Afghanistan: MFF - Energy Sector Development Investment Program - Tranche 2

Sovereign Project | 42094-032

ADB is helping Afghanistan upgrade energy facilities and strengthen the institutional capacity of power utility, Da Afghanistan Breshna Sherkat (DABS). The project will expand transmission coverage from Chimtala to South-West Kabul, develop the Kabul Distribution Network in Darchi-e-Bashi, and improve system planning and project management at DABS.

Project Name MFF - Energy Sector Development Investment Program - Tranche 2
Project Number 42094-032
Country / Economy Afghanistan
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0184-AFG: MFF - Energy Sector Development Investment Program - Tranche 2
Asian Development Fund US$ 81.50 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution - Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements

The project provides electric grid connectivity through provision of a new 220kV/20 kV substation and 40,000 new power distribution connections to Dashte Barchi area of South West Kabul. The project provides about 230 kilometers of double circuit 200 kV transmission line from Chimtala S/S to the new Kabul South S/S (with 2x40 MVA transformers) which will form part of the national grid connecting NEPS to SEPS. It is expected that 65 km of medium voltage (20kV) and 500 km of low voltage (0.4kV) overhead distribution lines will be used.

The Project will assist rehabilitation and expansion of power transmission and power distribution system in Kabul. The city of Kabul has witnessed exponential growth in power demand (some 25% each year) and there is a critical need to expand power infrastructure to utilize imported and indigenous power flowing into Kabul. The project will also provide capacity support to the power utility -- Da Afghanistan Breshna Sherkat (DABS).

Project Rationale and Linkage to Country/Regional Strategy

The project is part of the least cost expansion program for providing transmission and distribution of electric power to the cities under the power system master plan. The project provides electricity to a large part of south-west Kabul which is not part of the national grid and which can immediately benefit from the available full-time electricity supply to the region at a low price. The transmission line to be provided under the project is part of the national grid connecting the NEPS to the SEPS. The project will provide efficient and reliable electric power for which a minimal increase in tariffs has been considered to recover part of the cost. In addition to connecting a large number of residential customers, the project will also greatly increase electricity access to important service institutions and government offices in the project coverage area consisting of 50 schools and clinics, three hospitals and one military base and several government offices. Other customers who are already connected through one of the three existing junction S/S in the project area which are acutely overloaded could also benefit from the project in terms of increased availability of power.

The Government requested ADB to finance infrastructure rehabilitation and expansion of the Kabul distribution system and capacity development of Da Afghanistan Breshna Sherkat (Afghan Power Utility) DABS under the project. Urgent rehabilitation and expansion of Kabul distribution network is needed to provide power coming from NEPS to more than 60,000 households. In parallel, there is a critical need to strengthen capacity of DABS for operate and maintain the network.

Impact Sustainable and reliable grid connected power supply in Kabul.
Project Outcome
Description of Outcome Expanded power sector services and stable power supplies in Kabul
Progress Toward Outcome The Transmission Line and Distribution Network components of the Tranche are completed 100%. The saving from the components are being allocated to cover the shortfall under the 220/20kv substation package. Households in Dasht-e-Bakhchi district of Kabul were connected to city distribution network, access to stable and reliable electricity improved from May 2018.
Implementation Progress
Description of Project Outputs

Transmission coverage expanded from Chimtala to South West Kabul

Kabul Distribution Network in Darchi-e-Bashi (South West Kabul) developed

Improved system planning and project management capacities in DABS

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

Contract was awarded to KEC International India in June 2013 and construction of 30km of 220kv transmission line has been completed in Q3 2017.

The originally proposed location of the sub-station could have a significant resettlement impact therefore a new site (9km south from the original location) was proposed and approved. ADB approved awarding an EPC contract for construction of 220/20kV Arghundi substation to Siemens Pakistan. The Contract Time for Completion is 24 months starting from effectiveness, 28 June 2016.

DABS committed to provide required co-financing to cover the shortfall under the Contract.

Due to cost overruns in the three turnkey contracts, DABS requested ADB to cancel remaining subprojects (i) DABS senior management assistance, and (ii) support for distribution planning and revolving fund, as these jobs are being funded by the United States Government.

The Contract was awarded to FEKA (Turkey) on 7 October 2013. The design works commenced in March 2014 and construction/installation is 100% completed and handed over to EA in March 2018.

Geographical Location Dasht-e Barchi, Kabul, Kabul
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Tranche 2 has been categorized as category B in terms of its negative environmental impacts. An updated Initial Environmental Examination (IEE) report was prepared for the transmission line from Chmitalla Dashti Barchi and was sent for review to ADB. The consultant informed that the transmission line alignment was changed in one part of the route after the finalization of the IEE. Therefore, a revised IEE covering the change in route will need to be prepared by the consultant and submitted to ADB for review and approval.

The Environmental Management Plan (EMP) of the draft IEE was incorporated in the bidding documents during procurement of the civil works contractor.

After the revision, the IEE will be translated into local languages and will be made available for reference in the project site.

Environmental Monitoring Reports (EMRs) will need to be submitted to ADB twice annually during the construction period, including progress made on application of mitigation measures, monitoring data, problems encountered, grievances redressed and resolved, enforcement plan, and any violations.

The contractors will update the IEE for turnkey contracts during detailed design stage and prepare project specific environmental management and monitoring plans. The contractors will not be able to start construction until the environmental management and monitoring plans have been approved by the implementation consultants. The implementation consultants will support the PMO in monitoring the implementation of the environmental monitoring and management team. An external monitor will be engaged to perform environmental audits twice a year and prepare safeguard compliance reports.

DABS will ensure that (i) the Tranche 2 project is designed, constructed, and operated in accordance with national and local environmental procedures and guidelines and with ADB's Environment Policy (2002); (ii) the Tranche 2 project is designed, constructed, and operated in accordance with the EMPs as reflected in the IEEs and EAR framework; (iii) the environmental management and monitoring plan will be incorporated in bidding documents and civil work contracts and implemented; and (iv) environmental performance reports will be submitted to ADB twice annually during the construction period, including progress made on the mitigation measures, monitoring data, problems encountered, enforcement plan, and any


The IEEs have been translated into the local Dari language and submitted to the National Environmental Protection Agency (NEPA) for their approval. Detailed design work and construction will not begin until NEPA approvals are issued. This will ensure that any conditions included in the NEPA approvals are included in the design and implemented during construction.

Environmental performance reports will be submitted to ADB twice annually during the construction period, including progress made on the mitigation measures, monitoring data, problems encountered, enforcement plan, and any violations.

Involuntary Resettlement The Land Acquisition and Resettlement Plans (LARP) are being updated for all 3 turnkey projects, upon completion of detailed design by the contractors. Based on the final design, the affected persons have been compensated. No civil works are allowed to be initiated until and unless the revised LARPs are fully implemented and affected person are duly compensated.
Indigenous Peoples Tranche 2 does not affect any indigenous peoples defined as such in ADB's Policy on Indigenous Peoples (1998). Kabul is a multi-ethnic and multi culture city where most of its residents are the Tajiks, Hazaras, Pashtuns, and small numbers of Kuchi, Uzbeks, Turkmens, Hindu or Baloch. These groups do not differ in their power consumption or need, all will benefit from the Project.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with key stakeholders at both central and local government level were held including focus groups with beneficiaries and in-depth interviews with community leaders, school principals, hospital directors and local enterprise managers. Household surveys will be implemented covering 2500 families in district 5, 6, 13. 14 and 17 of Kabul City. A particular focus of the social surveys will be on data concerning vulnerable population groups, especially the poor and femaleheaded households. In addition, interviews will be conducted with the leaders in Community Development Councils (CDC) and local leaders who are key players in disseminating information to the community about the sub-projects. Household surveys will be implemented during implementation stage.
During Project Implementation Information sharing and inclusive consultative process will be effected during implementation. Upon fielding of the contrators for the three physical components under the project, the project desgn and supervision consultants will undertake consultative process of dialogue and update requiste documentation (environment management plans and land acquisition and resettlement frameworks). This documentation will be approved by relevant government authorities and endorsed by ADB. Only upon satisfactory implementation of social safeguards and environmental aspects related to 3 sub-projects, the contractor will be mobilized to undertake construction work.
Business Opportunities
Consulting Services

Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). As managing progress, quality, cost, and safety of projects in Afghanistan is widely recognized as a difficult task, quality-based selection (QBS) method will generally be used to attract interest from qualified firms.

Single source selection (SSS) is proposed for recruiting Tranche 2 supervision consultants. Since Tranche 2 is a continuation of Tranche 1 under the same MFF, SSS of Tranche 1 supervision consultants is judged to be the most efficient and economical option. Adopting SSS will result in reducing experts' inputs by 33 person-months through the removal of redundancies inherent in mobilizing two teams. In addition, significant savings can be made on fixed costs such as for office running costs, accommodation, armored vehicles and security. Gross savings through SSS is estimated at $1.9 million.The quality-based selection method will be used to engage consulting firms for three packages (DABS management assistance, establishing of the revolving fund, and distribution planning).

Procurement Procurement of works and goods to be financed under PFR 2 will be undertaken in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) will generally be used for supply contracts estimated to cost more than $500,000 and for works contracts that cost more than $2 million. National competitive bidding (NCB) will be used for goods and works above $100,000 and below their ICB thresholds. Shopping will be used for goods and works equal to or below $100,000.
Responsible ADB Officer ADB Disclosure
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Concept Clearance -
Fact Finding -
MRM 06 Mar 2009
Approval 03 Dec 2009
Last Review Mission -
PDS Creation Date 08 Jan 2010
Last PDS Update 23 Aug 2018

Grant 0184-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2009 21 Jan 2010 22 Feb 2010 30 Jun 2014 28 Nov 2018 30 Sep 2019
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 86.50 Cumulative Contract Awards
ADB 81.50 17 Jun 2022 81.45 0.00 100%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 81.45 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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