Afghanistan: Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)

Sovereign Project | 47282-001 Status: Approved

Summary

The MFF will reinforce ongoing projects and finance new investments to boost energy trade and regional cooperation, strengthen the country's energy infrastructure, increase energy supply to accelerate electrification rate, and improve operational efficiency in the sector. In power, generation (renewable energy), transmission (regional and domestic lines), and distribution (on- and off-grid networks) projects are proposed; while wells rehabilitation is planned in gas.

The impact of the MFF will be improved access to sustainable energy supplies across Afghanistan. The outcome will be increased supply of imported and indigenous power.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)
Project Number 47282-001
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
MFF Facility Concept 0090-AFG: Energy Supply Improvement Investment Program (FormerlyMultitranche Financing Facility II: Energy Development 2014-2023)
Asian Development Fund US$ 750.00 million
Afghanistan Infrastructure Trust Fund US$ 450.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description

The MFF will reinforce ongoing projects and finance new investments to boost energy trade and regional cooperation, strengthen the country's energy infrastructure, increase energy supply to accelerate electrification rate, and improve operational efficiency in the sector. In power, generation (renewable energy), transmission (regional and domestic lines), and distribution (on- and off-grid networks) projects are proposed; while wells rehabilitation is planned in gas.

The impact of the MFF will be improved access to sustainable energy supplies across Afghanistan. The outcome will be increased supply of imported and indigenous power.

Project Rationale and Linkage to Country/Regional Strategy After security, access to energy is the highest priority of households and businesses in Afghanistan. Energy demand has grown by almost twice the economic growth rate during 2005-2012. Afghanistan is among the lowest 5% in per capita energy consumption globally and is a net energy importer. In 2014, more than 80% (1,000 megawatts [MW]) of its total power supply (1,247 MW) came from Iran (16.2%), Tajikistan (25%), Turkmenistan (12%), and Uzbekistan (27%), with the rest generated through indigenous hydropower and thermal sources. Lack of domestic generation remains the key challenge for energy security in Afghanistan. Lack of energy supplies and the demand-supply imbalance constrain growth and income opportunities; create disparities in economic development; and fuel ethnic and regional tensions, insecurity, and discontent. Despite significant potential for renewable energy and fossil fuel reserves, these have not been developed because of financing constraints.
Impact improved access to sustainable energy supplies across Afghanistan, aligned with the targets of the National Energy Supply Program of the Government of Afghanistan.
Project Outcome
Description of Outcome increased supply of imported and indigenous power.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

New 500 kV and 220 kV power transmission lines, power distribution networks, and high-voltage, direct-current, back-to-back convertor commissioned

renewable energy projects constructed

domestic gas production and imported volume of natural gas from TAPI gas pipeline increased

project preparation and management capacity of energy ministries and agencies improved

DABS business plan, and tariff model and framework developed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location North, East and Western part of Afghanistan
Summary of Environmental and Social Aspects
Environmental Aspects The project will be classified category B for environment. EA will prepare an initial environmental examination (IIE) report, including an environmental management plan (EMP) in accordance with ADB's Safeguard Policy Statement (2009). The environmental impacts anticipated during the construction are envisaged to be site-specific and temporary and can be mitigated through implementation of the EMP. Potential environmental impacts of the project during operations include fragmentation of the bird habitats and the electrocution or injury of birds through collision and contact with wires. The EMP mitigation measures will be developed after thorough consultations and careful routing of the transmission line to be undertaken during detailed design, specially designed poles, conductors, and insulators; and the provision of bird diverters. The draft initial environmental examination report will be disclosed on the ADB's website by Q4 2015. The current security situation along the line route has made it difficult to consult effectively with communities. The public consultations will be conducted and the IIE and EMP updated prior to construction. Implementation of the EMP will be reported through environmental monitoring reports, which will be submitted to ADB semiannually. Environmental specialists of the implementation consultant will provide additional support to the PMO.
Involuntary Resettlement

The project is category B for involuntary resettlement. Based on the preliminary project design, a land acquisition and resettlement plan (LARP) will be prepared in close consultation with affected households and will be disclosed on ADB's website during Q4 2015, in accordance with ADB's Safeguard Policy Statement. A detailed socioeconomic survey will be carried out in Q4 2015. Once the contractor completes the detailed design, DABS will update the LARP and submit it to ADB for approval. No civil works will start until the LARP is fully implemented by DABS. The transmission line will run mainly through government land along the existing 220-kV transmission line. The substation site is owned by the government.

Implementation of the LARP will be monitored semiannually and a report will be submitted to ADB. The report will include the number of affected households that have been paid compensation, the amount paid, and the locations where compensation was completed and structures demolished, if any.

Indigenous Peoples The project is category C for indigenous peoples. The field social survey found that no ethnic minority, as defined by ADB's Safeguard Policy Statement (2009), will be involved in or affected by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design Project design, implementation and supervision consultants have undertake comprehensive analysis and stakeholders consultations (in accordance with ADB's Social Safeguard Policy-2009) to factor in all land acquisition, resettlement and environmental considerations into projects design.
During Project Implementation Consultation and information sharing with local communities have been ade. Necessary social safeguards and environmental analyses have been ndertaken and updated during implementation of sub-projects. Relevant documentation has been approved by ADB experts before contractors were mobilized to begin construction activities at project sites.
Responsible ADB Officer Asad Aleem
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Education, Youth and Sports
148 Norodom Blvd.
Phnom Penh
Kingdom of Cambodia
Da Afghanistan Breshna Sherkat
Chaman Houzouri,Kabul,Islamic Republic
of Afghanistan
Ministry of Mines_and Petroleum
Pashtonistan Watt,Kabul, Islamic
Republic of Afghanistan
Ministry of Energy and Water
Darul Aman Road, Kabul, Islamic Republic
of afghanistan
Timetable
Concept Clearance 19 Nov 2013
Fact Finding 14 Sep 2015 to 30 Sep 2015
MRM 27 Oct 2015
Approval 04 Dec 2015
Last Review Mission -
Last PDS Update 29 Sep 2015

MFF Facility Concept 0090-AFG

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,220.00 Cumulative Contract Awards
ADB 750.00 - 0.00 0.00 %
Counterpart 20.00 Cumulative Disbursements
Cofinancing 450.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.