The multitranche financing facility (Facility) is intended to finance projects, subprojects or components in the Program, complying with the criteria set out in the Framework Financing Agreement (FFA).
The components include:
(i) feasibility studies and designs;
(ii) infrastructure improvements;
(iii) infrastructure maintenance; and
(iv) human resource development and institutional reforms.
Infrastructure improvements will include construction, rehabilitation, upgrading, and repair of energy infrastructure programmed in the country partnership strategy (CPS 2009-13), Afghan National Development Strategy (ANDS) and Government of Afghanistan's National Priority Programs (NPPs). The main objective of the maintenance component is to increase the sustainability of the investment program. The human resource development, capacity support and institutional reform component is included to increase implementation efficiency and sustainability of the physical investments, and help strengthen Da Afghanistan Breshna Sherkat (DABS), the newly established Afghan Power Utility which is the Executing Agency of the Facility.
Afghanistan has requested ADB to help finance part of the Program through the Facility in the amount of up to the equivalent of $570 million.
The Executing Agency for the power component of the Facility is DABS (of the Islamic Republic of Afghanistan). The Executing Agency for the Gas Wells Rehabilitation component is the Ministry of Mines and Petroleum (MOMP).
DABS will be responsible for the overall implementation of the Investment Program as well as of all projects to be financed under the Investment Program except for the Sheberghan gas fields rehabilitation project for which MOM will be the EA. A Project Management Office (PMO) will be established within DABS to manage the implementation of the projects and to perform due diligence for projects to be implemented in subsequent tranches. MOM will second staff to support the PMO in regards to management implementation of the Sheberghan gas fields rehabilitation project.
The Investment Program is scheduled for 8 years inclusive of procurement and construction activities and is expected for completion by 31 December 2016. Current period of MFF utilization is until 30 June 2017. The physical implementation of Tranche 1 and Tranche 2 is expected to be completed by 30 June 2016. The implementation schedule for the projects under the subsequent tranches will be prepared during implementation of Tranche 1.
ADB will provide financing, as and when necessary between 2008 and 2013, for physical and non-physical components of projects (Projects). The proposed allocation of funds is shown below.
1) NEPS 220 kV Transmission Line: Kunduz - Taloqan;
2) NEPS Distribution Network: Kunduz;
3) NEPS Distribution Network: Baghlan;
4) NEPS 220 kV System Operation and Maintenance;
5) Sheberghan Gas Fields Rehabilitation;
6) NEPS 220 kV Transmission Line Replication: Pul-e-Khumri - Chimtala;
7) NEPS 220 kV Chimtala 160 MVA Substation Replication;
8) NEPS 220 kV Transmission Line: Kabul - Gardez;
9) DABS Institutional Capacity Development (MIS/Metering/Billing/Collection);
10) Kabul Distribution Network;
11) Kabul 220 kV Substation;
12) Chimtala to Arghundy 220 kV Transmission Line;
13) Gereshk Hydropower Rehabilitation and supply of transmission and distribution equipment;
14) 500 kV Transmission line from Andkhoy to Sheberghan to Mazar;
15) Substations at Andkhoy, Sheberghan and Mazar; and
16) 500 kV Substation in Arghundy
Each Project will include one or more of the following components of the energy sector, which are described below: (i) feasibility studies and designs; (ii) infrastructure improvements; (iii) infrastructure maintenance; and (iv) human resource development and institutional reform.