42094-032: MFF - Energy Sector Development Investment Program - Tranche 2 | Asian Development Bank

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

Sovereign (Public) 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.

 
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
concessional ordinary capital resources lending / 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
Description

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 Maamar International in 2011, which with some delays related of letter of credit effectivity and approval by the government, supplied the equipment in 2012/13. 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 100% complete and completion certificate has been issued. (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 99% of the works have been completed and project physical handover to DABS is expect in Q4 2017 and; (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 60% completion rate and 90% equipment has been purchased and delivered to site, and the substation is expected to be commissioned by end Q2 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, Byucksan 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 (G-0280), T4 (G-0332) and T5 (G-0377). 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, DABS will be formally requesting ADB to cancel remaining sub-projects (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.

Contract was awarded to KEC International in June 2013 and construction works has been completed.

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 within 24 months after its effectiveness in May 2015. This is the last remaining sub-project under the Tranche. DABS committed to provide required co-financing to cover the shortfall.

The Contract was awarded to FEKA (Turkey) on 7 October 2013. The design works commenced in March 2014 and 99% of construction/installation has been completed and the project handover is expected in early Q4 2017.

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 is 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 and posted on website.

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 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
Timetable
Concept Clearance -
Fact Finding -
MRM 06 Mar 2009
Approval 03 Dec 2009
Last Review Mission -
PDS Creation Date 08 Jan 2010
Last PDS Update 28 Sep 2017

Grant 0184-AFG

Milestones
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 81.54 0.00 100%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 03 Dec 2009 74.85 0.00 92%

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.

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 2016) Social Monitoring Reports Feb 2017
Energy Sector Development Investment Program - Tranche 2: Chimtala-Arghandi 220 kV Double Distribution Network Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Dec 2016
Energy Sector Development Investment Program - Tranche 2: Kabul Southwest (Arghandi) 20/0.4 kV Distribution Network Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Dec 2016
Energy Sector Development Investment Program - Tranche 1: Kunduz and Baghlan 20kV Distribution Network Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Dec 2016
Energy Sector Development Investment Program - Tranche 2: Chimtala-Arghandi 220 kV DC Transmission Line - Social Monitoring Report (January-June 2016) Social Monitoring Reports Nov 2016
Energy Sector Development Investment Program - Tranche 1: Sheberghan Gas Fields Rehabilitation Environmental Monitoring Report (October 2016) Environmental Monitoring Reports Oct 2016
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: Kunduz-Taloqan 220 kV DC Transmission Line Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2015
Energy Sector Development Investment Program - Tranche 1: Kunduz-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

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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Energy Sector Development Program - Project 2 Procurement Plans Jun 2013