primarily to liaise with all energy stakeholders of Afghanistan. As such, the TA engaged individual consultants equivalent to 32 person-months (Team Leader and Hydrocarbon Expert) of international and 36 person-months (Deputy Team Leader and Logistics Manager) of national consultants. In addition, two seconded contractual staff (as Project Coordinators) from MOEC have been engaged under the TA for a total of 30 person-months. The team will drive the ICE coordination meetings, engage with all stakeholders, lead technical group meetings, and formulate requisite documentation as and when required. Individual consultants were engaged following ADB Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement Equipment needed for the operation of the ICE Secretariat were procurred following the ADB Procurement Guidelines (2013) and payment were made consistent with TA Disbursement Handbook (2010).
Responsible ADB Officer Asad Aleem
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 27 Nov 2012
Fact Finding -
MRM -
Approval 22 Feb 2013
Last Review Mission -
Last PDS Update 17 Mar 2015

TA 8328-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Feb 2013 19 Mar 2013 19 Mar 2013 31 Mar 2015 31 Mar 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,500,000.00 0.00 0.00 0.00 0.00 1,500,000.00 22 Feb 2013 759,400.56
Title Document Type Document Date
Supporting the Inter-Ministerial Commission for Energy Technical Assistance Reports Feb 2013

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