The Asian Development Bank is working with Afghanistan to strengthen its energy security through improved infrastructure and development of new power sources. The program is supporting investments in new transmission lines and distribution networks, renewable energy projects, and domestic gas well upgrades to expand power output, diversify production, and increase cross border energy exchanges.
|Project Name||Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
|Sector / Subsector||
Energy - Electricity transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
The MFF will reinforce ongoing projects and finance new investments to boost energy trade and regional cooperation, strengthen the country's energy infrastructure, increase energy supply to accelerate electrification rate, and improve operational efficiency in the sector. In power, generation (renewable energy), transmission (regional and domestic lines), and distribution (on- and off-grid networks) projects are proposed; while wells rehabilitation is planned in gas.
The impact of the MFF will be improved access to sustainable energy supplies across Afghanistan. The outcome will be increased supply of imported and indigenous power.
|Project Rationale and Linkage to Country/Regional Strategy||After security, access to energy is the highest priority of households and businesses in Afghanistan. Energy demand has grown by almost twice the economic growth rate during 2005-2012. Afghanistan is among the lowest 5% in per capita energy consumption globally and is a net energy importer. In 2014, more than 80% (1,000 megawatts [MW]) of its total power supply (1,247 MW) came from Iran (16.2%), Tajikistan (25%), Turkmenistan (12%), and Uzbekistan (27%), with the rest generated through indigenous hydropower and thermal sources. Lack of domestic generation remains the key challenge for energy security in Afghanistan. Lack of energy supplies and the demand-supply imbalance constrain growth and income opportunities; create disparities in economic development; and fuel ethnic and regional tensions, insecurity, and discontent. Despite significant potential for renewable energy and fossil fuel reserves, these have not been developed because of financing constraints.|
|Impact||improved access to sustainable energy supplies across Afghanistan, aligned with the targets of the National Energy Supply Program of the Government of Afghanistan.|
|Description of Outcome||increased supply of imported and indigenous power.|
|Progress Toward Outcome||All targets under the MFF Program are achievable by due dates.|
|Description of Project Outputs||
New 500 kV and 220 kV power transmission lines, power distribution networks, and high-voltage, direct-current, back-to-back convertor commissioned
renewable energy projects constructed
domestic gas production and imported volume of natural gas from TAPI gas pipeline increased
project preparation and management capacity of energy ministries and agencies improved
DABS business plan, and tariff model and framework developed.
|Status of Implementation Progress (Outputs, Activities, and Issues)||Projects under Tranche 1 (G-0464/0465) and Tranche 2 (G-0521/0522/0523) are under procurement. Contracts will be awarded in Q3 2017 and works will be initiated from Q4 2017.|
|Geographical Location||North, East and Western part of Afghanistan|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified category B for environment. DABS prepares an initial environmental examination (IIE) report, including an environmental management plan (EMP) in accordance with ADB's Safeguard Policy Statement (2009). The environmental impacts anticipated during the construction are envisaged to be site-specific and temporary and can be mitigated through implementation of the EMP. Potential environmental impacts of the project during operations include fragmentation of the bird habitats and the electrocution or injury of birds through collision and contact with wires. The EMP mitigation measures will be developed after thorough consultations and careful routing of the transmission line to be undertaken during detailed design, specially designed poles, conductors, and insulators; and the provision of bird diverters. The draft initial environmental examination report was disclosed on the ADB's website in Q4 2015. The current security situation along the line route has made it difficult to consult effectively with communities. The public consultations will be conducted and the IIE and EMP updated prior to construction. Implementation of the EMP will be reported through environmental monitoring reports, which will be submitted to ADB semiannually. Environmental specialists of the implementation consultant will provide additional support to the PMO.|
The project is category B for involuntary resettlement. Based on the preliminary project design, a land acquisition and resettlement plan (LARP) has been prepared in close consultation with affected households and disclosed on ADB's website during Q4 2015, in accordance with ADB's Safeguard Policy Statement. A detailed socioeconomic survey will be carried out in Q4 2015. Once the contractor completes the detailed design, DABS will update the LARP and submit it to ADB for approval. No civil works will start until the LARP is fully implemented by DABS. The transmission line will run mainly through government land along the existing 220-kV transmission line. The substation site is owned by the government.
Implementation of the LARP will be monitored semiannually and a report will be submitted to ADB. The report will include the number of affected households that have been paid compensation, the amount paid, and the locations where compensation was completed and structures demolished, if any.
|Indigenous Peoples||The project is category C for indigenous peoples. The field social survey found that no ethnic minority, as defined by ADB's Safeguard Policy Statement (2009), will be involved in or affected by the project.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The project design, implementation and supervision consultants undertook a comprehensive analysis and stakeholders consultations (in accordance with ADB's Social Safeguard Policy) to factor in all land acquisition, resettlement and environmental considerations into projects design. The engagements was also taken through Interministerial Commission for Energy (ICE) in 2015.|
|During Project Implementation||Consultation and information sharing with local communities is being made. Necessary social safeguards and environmental analyses will be undertaken and updated once the design work is initiated for sub-projects. Relevant documentation will be approved by ADB experts before contractor could be mobilized to begin construction activities at project sites.|
Project implementation consultants (firms) will be recruited to assist the PMO of the DABS and the MEW. The consultants' tasks will include: (i) supervision of project implementation; (ii) training for DABS and MEW. This will be under DABS' responsibility and recruited by DABS.
Consultants will be selected and engaged in accordance with the Consultant Guidelines, as amended from time to time. Quality-and Cost-based selection method (QCBS) with 90:10 weightage will generally be used to attract more interest of qualified firms, considering volatile security situation in the country. Controlling progress, quality, cost and safety of construction works in Afghanistan is widely recognized to be an extremely difficult task. As the performance of the consultant has a significant impact on the quality of the output and further entails downstream impacts to the community, environment and project sustainability, the quality of the consulting services is prioritized over cost.
The turnkey contracts for Energy Supply Improvement Investment Program include: (i) 500 kV transmission line from Sheberghan to Dashte Alwan in northern Afghanistan, and (ii) 220 kV transmission line from Andkhoy to Sheberghan to Dashte Alwan.
Procurement of works and goods to be financed under the Investment Program will be implemented in accordance with ADB's procurement guidelines (Procurement Guidelines) as amended from time to time. International competitive bidding (ICB) will generally be used for supply contracts estimated to cost over $0.5 million and for works over $2 million.
|Responsible ADB Officer||Aleem, Asad|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
Da Afghanistan Breshna Sherkat (Afghanistan Electricity Authority)
Chaman Houzouri, Kabul, Islamic Republic
of Afghanistan Ministry of Education, Youth and Sports
148 Norodom Blvd.
Kingdom of Cambodia Ministry of Energy and Water
Darul Aman Road,
Islamic Republic of Afghanistan Ministry of Mines and Petroleum
Islamic Republic of Afghanistan
|Concept Clearance||19 Nov 2013|
|Fact Finding||14 Sep 2015 to 30 Sep 2015|
|MRM||27 Oct 2015|
|Approval||04 Dec 2015|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2017|
MFF Facility Concept 0090-AFG
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||1,220.00||Cumulative Contract Awards|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Energy Supply Improvement Investment Program: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2015|
|Energy Supply Improvement Investment Program: Facility Administration Manual||Facility Administration Manual||Nov 2015|
|Energy Supply Improvement Investment Program: Framework Financing Agreement||Framework Financing Agreement||Nov 2015|
|Energy Supply Improvement Investment Program: Procurement Plan||Procurement Plans||Oct 2015|
|Multitranche Financing Facility II: Energy Development 2014-2023: Project Data Sheet (Pashto Translation)||Translated PDS||Jan 2014|
|Multitranche Financing Facility II: Energy Development 2014-2023: Project Data Sheet (Dari Translation)||Translated PDS||Jan 2014|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
|Title||Document Type||Document Date|
|Energy Supply Improvement Investment Program Tranche 2: Initial Environmental Examination||Initial Environmental Examination||Oct 2016|
|Energy Supply Improvement Investment Program Tranche 2: Resettlement Plan||Resettlement Plans||Oct 2016|
|Energy Supply Improvement Investment Program - Tranche 1: Initial Environmental Examination||Initial Environmental Examination||Oct 2015|
|Energy Supply Improvement Investment Program: Environmental Assessment and Review Framework||Environmental Assessment and Review Framework||Oct 2015|
|Energy Supply Improvement Investment Program: Resettlement Framework||Resettlement Frameworks||Oct 2015|
|Energy Supply Improvement Investment Program – Tranche 1: Resettlement Plan||Resettlement Plans||Oct 2015|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB $1.2 Billion Grant to Support Afghanistan’s Energy SecurityADB has approved $1.2 billion in grants to reinforce ongoing energy projects in Afghanistan and to provide new funds to boost energy supply, improve power sector efficiency, and promote cross border trade in energy.