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

Sovereign Project | 42094-032 Status: Active


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.

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Procurement Documents

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Project Name MFF - Energy Sector Development Investment Program - Tranche 2
Project Number 42094-032
Country Afghanistan
Project Status Active
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

There are four subprojects included under tranche 2. Following is the update on portfolio issues and implementation progress:

(i) Supply of Distribution Transformers ($2.2 million) The subproject comprised supply of 100 distribution transformers to DABS. The contract was awarded to Maamaar International in 2011, which with some delays related of letter of credit effectivity and approval by the government, supplied the equipment in early 2013. The contract is 100% completed and was closed in 2013.

(ii) Chimtala-Arghundy Transmission Line ($19.63 million) The subproject comprised construction of 30 kms of 220-kV transmission line from Chimtala substation in northern Kabul to Arghundy substation in south-western Kabul, thereby extending grid to southern and eastern provinces in Afghanistan. The contract was awarded in May 2013 to KEC International. The subproject is 95% complete, and requires installation of two more towers to conclude interconnection with Chimtala substation. However, the work is held up due to land acquisition and resettlement issue, as the government land has been grabbed by the local warlord, who refuses to vacate and sell. The matter has now been taken up with the Office of the Afghan President and an amicable solution is expected by 30 September 2016. All LAR costs are to be funded by the government.

(iii) Kabul South West (Arghundy) Distribution Network ($48.27 million). The subproject comprises commissioning of nearly 40,000 new distribution connections in south-west part of Kabul. The contract was awarded in September 2013 to FEKA Construction. After start up delays, the project implementation is ongoing with no major issues. Nearly 70% of the works have been completed. However without the completion of transmission line (i) and substation (iii), the project cannot be commissioned and energized. There is a need to extend contractor's contract by few more months to achieve the stipulated outputs of the tranche.

(iv) Arghundy 220/20-kV Substation ($20.4 million). The subproject comprises construction of 220/20-kV new substation at Arghundy in south west Kabul. The project site is a major junction of power transmission routes to south-eastern provinces and to southern provinces in Afghanistan, under construction and financed by the US Government, ADB and the government. The substation contract was awarded in September 2015 to Siemens. The contractor has initiated the overall works with 10% completion rate and 50% equipment has been purchased and delivered to site, and the substation is expected to be commissioned by end 2017.

The tranche closing date has been extended through till 30 June 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)

ADB financed consultants SMEC International, Hill International and Fichtner GmbH are working closely with DABS to design, implement and supervise sub-projects under tranches 1 (G-0134) T2 (G-0184), T3, T4 and JFPR 9128. Meanwhile, USAID, ADB and WB have parallel programs complementing efforts towards capacity building and institutional strengthening of DABS in particular and energy sector in general.

Due to cost overruns in the 3 physical subprojects under the tranche, ADB has approved DABS' request to cancel remaining non-physical sub-projects (i) DABS senior management assistance, and (ii) support for distribution planning and revolving fund, as these subprojects are being funded by the United States Government and the World Bank.

Contract was awarded to KEC International in June 2013 and construction works are expected to be completed by end Q4 2016.

The originally proposed location of the sub-station could have a significant resettlement impact therefore a new site (9 kms south from the original location) was proposed and approved. ADB approved awarding an EPC contract for construction of 220/20kV Arghundi substation to Seimens Pakistan. Contract is expected to be completed by June 2017, within 24 months after its effectiveness in May 2015.

The Contract was awarded to FEKA (Turkey) on 7 October 2013. The design works commenced in March 2014 and construction/installation expected to be completed by Q3 2017.

Geographical Location Dashi-e-Barchi, Kabul,Chimtala, Kabul,South West, 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 for the three turnkey projects is updated biannually and disclosed. The Projects have no adverse environmental impact.

Environmental Monitoring Reports (EMRs) are submitted to ADB for all turnkey contracts twice a year.

Involuntary Resettlement The Land Acquisition and Resettlement Plans (LARP) have ben updated for all 3 turnkey project, 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 will 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 Staff

Responsible ADB Officer Aleem, Asad
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Da Afghanistan Breshna Sherkat
Dr. Jalil P. Shams
[email protected]
Near Kabul Nandari, Kabul, Afghanistan


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 Sep 2016

Grant 0184-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2009 21 Jan 2010 22 Feb 2010 30 Jun 2014 30 Jun 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 86.50 Cumulative Contract Awards
ADB 81.50 03 Dec 2009 80.85 0.00 99%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 03 Dec 2009 59.81 0.00 73%

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.

Title Document Type Document Date
Energy Sector Development Investment Program - Tranche 2: Chimtala-Arghandi 220 kV DC Transmission Line - Social Monitoring Report (July-December 2015) Social Monitoring Reports Mar 2016
ESDIP (Tranche 2) - Kabul Southwest (Arghandi) 20/0.4 kV Distribution Project: Initial Environmental Examination Initial Environmental Examination Feb 2016
Energy Sector Development Investment Program - Tranche 1: Kuduz-Taloqan 220 kV DC Transmission Line Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2015
Energy Sector Development Investment Program - Tranche 1: Kuduz-Taloqan 220 kV DC Transmission Line Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Dec 2015
Energy Sector Development Investment Program - Tranche 2: Chimtala-Arghandi 220 kV DC Transmission Line - Social Monitoring Report (January-June 2015) Social Monitoring Reports Sep 2015
ESDIP - Tranche 2: Chimtala-Arghandi Transmission Line Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Aug 2015
Energy Sector Development Investment Program - Tranche 2: Chimtalla-Arghandi 220kV Transmission Line Project Resettlement Plan Resettlement Plans Apr 2015
Energy Sector Development Investment Program - Tranche 2: Chimtala-Arghandi 220kV Double Circuit Transmission Line Project Biannual Environmental and Social Monitoring Report (July-December 2014) Environmental and Social Monitoring Reports Apr 2015
ESDIP (Tranche 2) - Chimtala SS to Kabul Southwest SS (Arghandi) 220kV D/C Transmission Line Project: Initial Environmental Examination Initial Environmental Examination Sep 2014
Multitranche Financing Facility for the Energy Sector Development Program Proposed Project 2: Kabul Distribution and Transmission Rehabilitation and Expansion Resettlement Plans Sep 2009

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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