42094-052: Energy Sector Development Investment Program - Tranche 4 | Asian Development Bank

Afghanistan: Energy Sector Development Investment Program - Tranche 4

Sovereign (Public) Project | 42094-052 Status: Active
Project Name Energy Sector Development Investment Program - Tranche 4
Project Number 42094-052
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0332-AFG: MFF - Energy Sector Development Investment Program Project 4 (formerly MFF - Energy Development Project Tranche 4)
concessional ordinary capital resources lending / Asian Development Fund US$ 200.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Energy / Renewable energy generation - small hydro

Gender Equity and Mainstreaming No gender elements

The sub-projects, collectively the Project, under this Tranche 4 include (i) an electricity transmission sub-project in the North West Afghanistan to extend the network and connect to the Turkmenistan (TKM) system, and (ii) an electricity distribution sub-project to extend the distribution network south east of Kabul. The transmission sub-project will include a 500kV transmission line from the TKM border to Andkhoy and from Andkhoy to Sheberghan and a 220kV transmission line from Sheberghan to Mazar-e-Sharif. The 220kV substations will be constructed at Andkhoy and Sheberghan and the existing 220kV substation at Mazar-e-Sharif will be expanded.

The distribution sub-project will include 20kV lines and 220/20 kV substations and low voltage network at Pul-e-Alam (Logar) and Gardez (Paktia).

Project Rationale and Linkage to Country/Regional Strategy

The transmission subproject will allow TKM to supply electricity to North-West AFG where demand is estimated at 210 megawatts (MW) requiring 1,000 megawatt-hour (MWh) by 2020 to supply 120,000 households, and at 330 MW requiring 1,750 gigawatt-hour (GWh) by 2030 to supply 145,000 households. It will also allow Uzbekistan (UZB) imports, to be used to supply the Kabul region, which is currently facing a supply shortfall.

While electrification rate has increased from 5% in 2002 to 25% in 2012, AFG continues to place high priority on further increasing electrification. The distribution subproject meets this aim and is coordinated with related projects financed by the United States Government. The related project will extend the 220 kV network to Pul-e-Alam and Gardez where 220/20 kV substations will be constructed. The distribution subproject proposed under Tranche 4 will construct 20 kV and low voltage networks to be supplied from Pul-e-Alam and Gardez substation and bring electricity supply to 20,000 new households.

Impact Increased regional power trade and energy supplies in Afghanistan
Project Outcome
Description of Outcome Reliable power supplies to all grid connected customers
Progress Toward Outcome The consulting contract for implementation supervision was awarded in Q2 2015. Two turnkey contract packages (i) 500 kV S/C OHL and (ii) 220/110/20kV Substations were awarded to Gammon India Limited and Siemens Consortium, respectively. All three lots for the distribution component has been awarded and contracts were signed on 28 January 2017.
Implementation Progress
Description of Project Outputs

Commissioning of 108 kms 500 kV transmission line from AFG/TKM border to Andkhoy to Sheberghan

Commissioning of 142 kms 220 line from Sheberghan to Mazar-e-Sharif

Commissioning of 220/20 kV substations at Andkhoy and Sheberghan and expansion of 220 kV substation at Mazar-e- Sharif

Commissioning of 13,000 new power connections at Pul-e-Alam, 13,000 new power connections in Gardez city, Wazay Zadran (5,000 connections), and Khost (13,000 connections)

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

For the Transmission line and distribution packages*, remedial plans are prepared so that targets can be achieved before the grant closing date in September by PMO DABS together with the contractors, upon ADB's advice during the grant review mission in July 2017.

*500kV Transmission line, 220kV Transmission line, and 44,000 new connections.

Geographical Location Andkhoy, Gardez, Mazar-e Sharif, Pul-e 'Alam, Shibirghan
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An IEE report for the Project has been prepared and posted in accordance with ADB Guidelines and ADB Safeguard Policy Statement, June 2009, Laws on the protection of nature of the Government of Afghanistan, discussions with the MEW and National Environmental Protection Agency (NEPA). The IEE will be updated during Project implementation based on contractor's detailed designs. The Environmental Monitoring Reports will be submitted to ADB on an semiannual basis.

The quality of the consultant's Environmental Monitoring Reports have been below acceptable standards. PMO DABS requested the consultant to replace the responsible environmental expert with a more qualified expert.

Involuntary Resettlement The Project may have some involuntary resettlement impacts that are not significant. A draft LARP for the transmission line (Andkhoy to Mazar-i-Sharif) was prepared in October 2012. Upon detailed design by the turnkey contractors, the LARPs will be updated. No civil works will be initiated until and unless all affected persons have been duly compensated and all LARPS fully implemented.
Indigenous Peoples Impacts on indigenous peoples are not envisaged under the project.
Stakeholder Communication, Participation, and Consultation
During Project Design The security situation during project processing made it difficult to undertake effective community consultation without compromising the safety of staff and consultants. No public consultation were carried out at this stage.
During Project Implementation Necessary public consultation are being conducted on-site by the Program Management Office of DABS with assistance from the implementation consultant prior to commencement of construction and will be reported to ADB in due course. The project impacts are not considered significant. As the project develops and if particular risks or impacts to the local community are identified; then a community relation plan and grievance mechanism will be developed.
Business Opportunities
Consulting Services

1. Program Management and Implementation Consultants - Quality-Based Selection using Full Technical Proposal

2. External Auditor - Single Source Selection

SMEC was recruited as a program management and implementation consultant in February 2015.


1. 500 kV Transmission Line (100 kms approx) from AFG/TKM border to Sheberghan and 220 kV Transmission Line (142 kms approx) between Sheberghan and Mazar Sharif - ICB Turnkey

2. 220/20 kV substations at Andkhoy and Sheberghan and expansion of 220kv substation at Mazar Sharif - ICB Turnkey

3. 220/20 kv Distribution Networks 20 kV Distribution Networks:

Lot 1: Pul-e-Alam(13,000 connections), Lot 2: Gardez (13,000 connections) and Wazay Zadran (5,000

connections); Lot 3:Khost (13,000 connections)- ICB Turnkey

All EPC contracts were awarded.

Responsible ADB Officer Sakai, Atsumasa
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Da Afghanistan Breshna Sherkat
[email protected]
Chaman Houzouri, Kabul, Islamic Republic
of Afghanistan
Concept Clearance -
Fact Finding -
MRM 23 Nov 2012
Approval 18 Dec 2012
Last Review Mission -
Last PDS Update 28 Sep 2017

Grant 0332-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 07 Mar 2013 05 Jun 2013 30 Jun 2017 28 Nov 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 203.00 Cumulative Contract Awards
ADB 200.00 18 Dec 2012 156.30 0.00 78%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 27.64 0.00 14%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

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Contracts Awarded

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Procurement Plan