Afghanistan: Energy Sector Development Investment Program - Tranche 4

Sovereign Project | 42094-052

ADB is helping Afghanistan upgrade its energy infrastructure to improve supply and increase regional power trade. The project will install transmission lines to expand the network in North-West Afghanistan and to connect to the Turkmenistan system. It will also extend the distribution network southeast of Kabul, the capital.

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)
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
Description

The sub-projects, collectively the Project, under this Tranche 4 include (i) an electricity transmission sub-project in North-West Afghanistan to extend the network and connect to the Turkmenistan (TKM) system to AFG grid, and (ii) an electricity distribution sub-project to extend the distribution network in the southeast of Kabul. The transmission sub-project will include a 500kV transmission line from the TKM border (Aqena) to Sheberghan and a 220 kV transmission line from Sheberghan to Mazar-e-Sharif. The 220/20 kV substations will be constructed at Andkhoy and Sheberghan, and existing 220/20 kV substation at Mazar-e-Sharif will be expanded.

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

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-hours (MWh) by 2020 to supply 120,000 households, and at 330 MW requiring 1,750 gigawatt-hours (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

EPC contract for 220/20 kV sub-stations at Mazar-e-Sharif and Sheberghan was awarded to Siemens Consortium in Q4 2015.

The distribution network contracts are unlikely to be completed by grant closing date. ADB requested the Government for their best effort to complete the works as much as possible before grant closing.

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)

Target is unlikely achievable by closing date.

Target is unlikely achievable by closing date.

Target is unlikely achievable by closing date.

Target is unlikely achievable by closing date.

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 IEE for the distribution network projects have been submitted to ADB in July 2018.

The Environmental Monitoring Reports will be submitted to ADB on an semi-annual basis.

The quality of the consultant's Environmental Monitoring Reports have been below acceptable standards.

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.

The updated LARP for the transmission line project (220 kV D/C OHL Sheberghan-Mazar-E-Sharif) was disclosed in March 2018.

The Resettlement due Diligence Report for the substation project (New Andkhoy 220/110/20 KV Substation) was disclosed in February 2018.

The LARP for the transmission line project (Aquina-Shabergan 500 kV Single Circuit Transmission) was disclosed in January 2018.

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.

Procurement

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 ADB Disclosure
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Timetable
Concept Clearance -
Fact Finding -
MRM 23 Nov 2012
Approval 18 Dec 2012
Last Review Mission -
Last PDS Update 24 Sep 2018

Grant 0332-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 07 Mar 2013 05 Jun 2013 30 Jun 2017 28 Nov 2020 -
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 Nov 2021 193.25 0.00 98%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2021 189.94 0.00 96%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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