Afghanistan : Energy Sector Development Investment Program - Tranche 4

Project Name

Energy Sector Development Investment Program - Tranche 4

Project Number

42094-052

Country / Economy

• 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)

Source	Amount
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

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 the 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 supply the Kabul region, which is currently facing a supply shortfall.

While the electrification rate has increased from 5% in 2002 to 25% in 2012, AFG continues to place a 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 substations 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 in November 2012 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). Field investigation in the Project areas has not been possible at this initial stage because of severe restrictions due to the security situation. Preparation of the IEE therefore is based on review of available reports of other electricity network development projects in Afghanistan, supplemented with information derived from personnel involved in the Project.

Involuntary Resettlement

ADB will screen all projects to determine whether or not they involve involuntary resettlement. For a project involving involuntary resettlement, a resettlement plan will be prepared that is commensurate with the extent and degree of the impacts. The degree of impacts shall be determined by (i) the scope of physical and economic displacement, and (ii) the vulnerability of the affected persons.

The Project may have some involuntary resettlement impacts that are not significant. LARP is under preparation.

Indigenous Peoples

Impacts on indigenous peoples are not envisaged under the project.

Stakeholder Communication, Participation, and Consultation

During Project Design

Consultation with key stakeholders has been ongoing throughout project development. No public consultation is envisaged so far, as the security risks to both the local community and undertaker.

During Project Implementation

Consultation and information sharing with local communities.

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.

Contact

Responsible ADB Officer

ADB Disclosure

Responsible ADB Department

Sectors Group

Responsible ADB Division

Energy Sector Office (SG-ENE)

Timetable

Concept Clearance

-

Fact Finding

-

MRM

23 Nov 2012

Approval

18 Dec 2012

Last Review Mission

-

Last PDS Update

24 Sep 2018

Funding

Grant 0332-AFG