Afghanistan: Development of Mini Hydropower Plants in Badakhshan and Bamyan Provinces

The project entails development of upto four mini hydropower plants through cofinancing by Japan Fund for Poverty Reduction. The project will serve remote district centers in Badakhshan and Bamyan provinces on North Eastern and Central Afghanistan -- these provinces are not expected to be supplied by the North East Power System (NEPS) grid in the foreseeable future. The aggregate installed capacity will be around 2 MW (0.5MW x 4).

The Project objective is to improve the quality of life of rural communities in Badakhshan and Bamyan provinces through the provision of electricity services supplied by mini hydropower plants (MHP) with generating capacity below 1,000 kilowatts (kW). The Project outcome will include: (i) provision of affordable and stable electricity, (ii) increase in rural commercial activities from establishment of enterprises using electricity, (iii) increased employment opportunities, (iv) reduction of indoor pollution caused by the use of indigenous sources of energy, and (v) capacity building in small hydropower development.

The Project outputs are the identification, planning, designing, and establishment of a maximum of four off-grid MHPs, each with an installed capacity in the order of magnitude of 500 kW. Target areas are district centers that are not planned for grid connection in the foreseeable future or are being supplied through expensive and unreliable diesel generation. Communities will receive support to establish income-generating activities during the day-time (i.e., off-peak hours).

The MHPs will be operated and maintained by the Afghanistan Electricity Corporation (DABS), the national power utility. To ensure sustainable management, capacity building is integrated as an essential component of the Project. Similarly, the entire project cycle is regarded as an on-the-job training opportunity in which counterpart staff of the Executing Agency, DABS, will be closely engaged in subproject preparation and implementation.

ADB Board has approved the 2009-2013 Afghanistan country partnership strategy [(CPS) 2009-2013] which is fully aligned with key the Afghan National Development Strategy (ANDS) and the National Priority Programs. At the Government request, and congruent with ADB's Medium Term Strategy 2020, ADB assistance to Afghanistan will continue to focus on a limited number of priority sectors that contribute to Afghanistan's economic and social development. This includes Energy (power and gas sub-sectors), including rural electrification, as one of the key areas of ADB's interventions in Afghanistan. In accordance with the CPS, a key development outcome in the power sector to which ADB will contribute is increase in the number of urban and rural households with access to electricity to 65% and 25%, respectively, in the medium term.

ADB remains Afghanistan's largest development partner in Energy Sector with a commitment of approximately $700 million. ADB is assisting through investment projects (loans and grants) in the power supply chain -- generation, transmission, distribution -- to achieve energy security. These projects are underpinned by technical and advisory technical assistance projects to implement sector reforms and strengthen capacity development and governance.

Sustainable and reliable power supply for off-grid consumers

Expanded electrification coverage in Bamyan and Badakhshan provinces

Mini hydropower plants (MHP) with distribution networks installed in Bamyan and Badakhshan provinces

DABS capacity in planning and procurement/contract management enhanced

Local capacities on MHP operations and maintenance developed

The Grant is being cancelled, therefore DABS using detail engineering design and bidding documents prepared under the project may finance construction of MHPs from its own resources or invite a financier.

During the pre-construction phase more than 70 technical staff and engineers from DABS in Kabul and Bamyan and Badakhshan received training on planning and contract management.

Because of the Grant cancellation further trainings on operations and maintenance might be received under other projects (Gereshk for example).

Separate Land Acquisition and Resettlement Plans have been prepared for Tagab, Panjab & Baharak Mini Hydro Power Plants and submitted to ADB for review. The comments of ADB on the 3 LARPs have been communicated back to the consultant to be incorporated and, subsequently, approved by government and ADB for disclosure and implementation. Involuntary Resettlement impact is not significant in these 3 MHPs and thus it is categorized as IR category B subprojects.

No negative effects on indigenous peoples are expected; benefits should accrue evenly to all sections of the population regardless of ethnicity.

Project design consultants fielded in April 2011 and DABS were carrying out an extensive consultation with relevant stakeholders including government agencies, project beneficiaries and affectees, civil socity and international development partners. The design consultants prepared bidding documents for international competitive bidding.