Afghanistan: Energy Sector Development Investment Program - Tranche 5

Sovereign Project | 42094-075

ADB is helping Afghanistan improve power supply in the northern, eastern, and southern parts of the country. The project will build a 500-kV/220-kV substation at Dashte Alwan, which will connect to a 500-kV transmission line crossing the Hindukush mountains via the Salang Pass route. This will add 1,000 megawatts to the system and allow power imports from Tajikistan, Turkmenistan, and Uzbekistan.

Project Name Energy Sector Development Investment Program - Tranche 5
Project Number 42094-075
Country / Economy Afghanistan
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0377-AFG: Energy Sector Development Investment Program - Tranche 5
Asian Development Fund US$ 49.10 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The project consists of construction and commissioning of a 500-kV/220-kV substation at Dashte Alwan (near Pul-e-Khumri in Baghlan province in northern Afghanistan) to connect to a 500-kV transmission line traversing the Hindukush mountains via the Salang Pass route. The project will augment the existing 300-MW transmission capacity between northern and southern Afghanistan by an additional 1,000 MW, to initally allow indigenous generation, as well as power import from Tajikistan, Turkmenistan, and Uzbekistan to supply Afghanistan's domestic needs.
Project Rationale and Linkage to Country/Regional Strategy

The project is related to another ADB-assisted power project, the North-South Power Transmission Enhancement Project, which will construct a (i) 225-km 500-kV transmission line from north to south Afghanistan, and (ii) 500-kV substation at the southern end of this 500-kV line in south west Kabul.

The project is identified in Afghanistan power master plan (2012-32) and in the Afghanistan National Energy Supply Program as the link most needed to meet the country's future power needs.


Better and cost-effective power supply to all customers

Project Outcome
Description of Outcome

Sustainable power supply in northern, eastern and southern Afghanistan

Progress Toward Outcome The EPC contract has been awarded in December 2015. The mobilization advance was only approved by the National Procurement Commission of the Government of Afghanistan in early May 2016 and mobilization advance was disburse on 21 June 2016. Contractor has been fielded in August 2016 and the work progress is on track at the project site.
Implementation Progress
Description of Project Outputs

Commissioning of a 500-kV substation at Dasht-e-Alwan

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

Target achievable by the revised closing date (28 Nov. 2018).

Geographical Location Pul-e Khumri
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental categorization of the project is B in accordance with ADB''s Safeguard Policy Statement (SPS 2009). An IEE was prepared and disclosed on ADB's website on 22 August 2013 in accordance with SPS. The draft LARP was disclosed on the ADB website on 22 August 2013. The IEE and environment monitoring plan will be updated prior to construction activity. The substation site has low environmental sensitivities with no significant environmental impacts expected during construction and operation phases. The environmental management plan has been prepared as part of the IEE to ensure that adequate resources are allocated to handle the environmental impacts. PMO staff is involved in similar projects financed by ADB and they have sufficient capacity to manage the environmental safeguards. Environmental specialists of the implementation consultants will also provide support to the PMO. The Environmental Management Plan will be updated and posted on ADB's website semiannually.
Involuntary Resettlement The project is category B for involuntary resettlement safeguard. A LARP has been prepared based on project design, in close consultation with affected farming community, and disclosed on ADB's website on 22 August 2013. A socioeconomic survey was carried out in June 2013.
Indigenous Peoples The project is categorized C for indigenous peoples safeguard. The field social survey found no ethnic minority, as described in SPS 2009, involved or affected by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design The project has limited scope for stakeholder engagement since it involves construction of upstream power sector infrastructure. Information sharing will relate to the siting of infrastructure in relation to land acquisition.
During Project Implementation Consultations with all stakeholders will be undertaken during implementation and construction works. A process and modality for such consultative process of dialogue is already institutionalized under the earlier 4 tranches of the MFF. The land acquisition and resettlement plans and environment management plans will be updated in requisite intervals.
Business Opportunities
Consulting Services

The PMO established in DABS under previous tranches will be responsible for project implementation. An implementation consultant will be recruited to assist the PMO. Consultants will be engaged in accordance with the Guidelines on the Use of Consultants by ADB and Its Borrowers (2013, as amended from time to time). Implementation consultant will be recruited using the quality- and cost-based selection method. Least-cost selection will be used for auditing services.

Byucksan Power Co. Ltd. was recruited as an implementation consultant in February 2015.


Procurement of works and goods to be financed under the project will be undertaken in accordance with ADB''s Procurement Guidelines (2013, as amended from time to time). International competitive bidding will be used for the turnkey contract 500-kV substations package.

The EPC contract was awarded to KEC International Ltd. in December 2015.

Responsible ADB Officer ADB Disclosure
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Concept Clearance -
Fact Finding -
MRM 11 Sep 2013
Approval 04 Dec 2013
Last Review Mission -
Last PDS Update 24 Sep 2018

Grant 0377-AFG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2013 14 Dec 2013 10 Mar 2014 30 Jun 2017 28 May 2020 06 Jun 2020
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 53.00 Cumulative Contract Awards
ADB 49.10 24 Sep 2018 49.10 0.00 100%
Counterpart 3.90 Cumulative Disbursements
Cofinancing 0.00 24 Sep 2018 49.10 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - -

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